0000880859 aimimf:C000209200Member oef:MaterialsSectorMember 2024-10-31
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number
AIM International Mutual Funds (Invesco International Mutual Funds)
(Exact name of registrant as specified in charter)
11 Greenway Plaza, Suite 1000 Houston, Texas 77046
(Address of principal executive offices) (Zip code)
Glenn Brightman, Principal Executive Officer
11 Greenway Plaza, Suite 1000
Houston, Texas 77046
(Name and address of agent for service)
Registrant's telephone number, including area code:
Date of reporting period:
Item 1. Reports to Stockholders.
(a) The Registrant's annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the "Act") is as follows:
Invesco Advantage International Fund
Class A: QMGAX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Advantage International Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Advantage International Fund
(Class A) | $114 | 1.06%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class A shares of the Fund, excluding sales charge, returned 15.61%. For the same time period, the MSCI ACWI ex USA® Index (Net) (“Benchmark Index") returned 24.33%.
What contributed to performance?
Diversified International Stock Portfolio | The Fund's exposure to a diversified portfolio of international stocks, designed to have low tracking error relative to the Benchmark Index, provided growth over the year and performed in line with the Benchmark Index.
What detracted from performance?
Factor tilts to low volatility stocks | The Fund's exposure to low volatility stocks helped to reduce the impact of market volatility and drawdowns relative to the Benchmark Index. However, due to the more defensive nature of the investments, this exposure dragged on overall relative performance as equity markets generally trended upwards over the year.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | Since
Inception
(8/27/15) |
| Invesco Advantage International Fund (Class A) —including sales charge | 9.32% | 3.32% | 4.34% |
| Invesco Advantage International Fund (Class A) —excluding sales charge | 15.61% | 4.48% | 4.98% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 6.11% |
Effective after the close of business on May 24, 2019, Class A shares of Oppenheimer Global Multi-Asset Growth Fund, (the predecessor fund), were reorganized into Class A shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class A shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $31,998,953% |
| Total number of portfolio holdings | $453% |
| Total advisory fees paid | $0% |
| Portfolio turnover rate | $156% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 4.23% |
| China Construction Bank Corp., H Shares | 1.36% |
| Novo Nordisk A/S, Class B | 1.34% |
| Novartis AG | 1.27% |
| ASML Holding N.V. | 1.08% |
| PDD Holdings, Inc., ADR | 1.08% |
| Roche Holding AG | 0.97% |
| Hitachi Ltd. | 0.97% |
| Samsung Electronics Co. Ltd. | 0.92% |
| Industrial & Commercial Bank of China Ltd., H Shares | 0.91% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective March 1, 2024, the expense limitation for Class A shares changed from 0.85% to 1.18% of the Fund's average daily net assets. Unless Invesco continues the fee waiver agreement, it will terminate on February 28, 2025.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Advantage International Fund
Class C: QMGCX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Advantage International Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Advantage International Fund
(Class C) | $194 | 1.81%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class C shares of the Fund, excluding sales charge, returned 14.79%. For the same time period, the MSCI ACWI ex USA® Index (Net) (“Benchmark Index") returned 24.33%.
What contributed to performance?
Diversified International Stock Portfolio | The Fund's exposure to a diversified portfolio of international stocks, designed to have low tracking error relative to the Benchmark Index, provided growth over the year and performed in line with the Benchmark Index.
What detracted from performance?
Factor tilts to low volatility stocks | The Fund's exposure to low volatility stocks helped to reduce the impact of market volatility and drawdowns relative to the Benchmark Index. However, due to the more defensive nature of the investments, this exposure dragged on overall relative performance as equity markets generally trended upwards over the year.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | Since
Inception
(8/27/15) |
| Invesco Advantage International Fund (Class C) —including sales charge | 13.91% | 3.74% | 4.31% |
| Invesco Advantage International Fund (Class C) —excluding sales charge | 14.79% | 3.74% | 4.31% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 6.11% |
Effective after the close of business on May 24, 2019, Class C shares of Oppenheimer Global Multi-Asset Growth Fund, (the predecessor fund), were reorganized into Class C shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class C shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $31,998,953% |
| Total number of portfolio holdings | $453% |
| Total advisory fees paid | $0% |
| Portfolio turnover rate | $156% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 4.23% |
| China Construction Bank Corp., H Shares | 1.36% |
| Novo Nordisk A/S, Class B | 1.34% |
| Novartis AG | 1.27% |
| ASML Holding N.V. | 1.08% |
| PDD Holdings, Inc., ADR | 1.08% |
| Roche Holding AG | 0.97% |
| Hitachi Ltd. | 0.97% |
| Samsung Electronics Co. Ltd. | 0.92% |
| Industrial & Commercial Bank of China Ltd., H Shares | 0.91% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective March 1, 2024, the expense limitation for Class C shares changed from 1.60% to 1.93% of the Fund's average daily net assets. Unless Invesco continues the fee waiver agreement, it will terminate on February 28, 2025.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Advantage International Fund
Class R: QMGRX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Advantage International Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Advantage International Fund
(Class R) | $141 | 1.31%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class R shares of the Fund returned 15.31%. For the same time period, the MSCI ACWI ex USA® Index (Net) (“Benchmark Index") returned 24.33%.
What contributed to performance?
Diversified International Stock Portfolio | The Fund's exposure to a diversified portfolio of international stocks, designed to have low tracking error relative to the Benchmark Index, provided growth over the year and performed in line with the Benchmark Index.
What detracted from performance?
Factor tilts to low volatility stocks | The Fund's exposure to low volatility stocks helped to reduce the impact of market volatility and drawdowns relative to the Benchmark Index. However, due to the more defensive nature of the investments, this exposure dragged on overall relative performance as equity markets generally trended upwards over the year.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | Since
Inception
(8/27/15) |
| Invesco Advantage International Fund (Class R) | 15.31% | 4.25% | 4.73% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 6.11% |
Effective after the close of business on May 24, 2019, Class R shares of Oppenheimer Global Multi-Asset Growth Fund, (the predecessor fund), were reorganized into Class R shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class R shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $31,998,953% |
| Total number of portfolio holdings | $453% |
| Total advisory fees paid | $0% |
| Portfolio turnover rate | $156% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 4.23% |
| China Construction Bank Corp., H Shares | 1.36% |
| Novo Nordisk A/S, Class B | 1.34% |
| Novartis AG | 1.27% |
| ASML Holding N.V. | 1.08% |
| PDD Holdings, Inc., ADR | 1.08% |
| Roche Holding AG | 0.97% |
| Hitachi Ltd. | 0.97% |
| Samsung Electronics Co. Ltd. | 0.92% |
| Industrial & Commercial Bank of China Ltd., H Shares | 0.91% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective March 1, 2024, the expense limitation for Class R shares changed from 1.10% to 1.43% of the Fund's average daily net assets. Unless Invesco continues the fee waiver agreement, it will terminate on February 28, 2025.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Advantage International Fund
Class Y: QMGYX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Advantage International Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Advantage International Fund
(Class Y) | $85 | 0.79%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class Y shares of the Fund returned 15.81%. For the same time period, the MSCI ACWI ex USA® Index (Net) (“Benchmark Index") returned 24.33%.
What contributed to performance?
Diversified International Stock Portfolio | The Fund's exposure to a diversified portfolio of international stocks, designed to have low tracking error relative to the Benchmark Index, provided growth over the year and performed in line with the Benchmark Index.
What detracted from performance?
Factor tilts to low volatility stocks | The Fund's exposure to low volatility stocks helped to reduce the impact of market volatility and drawdowns relative to the Benchmark Index. However, due to the more defensive nature of the investments, this exposure dragged on overall relative performance as equity markets generally trended upwards over the year.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | Since
Inception
(8/27/15) |
| Invesco Advantage International Fund (Class Y) | 15.81% | 4.76% | 5.20% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 6.11% |
Effective after the close of business on May 24, 2019, Class Y shares of Oppenheimer Global Multi-Asset Growth Fund, (the predecessor fund), were reorganized into Class Y shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class Y shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $31,998,953% |
| Total number of portfolio holdings | $453% |
| Total advisory fees paid | $0% |
| Portfolio turnover rate | $156% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 4.23% |
| China Construction Bank Corp., H Shares | 1.36% |
| Novo Nordisk A/S, Class B | 1.34% |
| Novartis AG | 1.27% |
| ASML Holding N.V. | 1.08% |
| PDD Holdings, Inc., ADR | 1.08% |
| Roche Holding AG | 0.97% |
| Hitachi Ltd. | 0.97% |
| Samsung Electronics Co. Ltd. | 0.92% |
| Industrial & Commercial Bank of China Ltd., H Shares | 0.91% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective March 1, 2024, the expense limitation for Class Y shares changed from 0.60% to 0.93% of the Fund's average daily net assets. Unless Invesco continues the fee waiver agreement, it will terminate on February 28, 2025.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Advantage International Fund
Class R5: GMAGX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Advantage International Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Advantage International Fund
(Class R5) | $89 | 0.82%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class R5 shares of the Fund returned 15.88%. For the same time period, the MSCI ACWI ex USA® Index (Net) (“Benchmark Index") returned 24.33%.
What contributed to performance?
Diversified International Stock Portfolio | The Fund's exposure to a diversified portfolio of international stocks, designed to have low tracking error relative to the Benchmark Index, provided growth over the year and performed in line with the Benchmark Index.
What detracted from performance?
Factor tilts to low volatility stocks | The Fund's exposure to low volatility stocks helped to reduce the impact of market volatility and drawdowns relative to the Benchmark Index. However, due to the more defensive nature of the investments, this exposure dragged on overall relative performance as equity markets generally trended upwards over the year.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | Since
Inception
(8/27/15) |
| Invesco Advantage International Fund (Class R5) | 15.88% | 4.75% | 5.14% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 6.11% |
Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of Oppenheimer Global Multi-Asset Growth Fund's (the predecessor fund) Class A shares at net asset value and includes 12b-1 fees applicable to Class A shares. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $31,998,953% |
| Total number of portfolio holdings | $453% |
| Total advisory fees paid | $0% |
| Portfolio turnover rate | $156% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 4.23% |
| China Construction Bank Corp., H Shares | 1.36% |
| Novo Nordisk A/S, Class B | 1.34% |
| Novartis AG | 1.27% |
| ASML Holding N.V. | 1.08% |
| PDD Holdings, Inc., ADR | 1.08% |
| Roche Holding AG | 0.97% |
| Hitachi Ltd. | 0.97% |
| Samsung Electronics Co. Ltd. | 0.92% |
| Industrial & Commercial Bank of China Ltd., H Shares | 0.91% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective March 1, 2024, the expense limitation for Class R5 shares changed from 0.60% to 0.93% of the Fund's average daily net assest. Unless Invesco continues the fee waiver agreement, it will terminate on February 28, 2025.
Effective after the close of business on September 30, 2024, the Fund has limited public sales of its Class R5 shares to certain investors who were previously invested in Class R5 shares of the Fund.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Advantage International Fund
Class R6: QMGIX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Advantage International Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Advantage International Fund
(Class R6) | $89 | 0.82%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• The global monetary easing cycle finally arrived, with several central banks cutting interest rates. Despite some volatility, global growth and disinflationary progress continued, leading to robust gains for global equity markets. Throughout the fiscal year, monetary policy remained a key market driver, with dovish central bank comments boosting market sentiment and expectations of further rate cuts.
• For the fiscal year ended October 31, 2024, Class R6 shares of the Fund returned 15.89%. For the same time period, the MSCI ACWI ex USA® Index (Net) (“Benchmark Index") returned 24.33%.
What contributed to performance?
Diversified International Stock Portfolio | The Fund's exposure to a diversified portfolio of international stocks, designed to have low tracking error relative to the Benchmark Index, provided growth over the year and performed in line with the Benchmark Index.
What detracted from performance?
Factor tilts to low volatility stocks | The Fund's exposure to low volatility stocks helped to reduce the impact of market volatility and drawdowns relative to the Benchmark Index. However, due to the more defensive nature of the investments, this exposure dragged on overall relative performance as equity markets generally trended upwards over the year.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | Since
Inception
(8/27/15) |
| Invesco Advantage International Fund (Class R6) | 15.89% | 4.79% | 5.25% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 6.11% |
Effective after the close of business on May 24, 2019, Class I shares of Oppenheimer Global Multi-Asset Growth Fund, (the predecessor fund), were reorganized into Class R6 shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $31,998,953% |
| Total number of portfolio holdings | $453% |
| Total advisory fees paid | $0% |
| Portfolio turnover rate | $156% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 4.23% |
| China Construction Bank Corp., H Shares | 1.36% |
| Novo Nordisk A/S, Class B | 1.34% |
| Novartis AG | 1.27% |
| ASML Holding N.V. | 1.08% |
| PDD Holdings, Inc., ADR | 1.08% |
| Roche Holding AG | 0.97% |
| Hitachi Ltd. | 0.97% |
| Samsung Electronics Co. Ltd. | 0.92% |
| Industrial & Commercial Bank of China Ltd., H Shares | 0.91% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective March 1, 2024, the expense limitation for Class R6 shares changed from 0.60% to 0.93% of the Fund's average daily net assets. Unless Invesco continues the fee waiver agreement, it will terminate on February 28, 2025.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco EQV Asia Pacific Equity Fund
Class A: ASIAX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco EQV Asia Pacific Equity Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco EQV Asia Pacific Equity Fund
(Class A) | $167 | 1.51% |
How Did The Fund Perform During The Period?
• Emerging market equities in the Asia Pacific ex Japan region performed very well during the fiscal year ended October 31, 2024. News of fiscal stimulus by the Chinese government drove better sentiment towards the region, with robust returns in China and Taiwan. Indian equities also performed very well during the fiscal year, as well as Australia on the developed markets side.
• For the fiscal year ended October 31, 2024, Class A shares of the Fund, excluding sales charge, returned 20.85%, lagging the MSCI All Country Asia Pacific ex-Japan Index return of 28.15%. The Fund's underperformance for the fiscal year was primarily driven by stock selection in consumer staples, financials and China and overweight exposures to consumer staples and Indonesia.
What contributed to performance?
Taiwan Semiconductor Manufacturing Co. Ltd. | The company's technology roadmap and financial performance have remained strong and TSMC has continued to benefit from increased artificial intelligence (AI) demand and a better pricing outlook.
Broadcom, Inc. | Semiconductor products manufacturer Broadcom’s generative AI demand has been, in our view, better-than-expected. The newly acquired VMware software business has generated better-than-expected revenue, and the company has been executing on cost synergies as planned.
Tencent Holdings Ltd. | A Chinese technology conglomerate. Tencent’s newer online advertising products have boosted growth and market share, and we believe the outlook for online games may improve given its solid pipeline. Profit margins have risen faster-than-expected as the company focuses on higher value revenue streams.
What detracted from performance?
Yum China Holdings, Inc. | A Chinese fast-food company that we exited during the fiscal year due to increased competition in the restaurant channel that negatively affected same store sales.
China Mengniu Dairy Co. Ltd. | A leading producer of milk and dairy products in China. Consumption has remained weak, and with raw milk in oversupply, promotional activity began to increase, leading to weaker profitability for the company. We trimmed the Fund's position during the fiscal year.
China Resources Beer Holdings Co. Ltd. | A large beer producer in China that has been impacted by weak sentiment amid macro softness.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco EQV Asia Pacific Equity Fund (Class A) —including sales charge | 14.19% | 3.41% | 4.09% |
| Invesco EQV Asia Pacific Equity Fund (Class A) —excluding sales charge | 20.85% | 4.59% | 4.68% |
| MSCI All Country Asia Pacific ex-Japan Index (Net) | 28.15% | 4.99% | 4.66% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $400,589,205% |
| Total number of portfolio holdings | $50% |
| Total advisory fees paid | $3,740,026% |
| Portfolio turnover rate | $15% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd. | 8.14% |
| Tencent Holdings Ltd. | 5.37% |
| HDFC Bank Ltd., ADR | 4.14% |
| Broadcom, Inc. | 3.52% |
| Aristocrat Leisure Ltd. | 3.37% |
| Tongcheng Travel Holdings Ltd. | 3.10% |
| BDO Unibank, Inc. | 3.06% |
| Techtronic Industries Co. Ltd. | 3.01% |
| Central Pattana PCL, Foreign Shares | 2.99% |
| Fuyao Glass Industry Group Co. Ltd., H Shares | 2.90% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
At a meeting held on September 9-11, 2024, the Board of Trustees of Invesco Greater China Fund (the "Target Fund") unanimously approved an Agreement and Plan of Reorganization (the "Agreement") pursuant to which the Fund would acquire all or substantially all of the assets and liabilities of 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 February 21, 2025 (unless otherwise agreed by the parties to account for any delay for any reason). In connection with the reorganization, the Board of Trustees approved a reduction in the Fund's advisory fee schedule and also approved changing Class A's compensation styled Rule 12b-1 plan with a reimbursement styled Rule 12b-1 plan; such changes will become effective upon the closing of the reorganization.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco EQV Asia Pacific Equity Fund
Class C: ASICX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco EQV Asia Pacific Equity Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco EQV Asia Pacific Equity Fund
(Class C) | $249 | 2.26% |
How Did The Fund Perform During The Period?
• Emerging market equities in the Asia Pacific ex Japan region performed very well during the fiscal year ended October 31, 2024. News of fiscal stimulus by the Chinese government drove better sentiment towards the region, with robust returns in China and Taiwan. Indian equities also performed very well during the fiscal year, as well as Australia on the developed markets side.
• For the fiscal year ended October 31, 2024, Class C shares of the Fund, excluding sales charge, returned 19.97%, lagging the MSCI All Country Asia Pacific ex-Japan Index return of 28.15%. The Fund's underperformance for the fiscal year was primarily driven by stock selection in consumer staples, financials and China and overweight exposures to consumer staples and Indonesia.
What contributed to performance?
Taiwan Semiconductor Manufacturing Co. Ltd. | The company's technology roadmap and financial performance have remained strong and TSMC has continued to benefit from increased artificial intelligence (AI) demand and a better pricing outlook.
Broadcom, Inc. | Semiconductor products manufacturer Broadcom’s generative AI demand has been, in our view, better-than-expected. The newly acquired VMware software business has generated better-than-expected revenue, and the company has been executing on cost synergies as planned.
Tencent Holdings Ltd. | A Chinese technology conglomerate. Tencent’s newer online advertising products have boosted growth and market share, and we believe the outlook for online games may improve given its solid pipeline. Profit margins have risen faster-than-expected as the company focuses on higher value revenue streams.
What detracted from performance?
Yum China Holdings, Inc. | A Chinese fast-food company that we exited during the fiscal year due to increased competition in the restaurant channel that negatively affected same store sales.
China Mengniu Dairy Co. Ltd. | A leading producer of milk and dairy products in China. Consumption has remained weak, and with raw milk in oversupply, promotional activity began to increase, leading to weaker profitability for the company. We trimmed the Fund's position during the fiscal year.
China Resources Beer Holdings Co. Ltd. | A large beer producer in China that has been impacted by weak sentiment amid macro softness.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco EQV Asia Pacific Equity Fund (Class C) —including sales charge | 18.97% | 3.81% | 4.06% |
| Invesco EQV Asia Pacific Equity Fund (Class C) —excluding sales charge | 19.97% | 3.81% | 4.06% |
| MSCI All Country Asia Pacific ex-Japan Index (Net) | 28.15% | 4.99% | 4.66% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $400,589,205% |
| Total number of portfolio holdings | $50% |
| Total advisory fees paid | $3,740,026% |
| Portfolio turnover rate | $15% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd. | 8.14% |
| Tencent Holdings Ltd. | 5.37% |
| HDFC Bank Ltd., ADR | 4.14% |
| Broadcom, Inc. | 3.52% |
| Aristocrat Leisure Ltd. | 3.37% |
| Tongcheng Travel Holdings Ltd. | 3.10% |
| BDO Unibank, Inc. | 3.06% |
| Techtronic Industries Co. Ltd. | 3.01% |
| Central Pattana PCL, Foreign Shares | 2.99% |
| Fuyao Glass Industry Group Co. Ltd., H Shares | 2.90% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
At a meeting held on September 9-11, 2024, the Board of Trustees of Invesco Greater China Fund (the "Target Fund") unanimously approved an Agreement and Plan of Reorganization (the "Agreement") pursuant to which the Fund would acquire all or substantially all of the assets and liabilities of 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 February 21, 2025 (unless otherwise agreed by the parties to account for any delay for any reason). In connection with the reorganization, the Board of Trustees approved a reduction in the Fund's advisory fee schedule and also approved changing Class C's compensation styled Rule 12b-1 plan with a reimbursement styled Rule 12b-1 plan; such changes will become effective upon the closing of the reorganization.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco EQV Asia Pacific Equity Fund
Class Y: ASIYX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco EQV Asia Pacific Equity Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco EQV Asia Pacific Equity Fund
(Class Y) | $139 | 1.26% |
How Did The Fund Perform During The Period?
• Emerging market equities in the Asia Pacific ex Japan region performed very well during the fiscal year ended October 31, 2024. News of fiscal stimulus by the Chinese government drove better sentiment towards the region, with robust returns in China and Taiwan. Indian equities also performed very well during the fiscal year, as well as Australia on the developed markets side.
• For the fiscal year ended October 31, 2024, Class Y shares of the Fund returned 21.17%, lagging the MSCI All Country Asia Pacific ex-Japan Index return of 28.15%. The Fund's underperformance for the fiscal year was primarily driven by stock selection in consumer staples, financials and China and overweight exposures to consumer staples and Indonesia.
What contributed to performance?
Taiwan Semiconductor Manufacturing Co. Ltd. | The company's technology roadmap and financial performance have remained strong and TSMC has continued to benefit from increased artificial intelligence (AI) demand and a better pricing outlook.
Broadcom, Inc. | Semiconductor products manufacturer Broadcom’s generative AI demand has been, in our view, better-than-expected. The newly acquired VMware software business has generated better-than-expected revenue, and the company has been executing on cost synergies as planned.
Tencent Holdings Ltd. | A Chinese technology conglomerate. Tencent’s newer online advertising products have boosted growth and market share, and we believe the outlook for online games may improve given its solid pipeline. Profit margins have risen faster-than-expected as the company focuses on higher value revenue streams.
What detracted from performance?
Yum China Holdings, Inc. | A Chinese fast-food company that we exited during the fiscal year due to increased competition in the restaurant channel that negatively affected same store sales.
China Mengniu Dairy Co. Ltd. | A leading producer of milk and dairy products in China. Consumption has remained weak, and with raw milk in oversupply, promotional activity began to increase, leading to weaker profitability for the company. We trimmed the Fund's position during the fiscal year.
China Resources Beer Holdings Co. Ltd. | A large beer producer in China that has been impacted by weak sentiment amid macro softness.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco EQV Asia Pacific Equity Fund (Class Y) | 21.17% | 4.85% | 4.94% |
| MSCI All Country Asia Pacific ex-Japan Index (Net) | 28.15% | 4.99% | 4.66% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $400,589,205% |
| Total number of portfolio holdings | $50% |
| Total advisory fees paid | $3,740,026% |
| Portfolio turnover rate | $15% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd. | 8.14% |
| Tencent Holdings Ltd. | 5.37% |
| HDFC Bank Ltd., ADR | 4.14% |
| Broadcom, Inc. | 3.52% |
| Aristocrat Leisure Ltd. | 3.37% |
| Tongcheng Travel Holdings Ltd. | 3.10% |
| BDO Unibank, Inc. | 3.06% |
| Techtronic Industries Co. Ltd. | 3.01% |
| Central Pattana PCL, Foreign Shares | 2.99% |
| Fuyao Glass Industry Group Co. Ltd., H Shares | 2.90% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
At a meeting held on September 9-11, 2024, the Board of Trustees of Invesco Greater China Fund (the "Target Fund") unanimously approved an Agreement and Plan of Reorganization (the "Agreement") pursuant to which the Fund would acquire all or substantially all of the assets and liabilities of 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 February 21, 2025 (unless otherwise agreed by the parties to account for any delay for any reason). In connection with the reorganization, the Board of Trustees approved a reduction in the Fund's advisory fee schedule effective upon the closing of the reorganization.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco EQV Asia Pacific Equity Fund
Class R6: ASISX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco EQV Asia Pacific Equity Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco EQV Asia Pacific Equity Fund
(Class R6) | $118 | 1.07% |
How Did The Fund Perform During The Period?
• Emerging market equities in the Asia Pacific ex Japan region performed very well during the fiscal year ended October 31, 2024. News of fiscal stimulus by the Chinese government drove better sentiment towards the region, with robust returns in China and Taiwan. Indian equities also performed very well during the fiscal year, as well as Australia on the developed markets side.
• For the fiscal year ended October 31, 2024, Class R6 shares of the Fund returned 21.39%, lagging the MSCI All Country Asia Pacific ex-Japan Index return of 28.15%. The Fund's underperformance for the fiscal year was primarily driven by stock selection in consumer staples, financials and China and overweight exposures to consumer staples and Indonesia.
What contributed to performance?
Taiwan Semiconductor Manufacturing Co. Ltd. | The company's technology roadmap and financial performance have remained strong and TSMC has continued to benefit from increased artificial intelligence (AI) demand and a better pricing outlook.
Broadcom, Inc. | Semiconductor products manufacturer Broadcom’s generative AI demand has been, in our view, better-than-expected. The newly acquired VMware software business has generated better-than-expected revenue, and the company has been executing on cost synergies as planned.
Tencent Holdings Ltd. | A Chinese technology conglomerate. Tencent’s newer online advertising products have boosted growth and market share, and we believe the outlook for online games may improve given its solid pipeline. Profit margins have risen faster-than-expected as the company focuses on higher value revenue streams.
What detracted from performance?
Yum China Holdings, Inc. | A Chinese fast-food company that we exited during the fiscal year due to increased competition in the restaurant channel that negatively affected same store sales.
China Mengniu Dairy Co. Ltd. | A leading producer of milk and dairy products in China. Consumption has remained weak, and with raw milk in oversupply, promotional activity began to increase, leading to weaker profitability for the company. We trimmed the Fund's position during the fiscal year.
China Resources Beer Holdings Co. Ltd. | A large beer producer in China that has been impacted by weak sentiment amid macro softness.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco EQV Asia Pacific Equity Fund (Class R6) | 21.39% | 5.02% | 5.01% |
| MSCI All Country Asia Pacific ex-Japan Index (Net) | 28.15% | 4.99% | 4.66% |
Class R6 shares incepted on April 4, 2017. Performance shown prior to that date is that of Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares. Class R6 shares' returns of the Fund will be different from Class A shares' returns of the Fund as they have different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $400,589,205% |
| Total number of portfolio holdings | $50% |
| Total advisory fees paid | $3,740,026% |
| Portfolio turnover rate | $15% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd. | 8.14% |
| Tencent Holdings Ltd. | 5.37% |
| HDFC Bank Ltd., ADR | 4.14% |
| Broadcom, Inc. | 3.52% |
| Aristocrat Leisure Ltd. | 3.37% |
| Tongcheng Travel Holdings Ltd. | 3.10% |
| BDO Unibank, Inc. | 3.06% |
| Techtronic Industries Co. Ltd. | 3.01% |
| Central Pattana PCL, Foreign Shares | 2.99% |
| Fuyao Glass Industry Group Co. Ltd., H Shares | 2.90% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
At a meeting held on September 9-11, 2024, the Board of Trustees of Invesco Greater China Fund (the "Target Fund") unanimously approved an Agreement and Plan of Reorganization (the "Agreement") pursuant to which the Fund would acquire all or substantially all of the assets and liabilities of 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 February 21, 2025 (unless otherwise agreed by the parties to account for any delay for any reason). In connection with the reorganization, the Board of Trustees approved a reduction in the Fund's advisory fee schedule effective upon the closing of the reorganization.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco EQV European Equity Fund
Class A: AEDAX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco EQV European Equity Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco EQV European Equity Fund
(Class A) | $158 | 1.42% |
How Did The Fund Perform During The Period?
• European equities delivered robust returns for the fiscal year ended October 31, 2024, but underperformed those of other regions, including the US and emerging markets. In a market environment where the European Central Bank and the Bank of England cut interest rates, European value stocks outperformed European growth stocks, with the financials sector being the best performing sector for the fiscal year.
• For the fiscal year ended October 31, 2024, Class A shares of the Fund, excluding sales charge, returned 21.96%, slightly lagging the MSCI Europe Index return of 22.43%. The Fund's performance for the fiscal year benefited from positive stock selection in consumer discretionary, materials, the UK and Sweden and was hampered by weaker stock selection in information technology, consumer staples, France and Switzerland.
What contributed to performance?
Investor AB | A Swedish investment holding company. The holding company combines a portfolio of, what we believe to be, high-performing blue-chip publicly listed companies with a group of structurally growing private healthcare and technology businesses. Investor AB benefited from strong performance of the company’s underlying equity stakes.
Schneider Electric SE | A French industrials company that specializes in digital automation and energy management. The company has seen robust growth driven by demand in the energy management sector and recovery signs in industrials automation in China.
CRH PLC | A construction materials company that has benefited from solid exposure to growth trends such as reshoring/onshoring and infrastructure spending in the US and Europe. We believe CRH has plenty of opportunity for mergers and acquisitions in its key markets.
What detracted from performance?
STMicroelectronics N.V. | A large European semiconductor chipmaker. The company's shares have lagged due to challenges in automotive and industrial end markets. We believe STMicroelectronics is a good quality semiconductor company that is going through a cyclical correction but remains exposed to robust long-term growth trends.
Pernod Ricard S.A. | A French international spirits company that has been negatively affected by weak demand in China and slowing US trends. We believe that Pernod has strong brand equity and structural advantages.
Edenred SE | A French payment service provider that specializes in pre-paid benefits such as tax advantaged employee meal vouchers or fuel cards. The stock fell due to concerns about the visibility and duration of its profitable growth algorithm. After reviewing regulatory risk, the competitive landscape, and the impact of moderating interest rates, we believe Edenred is likely to continue a path of profitable growth.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco EQV European Equity Fund (Class A) —including sales charge | 15.23% | 2.23% | 3.08% |
| Invesco EQV European Equity Fund (Class A) —excluding sales charge | 21.96% | 3.40% | 3.67% |
| MSCI Europe Index (Net) | 22.43% | 6.91% | 5.23% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $451,231,722% |
| Total number of portfolio holdings | $60% |
| Total advisory fees paid | $4,431,176% |
| Portfolio turnover rate | $19% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Novo Nordisk A/S, Class B | 3.95% |
| Investor AB, Class B | 3.62% |
| RELX PLC | 3.42% |
| Deutsche Boerse AG | 2.97% |
| IG Group Holdings PLC | 2.78% |
| CRH PLC | 2.67% |
| Nestle S.A. | 2.61% |
| Haleon PLC | 2.51% |
| Richter Gedeon Nyrt | 2.51% |
| Bollore SE | 2.42% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco EQV European Equity Fund
Class C: AEDCX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco EQV European Equity Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco EQV European Equity Fund
(Class C) | $240 | 2.17% |
How Did The Fund Perform During The Period?
• European equities delivered robust returns for the fiscal year ended October 31, 2024, but underperformed those of other regions, including the US and emerging markets. In a market environment where the European Central Bank and the Bank of England cut interest rates, European value stocks outperformed European growth stocks, with the financials sector being the best performing sector for the fiscal year.
• For the fiscal year ended October 31, 2024, Class C shares of the Fund, excluding sales charge, returned 21.01%, slightly lagging the MSCI Europe Index return of 22.43%. The Fund's performance for the fiscal year benefited from positive stock selection in consumer discretionary, materials, the UK and Sweden and was hampered by weaker stock selection in information technology, consumer staples, France and Switzerland.
What contributed to performance?
Investor AB | A Swedish investment holding company. The holding company combines a portfolio of, what we believe to be, high-performing blue-chip publicly listed companies with a group of structurally growing private healthcare and technology businesses. Investor AB benefited from strong performance of the company’s underlying equity stakes.
Schneider Electric SE | A French industrials company that specializes in digital automation and energy management. The company has seen robust growth driven by demand in the energy management sector and recovery signs in industrials automation in China.
CRH PLC | A construction materials company that has benefited from solid exposure to growth trends such as reshoring/onshoring and infrastructure spending in the US and Europe. We believe CRH has plenty of opportunity for mergers and acquisitions in its key markets.
What detracted from performance?
STMicroelectronics N.V. | A large European semiconductor chipmaker. The company's shares have lagged due to challenges in automotive and industrial end markets. We believe STMicroelectronics is a good quality semiconductor company that is going through a cyclical correction but remains exposed to robust long-term growth trends.
Pernod Ricard S.A. | A French international spirits company that has been negatively affected by weak demand in China and slowing US trends. We believe that Pernod has strong brand equity and structural advantages.
Edenred SE | A French payment service provider that specializes in pre-paid benefits such as tax advantaged employee meal vouchers or fuel cards. The stock fell due to concerns about the visibility and duration of its profitable growth algorithm. After reviewing regulatory risk, the competitive landscape, and the impact of moderating interest rates, we believe Edenred is likely to continue a path of profitable growth.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco EQV European Equity Fund (Class C) —including sales charge | 20.01% | 2.62% | 3.05% |
| Invesco EQV European Equity Fund (Class C) —excluding sales charge | 21.01% | 2.62% | 3.05% |
| MSCI Europe Index (Net) | 22.43% | 6.91% | 5.23% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $451,231,722% |
| Total number of portfolio holdings | $60% |
| Total advisory fees paid | $4,431,176% |
| Portfolio turnover rate | $19% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Novo Nordisk A/S, Class B | 3.95% |
| Investor AB, Class B | 3.62% |
| RELX PLC | 3.42% |
| Deutsche Boerse AG | 2.97% |
| IG Group Holdings PLC | 2.78% |
| CRH PLC | 2.67% |
| Nestle S.A. | 2.61% |
| Haleon PLC | 2.51% |
| Richter Gedeon Nyrt | 2.51% |
| Bollore SE | 2.42% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco EQV European Equity Fund
Class R: AEDRX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco EQV European Equity Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco EQV European Equity Fund
(Class R) | $185 | 1.67% |
How Did The Fund Perform During The Period?
• European equities delivered robust returns for the fiscal year ended October 31, 2024, but underperformed those of other regions, including the US and emerging markets. In a market environment where the European Central Bank and the Bank of England cut interest rates, European value stocks outperformed European growth stocks, with the financials sector being the best performing sector for the fiscal year.
• For the fiscal year ended October 31, 2024, Class R shares of the Fund returned 21.66%, slightly lagging the MSCI Europe Index return of 22.43%. The Fund's performance for the fiscal year benefited from positive stock selection in consumer discretionary, materials, the UK and Sweden and was hampered by weaker stock selection in information technology, consumer staples, France and Switzerland.
What contributed to performance?
Investor AB | A Swedish investment holding company. The holding company combines a portfolio of, what we believe to be, high-performing blue-chip publicly listed companies with a group of structurally growing private healthcare and technology businesses. Investor AB benefited from strong performance of the company’s underlying equity stakes.
Schneider Electric SE | A French industrials company that specializes in digital automation and energy management. The company has seen robust growth driven by demand in the energy management sector and recovery signs in industrials automation in China.
CRH PLC | A construction materials company that has benefited from solid exposure to growth trends such as reshoring/onshoring and infrastructure spending in the US and Europe. We believe CRH has plenty of opportunity for mergers and acquisitions in its key markets.
What detracted from performance?
STMicroelectronics N.V. | A large European semiconductor chipmaker. The company's shares have lagged due to challenges in automotive and industrial end markets. We believe STMicroelectronics is a good quality semiconductor company that is going through a cyclical correction but remains exposed to robust long-term growth trends.
Pernod Ricard S.A. | A French international spirits company that has been negatively affected by weak demand in China and slowing US trends. We believe that Pernod has strong brand equity and structural advantages.
Edenred SE | A French payment service provider that specializes in pre-paid benefits such as tax advantaged employee meal vouchers or fuel cards. The stock fell due to concerns about the visibility and duration of its profitable growth algorithm. After reviewing regulatory risk, the competitive landscape, and the impact of moderating interest rates, we believe Edenred is likely to continue a path of profitable growth.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco EQV European Equity Fund (Class R) | 21.66% | 3.14% | 3.41% |
| MSCI Europe Index (Net) | 22.43% | 6.91% | 5.23% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $451,231,722% |
| Total number of portfolio holdings | $60% |
| Total advisory fees paid | $4,431,176% |
| Portfolio turnover rate | $19% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Novo Nordisk A/S, Class B | 3.95% |
| Investor AB, Class B | 3.62% |
| RELX PLC | 3.42% |
| Deutsche Boerse AG | 2.97% |
| IG Group Holdings PLC | 2.78% |
| CRH PLC | 2.67% |
| Nestle S.A. | 2.61% |
| Haleon PLC | 2.51% |
| Richter Gedeon Nyrt | 2.51% |
| Bollore SE | 2.42% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco EQV European Equity Fund
Class Y: AEDYX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco EQV European Equity Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco EQV European Equity Fund
(Class Y) | $130 | 1.17% |
How Did The Fund Perform During The Period?
• European equities delivered robust returns for the fiscal year ended October 31, 2024, but underperformed those of other regions, including the US and emerging markets. In a market environment where the European Central Bank and the Bank of England cut interest rates, European value stocks outperformed European growth stocks, with the financials sector being the best performing sector for the fiscal year.
• For the fiscal year ended October 31, 2024, Class Y shares of the Fund returned 22.22%, slightly lagging the MSCI Europe Index return of 22.43%. The Fund's performance for the fiscal year benefited from positive stock selection in consumer discretionary, materials, the UK and Sweden and was hampered by weaker stock selection in information technology, consumer staples, France and Switzerland.
What contributed to performance?
Investor AB | A Swedish investment holding company. The holding company combines a portfolio of, what we believe to be, high-performing blue-chip publicly listed companies with a group of structurally growing private healthcare and technology businesses. Investor AB benefited from strong performance of the company’s underlying equity stakes.
Schneider Electric SE | A French industrials company that specializes in digital automation and energy management. The company has seen robust growth driven by demand in the energy management sector and recovery signs in industrials automation in China.
CRH PLC | A construction materials company that has benefited from solid exposure to growth trends such as reshoring/onshoring and infrastructure spending in the US and Europe. We believe CRH has plenty of opportunity for mergers and acquisitions in its key markets.
What detracted from performance?
STMicroelectronics N.V. | A large European semiconductor chipmaker. The company's shares have lagged due to challenges in automotive and industrial end markets. We believe STMicroelectronics is a good quality semiconductor company that is going through a cyclical correction but remains exposed to robust long-term growth trends.
Pernod Ricard S.A. | A French international spirits company that has been negatively affected by weak demand in China and slowing US trends. We believe that Pernod has strong brand equity and structural advantages.
Edenred SE | A French payment service provider that specializes in pre-paid benefits such as tax advantaged employee meal vouchers or fuel cards. The stock fell due to concerns about the visibility and duration of its profitable growth algorithm. After reviewing regulatory risk, the competitive landscape, and the impact of moderating interest rates, we believe Edenred is likely to continue a path of profitable growth.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco EQV European Equity Fund (Class Y) | 22.22% | 3.65% | 3.93% |
| MSCI Europe Index (Net) | 22.43% | 6.91% | 5.23% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $451,231,722% |
| Total number of portfolio holdings | $60% |
| Total advisory fees paid | $4,431,176% |
| Portfolio turnover rate | $19% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Novo Nordisk A/S, Class B | 3.95% |
| Investor AB, Class B | 3.62% |
| RELX PLC | 3.42% |
| Deutsche Boerse AG | 2.97% |
| IG Group Holdings PLC | 2.78% |
| CRH PLC | 2.67% |
| Nestle S.A. | 2.61% |
| Haleon PLC | 2.51% |
| Richter Gedeon Nyrt | 2.51% |
| Bollore SE | 2.42% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco EQV European Equity Fund
Investor Class: EGINX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco EQV European Equity Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco EQV European Equity Fund
(Investor Class) | $149 | 1.34% |
How Did The Fund Perform During The Period?
• European equities delivered robust returns for the fiscal year ended October 31, 2024, but underperformed those of other regions, including the US and emerging markets. In a market environment where the European Central Bank and the Bank of England cut interest rates, European value stocks outperformed European growth stocks, with the financials sector being the best performing sector for the fiscal year.
• For the fiscal year ended October 31, 2024, Investor Class shares of the Fund returned 22.07%, slightly lagging the MSCI Europe Index return of 22.43%. The Fund's performance for the fiscal year benefited from positive stock selection in consumer discretionary, materials, the UK and Sweden and was hampered by weaker stock selection in information technology, consumer staples, France and Switzerland.
What contributed to performance?
Investor AB | A Swedish investment holding company. The holding company combines a portfolio of, what we believe to be, high-performing blue-chip publicly listed companies with a group of structurally growing private healthcare and technology businesses. Investor AB benefited from strong performance of the company’s underlying equity stakes.
Schneider Electric SE | A French industrials company that specializes in digital automation and energy management. The company has seen robust growth driven by demand in the energy management sector and recovery signs in industrials automation in China.
CRH PLC | A construction materials company that has benefited from solid exposure to growth trends such as reshoring/onshoring and infrastructure spending in the US and Europe. We believe CRH has plenty of opportunity for mergers and acquisitions in its key markets.
What detracted from performance?
STMicroelectronics N.V. | A large European semiconductor chipmaker. The company's shares have lagged due to challenges in automotive and industrial end markets. We believe STMicroelectronics is a good quality semiconductor company that is going through a cyclical correction but remains exposed to robust long-term growth trends.
Pernod Ricard S.A. | A French international spirits company that has been negatively affected by weak demand in China and slowing US trends. We believe that Pernod has strong brand equity and structural advantages.
Edenred SE | A French payment service provider that specializes in pre-paid benefits such as tax advantaged employee meal vouchers or fuel cards. The stock fell due to concerns about the visibility and duration of its profitable growth algorithm. After reviewing regulatory risk, the competitive landscape, and the impact of moderating interest rates, we believe Edenred is likely to continue a path of profitable growth.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco EQV European Equity Fund (Investor Class) | 22.07% | 3.49% | 3.74% |
| MSCI Europe Index (Net) | 22.43% | 6.91% | 5.23% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $451,231,722% |
| Total number of portfolio holdings | $60% |
| Total advisory fees paid | $4,431,176% |
| Portfolio turnover rate | $19% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Novo Nordisk A/S, Class B | 3.95% |
| Investor AB, Class B | 3.62% |
| RELX PLC | 3.42% |
| Deutsche Boerse AG | 2.97% |
| IG Group Holdings PLC | 2.78% |
| CRH PLC | 2.67% |
| Nestle S.A. | 2.61% |
| Haleon PLC | 2.51% |
| Richter Gedeon Nyrt | 2.51% |
| Bollore SE | 2.42% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco EQV European Equity Fund
Class R6: AEGSX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco EQV European Equity Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco EQV European Equity Fund
(Class R6) | $116 | 1.04% |
How Did The Fund Perform During The Period?
• European equities delivered robust returns for the fiscal year ended October 31, 2024, but underperformed those of other regions, including the US and emerging markets. In a market environment where the European Central Bank and the Bank of England cut interest rates, European value stocks outperformed European growth stocks, with the financials sector being the best performing sector for the fiscal year.
• For the fiscal year ended October 31, 2024, Class R6 shares of the Fund returned 22.41%, slightly lagging the MSCI Europe Index return of 22.43%. The Fund's performance for the fiscal year benefited from positive stock selection in consumer discretionary, materials, the UK and Sweden and was hampered by weaker stock selection in information technology, consumer staples, France and Switzerland.
What contributed to performance?
Investor AB | A Swedish investment holding company. The holding company combines a portfolio of, what we believe to be, high-performing blue-chip publicly listed companies with a group of structurally growing private healthcare and technology businesses. Investor AB benefited from strong performance of the company’s underlying equity stakes.
Schneider Electric SE | A French industrials company that specializes in digital automation and energy management. The company has seen robust growth driven by demand in the energy management sector and recovery signs in industrials automation in China.
CRH PLC | A construction materials company that has benefited from solid exposure to growth trends such as reshoring/onshoring and infrastructure spending in the US and Europe. We believe CRH has plenty of opportunity for mergers and acquisitions in its key markets.
What detracted from performance?
STMicroelectronics N.V. | A large European semiconductor chipmaker. The company's shares have lagged due to challenges in automotive and industrial end markets. We believe STMicroelectronics is a good quality semiconductor company that is going through a cyclical correction but remains exposed to robust long-term growth trends.
Pernod Ricard S.A. | A French international spirits company that has been negatively affected by weak demand in China and slowing US trends. We believe that Pernod has strong brand equity and structural advantages.
Edenred SE | A French payment service provider that specializes in pre-paid benefits such as tax advantaged employee meal vouchers or fuel cards. The stock fell due to concerns about the visibility and duration of its profitable growth algorithm. After reviewing regulatory risk, the competitive landscape, and the impact of moderating interest rates, we believe Edenred is likely to continue a path of profitable growth.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco EQV European Equity Fund (Class R6) | 22.41% | 3.78% | 3.96% |
| MSCI Europe Index (Net) | 22.43% | 6.91% | 5.23% |
Class R6 shares incepted on April 4, 2017. Performance shown prior to that date is that of Class A shares at net asset value and includes the 12b-1 fees applicable to Class A shares. Class R6 shares' returns of the Fund will be different from Class A shares' returns of the Fund as they have different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $451,231,722% |
| Total number of portfolio holdings | $60% |
| Total advisory fees paid | $4,431,176% |
| Portfolio turnover rate | $19% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Novo Nordisk A/S, Class B | 3.95% |
| Investor AB, Class B | 3.62% |
| RELX PLC | 3.42% |
| Deutsche Boerse AG | 2.97% |
| IG Group Holdings PLC | 2.78% |
| CRH PLC | 2.67% |
| Nestle S.A. | 2.61% |
| Haleon PLC | 2.51% |
| Richter Gedeon Nyrt | 2.51% |
| Bollore SE | 2.42% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco EQV International Equity Fund
Class A: AIIEX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco EQV International Equity Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco EQV International Equity Fund
(Class A) | $140 | 1.28% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around the artificial intelligence (AI) investment wave led to concentrated market leadership in the mega cap technology space, and to outperformance relative to non-US equities. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better investor sentiment towards the EM asset class.
• For the fiscal year ended October 31, 2024, Class A shares of the Fund, excluding sales charge, returned 18.12%, lagging the MSCI ACWI ex USA® Index return of 24.33%. The Fund's underperformance for the fiscal year was primarily driven by stock selection and an overweight in the consumer staples sector and stock selection and an underweight in EM.
What contributed to performance?
Broadcom, Inc. | Semiconductor products manufacturer Broadcom’s generative AI demand has been better-than-expected, which drove strong performance. The newly acquired VMware software business generated better-than-expected revenue, and the company has been executing on cost synergies as planned.
Taiwan Semiconductor Manufacturing Co. Ltd. | The company's technology roadmap and financial performance have remained strong and TSMC continued to benefit from increased AI demand and a better pricing outlook.
Investor AB | A Swedish investment holding company. The holding company combines a portfolio of, what we believe to be, high-performing blue-chip publicly listed companies with a group of structurally growing private healthcare and technology businesses. Investor AB benefited from strong performance of the company’s underlying equity stakes.
What detracted from performance?
Yum China Holdings, Inc. | A Chinese fast-food company that we exited during the fiscal year due to increased competition in the restaurant channel that negatively affected same store sales.
China Mengiu Dairy Co. Ltd. | A leading producer of milk and dairy products in China. Consumption remained weak, and with raw milk in oversupply, promotional activity began to increase, leading to weaker profitability for the company. We exited the stock during the fiscal year.
STMicroelectronics N.V. | A large European semiconductor chipmaker. The company's shares have lagged due to challenges in automotive and industrial end markets. We believe STMicroelectronics is a good quality semiconductor company that is going through a cyclical correction but remains exposed to robust long-term growth trends.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco EQV International Equity Fund (Class A) —including sales charge | 11.62% | 3.25% | 3.53% |
| Invesco EQV International Equity Fund (Class A) —excluding sales charge | 18.12% | 4.42% | 4.12% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 4.79% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $2,616,596,558% |
| Total number of portfolio holdings | $74% |
| Total advisory fees paid | $21,393,409% |
| Portfolio turnover rate | $28% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd. | 3.42% |
| Investor AB, Class B | 3.28% |
| RELX PLC | 2.77% |
| Novo Nordisk A/S, Class B | 2.49% |
| Aristocrat Leisure Ltd. | 2.31% |
| CRH PLC | 2.30% |
| Broadcom, Inc. | 2.19% |
| Schneider Electric SE | 2.19% |
| CGI, Inc., Class A | 2.13% |
| RB Global, Inc. | 2.02% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco EQV International Equity Fund
Class C: AIECX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco EQV International Equity Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco EQV International Equity Fund
(Class C) | $220 | 2.03% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around the artificial intelligence (AI) investment wave led to concentrated market leadership in the mega cap technology space, and to outperformance relative to non-US equities. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better investor sentiment towards the EM asset class.
• For the fiscal year ended October 31, 2024, Class C shares of the Fund, excluding sales charge, returned 17.23%, lagging the MSCI ACWI ex USA® Index return of 24.33%. The Fund's underperformance for the fiscal year was primarily driven by stock selection and an overweight in the consumer staples sector and stock selection and an underweight in EM.
What contributed to performance?
Broadcom, Inc. | Semiconductor products manufacturer Broadcom’s generative AI demand has been better-than-expected, which drove strong performance. The newly acquired VMware software business generated better-than-expected revenue, and the company has been executing on cost synergies as planned.
Taiwan Semiconductor Manufacturing Co. Ltd. | The company's technology roadmap and financial performance have remained strong and TSMC continued to benefit from increased AI demand and a better pricing outlook.
Investor AB | A Swedish investment holding company. The holding company combines a portfolio of, what we believe to be, high-performing blue-chip publicly listed companies with a group of structurally growing private healthcare and technology businesses. Investor AB benefited from strong performance of the company’s underlying equity stakes.
What detracted from performance?
Yum China Holdings, Inc. | A Chinese fast-food company that we exited during the fiscal year due to increased competition in the restaurant channel that negatively affected same store sales.
China Mengiu Dairy Co. Ltd. | A leading producer of milk and dairy products in China. Consumption remained weak, and with raw milk in oversupply, promotional activity began to increase, leading to weaker profitability for the company. We exited the stock during the fiscal year.
STMicroelectronics N.V. | A large European semiconductor chipmaker. The company's shares have lagged due to challenges in automotive and industrial end markets. We believe STMicroelectronics is a good quality semiconductor company that is going through a cyclical correction but remains exposed to robust long-term growth trends.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco EQV International Equity Fund (Class C) —including sales charge | 16.23% | 3.64% | 3.50% |
| Invesco EQV International Equity Fund (Class C) —excluding sales charge | 17.23% | 3.64% | 3.50% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 4.79% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $2,616,596,558% |
| Total number of portfolio holdings | $74% |
| Total advisory fees paid | $21,393,409% |
| Portfolio turnover rate | $28% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd. | 3.42% |
| Investor AB, Class B | 3.28% |
| RELX PLC | 2.77% |
| Novo Nordisk A/S, Class B | 2.49% |
| Aristocrat Leisure Ltd. | 2.31% |
| CRH PLC | 2.30% |
| Broadcom, Inc. | 2.19% |
| Schneider Electric SE | 2.19% |
| CGI, Inc., Class A | 2.13% |
| RB Global, Inc. | 2.02% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco EQV International Equity Fund
Class R: AIERX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco EQV International Equity Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco EQV International Equity Fund
(Class R) | $167 | 1.53% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around the artificial intelligence (AI) investment wave led to concentrated market leadership in the mega cap technology space, and to outperformance relative to non-US equities. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better investor sentiment towards the EM asset class.
• For the fiscal year ended October 31, 2024, Class R shares of the Fund returned 17.82%, lagging the MSCI ACWI ex USA® Index return of 24.33%. The Fund's underperformance for the fiscal year was primarily driven by stock selection and an overweight in the consumer staples sector and stock selection and an underweight in EM.
What contributed to performance?
Broadcom, Inc. | Semiconductor products manufacturer Broadcom’s generative AI demand has been better-than-expected, which drove strong performance. The newly acquired VMware software business generated better-than-expected revenue, and the company has been executing on cost synergies as planned.
Taiwan Semiconductor Manufacturing Co. Ltd. | The company's technology roadmap and financial performance have remained strong and TSMC continued to benefit from increased AI demand and a better pricing outlook.
Investor AB | A Swedish investment holding company. The holding company combines a portfolio of, what we believe to be, high-performing blue-chip publicly listed companies with a group of structurally growing private healthcare and technology businesses. Investor AB benefited from strong performance of the company’s underlying equity stakes.
What detracted from performance?
Yum China Holdings, Inc. | A Chinese fast-food company that we exited during the fiscal year due to increased competition in the restaurant channel that negatively affected same store sales.
China Mengiu Dairy Co. Ltd. | A leading producer of milk and dairy products in China. Consumption remained weak, and with raw milk in oversupply, promotional activity began to increase, leading to weaker profitability for the company. We exited the stock during the fiscal year.
STMicroelectronics N.V. | A large European semiconductor chipmaker. The company's shares have lagged due to challenges in automotive and industrial end markets. We believe STMicroelectronics is a good quality semiconductor company that is going through a cyclical correction but remains exposed to robust long-term growth trends.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco EQV International Equity Fund (Class R) | 17.82% | 4.15% | 3.86% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 4.79% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $2,616,596,558% |
| Total number of portfolio holdings | $74% |
| Total advisory fees paid | $21,393,409% |
| Portfolio turnover rate | $28% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd. | 3.42% |
| Investor AB, Class B | 3.28% |
| RELX PLC | 2.77% |
| Novo Nordisk A/S, Class B | 2.49% |
| Aristocrat Leisure Ltd. | 2.31% |
| CRH PLC | 2.30% |
| Broadcom, Inc. | 2.19% |
| Schneider Electric SE | 2.19% |
| CGI, Inc., Class A | 2.13% |
| RB Global, Inc. | 2.02% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco EQV International Equity Fund
Class Y: AIIYX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco EQV International Equity Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco EQV International Equity Fund
(Class Y) | $112 | 1.03% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around the artificial intelligence (AI) investment wave led to concentrated market leadership in the mega cap technology space, and to outperformance relative to non-US equities. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better investor sentiment towards the EM asset class.
• For the fiscal year ended October 31, 2024, Class Y shares of the Fund returned 18.42%, lagging the MSCI ACWI ex USA® Index return of 24.33%. The Fund's underperformance for the fiscal year was primarily driven by stock selection and an overweight in the consumer staples sector and stock selection and an underweight in EM.
What contributed to performance?
Broadcom, Inc. | Semiconductor products manufacturer Broadcom’s generative AI demand has been better-than-expected, which drove strong performance. The newly acquired VMware software business generated better-than-expected revenue, and the company has been executing on cost synergies as planned.
Taiwan Semiconductor Manufacturing Co. Ltd. | The company's technology roadmap and financial performance have remained strong and TSMC continued to benefit from increased AI demand and a better pricing outlook.
Investor AB | A Swedish investment holding company. The holding company combines a portfolio of, what we believe to be, high-performing blue-chip publicly listed companies with a group of structurally growing private healthcare and technology businesses. Investor AB benefited from strong performance of the company’s underlying equity stakes.
What detracted from performance?
Yum China Holdings, Inc. | A Chinese fast-food company that we exited during the fiscal year due to increased competition in the restaurant channel that negatively affected same store sales.
China Mengiu Dairy Co. Ltd. | A leading producer of milk and dairy products in China. Consumption remained weak, and with raw milk in oversupply, promotional activity began to increase, leading to weaker profitability for the company. We exited the stock during the fiscal year.
STMicroelectronics N.V. | A large European semiconductor chipmaker. The company's shares have lagged due to challenges in automotive and industrial end markets. We believe STMicroelectronics is a good quality semiconductor company that is going through a cyclical correction but remains exposed to robust long-term growth trends.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco EQV International Equity Fund (Class Y) | 18.42% | 4.68% | 4.38% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 4.79% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $2,616,596,558% |
| Total number of portfolio holdings | $74% |
| Total advisory fees paid | $21,393,409% |
| Portfolio turnover rate | $28% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd. | 3.42% |
| Investor AB, Class B | 3.28% |
| RELX PLC | 2.77% |
| Novo Nordisk A/S, Class B | 2.49% |
| Aristocrat Leisure Ltd. | 2.31% |
| CRH PLC | 2.30% |
| Broadcom, Inc. | 2.19% |
| Schneider Electric SE | 2.19% |
| CGI, Inc., Class A | 2.13% |
| RB Global, Inc. | 2.02% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco EQV International Equity Fund
Class R5: AIEVX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco EQV International Equity Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco EQV International Equity Fund
(Class R5) | $103 | 0.94% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around the artificial intelligence (AI) investment wave led to concentrated market leadership in the mega cap technology space, and to outperformance relative to non-US equities. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better investor sentiment towards the EM asset class.
• For the fiscal year ended October 31, 2024, Class R5 shares of the Fund returned 18.53%, lagging the MSCI ACWI ex USA® Index return of 24.33%. The Fund's underperformance for the fiscal year was primarily driven by stock selection and an overweight in the consumer staples sector and stock selection and an underweight in EM.
What contributed to performance?
Broadcom, Inc. | Semiconductor products manufacturer Broadcom’s generative AI demand has been better-than-expected, which drove strong performance. The newly acquired VMware software business generated better-than-expected revenue, and the company has been executing on cost synergies as planned.
Taiwan Semiconductor Manufacturing Co. Ltd. | The company's technology roadmap and financial performance have remained strong and TSMC continued to benefit from increased AI demand and a better pricing outlook.
Investor AB | A Swedish investment holding company. The holding company combines a portfolio of, what we believe to be, high-performing blue-chip publicly listed companies with a group of structurally growing private healthcare and technology businesses. Investor AB benefited from strong performance of the company’s underlying equity stakes.
What detracted from performance?
Yum China Holdings, Inc. | A Chinese fast-food company that we exited during the fiscal year due to increased competition in the restaurant channel that negatively affected same store sales.
China Mengiu Dairy Co. Ltd. | A leading producer of milk and dairy products in China. Consumption remained weak, and with raw milk in oversupply, promotional activity began to increase, leading to weaker profitability for the company. We exited the stock during the fiscal year.
STMicroelectronics N.V. | A large European semiconductor chipmaker. The company's shares have lagged due to challenges in automotive and industrial end markets. We believe STMicroelectronics is a good quality semiconductor company that is going through a cyclical correction but remains exposed to robust long-term growth trends.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco EQV International Equity Fund (Class R5) | 18.53% | 4.77% | 4.47% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 4.79% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $2,616,596,558% |
| Total number of portfolio holdings | $74% |
| Total advisory fees paid | $21,393,409% |
| Portfolio turnover rate | $28% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd. | 3.42% |
| Investor AB, Class B | 3.28% |
| RELX PLC | 2.77% |
| Novo Nordisk A/S, Class B | 2.49% |
| Aristocrat Leisure Ltd. | 2.31% |
| CRH PLC | 2.30% |
| Broadcom, Inc. | 2.19% |
| Schneider Electric SE | 2.19% |
| CGI, Inc., Class A | 2.13% |
| RB Global, Inc. | 2.02% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective after the close of business on September 30, 2024, the Fund has limited public sales of its Class R5 shares to certain investors who were previously invested in Class R5 shares of the Fund.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco EQV International Equity Fund
Class R6: IGFRX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco EQV International Equity Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco EQV International Equity Fund
(Class R6) | $95 | 0.87% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around the artificial intelligence (AI) investment wave led to concentrated market leadership in the mega cap technology space, and to outperformance relative to non-US equities. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better investor sentiment towards the EM asset class.
• For the fiscal year ended October 31, 2024, Class R6 shares of the Fund returned 18.63%, lagging the MSCI ACWI ex USA® Index return of 24.33%. The Fund's underperformance for the fiscal year was primarily driven by stock selection and an overweight in the consumer staples sector and stock selection and an underweight in EM.
What contributed to performance?
Broadcom, Inc. | Semiconductor products manufacturer Broadcom’s generative AI demand has been better-than-expected, which drove strong performance. The newly acquired VMware software business generated better-than-expected revenue, and the company has been executing on cost synergies as planned.
Taiwan Semiconductor Manufacturing Co. Ltd. | The company's technology roadmap and financial performance have remained strong and TSMC continued to benefit from increased AI demand and a better pricing outlook.
Investor AB | A Swedish investment holding company. The holding company combines a portfolio of, what we believe to be, high-performing blue-chip publicly listed companies with a group of structurally growing private healthcare and technology businesses. Investor AB benefited from strong performance of the company’s underlying equity stakes.
What detracted from performance?
Yum China Holdings, Inc. | A Chinese fast-food company that we exited during the fiscal year due to increased competition in the restaurant channel that negatively affected same store sales.
China Mengiu Dairy Co. Ltd. | A leading producer of milk and dairy products in China. Consumption remained weak, and with raw milk in oversupply, promotional activity began to increase, leading to weaker profitability for the company. We exited the stock during the fiscal year.
STMicroelectronics N.V. | A large European semiconductor chipmaker. The company's shares have lagged due to challenges in automotive and industrial end markets. We believe STMicroelectronics is a good quality semiconductor company that is going through a cyclical correction but remains exposed to robust long-term growth trends.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco EQV International Equity Fund (Class R6) | 18.63% | 4.85% | 4.55% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 4.79% |
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $2,616,596,558% |
| Total number of portfolio holdings | $74% |
| Total advisory fees paid | $21,393,409% |
| Portfolio turnover rate | $28% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Taiwan Semiconductor Manufacturing Co. Ltd. | 3.42% |
| Investor AB, Class B | 3.28% |
| RELX PLC | 2.77% |
| Novo Nordisk A/S, Class B | 2.49% |
| Aristocrat Leisure Ltd. | 2.31% |
| CRH PLC | 2.30% |
| Broadcom, Inc. | 2.19% |
| Schneider Electric SE | 2.19% |
| CGI, Inc., Class A | 2.13% |
| RB Global, Inc. | 2.02% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Focus Fund
Class A: GLVAX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Focus Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Focus Fund
(Class A) | $148 | 1.25% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around artificial intelligence (AI) led to concentrated market leadership in the megacap technology space and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the fiscal year also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• In this environment, Class A shares of the Invesco Global Focus Fund, excluding sales charge, returned 36.42% for the fiscal year ended October 31, 2024, lagging the MSCI ACWI Growth Index return of 37.22% for the period.
What contributed to performance?
Meta Platforms, Inc. | Meta Platforms continues its leadership in social media advertising, excelling in user growth, engagement and monetization efficiency. Recent results showed strong network effects, drawing in a larger user base and boosting engagement, enabling Meta to sell more ads at elevated prices.
Amazon.com, Inc. | Amazon.com has steadily expanded its profitability under CEO Andy Jassy. The company remains dominant in ecommerce and its cloud business has a long runway of potential growth ahead.
Uber Technologies, Inc. | Uber Technologies’ share price has surged since reaching operating profitability and free cash flow production. Uber is the undisputed global leader in ride sharing, and we believe ride sharing is set to take share from car ownership over the next decade.
What detracted from performance?
BE Semiconductor Industries N.V. | BE Semiconductor makes advanced packing solutions used in the semiconductor business with a next generation technology platform that we believe will ultimately be widely adopted. Shares of BE Semiconductor declined after the company fell short on guidance estimates during the third quarter and on concerns about a sluggish recovery in automotive and smartphone markets. We continue to hold the position.
Alibaba Group Holding Ltd. | Alibaba announced a management reshuffle and sentiment toward Chinese stocks has been sour. However, we believe the real problems are largely company specific. Alibaba has, in our view, simply not been competitive or innovative enough to stop eroding market share. We sold the stock during the period.
BeiGene Ltd. | BeiGene Ltd. is a US/Chinese biotech that has had commercial success across the globe in oncology but has been weighed down by what could only be described as a China discount. We exited our position towards the end of the period on the premise that our efforts might be better rewarded investing elsewhere.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Focus Fund (Class A) —including sales charge | 28.92% | 10.28% | 8.49% |
| Invesco Global Focus Fund (Class A) —excluding sales charge | 36.42% | 11.54% | 9.10% |
| MSCI ACWI Growth Index (Net) | 37.22% | 13.51% | 11.42% |
| MSCI ACWI Index (Net) | 32.79% | 11.08% | 9.02% |
Effective after the close of business on May 24, 2019, Class A shares of Oppenheimer Global Focus Fund, (the predecessor fund), were reorganized into Class A shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class A shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $558,070,275% |
| Total number of portfolio holdings | $41% |
| Total advisory fees paid | $4,445,315% |
| Portfolio turnover rate | $13% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Meta Platforms, Inc., Class A | 10.60% |
| Alphabet, Inc., Class A | 6.96% |
| Amazon.com, Inc. | 6.59% |
| Hermes International S.C.A. | 4.77% |
| Mastercard, Inc., Class A | 4.70% |
| ServiceNow, Inc. | 4.30% |
| Uber Technologies, Inc. | 4.11% |
| Thermo Fisher Scientific, Inc. | 3.62% |
| Tencent Holdings Ltd. | 3.38% |
| Salesforce, Inc. | 3.17% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Focus Fund
Class C: GLVCX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Focus Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Focus Fund
(Class C) | $235 | 2.00% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around artificial intelligence (AI) led to concentrated market leadership in the megacap technology space and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the fiscal year also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• In this environment, Class C shares of the Invesco Global Focus Fund, excluding sales charge, returned 35.40% for the fiscal year ended October 31, 2024, lagging the MSCI ACWI Growth Index return of 37.22% for the period.
What contributed to performance?
Meta Platforms, Inc. | Meta Platforms continues its leadership in social media advertising, excelling in user growth, engagement and monetization efficiency. Recent results showed strong network effects, drawing in a larger user base and boosting engagement, enabling Meta to sell more ads at elevated prices.
Amazon.com, Inc. | Amazon.com has steadily expanded its profitability under CEO Andy Jassy. The company remains dominant in ecommerce and its cloud business has a long runway of potential growth ahead.
Uber Technologies, Inc. | Uber Technologies’ share price has surged since reaching operating profitability and free cash flow production. Uber is the undisputed global leader in ride sharing, and we believe ride sharing is set to take share from car ownership over the next decade.
What detracted from performance?
BE Semiconductor Industries N.V. | BE Semiconductor makes advanced packing solutions used in the semiconductor business with a next generation technology platform that we believe will ultimately be widely adopted. Shares of BE Semiconductor declined after the company fell short on guidance estimates during the third quarter and on concerns about a sluggish recovery in automotive and smartphone markets. We continue to hold the position.
Alibaba Group Holding Ltd. | Alibaba announced a management reshuffle and sentiment toward Chinese stocks has been sour. However, we believe the real problems are largely company specific. Alibaba has, in our view, simply not been competitive or innovative enough to stop eroding market share. We sold the stock during the period.
BeiGene Ltd. | BeiGene Ltd. is a US/Chinese biotech that has had commercial success across the globe in oncology but has been weighed down by what could only be described as a China discount. We exited our position towards the end of the period on the premise that our efforts might be better rewarded investing elsewhere.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Focus Fund (Class C) —including sales charge | 34.40% | 10.70% | 8.44% |
| Invesco Global Focus Fund (Class C) —excluding sales charge | 35.40% | 10.70% | 8.44% |
| MSCI ACWI Growth Index (Net) | 37.22% | 13.51% | 11.42% |
| MSCI ACWI Index (Net) | 32.79% | 11.08% | 9.02% |
Effective after the close of business on May 24, 2019, Class C shares of Oppenheimer Global Focus Fund, (the predecessor fund), were reorganized into Class C shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class C shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $558,070,275% |
| Total number of portfolio holdings | $41% |
| Total advisory fees paid | $4,445,315% |
| Portfolio turnover rate | $13% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Meta Platforms, Inc., Class A | 10.60% |
| Alphabet, Inc., Class A | 6.96% |
| Amazon.com, Inc. | 6.59% |
| Hermes International S.C.A. | 4.77% |
| Mastercard, Inc., Class A | 4.70% |
| ServiceNow, Inc. | 4.30% |
| Uber Technologies, Inc. | 4.11% |
| Thermo Fisher Scientific, Inc. | 3.62% |
| Tencent Holdings Ltd. | 3.38% |
| Salesforce, Inc. | 3.17% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Focus Fund
Class R: GLVNX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Focus Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Focus Fund
(Class R) | $177 | 1.50% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around artificial intelligence (AI) led to concentrated market leadership in the megacap technology space and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the fiscal year also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• In this environment, Class R shares of the Invesco Global Focus Fund returned 36.10% for the fiscal year ended October 31, 2024, lagging the MSCI ACWI Growth Index return of 37.22% for the period.
What contributed to performance?
Meta Platforms, Inc. | Meta Platforms continues its leadership in social media advertising, excelling in user growth, engagement and monetization efficiency. Recent results showed strong network effects, drawing in a larger user base and boosting engagement, enabling Meta to sell more ads at elevated prices.
Amazon.com, Inc. | Amazon.com has steadily expanded its profitability under CEO Andy Jassy. The company remains dominant in ecommerce and its cloud business has a long runway of potential growth ahead.
Uber Technologies, Inc. | Uber Technologies’ share price has surged since reaching operating profitability and free cash flow production. Uber is the undisputed global leader in ride sharing, and we believe ride sharing is set to take share from car ownership over the next decade.
What detracted from performance?
BE Semiconductor Industries N.V. | BE Semiconductor makes advanced packing solutions used in the semiconductor business with a next generation technology platform that we believe will ultimately be widely adopted. Shares of BE Semiconductor declined after the company fell short on guidance estimates during the third quarter and on concerns about a sluggish recovery in automotive and smartphone markets. We continue to hold the position.
Alibaba Group Holding Ltd. | Alibaba announced a management reshuffle and sentiment toward Chinese stocks has been sour. However, we believe the real problems are largely company specific. Alibaba has, in our view, simply not been competitive or innovative enough to stop eroding market share. We sold the stock during the period.
BeiGene Ltd. | BeiGene Ltd. is a US/Chinese biotech that has had commercial success across the globe in oncology but has been weighed down by what could only be described as a China discount. We exited our position towards the end of the period on the premise that our efforts might be better rewarded investing elsewhere.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Focus Fund (Class R) | 36.10% | 11.27% | 8.83% |
| MSCI ACWI Growth Index (Net) | 37.22% | 13.51% | 11.42% |
| MSCI ACWI Index (Net) | 32.79% | 11.08% | 9.02% |
Effective after the close of business on May 24, 2019, Class R shares of Oppenheimer Global Focus Fund, (the predecessor fund), were reorganized into Class R shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class R shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $558,070,275% |
| Total number of portfolio holdings | $41% |
| Total advisory fees paid | $4,445,315% |
| Portfolio turnover rate | $13% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Meta Platforms, Inc., Class A | 10.60% |
| Alphabet, Inc., Class A | 6.96% |
| Amazon.com, Inc. | 6.59% |
| Hermes International S.C.A. | 4.77% |
| Mastercard, Inc., Class A | 4.70% |
| ServiceNow, Inc. | 4.30% |
| Uber Technologies, Inc. | 4.11% |
| Thermo Fisher Scientific, Inc. | 3.62% |
| Tencent Holdings Ltd. | 3.38% |
| Salesforce, Inc. | 3.17% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Focus Fund
Class Y: GLVYX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Focus Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Focus Fund
(Class Y) | $118 | 1.00% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around artificial intelligence (AI) led to concentrated market leadership in the megacap technology space and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the fiscal year also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• In this environment, Class Y shares of the Invesco Global Focus Fund, returned 36.76% for the fiscal year ended October 31, 2024, lagging the MSCI ACWI Growth Index return of 37.22% for the period.
What contributed to performance?
Meta Platforms, Inc. | Meta Platforms continues its leadership in social media advertising, excelling in user growth, engagement and monetization efficiency. Recent results showed strong network effects, drawing in a larger user base and boosting engagement, enabling Meta to sell more ads at elevated prices.
Amazon.com, Inc. | Amazon.com has steadily expanded its profitability under CEO Andy Jassy. The company remains dominant in ecommerce and its cloud business has a long runway of potential growth ahead.
Uber Technologies, Inc. | Uber Technologies’ share price has surged since reaching operating profitability and free cash flow production. Uber is the undisputed global leader in ride sharing, and we believe ride sharing is set to take share from car ownership over the next decade.
What detracted from performance?
BE Semiconductor Industries N.V. | BE Semiconductor makes advanced packing solutions used in the semiconductor business with a next generation technology platform that we believe will ultimately be widely adopted. Shares of BE Semiconductor declined after the company fell short on guidance estimates during the third quarter and on concerns about a sluggish recovery in automotive and smartphone markets. We continue to hold the position.
Alibaba Group Holding Ltd. | Alibaba announced a management reshuffle and sentiment toward Chinese stocks has been sour. However, we believe the real problems are largely company specific. Alibaba has, in our view, simply not been competitive or innovative enough to stop eroding market share. We sold the stock during the period.
BeiGene Ltd. | BeiGene Ltd. is a US/Chinese biotech that has had commercial success across the globe in oncology but has been weighed down by what could only be described as a China discount. We exited our position towards the end of the period on the premise that our efforts might be better rewarded investing elsewhere.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Focus Fund (Class Y) | 36.76% | 11.81% | 9.37% |
| MSCI ACWI Growth Index (Net) | 37.22% | 13.51% | 11.42% |
| MSCI ACWI Index (Net) | 32.79% | 11.08% | 9.02% |
Effective after the close of business on May 24, 2019, Class Y shares of Oppenheimer Global Focus Fund, (the predecessor fund), were reorganized into Class Y shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class Y shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $558,070,275% |
| Total number of portfolio holdings | $41% |
| Total advisory fees paid | $4,445,315% |
| Portfolio turnover rate | $13% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Meta Platforms, Inc., Class A | 10.60% |
| Alphabet, Inc., Class A | 6.96% |
| Amazon.com, Inc. | 6.59% |
| Hermes International S.C.A. | 4.77% |
| Mastercard, Inc., Class A | 4.70% |
| ServiceNow, Inc. | 4.30% |
| Uber Technologies, Inc. | 4.11% |
| Thermo Fisher Scientific, Inc. | 3.62% |
| Tencent Holdings Ltd. | 3.38% |
| Salesforce, Inc. | 3.17% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Focus Fund
Class R5: GFFDX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Focus Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Focus Fund
(Class R5) | $105 | 0.89% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around artificial intelligence (AI) led to concentrated market leadership in the megacap technology space and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the fiscal year also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• In this environment, Class R5 shares of the Invesco Global Focus Fund returned 36.94% for the fiscal year ended October 31, 2024, lagging the MSCI ACWI Growth Index return of 37.22% for the period.
What contributed to performance?
Meta Platforms, Inc. | Meta Platforms continues its leadership in social media advertising, excelling in user growth, engagement and monetization efficiency. Recent results showed strong network effects, drawing in a larger user base and boosting engagement, enabling Meta to sell more ads at elevated prices.
Amazon.com, Inc. | Amazon.com has steadily expanded its profitability under CEO Andy Jassy. The company remains dominant in ecommerce and its cloud business has a long runway of potential growth ahead.
Uber Technologies, Inc. | Uber Technologies’ share price has surged since reaching operating profitability and free cash flow production. Uber is the undisputed global leader in ride sharing, and we believe ride sharing is set to take share from car ownership over the next decade.
What detracted from performance?
BE Semiconductor Industries N.V. | BE Semiconductor makes advanced packing solutions used in the semiconductor business with a next generation technology platform that we believe will ultimately be widely adopted. Shares of BE Semiconductor declined after the company fell short on guidance estimates during the third quarter and on concerns about a sluggish recovery in automotive and smartphone markets. We continue to hold the position.
Alibaba Group Holding Ltd. | Alibaba announced a management reshuffle and sentiment toward Chinese stocks has been sour. However, we believe the real problems are largely company specific. Alibaba has, in our view, simply not been competitive or innovative enough to stop eroding market share. We sold the stock during the period.
BeiGene Ltd. | BeiGene Ltd. is a US/Chinese biotech that has had commercial success across the globe in oncology but has been weighed down by what could only be described as a China discount. We exited our position towards the end of the period on the premise that our efforts might be better rewarded investing elsewhere.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Focus Fund (Class R5) | 36.94% | 11.95% | 9.32% |
| MSCI ACWI Growth Index (Net) | 37.22% | 13.51% | 11.42% |
| MSCI ACWI Index (Net) | 32.79% | 11.08% | 9.02% |
Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of Oppenheimer Global Focus Fund's (the predecessor fund) Class A shares at net asset value and includes 12b-1 fees applicable to Class A shares. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $558,070,275% |
| Total number of portfolio holdings | $41% |
| Total advisory fees paid | $4,445,315% |
| Portfolio turnover rate | $13% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Meta Platforms, Inc., Class A | 10.60% |
| Alphabet, Inc., Class A | 6.96% |
| Amazon.com, Inc. | 6.59% |
| Hermes International S.C.A. | 4.77% |
| Mastercard, Inc., Class A | 4.70% |
| ServiceNow, Inc. | 4.30% |
| Uber Technologies, Inc. | 4.11% |
| Thermo Fisher Scientific, Inc. | 3.62% |
| Tencent Holdings Ltd. | 3.38% |
| Salesforce, Inc. | 3.17% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective after the close of business on September 30, 2024, the Fund has limited public sales of its Class R5 shares to certain investors who were previously invested in Class R5 shares of the Fund.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Focus Fund
Class R6: GLVIX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Focus Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Focus Fund
(Class R6) | $105 | 0.89% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around artificial intelligence (AI) led to concentrated market leadership in the megacap technology space and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the fiscal year also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• In this environment, Class R6 shares of the Invesco Global Focus Fund returned 36.93% for the fiscal year ended October 31, 2024, lagging the MSCI ACWI Growth Index return of 37.22% for the period.
What contributed to performance?
Meta Platforms, Inc. | Meta Platforms continues its leadership in social media advertising, excelling in user growth, engagement and monetization efficiency. Recent results showed strong network effects, drawing in a larger user base and boosting engagement, enabling Meta to sell more ads at elevated prices.
Amazon.com, Inc. | Amazon.com has steadily expanded its profitability under CEO Andy Jassy. The company remains dominant in ecommerce and its cloud business has a long runway of potential growth ahead.
Uber Technologies, Inc. | Uber Technologies’ share price has surged since reaching operating profitability and free cash flow production. Uber is the undisputed global leader in ride sharing, and we believe ride sharing is set to take share from car ownership over the next decade.
What detracted from performance?
BE Semiconductor Industries N.V. | BE Semiconductor makes advanced packing solutions used in the semiconductor business with a next generation technology platform that we believe will ultimately be widely adopted. Shares of BE Semiconductor declined after the company fell short on guidance estimates during the third quarter and on concerns about a sluggish recovery in automotive and smartphone markets. We continue to hold the position.
Alibaba Group Holding Ltd. | Alibaba announced a management reshuffle and sentiment toward Chinese stocks has been sour. However, we believe the real problems are largely company specific. Alibaba has, in our view, simply not been competitive or innovative enough to stop eroding market share. We sold the stock during the period.
BeiGene Ltd. | BeiGene Ltd. is a US/Chinese biotech that has had commercial success across the globe in oncology but has been weighed down by what could only be described as a China discount. We exited our position towards the end of the period on the premise that our efforts might be better rewarded investing elsewhere.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Focus Fund (Class R6) | 36.93% | 11.96% | 9.54% |
| MSCI ACWI Growth Index (Net) | 37.22% | 13.51% | 11.42% |
| MSCI ACWI Index (Net) | 32.79% | 11.08% | 9.02% |
Effective after the close of business on May 24, 2019, Class I shares of Oppenheimer Global Focus Fund, (the predecessor fund), were reorganized into Class R6 shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $558,070,275% |
| Total number of portfolio holdings | $41% |
| Total advisory fees paid | $4,445,315% |
| Portfolio turnover rate | $13% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Meta Platforms, Inc., Class A | 10.60% |
| Alphabet, Inc., Class A | 6.96% |
| Amazon.com, Inc. | 6.59% |
| Hermes International S.C.A. | 4.77% |
| Mastercard, Inc., Class A | 4.70% |
| ServiceNow, Inc. | 4.30% |
| Uber Technologies, Inc. | 4.11% |
| Thermo Fisher Scientific, Inc. | 3.62% |
| Tencent Holdings Ltd. | 3.38% |
| Salesforce, Inc. | 3.17% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Fund
Class A: OPPAX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Fund
(Class A) | $123 | 1.05% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around artificial intelligence (AI) led to concentrated market leadership in the megacap technology space and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the period also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• For the fiscal year ended October 31, 2024, Class A shares of the Fund, excluding sales charge, returned 34.55%. For the same time period, the MSCI ACWI Growth Index returned of 37.22%.
What contributed to performance?
Meta Platforms, Inc. | In our opinion, Meta Platforms continued its leadership in social media advertising, excelling in user growth, engagement and monetization efficiency. Recent results showed strong network effects, drawing in a larger user base and boosting engagement, enabling Meta to sell more ads at elevated prices.
Alphabet, Inc. | Alphabet reported strong results in its Google Search, cloud business and YouTube advertising in addition to introducing a $10 billion annual dividend and authorized $70 billion in share repurchases over the period. We believe the perceived risks to Google Search are exaggerated and that Alphabet stands to benefit from generative AI, with its vast data resources, a large user base across various platforms and advanced AI infrastructure. More recently, the company lost an anti-trust lawsuit that was brought by the United States Justice Department. The ruling is likely to be subjected to a lengthy appeals process and we do not believe the eventual remedy is likely to be severe, nor impact our long-term investment thesis on the company.
NVIDIA Corp. | NVIDIA continues to capitalize on the surge in AI demand. We believe its comprehensive full-stack strategy and diverse product offerings, including the recent introduction of Blackwell chip architecture, promises substantial performance improvements, further solidifying its leading position.
What detracted from performance?
Charter Communications | Charter Communications, a US telecommunications and mass media company, was exited on weaker customer metrics and broadband subscriptions over the period.
Meituan | Chinese shopping platform company, Meituan, had struggled over the past year due to margin pressures and slowing growth amidst stiff competition. Investors are cautious of a revenue slowdown, with management expecting consumers to be more cautious and value-oriented. As a result of this, the position was exited.
Eli Lilly and Co. | Eli Lilly was a new addition to the portfolio over the period. We feel the company has a blockbuster business emerging in its line-up of weight loss and diabetes treatments. Following the US election and the potential uncertainty surrounding the incoming administration's health policy, shares of Eli Lilly, along with many other health care stocks, experienced a modest decline.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Fund (Class A) —including sales charge | 27.14% | 9.22% | 8.78% |
| Invesco Global Fund (Class A) —excluding sales charge | 34.55% | 10.46% | 9.40% |
| MSCI ACWI Growth Index (Net) | 37.22% | 13.51% | 11.42% |
| MSCI ACWI (Net) | 32.79% | 11.08% | 9.06% |
Effective after the close of business on May 24, 2019, Class A shares of Oppenheimer Global Fund, (the predecessor fund), were reorganized into Class A shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class A shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $9,202,773,413% |
| Total number of portfolio holdings | $65% |
| Total advisory fees paid | $59,703,976% |
| Portfolio turnover rate | $7% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Alphabet, Inc., Class A | 11.17% |
| Meta Platforms, Inc., Class A | 9.00% |
| DLF Ltd. | 4.74% |
| Analog Devices, Inc. | 4.47% |
| S&P Global, Inc. | 4.11% |
| SAP SE | 3.77% |
| NVIDIA Corp. | 3.66% |
| Intuit, Inc. | 3.27% |
| JD.com, Inc., ADR | 2.86% |
| Airbus SE | 2.84% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Fund
Class C: OGLCX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Fund
(Class C) | $213 | 1.82% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around artificial intelligence (AI) led to concentrated market leadership in the megacap technology space and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the period also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• For the fiscal year ended October 31, 2024, Class C shares of the Fund, excluding sales charge, returned 33.52%. For the same time period, the MSCI ACWI Growth Index returned of 37.22%.
What contributed to performance?
Meta Platforms, Inc. | In our opinion, Meta Platforms continued its leadership in social media advertising, excelling in user growth, engagement and monetization efficiency. Recent results showed strong network effects, drawing in a larger user base and boosting engagement, enabling Meta to sell more ads at elevated prices.
Alphabet, Inc. | Alphabet reported strong results in its Google Search, cloud business and YouTube advertising in addition to introducing a $10 billion annual dividend and authorized $70 billion in share repurchases over the period. We believe the perceived risks to Google Search are exaggerated and that Alphabet stands to benefit from generative AI, with its vast data resources, a large user base across various platforms and advanced AI infrastructure. More recently, the company lost an anti-trust lawsuit that was brought by the United States Justice Department. The ruling is likely to be subjected to a lengthy appeals process and we do not believe the eventual remedy is likely to be severe, nor impact our long-term investment thesis on the company.
NVIDIA Corp. | NVIDIA continues to capitalize on the surge in AI demand. We believe its comprehensive full-stack strategy and diverse product offerings, including the recent introduction of Blackwell chip architecture, promises substantial performance improvements, further solidifying its leading position.
What detracted from performance?
Charter Communications | Charter Communications, a US telecommunications and mass media company, was exited on weaker customer metrics and broadband subscriptions over the period.
Meituan | Chinese shopping platform company, Meituan, had struggled over the past year due to margin pressures and slowing growth amidst stiff competition. Investors are cautious of a revenue slowdown, with management expecting consumers to be more cautious and value-oriented. As a result of this, the position was exited.
Eli Lilly and Co. | Eli Lilly was a new addition to the portfolio over the period. We feel the company has a blockbuster business emerging in its line-up of weight loss and diabetes treatments. Following the US election and the potential uncertainty surrounding the incoming administration's health policy, shares of Eli Lilly, along with many other health care stocks, experienced a modest decline.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Fund (Class C) —including sales charge | 32.52% | 9.62% | 8.73% |
| Invesco Global Fund (Class C) —excluding sales charge | 33.52% | 9.62% | 8.73% |
| MSCI ACWI Growth Index (Net) | 37.22% | 13.51% | 11.42% |
| MSCI ACWI (Net) | 32.79% | 11.08% | 9.06% |
Effective after the close of business on May 24, 2019, Class C shares of Oppenheimer Global Fund, (the predecessor fund), were reorganized into Class C shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class C shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $9,202,773,413% |
| Total number of portfolio holdings | $65% |
| Total advisory fees paid | $59,703,976% |
| Portfolio turnover rate | $7% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Alphabet, Inc., Class A | 11.17% |
| Meta Platforms, Inc., Class A | 9.00% |
| DLF Ltd. | 4.74% |
| Analog Devices, Inc. | 4.47% |
| S&P Global, Inc. | 4.11% |
| SAP SE | 3.77% |
| NVIDIA Corp. | 3.66% |
| Intuit, Inc. | 3.27% |
| JD.com, Inc., ADR | 2.86% |
| Airbus SE | 2.84% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Fund
Class R: OGLNX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Fund
(Class R) | $155 | 1.32% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around artificial intelligence (AI) led to concentrated market leadership in the megacap technology space and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the period also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• For the fiscal year ended October 31, 2024, Class R shares of the Fund returned 34.17%. For the same time period, the MSCI ACWI Growth Index returned of 37.22%.
What contributed to performance?
Meta Platforms, Inc. | In our opinion, Meta Platforms continued its leadership in social media advertising, excelling in user growth, engagement and monetization efficiency. Recent results showed strong network effects, drawing in a larger user base and boosting engagement, enabling Meta to sell more ads at elevated prices.
Alphabet, Inc. | Alphabet reported strong results in its Google Search, cloud business and YouTube advertising in addition to introducing a $10 billion annual dividend and authorized $70 billion in share repurchases over the period. We believe the perceived risks to Google Search are exaggerated and that Alphabet stands to benefit from generative AI, with its vast data resources, a large user base across various platforms and advanced AI infrastructure. More recently, the company lost an anti-trust lawsuit that was brought by the United States Justice Department. The ruling is likely to be subjected to a lengthy appeals process and we do not believe the eventual remedy is likely to be severe, nor impact our long-term investment thesis on the company.
NVIDIA Corp. | NVIDIA continues to capitalize on the surge in AI demand. We believe its comprehensive full-stack strategy and diverse product offerings, including the recent introduction of Blackwell chip architecture, promises substantial performance improvements, further solidifying its leading position.
What detracted from performance?
Charter Communications | Charter Communications, a US telecommunications and mass media company, was exited on weaker customer metrics and broadband subscriptions over the period.
Meituan | Chinese shopping platform company, Meituan, had struggled over the past year due to margin pressures and slowing growth amidst stiff competition. Investors are cautious of a revenue slowdown, with management expecting consumers to be more cautious and value-oriented. As a result of this, the position was exited.
Eli Lilly and Co. | Eli Lilly was a new addition to the portfolio over the period. We feel the company has a blockbuster business emerging in its line-up of weight loss and diabetes treatments. Following the US election and the potential uncertainty surrounding the incoming administration's health policy, shares of Eli Lilly, along with many other health care stocks, experienced a modest decline.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Fund (Class R) | 34.17% | 10.17% | 9.11% |
| MSCI ACWI Growth Index (Net) | 37.22% | 13.51% | 11.42% |
| MSCI ACWI (Net) | 32.79% | 11.08% | 9.06% |
Effective after the close of business on May 24, 2019, Class R shares of Oppenheimer Global Fund, (the predecessor fund), were reorganized into Class R shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class R shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $9,202,773,413% |
| Total number of portfolio holdings | $65% |
| Total advisory fees paid | $59,703,976% |
| Portfolio turnover rate | $7% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Alphabet, Inc., Class A | 11.17% |
| Meta Platforms, Inc., Class A | 9.00% |
| DLF Ltd. | 4.74% |
| Analog Devices, Inc. | 4.47% |
| S&P Global, Inc. | 4.11% |
| SAP SE | 3.77% |
| NVIDIA Corp. | 3.66% |
| Intuit, Inc. | 3.27% |
| JD.com, Inc., ADR | 2.86% |
| Airbus SE | 2.84% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Fund
Class Y: OGLYX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Fund
(Class Y) | $96 | 0.82% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around artificial intelligence (AI) led to concentrated market leadership in the megacap technology space and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the period also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• For the fiscal year ended October 31, 2024, Class Y shares of the Fund returned 34.86%. For the same time period, the MSCI ACWI Growth Index returned of 37.22%.
What contributed to performance?
Meta Platforms, Inc. | In our opinion, Meta Platforms continued its leadership in social media advertising, excelling in user growth, engagement and monetization efficiency. Recent results showed strong network effects, drawing in a larger user base and boosting engagement, enabling Meta to sell more ads at elevated prices.
Alphabet, Inc. | Alphabet reported strong results in its Google Search, cloud business and YouTube advertising in addition to introducing a $10 billion annual dividend and authorized $70 billion in share repurchases over the period. We believe the perceived risks to Google Search are exaggerated and that Alphabet stands to benefit from generative AI, with its vast data resources, a large user base across various platforms and advanced AI infrastructure. More recently, the company lost an anti-trust lawsuit that was brought by the United States Justice Department. The ruling is likely to be subjected to a lengthy appeals process and we do not believe the eventual remedy is likely to be severe, nor impact our long-term investment thesis on the company.
NVIDIA Corp. | NVIDIA continues to capitalize on the surge in AI demand. We believe its comprehensive full-stack strategy and diverse product offerings, including the recent introduction of Blackwell chip architecture, promises substantial performance improvements, further solidifying its leading position.
What detracted from performance?
Charter Communications | Charter Communications, a US telecommunications and mass media company, was exited on weaker customer metrics and broadband subscriptions over the period.
Meituan | Chinese shopping platform company, Meituan, had struggled over the past year due to margin pressures and slowing growth amidst stiff competition. Investors are cautious of a revenue slowdown, with management expecting consumers to be more cautious and value-oriented. As a result of this, the position was exited.
Eli Lilly and Co. | Eli Lilly was a new addition to the portfolio over the period. We feel the company has a blockbuster business emerging in its line-up of weight loss and diabetes treatments. Following the US election and the potential uncertainty surrounding the incoming administration's health policy, shares of Eli Lilly, along with many other health care stocks, experienced a modest decline.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Fund (Class Y) | 34.86% | 10.72% | 9.65% |
| MSCI ACWI Growth Index (Net) | 37.22% | 13.51% | 11.42% |
| MSCI ACWI (Net) | 32.79% | 11.08% | 9.06% |
Effective after the close of business on May 24, 2019, Class Y shares of Oppenheimer Global Fund, (the predecessor fund), were reorganized into Class Y shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class Y shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $9,202,773,413% |
| Total number of portfolio holdings | $65% |
| Total advisory fees paid | $59,703,976% |
| Portfolio turnover rate | $7% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Alphabet, Inc., Class A | 11.17% |
| Meta Platforms, Inc., Class A | 9.00% |
| DLF Ltd. | 4.74% |
| Analog Devices, Inc. | 4.47% |
| S&P Global, Inc. | 4.11% |
| SAP SE | 3.77% |
| NVIDIA Corp. | 3.66% |
| Intuit, Inc. | 3.27% |
| JD.com, Inc., ADR | 2.86% |
| Airbus SE | 2.84% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Fund
Class R5: GFDDX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Fund
(Class R5) | $87 | 0.74% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around artificial intelligence (AI) led to concentrated market leadership in the megacap technology space and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the period also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• For the fiscal year ended October 31, 2024, Class R5 shares of the Fund returned 34.97%. For the same time period, the MSCI ACWI Growth Index returned of 37.22%.
What contributed to performance?
Meta Platforms, Inc. | In our opinion, Meta Platforms continued its leadership in social media advertising, excelling in user growth, engagement and monetization efficiency. Recent results showed strong network effects, drawing in a larger user base and boosting engagement, enabling Meta to sell more ads at elevated prices.
Alphabet, Inc. | Alphabet reported strong results in its Google Search, cloud business and YouTube advertising in addition to introducing a $10 billion annual dividend and authorized $70 billion in share repurchases over the period. We believe the perceived risks to Google Search are exaggerated and that Alphabet stands to benefit from generative AI, with its vast data resources, a large user base across various platforms and advanced AI infrastructure. More recently, the company lost an anti-trust lawsuit that was brought by the United States Justice Department. The ruling is likely to be subjected to a lengthy appeals process and we do not believe the eventual remedy is likely to be severe, nor impact our long-term investment thesis on the company.
NVIDIA Corp. | NVIDIA continues to capitalize on the surge in AI demand. We believe its comprehensive full-stack strategy and diverse product offerings, including the recent introduction of Blackwell chip architecture, promises substantial performance improvements, further solidifying its leading position.
What detracted from performance?
Charter Communications | Charter Communications, a US telecommunications and mass media company, was exited on weaker customer metrics and broadband subscriptions over the period.
Meituan | Chinese shopping platform company, Meituan, had struggled over the past year due to margin pressures and slowing growth amidst stiff competition. Investors are cautious of a revenue slowdown, with management expecting consumers to be more cautious and value-oriented. As a result of this, the position was exited.
Eli Lilly and Co. | Eli Lilly was a new addition to the portfolio over the period. We feel the company has a blockbuster business emerging in its line-up of weight loss and diabetes treatments. Following the US election and the potential uncertainty surrounding the incoming administration's health policy, shares of Eli Lilly, along with many other health care stocks, experienced a modest decline.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Fund (Class R5) | 34.97% | 10.85% | 9.61% |
| MSCI ACWI Growth Index (Net) | 37.22% | 13.51% | 11.42% |
| MSCI ACWI (Net) | 32.79% | 11.08% | 9.06% |
Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of Oppenheimer Global Fund's (the predecessor fund) Class A shares at net asset value and includes 12b-1 fees applicable to Class A shares. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $9,202,773,413% |
| Total number of portfolio holdings | $65% |
| Total advisory fees paid | $59,703,976% |
| Portfolio turnover rate | $7% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Alphabet, Inc., Class A | 11.17% |
| Meta Platforms, Inc., Class A | 9.00% |
| DLF Ltd. | 4.74% |
| Analog Devices, Inc. | 4.47% |
| S&P Global, Inc. | 4.11% |
| SAP SE | 3.77% |
| NVIDIA Corp. | 3.66% |
| Intuit, Inc. | 3.27% |
| JD.com, Inc., ADR | 2.86% |
| Airbus SE | 2.84% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective after the close of business on September 30, 2024, the Fund has limited public sales of its Class R5 shares to certain investors who were previously invested in Class R5 shares of the Fund.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Fund
Class R6: OGLIX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Fund
(Class R6) | $85 | 0.72% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around artificial intelligence (AI) led to concentrated market leadership in the megacap technology space and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the period also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• For the fiscal year ended October 31, 2024, Class R6 shares of the Fund returned 34.99%. For the same time period, the MSCI ACWI Growth Index returned of 37.22%.
What contributed to performance?
Meta Platforms, Inc. | In our opinion, Meta Platforms continued its leadership in social media advertising, excelling in user growth, engagement and monetization efficiency. Recent results showed strong network effects, drawing in a larger user base and boosting engagement, enabling Meta to sell more ads at elevated prices.
Alphabet, Inc. | Alphabet reported strong results in its Google Search, cloud business and YouTube advertising in addition to introducing a $10 billion annual dividend and authorized $70 billion in share repurchases over the period. We believe the perceived risks to Google Search are exaggerated and that Alphabet stands to benefit from generative AI, with its vast data resources, a large user base across various platforms and advanced AI infrastructure. More recently, the company lost an anti-trust lawsuit that was brought by the United States Justice Department. The ruling is likely to be subjected to a lengthy appeals process and we do not believe the eventual remedy is likely to be severe, nor impact our long-term investment thesis on the company.
NVIDIA Corp. | NVIDIA continues to capitalize on the surge in AI demand. We believe its comprehensive full-stack strategy and diverse product offerings, including the recent introduction of Blackwell chip architecture, promises substantial performance improvements, further solidifying its leading position.
What detracted from performance?
Charter Communications | Charter Communications, a US telecommunications and mass media company, was exited on weaker customer metrics and broadband subscriptions over the period.
Meituan | Chinese shopping platform company, Meituan, had struggled over the past year due to margin pressures and slowing growth amidst stiff competition. Investors are cautious of a revenue slowdown, with management expecting consumers to be more cautious and value-oriented. As a result of this, the position was exited.
Eli Lilly and Co. | Eli Lilly was a new addition to the portfolio over the period. We feel the company has a blockbuster business emerging in its line-up of weight loss and diabetes treatments. Following the US election and the potential uncertainty surrounding the incoming administration's health policy, shares of Eli Lilly, along with many other health care stocks, experienced a modest decline.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Fund (Class R6) | 34.99% | 10.86% | 9.82% |
| MSCI ACWI Growth Index (Net) | 37.22% | 13.51% | 11.42% |
| MSCI ACWI (Net) | 32.79% | 11.08% | 9.06% |
Effective after the close of business on May 24, 2019, Class I shares of Oppenheimer Global Fund, (the predecessor fund), were reorganized into Class R6 shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $9,202,773,413% |
| Total number of portfolio holdings | $65% |
| Total advisory fees paid | $59,703,976% |
| Portfolio turnover rate | $7% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Alphabet, Inc., Class A | 11.17% |
| Meta Platforms, Inc., Class A | 9.00% |
| DLF Ltd. | 4.74% |
| Analog Devices, Inc. | 4.47% |
| S&P Global, Inc. | 4.11% |
| SAP SE | 3.77% |
| NVIDIA Corp. | 3.66% |
| Intuit, Inc. | 3.27% |
| JD.com, Inc., ADR | 2.86% |
| Airbus SE | 2.84% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Opportunities Fund
Class A: OPGIX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Opportunities Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Opportunities Fund
(Class A) | $129 | 1.16%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around artificial intelligence (AI) led to market concentration in megacap technology and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the period also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better investor sentiment towards the EM asset class.
• For the fiscal year ended October 31, 2024, Class A shares of the Fund, excluding sales charge, returned 22.72%. For the same time period, the MSCI ACWI SMID Cap Index returned 29.02%.
What contributed to performance?
Advanced Micro Devices, Inc. | An American company, which is one of the leading semiconductor businesses in the world and has performed well in the fiscal year. AMD released its first AI Chip that competes directly against NVIDIA. Customer feedback was strong in this arena leading to strong performance.
DISCO Corp. | DISCO specializes in slicing, dicing, grinding, polishing, finishing and packaging silicon wafers. While about half of DISCO's profits emanate from the semiconductor capex budgets which drove growth, the other half is from more predictable after-market consumables, which has led to a smoothing effect on earnings.
PTC, Inc. | An American software company that develops and sells innovative digital solutions that aid product management and development. Their suite of products and capabilities helps customers in regards to augmented reality (AR) and the IoT (Internet of Things). The organization's focus on operational discipline and a differentiated portfolio of offerings helped bolster the company during the reporting period.
What detracted from performance?
Forward Air Corp. | US-based Forward Air provides ground transportation and logistics services throughout North America. The company's acquisition of Omni Logistics stretched its balance sheet and alienated a number of customers. While we recognized the intrinsic value of Forward Air's assets, including to a potential acquiror, we did not have faith in management's ability to steer this business effectively on an independent basis and exited our position.
Carl Zeiss Meditec AG | Carl Zeiss Meditec is a global leader in ophthalmic and other high-precision surgery. Shorter term sales volumes have slowed in the aftermath of COVID-19-related overstocking by customers, especially in China, which negatively impacted performance.
Aston Martin Lagonda Global Holdings PLC | A luxury automaker that has struggled to generate free cash flow needed to fund its product development and service its debts. The position was exited during the first half of the reporting period.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Opportunities Fund (Class A) —including sales charge | 15.96% | (0.40)% | 5.93% |
| Invesco Global Opportunities Fund (Class A) —excluding sales charge | 22.72% | 0.73%) | 6.53% |
| MSCI ACWI SMID Cap Index | 29.02% | 7.96%) | 7.24% |
| MSCI ACWI (Net) | 32.79% | 11.08%) | 9.06% |
Effective after the close of business on May 24, 2019, Class A shares of Oppenheimer Global Opportunities Fund, (the predecessor fund), were reorganized into Class A shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class A shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $2,881,400,966% |
| Total number of portfolio holdings | $83% |
| Total advisory fees paid | $22,929,663% |
| Portfolio turnover rate | $62% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Jack Henry & Associates, Inc. | 2.97% |
| SEI Investments Co. | 2.84% |
| Advanced Micro Devices, Inc. | 2.54% |
| WEG S.A. | 2.13% |
| Exponent, Inc. | 2.13% |
| Sysmex Corp. | 2.08% |
| Pool Corp. | 2.07% |
| Manhattan Associates, Inc. | 2.01% |
| MarketAxess Holdings, Inc. | 1.93% |
| Carl Zeiss Meditec AG, BR | 1.81% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Opportunities Fund
Class C: OGICX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Opportunities Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Opportunities Fund
(Class C) | $213 | 1.92%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around artificial intelligence (AI) led to market concentration in megacap technology and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the period also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better investor sentiment towards the EM asset class.
• For the fiscal year ended October 31, 2024, Class C shares of the Fund, excluding sales charge, returned 21.77%. For the same time period, the MSCI ACWI SMID Cap Index returned 29.02%.
What contributed to performance?
Advanced Micro Devices, Inc. | An American company, which is one of the leading semiconductor businesses in the world and has performed well in the fiscal year. AMD released its first AI Chip that competes directly against NVIDIA. Customer feedback was strong in this arena leading to strong performance.
DISCO Corp. | DISCO specializes in slicing, dicing, grinding, polishing, finishing and packaging silicon wafers. While about half of DISCO's profits emanate from the semiconductor capex budgets which drove growth, the other half is from more predictable after-market consumables, which has led to a smoothing effect on earnings.
PTC, Inc. | An American software company that develops and sells innovative digital solutions that aid product management and development. Their suite of products and capabilities helps customers in regards to augmented reality (AR) and the IoT (Internet of Things). The organization's focus on operational discipline and a differentiated portfolio of offerings helped bolster the company during the reporting period.
What detracted from performance?
Forward Air Corp. | US-based Forward Air provides ground transportation and logistics services throughout North America. The company's acquisition of Omni Logistics stretched its balance sheet and alienated a number of customers. While we recognized the intrinsic value of Forward Air's assets, including to a potential acquiror, we did not have faith in management's ability to steer this business effectively on an independent basis and exited our position.
Carl Zeiss Meditec AG | Carl Zeiss Meditec is a global leader in ophthalmic and other high-precision surgery. Shorter term sales volumes have slowed in the aftermath of COVID-19-related overstocking by customers, especially in China, which negatively impacted performance.
Aston Martin Lagonda Global Holdings PLC | A luxury automaker that has struggled to generate free cash flow needed to fund its product development and service its debts. The position was exited during the first half of the reporting period.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Opportunities Fund (Class C) —including sales charge | 20.78% | (0.03)% | 5.89% |
| Invesco Global Opportunities Fund (Class C) —excluding sales charge | 21.77% | (0.03)% | 5.89% |
| MSCI ACWI SMID Cap Index | 29.02% | 7.96%) | 7.24% |
| MSCI ACWI (Net) | 32.79% | 11.08%) | 9.06% |
Effective after the close of business on May 24, 2019, Class C shares of Oppenheimer Global Opportunities Fund, (the predecessor fund), were reorganized into Class C shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class C shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $2,881,400,966% |
| Total number of portfolio holdings | $83% |
| Total advisory fees paid | $22,929,663% |
| Portfolio turnover rate | $62% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Jack Henry & Associates, Inc. | 2.97% |
| SEI Investments Co. | 2.84% |
| Advanced Micro Devices, Inc. | 2.54% |
| WEG S.A. | 2.13% |
| Exponent, Inc. | 2.13% |
| Sysmex Corp. | 2.08% |
| Pool Corp. | 2.07% |
| Manhattan Associates, Inc. | 2.01% |
| MarketAxess Holdings, Inc. | 1.93% |
| Carl Zeiss Meditec AG, BR | 1.81% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Opportunities Fund
Class R: OGINX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Opportunities Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Opportunities Fund
(Class R) | $158 | 1.42%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around artificial intelligence (AI) led to market concentration in megacap technology and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the period also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better investor sentiment towards the EM asset class.
• For the fiscal year ended October 31, 2024, Class R shares of the Fund returned 22.40%. For the same time period, the MSCI ACWI SMID Cap Index returned 29.02%.
What contributed to performance?
Advanced Micro Devices, Inc. | An American company, which is one of the leading semiconductor businesses in the world and has performed well in the fiscal year. AMD released its first AI Chip that competes directly against NVIDIA. Customer feedback was strong in this arena leading to strong performance.
DISCO Corp. | DISCO specializes in slicing, dicing, grinding, polishing, finishing and packaging silicon wafers. While about half of DISCO's profits emanate from the semiconductor capex budgets which drove growth, the other half is from more predictable after-market consumables, which has led to a smoothing effect on earnings.
PTC, Inc. | An American software company that develops and sells innovative digital solutions that aid product management and development. Their suite of products and capabilities helps customers in regards to augmented reality (AR) and the IoT (Internet of Things). The organization's focus on operational discipline and a differentiated portfolio of offerings helped bolster the company during the reporting period.
What detracted from performance?
Forward Air Corp. | US-based Forward Air provides ground transportation and logistics services throughout North America. The company's acquisition of Omni Logistics stretched its balance sheet and alienated a number of customers. While we recognized the intrinsic value of Forward Air's assets, including to a potential acquiror, we did not have faith in management's ability to steer this business effectively on an independent basis and exited our position.
Carl Zeiss Meditec AG | Carl Zeiss Meditec is a global leader in ophthalmic and other high-precision surgery. Shorter term sales volumes have slowed in the aftermath of COVID-19-related overstocking by customers, especially in China, which negatively impacted performance.
Aston Martin Lagonda Global Holdings PLC | A luxury automaker that has struggled to generate free cash flow needed to fund its product development and service its debts. The position was exited during the first half of the reporting period.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Opportunities Fund (Class R) | 22.40% | 0.47% | 6.26% |
| MSCI ACWI SMID Cap Index | 29.02% | 7.96% | 7.24% |
| MSCI ACWI (Net) | 32.79% | 11.08% | 9.06% |
Effective after the close of business on May 24, 2019, Class R shares of Oppenheimer Global Opportunities Fund, (the predecessor fund), were reorganized into Class R shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class R shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $2,881,400,966% |
| Total number of portfolio holdings | $83% |
| Total advisory fees paid | $22,929,663% |
| Portfolio turnover rate | $62% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Jack Henry & Associates, Inc. | 2.97% |
| SEI Investments Co. | 2.84% |
| Advanced Micro Devices, Inc. | 2.54% |
| WEG S.A. | 2.13% |
| Exponent, Inc. | 2.13% |
| Sysmex Corp. | 2.08% |
| Pool Corp. | 2.07% |
| Manhattan Associates, Inc. | 2.01% |
| MarketAxess Holdings, Inc. | 1.93% |
| Carl Zeiss Meditec AG, BR | 1.81% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Opportunities Fund
Class Y: OGIYX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Opportunities Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Opportunities Fund
(Class Y) | $103 | 0.92%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around artificial intelligence (AI) led to market concentration in megacap technology and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the period also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better investor sentiment towards the EM asset class.
• For the fiscal year ended October 31, 2024, Class Y shares of the Fund returned 23.02%. For the same time period, the MSCI ACWI SMID Cap Index returned 29.02%.
What contributed to performance?
Advanced Micro Devices, Inc. | An American company, which is one of the leading semiconductor businesses in the world and has performed well in the fiscal year. AMD released its first AI Chip that competes directly against NVIDIA. Customer feedback was strong in this arena leading to strong performance.
DISCO Corp. | DISCO specializes in slicing, dicing, grinding, polishing, finishing and packaging silicon wafers. While about half of DISCO's profits emanate from the semiconductor capex budgets which drove growth, the other half is from more predictable after-market consumables, which has led to a smoothing effect on earnings.
PTC, Inc. | An American software company that develops and sells innovative digital solutions that aid product management and development. Their suite of products and capabilities helps customers in regards to augmented reality (AR) and the IoT (Internet of Things). The organization's focus on operational discipline and a differentiated portfolio of offerings helped bolster the company during the reporting period.
What detracted from performance?
Forward Air Corp. | US-based Forward Air provides ground transportation and logistics services throughout North America. The company's acquisition of Omni Logistics stretched its balance sheet and alienated a number of customers. While we recognized the intrinsic value of Forward Air's assets, including to a potential acquiror, we did not have faith in management's ability to steer this business effectively on an independent basis and exited our position.
Carl Zeiss Meditec AG | Carl Zeiss Meditec is a global leader in ophthalmic and other high-precision surgery. Shorter term sales volumes have slowed in the aftermath of COVID-19-related overstocking by customers, especially in China, which negatively impacted performance.
Aston Martin Lagonda Global Holdings PLC | A luxury automaker that has struggled to generate free cash flow needed to fund its product development and service its debts. The position was exited during the first half of the reporting period.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Opportunities Fund (Class Y) | 23.02% | 0.97% | 6.79% |
| MSCI ACWI SMID Cap Index | 29.02% | 7.96% | 7.24% |
| MSCI ACWI (Net) | 32.79% | 11.08% | 9.06% |
Effective after the close of business on May 24, 2019, Class Y shares of Oppenheimer Global Opportunities Fund, (the predecessor fund), were reorganized into Class Y shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class Y shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $2,881,400,966% |
| Total number of portfolio holdings | $83% |
| Total advisory fees paid | $22,929,663% |
| Portfolio turnover rate | $62% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Jack Henry & Associates, Inc. | 2.97% |
| SEI Investments Co. | 2.84% |
| Advanced Micro Devices, Inc. | 2.54% |
| WEG S.A. | 2.13% |
| Exponent, Inc. | 2.13% |
| Sysmex Corp. | 2.08% |
| Pool Corp. | 2.07% |
| Manhattan Associates, Inc. | 2.01% |
| MarketAxess Holdings, Inc. | 1.93% |
| Carl Zeiss Meditec AG, BR | 1.81% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Opportunities Fund
Class R5: GOFFX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Opportunities Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Opportunities Fund
(Class R5) | $96 | 0.86% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around artificial intelligence (AI) led to market concentration in megacap technology and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the period also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better investor sentiment towards the EM asset class.
• For the fiscal year ended October 31, 2024, Class R5 shares of the Fund returned 23.11%. For the same time period, the MSCI ACWI SMID Cap Index returned 29.02%.
What contributed to performance?
Advanced Micro Devices, Inc. | An American company, which is one of the leading semiconductor businesses in the world and has performed well in the fiscal year. AMD released its first AI Chip that competes directly against NVIDIA. Customer feedback was strong in this arena leading to strong performance.
DISCO Corp. | DISCO specializes in slicing, dicing, grinding, polishing, finishing and packaging silicon wafers. While about half of DISCO's profits emanate from the semiconductor capex budgets which drove growth, the other half is from more predictable after-market consumables, which has led to a smoothing effect on earnings.
PTC, Inc. | An American software company that develops and sells innovative digital solutions that aid product management and development. Their suite of products and capabilities helps customers in regards to augmented reality (AR) and the IoT (Internet of Things). The organization's focus on operational discipline and a differentiated portfolio of offerings helped bolster the company during the reporting period.
What detracted from performance?
Forward Air Corp. | US-based Forward Air provides ground transportation and logistics services throughout North America. The company's acquisition of Omni Logistics stretched its balance sheet and alienated a number of customers. While we recognized the intrinsic value of Forward Air's assets, including to a potential acquiror, we did not have faith in management's ability to steer this business effectively on an independent basis and exited our position.
Carl Zeiss Meditec AG | Carl Zeiss Meditec is a global leader in ophthalmic and other high-precision surgery. Shorter term sales volumes have slowed in the aftermath of COVID-19-related overstocking by customers, especially in China, which negatively impacted performance.
Aston Martin Lagonda Global Holdings PLC | A luxury automaker that has struggled to generate free cash flow needed to fund its product development and service its debts. The position was exited during the first half of the reporting period.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Opportunities Fund (Class R5) | 23.11% | 1.07% | 6.73% |
| MSCI ACWI SMID Cap Index | 29.02% | 7.96% | 7.24% |
| MSCI ACWI (Net) | 32.79% | 11.08% | 9.06% |
Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of Oppenheimer Global Opportunities Fund's (the predecessor fund) Class A shares at net asset value and includes 12b-1 fees applicable to Class A shares. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $2,881,400,966% |
| Total number of portfolio holdings | $83% |
| Total advisory fees paid | $22,929,663% |
| Portfolio turnover rate | $62% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Jack Henry & Associates, Inc. | 2.97% |
| SEI Investments Co. | 2.84% |
| Advanced Micro Devices, Inc. | 2.54% |
| WEG S.A. | 2.13% |
| Exponent, Inc. | 2.13% |
| Sysmex Corp. | 2.08% |
| Pool Corp. | 2.07% |
| Manhattan Associates, Inc. | 2.01% |
| MarketAxess Holdings, Inc. | 1.93% |
| Carl Zeiss Meditec AG, BR | 1.81% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective after the close of business on September 30, 2024, the Fund has limited public sales of its Class R5 shares to certain investors who were previously invested in Class R5 shares of the Fund.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Global Opportunities Fund
Class R6: OGIIX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Global Opportunities Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Global Opportunities Fund
(Class R6) | $88 | 0.79% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around artificial intelligence (AI) led to market concentration in megacap technology and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the period also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better investor sentiment towards the EM asset class.
• For the fiscal year ended October 31, 2024, Class R6 shares of the Fund returned 23.15%. For the same time period, the MSCI ACWI SMID Cap Index returned 29.02%.
What contributed to performance?
Advanced Micro Devices, Inc. | An American company, which is one of the leading semiconductor businesses in the world and has performed well in the fiscal year. AMD released its first AI Chip that competes directly against NVIDIA. Customer feedback was strong in this arena leading to strong performance.
DISCO Corp. | DISCO specializes in slicing, dicing, grinding, polishing, finishing and packaging silicon wafers. While about half of DISCO's profits emanate from the semiconductor capex budgets which drove growth, the other half is from more predictable after-market consumables, which has led to a smoothing effect on earnings.
PTC, Inc. | An American software company that develops and sells innovative digital solutions that aid product management and development. Their suite of products and capabilities helps customers in regards to augmented reality (AR) and the IoT (Internet of Things). The organization's focus on operational discipline and a differentiated portfolio of offerings helped bolster the company during the reporting period.
What detracted from performance?
Forward Air Corp. | US-based Forward Air provides ground transportation and logistics services throughout North America. The company's acquisition of Omni Logistics stretched its balance sheet and alienated a number of customers. While we recognized the intrinsic value of Forward Air's assets, including to a potential acquiror, we did not have faith in management's ability to steer this business effectively on an independent basis and exited our position.
Carl Zeiss Meditec AG | Carl Zeiss Meditec is a global leader in ophthalmic and other high-precision surgery. Shorter term sales volumes have slowed in the aftermath of COVID-19-related overstocking by customers, especially in China, which negatively impacted performance.
Aston Martin Lagonda Global Holdings PLC | A luxury automaker that has struggled to generate free cash flow needed to fund its product development and service its debts. The position was exited during the first half of the reporting period.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Global Opportunities Fund (Class R6) | 23.15% | 1.11% | 6.96% |
| MSCI ACWI SMID Cap Index | 29.02% | 7.96% | 7.24% |
| MSCI ACWI (Net) | 32.79% | 11.08% | 9.06% |
Effective after the close of business on May 24, 2019, Class I shares of Oppenheimer Global Opportunities Fund, (the predecessor fund), were reorganized into Class R6 shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $2,881,400,966% |
| Total number of portfolio holdings | $83% |
| Total advisory fees paid | $22,929,663% |
| Portfolio turnover rate | $62% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Jack Henry & Associates, Inc. | 2.97% |
| SEI Investments Co. | 2.84% |
| Advanced Micro Devices, Inc. | 2.54% |
| WEG S.A. | 2.13% |
| Exponent, Inc. | 2.13% |
| Sysmex Corp. | 2.08% |
| Pool Corp. | 2.07% |
| Manhattan Associates, Inc. | 2.01% |
| MarketAxess Holdings, Inc. | 1.93% |
| Carl Zeiss Meditec AG, BR | 1.81% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco International Small-Mid Company Fund
Class A: OSMAX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco International Small-Mid Company Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco International Small-Mid Company Fund
(Class A) | $151 | 1.38% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around artificial intelligence led to market concentration in megacap technology, and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the period also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• In this environment, Class A shares of the Invesco International Small-Mid Company Fund, excluding sales charge, returned 19.19% for the fiscal year ended October 31, 2024, lagging the MSCI ACWI ex USA SMID Cap Index return of 23.10% for the period. The Fund's underperformance for the fiscal year was primarily driven by weaker stock selection results in the health care and industrials sectors.
What contributed to performance?
VZ Holding AG | A Swiss wealth management company, delivered strong performance largely due to their market share growth during the reporting period.
Partners Group Holding AG | A Swiss asset manager focused on private markets, reported strong results driven by their strategic partnership with another asset manager which eased access to Partners’ investment strategies for the fast-growing high-net worth client segment.
DISCO Corp. | DISCO commanded a majority of the global market share in grinders and divers, making it a leader in the space for the semiconductor industry. While about half of DISCO’s profits emanate from the semiconductor capex budgets which have been driving growth, the other half is from more predictable after-market consumables, leading to a smoothing effect on earnings.
What detracted from performance?
Carl Zeiss Meditec AG | A global leader in ophthalmic and other high-precision surgery. Shorter term sales volumes have slowed in the aftermath of COVID-related overstocking by customers, especially in China.
LEM Holding S.A. | A Swiss designer and producer of high-quality currency and voltage transducers. LEM’s shares have been under pressure due to concerns about knock-off competition, largely from Chinese producers offering lower-cost integrated circuits.
SMS Co. LTD. | SMS is a Japanese innovator in recruiting placement as applied to health care, medical care, nursing staff, and elderly caregiving staff. Results have been challenged as of late by a reduced willingness of temp staff to switch assignments, which has pressured SMS’s commissions and thus it’s profit margins.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco International Small-Mid Company Fund (Class A) —including sales charge | 12.65% | 1.29% | 6.13% |
| Invesco International Small-Mid Company Fund (Class A) —excluding sales charge | 19.19% | 2.44% | 6.73% |
| MSCI ACWI ex USA SMID Cap Index (Net) | 23.10% | 5.24% | 5.17% |
| MSCI ACWI ex USA Small Cap Index (Net) | 23.73% | 6.21% | 5.76% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 4.79% |
Effective after the close of business on May 24, 2019, Class A shares of Oppenheimer International Small-Mid Company Fund, (the predecessor fund), were reorganized into Class A shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class A shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the MSCI ACWI ex USA SMID Cap Index (Net) to the MSCI ACWI ex USA® Index (Net) to reflect that the MSCI ACWI ex USA® Index (Net) can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $4,179,554,161% |
| Total number of portfolio holdings | $115% |
| Total advisory fees paid | $44,423,523% |
| Portfolio turnover rate | $21% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Vanguard Total International Stock ETF | 3.71% |
| OBIC Co. Ltd. | 2.31% |
| Carl Zeiss Meditec AG, BR | 2.10% |
| Partners Group Holding AG | 1.72% |
| VZ Holding AG | 1.72% |
| Nice Ltd., ADR | 1.62% |
| Descartes Systems Group, Inc. (The) | 1.59% |
| Azbil Corp. | 1.53% |
| CCL Industries, Inc., Class B | 1.46% |
| ChemoMetec A/S | 1.33% |
Sector allocation**
(% of net assets)
* Excluding money market fund holdings, if any.
** Excluding exchange-traded funds (ETFs), which represented 3.7% of net assets. While the Fund does not typically invest in ETFs, it held an ETF at the end of the reporting period to maintain exposure to international markets consistent with its investment mandate while meeting short-term liquidity requirements.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco International Small-Mid Company Fund
Class C: OSMCX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco International Small-Mid Company Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco International Small-Mid Company Fund
(Class C) | $234 | 2.14% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around artificial intelligence led to market concentration in megacap technology, and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the period also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• In this environment, Class C shares of the Invesco International Small-Mid Company Fund, excluding sales charge, returned 18.30% for the fiscal year ended October 31, 2024, lagging the MSCI ACWI ex USA SMID Cap Index return of 23.10% for the period. The Fund's underperformance for the fiscal year was primarily driven by weaker stock selection results in the health care and industrials sectors.
What contributed to performance?
VZ Holding AG | A Swiss wealth management company, delivered strong performance largely due to their market share growth during the reporting period.
Partners Group Holding AG | A Swiss asset manager focused on private markets, reported strong results driven by their strategic partnership with another asset manager which eased access to Partners’ investment strategies for the fast-growing high-net worth client segment.
DISCO Corp. | DISCO commanded a majority of the global market share in grinders and divers, making it a leader in the space for the semiconductor industry. While about half of DISCO’s profits emanate from the semiconductor capex budgets which have been driving growth, the other half is from more predictable after-market consumables, leading to a smoothing effect on earnings.
What detracted from performance?
Carl Zeiss Meditec AG | A global leader in ophthalmic and other high-precision surgery. Shorter term sales volumes have slowed in the aftermath of COVID-related overstocking by customers, especially in China.
LEM Holding S.A. | A Swiss designer and producer of high-quality currency and voltage transducers. LEM’s shares have been under pressure due to concerns about knock-off competition, largely from Chinese producers offering lower-cost integrated circuits.
SMS Co. LTD. | SMS is a Japanese innovator in recruiting placement as applied to health care, medical care, nursing staff, and elderly caregiving staff. Results have been challenged as of late by a reduced willingness of temp staff to switch assignments, which has pressured SMS’s commissions and thus it’s profit margins.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco International Small-Mid Company Fund (Class C) —including sales charge | 17.30% | 1.67% | 6.09% |
| Invesco International Small-Mid Company Fund (Class C) —excluding sales charge | 18.30% | 1.67% | 6.09% |
| MSCI ACWI ex USA SMID Cap Index (Net) | 23.10% | 5.24% | 5.17% |
| MSCI ACWI ex USA Small Cap Index (Net) | 23.73% | 6.21% | 5.76% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 4.79% |
Effective after the close of business on May 24, 2019, Class C shares of Oppenheimer International Small-Mid Company Fund, (the predecessor fund), were reorganized into Class C shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class C shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the MSCI ACWI ex USA SMID Cap Index (Net) to the MSCI ACWI ex USA® Index (Net) to reflect that the MSCI ACWI ex USA® Index (Net) can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $4,179,554,161% |
| Total number of portfolio holdings | $115% |
| Total advisory fees paid | $44,423,523% |
| Portfolio turnover rate | $21% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Vanguard Total International Stock ETF | 3.71% |
| OBIC Co. Ltd. | 2.31% |
| Carl Zeiss Meditec AG, BR | 2.10% |
| Partners Group Holding AG | 1.72% |
| VZ Holding AG | 1.72% |
| Nice Ltd., ADR | 1.62% |
| Descartes Systems Group, Inc. (The) | 1.59% |
| Azbil Corp. | 1.53% |
| CCL Industries, Inc., Class B | 1.46% |
| ChemoMetec A/S | 1.33% |
Sector allocation**
(% of net assets)
* Excluding money market fund holdings, if any.
** Excluding exchange-traded funds (ETFs), which represented 3.7% of net assets. While the Fund does not typically invest in ETFs, it held an ETF at the end of the reporting period to maintain exposure to international markets consistent with its investment mandate while meeting short-term liquidity requirements.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco International Small-Mid Company Fund
Class R: OSMNX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco International Small-Mid Company Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco International Small-Mid Company Fund
(Class R) | $179 | 1.64% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around artificial intelligence led to market concentration in megacap technology, and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the period also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• In this environment, Class R shares of the Invesco International Small-Mid Company Fund returned 18.89% for the fiscal year ended October 31, 2024, lagging the MSCI ACWI ex USA SMID Cap Index return of 23.10% for the period. The Fund's underperformance for the fiscal year was primarily driven by weaker stock selection results in the health care and industrials sectors.
What contributed to performance?
VZ Holding AG | A Swiss wealth management company, delivered strong performance largely due to their market share growth during the reporting period.
Partners Group Holding AG | A Swiss asset manager focused on private markets, reported strong results driven by their strategic partnership with another asset manager which eased access to Partners’ investment strategies for the fast-growing high-net worth client segment.
DISCO Corp. | DISCO commanded a majority of the global market share in grinders and divers, making it a leader in the space for the semiconductor industry. While about half of DISCO’s profits emanate from the semiconductor capex budgets which have been driving growth, the other half is from more predictable after-market consumables, leading to a smoothing effect on earnings.
What detracted from performance?
Carl Zeiss Meditec AG | A global leader in ophthalmic and other high-precision surgery. Shorter term sales volumes have slowed in the aftermath of COVID-related overstocking by customers, especially in China.
LEM Holding S.A. | A Swiss designer and producer of high-quality currency and voltage transducers. LEM’s shares have been under pressure due to concerns about knock-off competition, largely from Chinese producers offering lower-cost integrated circuits.
SMS Co. LTD. | SMS is a Japanese innovator in recruiting placement as applied to health care, medical care, nursing staff, and elderly caregiving staff. Results have been challenged as of late by a reduced willingness of temp staff to switch assignments, which has pressured SMS’s commissions and thus it’s profit margins.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco International Small-Mid Company Fund (Class R) | 18.89% | 2.18% | 6.46% |
| MSCI ACWI ex USA SMID Cap Index (Net) | 23.10% | 5.24% | 5.17% |
| MSCI ACWI ex USA Small Cap Index (Net) | 23.73% | 6.21% | 5.76% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 4.79% |
Effective after the close of business on May 24, 2019, Class R shares of Oppenheimer International Small-Mid Company Fund, (the predecessor fund), were reorganized into Class R shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class R shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the MSCI ACWI ex USA SMID Cap Index (Net) to the MSCI ACWI ex USA® Index (Net) to reflect that the MSCI ACWI ex USA® Index (Net) can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $4,179,554,161% |
| Total number of portfolio holdings | $115% |
| Total advisory fees paid | $44,423,523% |
| Portfolio turnover rate | $21% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Vanguard Total International Stock ETF | 3.71% |
| OBIC Co. Ltd. | 2.31% |
| Carl Zeiss Meditec AG, BR | 2.10% |
| Partners Group Holding AG | 1.72% |
| VZ Holding AG | 1.72% |
| Nice Ltd., ADR | 1.62% |
| Descartes Systems Group, Inc. (The) | 1.59% |
| Azbil Corp. | 1.53% |
| CCL Industries, Inc., Class B | 1.46% |
| ChemoMetec A/S | 1.33% |
Sector allocation**
(% of net assets)
* Excluding money market fund holdings, if any.
** Excluding exchange-traded funds (ETFs), which represented 3.7% of net assets. While the Fund does not typically invest in ETFs, it held an ETF at the end of the reporting period to maintain exposure to international markets consistent with its investment mandate while meeting short-term liquidity requirements.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco International Small-Mid Company Fund
Class Y: OSMYX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco International Small-Mid Company Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco International Small-Mid Company Fund
(Class Y) | $125 | 1.14% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around artificial intelligence led to market concentration in megacap technology, and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the period also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• In this environment, Class Y shares of the Invesco International Small-Mid Company Fund returned 19.50% for the fiscal year ended October 31, 2024, lagging the MSCI ACWI ex USA SMID Cap Index return of 23.10% for the period. The Fund's underperformance for the fiscal year was primarily driven by weaker stock selection results in the health care and industrials sectors.
What contributed to performance?
VZ Holding AG | A Swiss wealth management company, delivered strong performance largely due to their market share growth during the reporting period.
Partners Group Holding AG | A Swiss asset manager focused on private markets, reported strong results driven by their strategic partnership with another asset manager which eased access to Partners’ investment strategies for the fast-growing high-net worth client segment.
DISCO Corp. | DISCO commanded a majority of the global market share in grinders and divers, making it a leader in the space for the semiconductor industry. While about half of DISCO’s profits emanate from the semiconductor capex budgets which have been driving growth, the other half is from more predictable after-market consumables, leading to a smoothing effect on earnings.
What detracted from performance?
Carl Zeiss Meditec AG | A global leader in ophthalmic and other high-precision surgery. Shorter term sales volumes have slowed in the aftermath of COVID-related overstocking by customers, especially in China.
LEM Holding S.A. | A Swiss designer and producer of high-quality currency and voltage transducers. LEM’s shares have been under pressure due to concerns about knock-off competition, largely from Chinese producers offering lower-cost integrated circuits.
SMS Co. LTD. | SMS is a Japanese innovator in recruiting placement as applied to health care, medical care, nursing staff, and elderly caregiving staff. Results have been challenged as of late by a reduced willingness of temp staff to switch assignments, which has pressured SMS’s commissions and thus it’s profit margins.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco International Small-Mid Company Fund (Class Y) | 19.50% | 2.69% | 7.00% |
| MSCI ACWI ex USA SMID Cap Index (Net) | 23.10% | 5.24% | 5.17% |
| MSCI ACWI ex USA Small Cap Index (Net) | 23.73% | 6.21% | 5.76% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 4.79% |
Effective after the close of business on May 24, 2019, Class Y shares of Oppenheimer International Small-Mid Company Fund, (the predecessor fund), were reorganized into Class Y shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class Y shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the MSCI ACWI ex USA SMID Cap Index (Net) to the MSCI ACWI ex USA® Index (Net) to reflect that the MSCI ACWI ex USA® Index (Net) can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $4,179,554,161% |
| Total number of portfolio holdings | $115% |
| Total advisory fees paid | $44,423,523% |
| Portfolio turnover rate | $21% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Vanguard Total International Stock ETF | 3.71% |
| OBIC Co. Ltd. | 2.31% |
| Carl Zeiss Meditec AG, BR | 2.10% |
| Partners Group Holding AG | 1.72% |
| VZ Holding AG | 1.72% |
| Nice Ltd., ADR | 1.62% |
| Descartes Systems Group, Inc. (The) | 1.59% |
| Azbil Corp. | 1.53% |
| CCL Industries, Inc., Class B | 1.46% |
| ChemoMetec A/S | 1.33% |
Sector allocation**
(% of net assets)
* Excluding money market fund holdings, if any.
** Excluding exchange-traded funds (ETFs), which represented 3.7% of net assets. While the Fund does not typically invest in ETFs, it held an ETF at the end of the reporting period to maintain exposure to international markets consistent with its investment mandate while meeting short-term liquidity requirements.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco International Small-Mid Company Fund
Class R5: INSLX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco International Small-Mid Company Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco International Small-Mid Company Fund
(Class R5) | $117 | 1.07% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around artificial intelligence led to market concentration in megacap technology, and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the period also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• In this environment, Class R5 shares of the Invesco International Small-Mid Company Fund returned 19.57% for the fiscal year ended October 31, 2024, lagging the MSCI ACWI ex USA SMID Cap Index return of 23.10% for the period. The Fund's underperformance for the fiscal year was primarily driven by weaker stock selection results in the health care and industrials sectors.
What contributed to performance?
VZ Holding AG | A Swiss wealth management company, delivered strong performance largely due to their market share growth during the reporting period.
Partners Group Holding AG | A Swiss asset manager focused on private markets, reported strong results driven by their strategic partnership with another asset manager which eased access to Partners’ investment strategies for the fast-growing high-net worth client segment.
DISCO Corp. | DISCO commanded a majority of the global market share in grinders and divers, making it a leader in the space for the semiconductor industry. While about half of DISCO’s profits emanate from the semiconductor capex budgets which have been driving growth, the other half is from more predictable after-market consumables, leading to a smoothing effect on earnings.
What detracted from performance?
Carl Zeiss Meditec AG | A global leader in ophthalmic and other high-precision surgery. Shorter term sales volumes have slowed in the aftermath of COVID-related overstocking by customers, especially in China.
LEM Holding S.A. | A Swiss designer and producer of high-quality currency and voltage transducers. LEM’s shares have been under pressure due to concerns about knock-off competition, largely from Chinese producers offering lower-cost integrated circuits.
SMS Co. LTD. | SMS is a Japanese innovator in recruiting placement as applied to health care, medical care, nursing staff, and elderly caregiving staff. Results have been challenged as of late by a reduced willingness of temp staff to switch assignments, which has pressured SMS’s commissions and thus it’s profit margins.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco International Small-Mid Company Fund (Class R5) | 19.57% | 2.80% | 6.93% |
| MSCI ACWI ex USA SMID Cap Index (Net) | 23.10% | 5.24% | 5.17% |
| MSCI ACWI ex USA Small Cap Index (Net) | 23.73% | 6.21% | 5.76% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 4.79% |
Class R5 shares incepted on May 24, 2019. Performance shown on and prior to that date is that of Oppenheimer International Small-Mid Company Fund's (the predecessor fund) Class A shares at net asset value and includes 12b-1 fees applicable to Class A shares. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the MSCI ACWI ex USA SMID Cap Index (Net) to the MSCI ACWI ex USA® Index (Net) to reflect that the MSCI ACWI ex USA® Index (Net) can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $4,179,554,161% |
| Total number of portfolio holdings | $115% |
| Total advisory fees paid | $44,423,523% |
| Portfolio turnover rate | $21% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Vanguard Total International Stock ETF | 3.71% |
| OBIC Co. Ltd. | 2.31% |
| Carl Zeiss Meditec AG, BR | 2.10% |
| Partners Group Holding AG | 1.72% |
| VZ Holding AG | 1.72% |
| Nice Ltd., ADR | 1.62% |
| Descartes Systems Group, Inc. (The) | 1.59% |
| Azbil Corp. | 1.53% |
| CCL Industries, Inc., Class B | 1.46% |
| ChemoMetec A/S | 1.33% |
Sector allocation**
(% of net assets)
* Excluding money market fund holdings, if any.
** Excluding exchange-traded funds (ETFs), which represented 3.7% of net assets. While the Fund does not typically invest in ETFs, it held an ETF at the end of the reporting period to maintain exposure to international markets consistent with its investment mandate while meeting short-term liquidity requirements.
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective after the close of business on September 30, 2024, the Fund has limited public sales of its Class R5 shares to certain investors who were previously invested in Class R5 shares of the Fund.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco International Small-Mid Company Fund
Class R6: OSCIX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco International Small-Mid Company Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco International Small-Mid Company Fund
(Class R6) | $110 | 1.00% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around artificial intelligence led to market concentration in megacap technology, and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the period also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• In this environment, Class R6 shares of the Invesco International Small-Mid Company Fund returned 19.62% for the fiscal year ended October 31, 2024, lagging the MSCI ACWI ex USA SMID Cap Index return of 23.10% for the period. The Fund's underperformance for the fiscal year was primarily driven by weaker stock selection results in the health care and industrials sectors.
What contributed to performance?
VZ Holding AG | A Swiss wealth management company, delivered strong performance largely due to their market share growth during the reporting period.
Partners Group Holding AG | A Swiss asset manager focused on private markets, reported strong results driven by their strategic partnership with another asset manager which eased access to Partners’ investment strategies for the fast-growing high-net worth client segment.
DISCO Corp. | DISCO commanded a majority of the global market share in grinders and divers, making it a leader in the space for the semiconductor industry. While about half of DISCO’s profits emanate from the semiconductor capex budgets which have been driving growth, the other half is from more predictable after-market consumables, leading to a smoothing effect on earnings.
What detracted from performance?
Carl Zeiss Meditec AG | A global leader in ophthalmic and other high-precision surgery. Shorter term sales volumes have slowed in the aftermath of COVID-related overstocking by customers, especially in China.
LEM Holding S.A. | A Swiss designer and producer of high-quality currency and voltage transducers. LEM’s shares have been under pressure due to concerns about knock-off competition, largely from Chinese producers offering lower-cost integrated circuits.
SMS Co. LTD. | SMS is a Japanese innovator in recruiting placement as applied to health care, medical care, nursing staff, and elderly caregiving staff. Results have been challenged as of late by a reduced willingness of temp staff to switch assignments, which has pressured SMS’s commissions and thus it’s profit margins.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco International Small-Mid Company Fund (Class R6) | 19.62% | 2.82% | 7.15% |
| MSCI ACWI ex USA SMID Cap Index (Net) | 23.10% | 5.24% | 5.17% |
| MSCI ACWI ex USA Small Cap Index (Net) | 23.73% | 6.21% | 5.76% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 4.79% |
Effective after the close of business on May 24, 2019, Class I shares of Oppenheimer International Small-Mid Company Fund, (the predecessor fund), were reorganized into Class R6 shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the MSCI ACWI ex USA SMID Cap Index (Net) to the MSCI ACWI ex USA® Index (Net) to reflect that the MSCI ACWI ex USA® Index (Net) can be considered more broadly representative of the overall applicable securities market.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $4,179,554,161% |
| Total number of portfolio holdings | $115% |
| Total advisory fees paid | $44,423,523% |
| Portfolio turnover rate | $21% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Vanguard Total International Stock ETF | 3.71% |
| OBIC Co. Ltd. | 2.31% |
| Carl Zeiss Meditec AG, BR | 2.10% |
| Partners Group Holding AG | 1.72% |
| VZ Holding AG | 1.72% |
| Nice Ltd., ADR | 1.62% |
| Descartes Systems Group, Inc. (The) | 1.59% |
| Azbil Corp. | 1.53% |
| CCL Industries, Inc., Class B | 1.46% |
| ChemoMetec A/S | 1.33% |
Sector allocation**
(% of net assets)
* Excluding money market fund holdings, if any.
** Excluding exchange-traded funds (ETFs), which represented 3.7% of net assets. While the Fund does not typically invest in ETFs, it held an ETF at the end of the reporting period to maintain exposure to international markets consistent with its investment mandate while meeting short-term liquidity requirements.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco MSCI World SRI Index Fund
Class A: VSQAX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco MSCI World SRI Index Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco MSCI World SRI Index Fund
(Class A) | $50 | 0.44%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, developed market equities experienced a mostly positive market environment due to strong global economic growth and broadly accommodative central banks. US outpaced other developed markets with the S&P 500® outperforming the MSCI World ex USA Index by almost 14%. As a result, the Fund’s allocation to the US, which represented 72% of the MSCI World SRI Index (the "Index"), aided performance.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the Index. The Fund's country, sector and security weights will closely mirror those of the Index. The Index is a capitalization weighted index that provides exposure to companies with outstanding Environmental, Social and Governance (ESG) ratings, as determined by MSCI Inc., and excludes companies whose products have negative social or environmental impacts.
• For the fiscal year ended October 31, 2024, Class A shares of the Fund, excluding sales charge, returned 29.11%, which differed from the return of the Index, 29.94%, primarily due to fees and expenses that the Fund incurred during the period and may also be the result of exchange-rate fluctuations.
What contributed to performance?
Sector Allocations | Information technology (software & services; semiconductors & semiconductor equipment), financials (financial services & insurance), and consumer discretionary (consumer discretionary distribution & retail), respectively.
Positions | Microsoft Inc. and NVIDIA Corp., information technology companies, and Tesla Inc., a consumer discretionary company. We sold our shares in Miscrosoft, Inc. during the fiscal year.
What detracted from performance?
Sector Allocations | No sector detracted from performance in the period.
Positions | Intel Corp. and Applied Materials, Inc., information technology companies, and Halliburton Co., an energy company.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | Since
Inception
(7/1/2016) |
| Invesco MSCI World SRI Index Fund (Class A) —including sales charge | 21.99% | 9.41% | 8.40% |
| Invesco MSCI World SRI Index Fund (Class A) —excluding sales charge | 29.11% | 10.66% | 9.14% |
| Custom Invesco MSCI World SRI Index (Net) | 29.94% | 11.48% | 11.45% |
| MSCI World SRI Index (Net) | 29.94% | 12.44% | 12.56% |
| MSCI World Index (Net) | 33.68% | 12.03% | 11.78% |
The Custom Invesco MSCI World SRI Index (Net) is composed of the MSCI World Index through June 30, 2020, and the MSCI World SRI Index (Net) thereafter.
Prior to June 29, 2020, the Fund was not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund prior to June 29, 2020 may have deviated significantly from the performance of the index(es).
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the MSCI World SRI Index (Net) to the MSCI World Index (Net) to reflect that the MSCI World Index (Net) can be considered more broadly representative of the overall applicable securities market.
The 1 year Class A shares return includes the effect of the Adviser pay-in for an economic loss that occurred on July 31, 2024. Had the pay-in not been made the 1 year Class A shares return, including sales charge, would have been 20.90%.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $16,908,222% |
| Total number of portfolio holdings | $355% |
| Total advisory fees paid | $0% |
| Portfolio turnover rate | $32% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| NVIDIA Corp. | 18.10% |
| Tesla, Inc. | 4.02% |
| Home Depot, Inc. (The) | 2.24% |
| Novo Nordisk A/S, Class B | 1.98% |
| Coca-Cola Co. (The) | 1.55% |
| ASML Holding N.V. | 1.53% |
| PepsiCo, Inc. | 1.32% |
| Adobe, Inc. | 1.20% |
| Texas Instruments, Inc. | 1.07% |
| Verizon Communications, Inc. | 1.02% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco MSCI World SRI Index Fund
Class C: VSQCX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco MSCI World SRI Index Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco MSCI World SRI Index Fund
(Class C) | $136 | 1.19%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, developed market equities experienced a mostly positive market environment due to strong global economic growth and broadly accommodative central banks. US outpaced other developed markets with the S&P 500® outperforming the MSCI World ex USA Index by almost 14%. As a result, the Fund’s allocation to the US, which represented 72% of the MSCI World SRI Index (the "Index"), aided performance.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the Index. The Fund's country, sector and security weights will closely mirror those of the Index. The Index is a capitalization weighted index that provides exposure to companies with outstanding Environmental, Social and Governance (ESG) ratings, as determined by MSCI Inc., and excludes companies whose products have negative social or environmental impacts.
• For the fiscal year ended October 31, 2024, Class C shares of the Fund, excluding sales charge, returned 28.15%, which differed from the return of the Index, 29.94%, primarily due to fees and expenses that the Fund incurred during the period and may also be the result of exchange-rate fluctuations.
What contributed to performance?
Sector Allocations | Information technology (software & services; semiconductors & semiconductor equipment), financials (financial services & insurance), and consumer discretionary (consumer discretionary distribution & retail), respectively.
Positions | Microsoft Inc. and NVIDIA Corp., information technology companies, and Tesla Inc., a consumer discretionary company. We sold our shares in Miscrosoft, Inc. during the fiscal year.
What detracted from performance?
Sector Allocations | No sector detracted from performance in the period.
Positions | Intel Corp. and Applied Materials, Inc., information technology companies, and Halliburton Co., an energy company.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | Since
Inception
(7/1/2016) |
| Invesco MSCI World SRI Index Fund (Class C) —including sales charge | 27.15% | 9.84% | 8.34% |
| Invesco MSCI World SRI Index Fund (Class C) —excluding sales charge | 28.15% | 9.84% | 8.34% |
| Custom Invesco MSCI World SRI Index (Net) | 29.94% | 11.48% | 11.45% |
| MSCI World SRI Index (Net) | 29.94% | 12.44% | 12.56% |
| MSCI World Index (Net) | 33.68% | 12.03% | 11.78% |
The Custom Invesco MSCI World SRI Index (Net) is composed of the MSCI World Index through June 30, 2020, and the MSCI World SRI Index (Net) thereafter.
Prior to June 29, 2020, the Fund was not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund prior to June 29, 2020 may have deviated significantly from the performance of the index(es).
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the MSCI World SRI Index (Net) to the MSCI World Index (Net) to reflect that the MSCI World Index (Net) can be considered more broadly representative of the overall applicable securities market.
The 1 year Class C shares return includes the effect of the Adviser pay-in for an economic loss that occurred on July 31, 2024. Had the pay-in not been made the 1 year Class C shares return, including sales charge, would have been 26.01%.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $16,908,222% |
| Total number of portfolio holdings | $355% |
| Total advisory fees paid | $0% |
| Portfolio turnover rate | $32% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| NVIDIA Corp. | 18.10% |
| Tesla, Inc. | 4.02% |
| Home Depot, Inc. (The) | 2.24% |
| Novo Nordisk A/S, Class B | 1.98% |
| Coca-Cola Co. (The) | 1.55% |
| ASML Holding N.V. | 1.53% |
| PepsiCo, Inc. | 1.32% |
| Adobe, Inc. | 1.20% |
| Texas Instruments, Inc. | 1.07% |
| Verizon Communications, Inc. | 1.02% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco MSCI World SRI Index Fund
Class R: VSQRX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco MSCI World SRI Index Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco MSCI World SRI Index Fund
(Class R) | $79 | 0.69%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, developed market equities experienced a mostly positive market environment due to strong global economic growth and broadly accommodative central banks. US outpaced other developed markets with the S&P 500® outperforming the MSCI World ex USA Index by almost 14%. As a result, the Fund’s allocation to the US, which represented 72% of the MSCI World SRI Index (the "Index"), aided performance.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the Index. The Fund's country, sector and security weights will closely mirror those of the Index. The Index is a capitalization weighted index that provides exposure to companies with outstanding Environmental, Social and Governance (ESG) ratings, as determined by MSCI Inc., and excludes companies whose products have negative social or environmental impacts.
• For the fiscal year ended October 31, 2024, Class R shares of the Fund returned 28.81%, which differed from the return of the Index, 29.94%, primarily due to fees and expenses that the Fund incurred during the period and may also be the result of exchange-rate fluctuations.
What contributed to performance?
Sector Allocations | Information technology (software & services; semiconductors & semiconductor equipment), financials (financial services & insurance), and consumer discretionary (consumer discretionary distribution & retail), respectively.
Positions | Microsoft Inc. and NVIDIA Corp., information technology companies, and Tesla Inc., a consumer discretionary company. We sold our shares in Miscrosoft, Inc. during the fiscal year.
What detracted from performance?
Sector Allocations | No sector detracted from performance in the period.
Positions | Intel Corp. and Applied Materials, Inc., information technology companies, and Halliburton Co., an energy company.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | Since
Inception
(7/1/16) |
| Invesco MSCI World SRI Index Fund (Class R) | 28.81% | 10.40% | 8.86% |
| Custom Invesco MSCI World SRI Index (Net) | 29.94% | 11.48% | 11.45% |
| MSCI World SRI Index (Net) | 29.94% | 12.44% | 12.56% |
| MSCI World Index (Net) | 33.68% | 12.03% | 11.78% |
The Custom Invesco MSCI World SRI Index (Net) is composed of the MSCI World Index through June 30, 2020, and the MSCI World SRI Index (Net) thereafter.
Prior to June 29, 2020, the Fund was not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund prior to June 29, 2020 may have deviated significantly from the performance of the index(es).
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the MSCI World SRI Index (Net) to the MSCI World Index (Net) to reflect that the MSCI World Index (Net) can be considered more broadly representative of the overall applicable securities market.
The 1 year Class R shares return includes the effect of the Adviser pay-in for an economic loss that occurred on July 31, 2024. Had the pay-in not been made the 1 year Class R shares return would have been 27.66%.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $16,908,222% |
| Total number of portfolio holdings | $355% |
| Total advisory fees paid | $0% |
| Portfolio turnover rate | $32% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| NVIDIA Corp. | 18.10% |
| Tesla, Inc. | 4.02% |
| Home Depot, Inc. (The) | 2.24% |
| Novo Nordisk A/S, Class B | 1.98% |
| Coca-Cola Co. (The) | 1.55% |
| ASML Holding N.V. | 1.53% |
| PepsiCo, Inc. | 1.32% |
| Adobe, Inc. | 1.20% |
| Texas Instruments, Inc. | 1.07% |
| Verizon Communications, Inc. | 1.02% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco MSCI World SRI Index Fund
Class Y: VSQYX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco MSCI World SRI Index Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco MSCI World SRI Index Fund
(Class Y) | $22 | 0.19%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, developed market equities experienced a mostly positive market environment due to strong global economic growth and broadly accommodative central banks. US outpaced other developed markets with the S&P 500® outperforming the MSCI World ex USA Index by almost 14%. As a result, the Fund’s allocation to the US, which represented 72% of the MSCI World SRI Index (the "Index"), aided performance.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the Index. The Fund's country, sector and security weights will closely mirror those of the Index. The Index is a capitalization weighted index that provides exposure to companies with outstanding Environmental, Social and Governance (ESG) ratings, as determined by MSCI Inc., and excludes companies whose products have negative social or environmental impacts.
• For the fiscal year ended October 31, 2024, Class Y shares of the Fund returned 29.45%, which differed from the return of the Index, 29.94%, primarily due to fees and expenses that the Fund incurred during the period and may also be the result of exchange-rate fluctuations.
What contributed to performance?
Sector Allocations | Information technology (software & services; semiconductors & semiconductor equipment), financials (financial services & insurance), and consumer discretionary (consumer discretionary distribution & retail), respectively.
Positions | Microsoft Inc. and NVIDIA Corp., information technology companies, and Tesla Inc., a consumer discretionary company. We sold our shares in Miscrosoft, Inc. during the fiscal year.
What detracted from performance?
Sector Allocations | No sector detracted from performance in the period.
Positions | Intel Corp. and Applied Materials, Inc., information technology companies, and Halliburton Co., an energy company.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | Since
Inception
(7/1/16) |
| Invesco MSCI World SRI Index Fund (Class Y) | 29.45% | 10.94% | 9.41% |
| Custom Invesco MSCI World SRI Index (Net) | 29.94% | 11.48% | 11.45% |
| MSCI World SRI Index (Net) | 29.94% | 12.44% | 12.56% |
| MSCI World Index (Net) | 33.68% | 12.03% | 11.78% |
The Custom Invesco MSCI World SRI Index (Net) is composed of the MSCI World Index through June 30, 2020, and the MSCI World SRI Index (Net) thereafter.
Prior to June 29, 2020, the Fund was not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund prior to June 29, 2020 may have deviated significantly from the performance of the index(es).
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the MSCI World SRI Index (Net) to the MSCI World Index (Net) to reflect that the MSCI World Index (Net) can be considered more broadly representative of the overall applicable securities market.
The 1 year Class Y shares return includes the effect of the Adviser pay-in for an economic loss that occurred on July 31, 2024. Had the pay-in not been made the 1 year Class Y shares return would have been 28.30%.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $16,908,222% |
| Total number of portfolio holdings | $355% |
| Total advisory fees paid | $0% |
| Portfolio turnover rate | $32% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| NVIDIA Corp. | 18.10% |
| Tesla, Inc. | 4.02% |
| Home Depot, Inc. (The) | 2.24% |
| Novo Nordisk A/S, Class B | 1.98% |
| Coca-Cola Co. (The) | 1.55% |
| ASML Holding N.V. | 1.53% |
| PepsiCo, Inc. | 1.32% |
| Adobe, Inc. | 1.20% |
| Texas Instruments, Inc. | 1.07% |
| Verizon Communications, Inc. | 1.02% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco MSCI World SRI Index Fund
Class R5: VSQFX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco MSCI World SRI Index Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco MSCI World SRI Index Fund
(Class R5) | $22 | 0.19%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, developed market equities experienced a mostly positive market environment due to strong global economic growth and broadly accommodative central banks. US outpaced other developed markets with the S&P 500® outperforming the MSCI World ex USA Index by almost 14%. As a result, the Fund’s allocation to the US, which represented 72% of the MSCI World SRI Index (the "Index"), aided performance.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the Index. The Fund's country, sector and security weights will closely mirror those of the Index. The Index is a capitalization weighted index that provides exposure to companies with outstanding Environmental, Social and Governance (ESG) ratings, as determined by MSCI Inc., and excludes companies whose products have negative social or environmental impacts.
• For the fiscal year ended October 31, 2024, Class R5 shares of the Fund returned 29.45%, which differed from the return of the Index, 29.94%, primarily due to fees and expenses that the Fund incurred during the period and may also be the result of exchange-rate fluctuations.
What contributed to performance?
Sector Allocations | Information technology (software & services; semiconductors & semiconductor equipment), financials (financial services & insurance), and consumer discretionary (consumer discretionary distribution & retail), respectively.
Positions | Microsoft Inc. and NVIDIA Corp., information technology companies, and Tesla Inc., a consumer discretionary company. We sold our shares in Miscrosoft, Inc. during the fiscal year.
What detracted from performance?
Sector Allocations | No sector detracted from performance in the period.
Positions | Intel Corp. and Applied Materials, Inc., information technology companies, and Halliburton Co., an energy company.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | Since
Inception
(7/1/16) |
| Invesco MSCI World SRI Index Fund (Class R5) | 29.45% | 10.96% | 9.41% |
| Custom Invesco MSCI World SRI Index (Net) | 29.94% | 11.48% | 11.45% |
| MSCI World SRI Index (Net) | 29.94% | 12.44% | 12.56% |
| MSCI World Index (Net) | 33.68% | 12.03% | 11.78% |
The Custom Invesco MSCI World SRI Index (Net) is composed of the MSCI World Index through June 30, 2020, and the MSCI World SRI Index (Net) thereafter.
Prior to June 29, 2020, the Fund was not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund prior to June 29, 2020 may have deviated significantly from the performance of the index(es).
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the MSCI World SRI Index (Net) to the MSCI World Index (Net) to reflect that the MSCI World Index (Net) can be considered more broadly representative of the overall applicable securities market.
The 1 year Class R5 shares return includes the effect of the Adviser pay-in for an economic loss that occurred on July 31, 2024. Had the pay-in not been made the 1 year Class R5 shares return would have been 28.30%.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $16,908,222% |
| Total number of portfolio holdings | $355% |
| Total advisory fees paid | $0% |
| Portfolio turnover rate | $32% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| NVIDIA Corp. | 18.10% |
| Tesla, Inc. | 4.02% |
| Home Depot, Inc. (The) | 2.24% |
| Novo Nordisk A/S, Class B | 1.98% |
| Coca-Cola Co. (The) | 1.55% |
| ASML Holding N.V. | 1.53% |
| PepsiCo, Inc. | 1.32% |
| Adobe, Inc. | 1.20% |
| Texas Instruments, Inc. | 1.07% |
| Verizon Communications, Inc. | 1.02% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective after the close of business on September 30, 2024, the Fund has limited public sales of its Class R5 shares to certain investors who were previously invested in Class R5 shares of the Fund.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco MSCI World SRI Index Fund
Class R6: VSQSX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco MSCI World SRI Index Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco MSCI World SRI Index Fund
(Class R6) | $22 | 0.19%† |
† | Reflects fee waivers and /or expense reimbursements, without which expenses would have been higher. |
How Did The Fund Perform During The Period?
• During the fiscal year ended October 31, 2024, developed market equities experienced a mostly positive market environment due to strong global economic growth and broadly accommodative central banks. US outpaced other developed markets with the S&P 500® outperforming the MSCI World ex USA Index by almost 14%. As a result, the Fund’s allocation to the US, which represented 72% of the MSCI World SRI Index (the "Index"), aided performance.
• The Fund is passively managed and seeks to track the investment results (before fees and expenses) of the Index. The Fund's country, sector and security weights will closely mirror those of the Index. The Index is a capitalization weighted index that provides exposure to companies with outstanding Environmental, Social and Governance (ESG) ratings, as determined by MSCI Inc., and excludes companies whose products have negative social or environmental impacts.
• For the fiscal year ended October 31, 2024, Class R6 shares of the Fund returned 29.45%, which differed from the return of the Index, 29.94%, primarily due to fees and expenses that the Fund incurred during the period and may also be the result of exchange-rate fluctuations.
What contributed to performance?
Sector Allocations | Information technology (software & services; semiconductors & semiconductor equipment), financials (financial services & insurance), and consumer discretionary (consumer discretionary distribution & retail), respectively.
Positions | Microsoft Inc. and NVIDIA Corp., information technology companies, and Tesla Inc., a consumer discretionary company. We sold our shares in Miscrosoft, Inc. during the fiscal year.
What detracted from performance?
Sector Allocations | No sector detracted from performance in the period.
Positions | Intel Corp. and Applied Materials, Inc., information technology companies, and Halliburton Co., an energy company.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | Since
Inception
(7/1/16) |
| Invesco MSCI World SRI Index Fund (Class R6) | 29.45% | 10.96% | 9.41% |
| Custom Invesco MSCI World SRI Index (Net) | 29.94% | 11.48% | 11.45% |
| MSCI World SRI Index (Net) | 29.94% | 12.44% | 12.56% |
| MSCI World Index (Net) | 33.68% | 12.03% | 11.78% |
The Custom Invesco MSCI World SRI Index (Net) is composed of the MSCI World Index through June 30, 2020, and the MSCI World SRI Index (Net) thereafter.
Prior to June 29, 2020, the Fund was not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund prior to June 29, 2020 may have deviated significantly from the performance of the index(es).
Effective February 28, 2024, the Fund changed its broad-based securities market benchmark from the MSCI World SRI Index (Net) to the MSCI World Index (Net) to reflect that the MSCI World Index (Net) can be considered more broadly representative of the overall applicable securities market.
The 1 year Class R6 shares return includes the effect of the Adviser pay-in for an economic loss that occurred on July 31, 2024. Had the pay-in not been made the 1 year Class R6 shares return would have been 28.30%.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $16,908,222% |
| Total number of portfolio holdings | $355% |
| Total advisory fees paid | $0% |
| Portfolio turnover rate | $32% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| NVIDIA Corp. | 18.10% |
| Tesla, Inc. | 4.02% |
| Home Depot, Inc. (The) | 2.24% |
| Novo Nordisk A/S, Class B | 1.98% |
| Coca-Cola Co. (The) | 1.55% |
| ASML Holding N.V. | 1.53% |
| PepsiCo, Inc. | 1.32% |
| Adobe, Inc. | 1.20% |
| Texas Instruments, Inc. | 1.07% |
| Verizon Communications, Inc. | 1.02% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Oppenheimer International Growth Fund
Class A: OIGAX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Oppenheimer International Growth Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Oppenheimer International Growth Fund
(Class A) | $123 | 1.11% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around the artificial investment (AI) investment wave led to concentrated market leadership in the megacap technology space and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the fiscal year also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• For the fiscal year ended October 31, 2024, Class A shares of the Fund, excluding sales charge, returned 22.28%, lagging the MSCI ACWI ex USA® Index return of 24.33% for the period. The Fund's underperformance for the fiscal year was primarily driven by weaker stock selection results in the information technology sector, and the Fund's underweight positioning in the financials sector.
What contributed to performance?
Dollarama, Inc. | A Canadian discount retailer that is much like Dollar Tree and Dollar General in the US. However, unlike the US, this retail market segment in Canada is not saturated and Dollarama has performed well. We have owned the company for several years as part of our Reorganization of Retail theme. In our opinion, the continuing shift to online buying benefits retailers at the very high and the very low end of pricing.
Novo Nordisk A/S | A Danish company that is the world’s leading maker of care products and insulin for diabetes, a disease that is increasing worldwide. Novo has also introduced the weight loss drug Wegovy, for which demand has been high. Clinical trial results for Wegovy’s reduction of coronary disease risk have exceeded expectations, and the share price has reacted favorably.
ResMed, Inc. | This company produces air flow generators and masks to fight sleep apnea, a condition that remains under-diagnosed. The market is concentrated: ResMed and its close competitor Philips (not a fund holding) have a combined 80% market share. ResMed reported strong sales and earnings growth while continuing to improve its balance sheet strength during the reporting period. We continue to view ResMed’s prospects favorably.
What detracted from performance?
Edenred SE | Based in France, this company manages employee benefit programs and expenses through prepaid vouchers. It has grown steadily through geographic and service expansion, while digitization has reduced operating costs. The stock fell during the reporting period due to regulatory uncertainty in some of its geographies.
HelloFresh SE | A German company that is the largest meal kit provider in the US, as well as several other markets. In our opinion, it is the one company with the scale necessary to achieve attractive profitability in the industry. However, it is taking management longer to execute their growth plans than we had expected when valuing the company. We have therefore exited the position.
AIXTRON SE | A German company which makes the “metal organic chemical vapor deposition equipment” -“MOCVD equipment” – used in the manufacture of layered semiconductors made of compounds other than just silicon. In our opinion, AIXTRON is well-placed in the value chain of a growing segment of semiconductor evolution.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Oppenheimer International Growth Fund (Class A) —including sales charge | 15.55% | 4.17% | 4.13% |
| Invesco Oppenheimer International Growth Fund (Class A) —excluding sales charge | 22.28% | 5.35% | 4.72% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 4.79% |
Effective after the close of business on May 24, 2019, Class A shares of Oppenheimer International Growth Fund, (the predecessor fund), were reorganized into Class A shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class A shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $6,342,467,179% |
| Total number of portfolio holdings | $64% |
| Total advisory fees paid | $46,884,667% |
| Portfolio turnover rate | $10% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Novo Nordisk A/S, Class B | 3.45% |
| Dollarama, Inc. | 3.17% |
| London Stock Exchange Group PLC | 3.10% |
| Next PLC | 2.99% |
| Reliance Industries Ltd. | 2.96% |
| Compass Group PLC | 2.85% |
| Flutter Entertainment PLC | 2.76% |
| ResMed, Inc. | 2.73% |
| Epiroc AB, Class A | 2.69% |
| ASML Holding N.V. | 2.57% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Oppenheimer International Growth Fund
Class C: OIGCX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Oppenheimer International Growth Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Oppenheimer International Growth Fund
(Class C) | $207 | 1.87% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around the artificial investment (AI) investment wave led to concentrated market leadership in the megacap technology space and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the fiscal year also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• For the fiscal year ended October 31, 2024, Class C shares of the Fund, excluding sales charge, returned 21.33%, lagging the MSCI ACWI ex USA® Index return of 24.33% for the period. The Fund's underperformance for the fiscal year was primarily driven by weaker stock selection results in the information technology sector, and the Fund underweight positioning in the financials sector.
What contributed to performance?
Dollarama, Inc. | A Canadian discount retailer that is much like Dollar Tree and Dollar General in the US. However, unlike the US, this retail market segment in Canada is not saturated and Dollarama has performed well. We have owned the company for several years as part of our Reorganization of Retail theme. In our opinion, the continuing shift to online buying benefits retailers at the very high and the very low end of pricing.
Novo Nordisk A/S | A Danish company that is the world’s leading maker of care products and insulin for diabetes, a disease that is increasing worldwide. Novo has also introduced the weight loss drug Wegovy, for which demand has been high. Clinical trial results for Wegovy’s reduction of coronary disease risk have exceeded expectations, and the share price has reacted favorably.
ResMed, Inc. | This company produces air flow generators and masks to fight sleep apnea, a condition that remains under-diagnosed. The market is concentrated: ResMed and its close competitor Philips (not a fund holding) have a combined 80% market share. ResMed reported strong sales and earnings growth while continuing to improve its balance sheet strength during the reporting period. We continue to view ResMed’s prospects favorably.
What detracted from performance?
Edenred SE | Based in France, this company manages employee benefit programs and expenses through prepaid vouchers. It has grown steadily through geographic and service expansion, while digitization has reduced operating costs. The stock fell during the reporting period due to regulatory uncertainty in some of its geographies.
HelloFresh SE | A German company that is the largest meal kit provider in the US, as well as several other markets. In our opinion, it is the one company with the scale necessary to achieve attractive profitability in the industry. However, it is taking management longer to execute their growth plans than we had expected when valuing the company. We have therefore exited the position.
AIXTRON SE | A German company which makes the “metal organic chemical vapor deposition equipment” -“MOCVD equipment” – used in the manufacture of layered semiconductors made of compounds other than just silicon. In our opinion, AIXTRON is well-placed in the value chain of a growing segment of semiconductor evolution.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Oppenheimer International Growth Fund (Class C) —including sales charge | 20.33% | 4.56% | 4.09% |
| Invesco Oppenheimer International Growth Fund (Class C) —excluding sales charge | 21.33% | 4.56% | 4.09% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 4.79% |
Effective after the close of business on May 24, 2019, Class C shares of Oppenheimer International Growth Fund, (the predecessor fund), were reorganized into Class C shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class C shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $6,342,467,179% |
| Total number of portfolio holdings | $64% |
| Total advisory fees paid | $46,884,667% |
| Portfolio turnover rate | $10% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Novo Nordisk A/S, Class B | 3.45% |
| Dollarama, Inc. | 3.17% |
| London Stock Exchange Group PLC | 3.10% |
| Next PLC | 2.99% |
| Reliance Industries Ltd. | 2.96% |
| Compass Group PLC | 2.85% |
| Flutter Entertainment PLC | 2.76% |
| ResMed, Inc. | 2.73% |
| Epiroc AB, Class A | 2.69% |
| ASML Holding N.V. | 2.57% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Oppenheimer International Growth Fund
Class R: OIGNX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Oppenheimer International Growth Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Oppenheimer International Growth Fund
(Class R) | $152 | 1.37% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around the artificial investment (AI) investment wave led to concentrated market leadership in the megacap technology space and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the fiscal year also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• For the fiscal year ended October 31, 2024, Class R shares of the Fund returned 21.94%, lagging the MSCI ACWI ex USA® Index return of 24.33% for the period. The Fund's underperformance for the fiscal year was primarily driven by weaker stock selection results in the information technology sector, and the Fund's underweight positioning in the financials sector.
What contributed to performance?
Dollarama, Inc. | A Canadian discount retailer that is much like Dollar Tree and Dollar General in the US. However, unlike the US, this retail market segment in Canada is not saturated and Dollarama has performed well. We have owned the company for several years as part of our Reorganization of Retail theme. In our opinion, the continuing shift to online buying benefits retailers at the very high and the very low end of pricing.
Novo Nordisk A/S | A Danish company that is the world’s leading maker of care products and insulin for diabetes, a disease that is increasing worldwide. Novo has also introduced the weight loss drug Wegovy, for which demand has been high. Clinical trial results for Wegovy’s reduction of coronary disease risk have exceeded expectations, and the share price has reacted favorably.
ResMed, Inc. | This company produces air flow generators and masks to fight sleep apnea, a condition that remains under-diagnosed. The market is concentrated: ResMed and its close competitor Philips (not a fund holding) have a combined 80% market share. ResMed reported strong sales and earnings growth while continuing to improve its balance sheet strength during the reporting period. We continue to view ResMed’s prospects favorably.
What detracted from performance?
Edenred SE | Based in France, this company manages employee benefit programs and expenses through prepaid vouchers. It has grown steadily through geographic and service expansion, while digitization has reduced operating costs. The stock fell during the reporting period due to regulatory uncertainty in some of its geographies.
HelloFresh SE | A German company that is the largest meal kit provider in the US, as well as several other markets. In our opinion, it is the one company with the scale necessary to achieve attractive profitability in the industry. However, it is taking management longer to execute their growth plans than we had expected when valuing the company. We have therefore exited the position.
AIXTRON SE | A German company which makes the “metal organic chemical vapor deposition equipment” -“MOCVD equipment” – used in the manufacture of layered semiconductors made of compounds other than just silicon. In our opinion, AIXTRON is well-placed in the value chain of a growing segment of semiconductor evolution.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Oppenheimer International Growth Fund (Class R) | 21.94% | 5.09% | 4.45% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 4.79% |
Effective after the close of business on May 24, 2019, Class R shares of Oppenheimer International Growth Fund, (the predecessor fund), were reorganized into Class R shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class R shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $6,342,467,179% |
| Total number of portfolio holdings | $64% |
| Total advisory fees paid | $46,884,667% |
| Portfolio turnover rate | $10% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Novo Nordisk A/S, Class B | 3.45% |
| Dollarama, Inc. | 3.17% |
| London Stock Exchange Group PLC | 3.10% |
| Next PLC | 2.99% |
| Reliance Industries Ltd. | 2.96% |
| Compass Group PLC | 2.85% |
| Flutter Entertainment PLC | 2.76% |
| ResMed, Inc. | 2.73% |
| Epiroc AB, Class A | 2.69% |
| ASML Holding N.V. | 2.57% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Oppenheimer International Growth Fund
Class Y: OIGYX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Oppenheimer International Growth Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Oppenheimer International Growth Fund
(Class Y) | $97 | 0.87% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around the artificial investment (AI) investment wave led to concentrated market leadership in the megacap technology space and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the fiscal year also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• For the fiscal year ended October 31, 2024, Class Y shares of the Fund returned 22.57%, lagging the MSCI ACWI ex USA® Index return of 24.33% for the period. The Fund's underperformance for the fiscal year was primarily driven by weaker stock selection results in the information technology sector, and the Fund's underweight positioning in the financials sector.
What contributed to performance?
Dollarama, Inc. | A Canadian discount retailer that is much like Dollar Tree and Dollar General in the US. However, unlike the US, this retail market segment in Canada is not saturated and Dollarama has performed well. We have owned the company for several years as part of our Reorganization of Retail theme. In our opinion, the continuing shift to online buying benefits retailers at the very high and the very low end of pricing.
Novo Nordisk A/S | A Danish company that is the world’s leading maker of care products and insulin for diabetes, a disease that is increasing worldwide. Novo has also introduced the weight loss drug Wegovy, for which demand has been high. Clinical trial results for Wegovy’s reduction of coronary disease risk have exceeded expectations, and the share price has reacted favorably.
ResMed, Inc. | This company produces air flow generators and masks to fight sleep apnea, a condition that remains under-diagnosed. The market is concentrated: ResMed and its close competitor Philips (not a fund holding) have a combined 80% market share. ResMed reported strong sales and earnings growth while continuing to improve its balance sheet strength during the reporting period. We continue to view ResMed’s prospects favorably.
What detracted from performance?
Edenred SE | Based in France, this company manages employee benefit programs and expenses through prepaid vouchers. It has grown steadily through geographic and service expansion, while digitization has reduced operating costs. The stock fell during the reporting period due to regulatory uncertainty in some of its geographies.
HelloFresh SE | A German company that is the largest meal kit provider in the US, as well as several other markets. In our opinion, it is the one company with the scale necessary to achieve attractive profitability in the industry. However, it is taking management longer to execute their growth plans than we had expected when valuing the company. We have therefore exited the position.
AIXTRON SE | A German company which makes the “metal organic chemical vapor deposition equipment” -“MOCVD equipment” – used in the manufacture of layered semiconductors made of compounds other than just silicon. In our opinion, AIXTRON is well-placed in the value chain of a growing segment of semiconductor evolution.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Oppenheimer International Growth Fund (Class Y) | 22.57% | 5.61% | 4.98% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 4.79% |
Effective after the close of business on May 24, 2019, Class Y shares of Oppenheimer International Growth Fund, (the predecessor fund), were reorganized into Class Y shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class Y shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $6,342,467,179% |
| Total number of portfolio holdings | $64% |
| Total advisory fees paid | $46,884,667% |
| Portfolio turnover rate | $10% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Novo Nordisk A/S, Class B | 3.45% |
| Dollarama, Inc. | 3.17% |
| London Stock Exchange Group PLC | 3.10% |
| Next PLC | 2.99% |
| Reliance Industries Ltd. | 2.96% |
| Compass Group PLC | 2.85% |
| Flutter Entertainment PLC | 2.76% |
| ResMed, Inc. | 2.73% |
| Epiroc AB, Class A | 2.69% |
| ASML Holding N.V. | 2.57% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Oppenheimer International Growth Fund
Class R5: INGFX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Oppenheimer International Growth Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
This report describes changes to the Fund that occurred during the reporting period.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Oppenheimer International Growth Fund
(Class R5) | $90 | 0.81% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around the artificial investment (AI) investment wave led to concentrated market leadership in the megacap technology space and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the fiscal year also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• For the fiscal year ended October 31, 2024, Class R5 shares of the Fund returned 22.60%, lagging the MSCI ACWI ex USA® Index return of 24.33% for the period. The Fund's underperformance for the fiscal year was primarily driven by weaker stock selection results in the information technology sector, and the Fund's underweight positioning in the financials sector.
What contributed to performance?
Dollarama, Inc. | A Canadian discount retailer that is much like Dollar Tree and Dollar General in the US. However, unlike the US, this retail market segment in Canada is not saturated and Dollarama has performed well. We have owned the company for several years as part of our Reorganization of Retail theme. In our opinion, the continuing shift to online buying benefits retailers at the very high and the very low end of pricing.
Novo Nordisk A/S | A Danish company that is the world’s leading maker of care products and insulin for diabetes, a disease that is increasing worldwide. Novo has also introduced the weight loss drug Wegovy, for which demand has been high. Clinical trial results for Wegovy’s reduction of coronary disease risk have exceeded expectations, and the share price has reacted favorably.
ResMed, Inc. | This company produces air flow generators and masks to fight sleep apnea, a condition that remains under-diagnosed. The market is concentrated: ResMed and its close competitor Philips (not a fund holding) have a combined 80% market share. ResMed reported strong sales and earnings growth while continuing to improve its balance sheet strength during the reporting period. We continue to view ResMed’s prospects favorably.
What detracted from performance?
Edenred SE | Based in France, this company manages employee benefit programs and expenses through prepaid vouchers. It has grown steadily through geographic and service expansion, while digitization has reduced operating costs. The stock fell during the reporting period due to regulatory uncertainty in some of its geographies.
HelloFresh SE | A German company that is the largest meal kit provider in the US, as well as several other markets. In our opinion, it is the one company with the scale necessary to achieve attractive profitability in the industry. However, it is taking management longer to execute their growth plans than we had expected when valuing the company. We have therefore exited the position.
AIXTRON SE | A German company which makes the “metal organic chemical vapor deposition equipment” -“MOCVD equipment” – used in the manufacture of layered semiconductors made of compounds other than just silicon. In our opinion, AIXTRON is well-placed in the value chain of a growing segment of semiconductor evolution.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Oppenheimer International Growth Fund (Class R5) | 22.60% | 5.74% | 4.92% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 4.79% |
Class R5 shares incepted on May 29, 2019. Performance shown on and prior to that date is that of Oppenheimer International Growth Fund's (the predecessor fund) Class A shares at net asset value and includes 12b-1 fees applicable to Class A shares. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $6,342,467,179% |
| Total number of portfolio holdings | $64% |
| Total advisory fees paid | $46,884,667% |
| Portfolio turnover rate | $10% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Novo Nordisk A/S, Class B | 3.45% |
| Dollarama, Inc. | 3.17% |
| London Stock Exchange Group PLC | 3.10% |
| Next PLC | 2.99% |
| Reliance Industries Ltd. | 2.96% |
| Compass Group PLC | 2.85% |
| Flutter Entertainment PLC | 2.76% |
| ResMed, Inc. | 2.73% |
| Epiroc AB, Class A | 2.69% |
| ASML Holding N.V. | 2.57% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
How Has The Fund Changed Over The Past Year?
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund's prospectus, which is available at invesco.com/reports or upon request at (800) 959-4246.
Effective after the close of business on September 30, 2024, the Fund has limited public sales of its Class R5 shares to certain investors who were previously invested in Class R5 shares of the Fund.
The Fund's net expense ratio increased from the prior fiscal year end as a result of a change in operating expenses.
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
Invesco Oppenheimer International Growth Fund
Class R6: OIGIX
ANNUAL SHAREHOLDER REPORT | October 31, 2024
This annual shareholder report contains important information about Invesco Oppenheimer International Growth Fund (the “Fund”) for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at invesco.com/reports. You can also request this information by contacting us at (800) 959-4246.
What Were The Fund Costs For The Last Year ?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of a $10,000 investment | Costs paid as a percentage
of a $10,000 investment |
Invesco Oppenheimer International Growth Fund
(Class R6) | $82 | 0.74% |
How Did The Fund Perform During The Period?
• Global equity markets rose strongly during the fiscal year ended October 31, 2024. In the US, enthusiasm around the artificial investment (AI) investment wave led to concentrated market leadership in the megacap technology space and to outperformance relative to non-US equities. The turn in the interest rate cycle towards the end of the fiscal year also caused high quality segments to underperform the wider market. Outside of the US, emerging markets (EM) outperformed developed markets as news of fiscal stimulus by the Chinese government drove better sentiment towards the EM asset class.
• For the fiscal year ended October 31, 2024, Class R6 shares of the Fund returned 22.71%, lagging the MSCI ACWI ex USA® Index return of 24.33% for the period. The Fund's underperformance for the fiscal year was primarily driven by weaker stock selection results in the information technology sector, and the Fund's underweight positioning in the financials sector.
What contributed to performance?
Dollarama, Inc. | A Canadian discount retailer that is much like Dollar Tree and Dollar General in the US. However, unlike the US, this retail market segment in Canada is not saturated and Dollarama has performed well. We have owned the company for several years as part of our Reorganization of Retail theme. In our opinion, the continuing shift to online buying benefits retailers at the very high and the very low end of pricing.
Novo Nordisk A/S | A Danish company that is the world’s leading maker of care products and insulin for diabetes, a disease that is increasing worldwide. Novo has also introduced the weight loss drug Wegovy, for which demand has been high. Clinical trial results for Wegovy’s reduction of coronary disease risk have exceeded expectations, and the share price has reacted favorably.
ResMed, Inc. | This company produces air flow generators and masks to fight sleep apnea, a condition that remains under-diagnosed. The market is concentrated: ResMed and its close competitor Philips (not a fund holding) have a combined 80% market share. ResMed reported strong sales and earnings growth while continuing to improve its balance sheet strength during the reporting period. We continue to view ResMed’s prospects favorably.
What detracted from performance?
Edenred SE | Based in France, this company manages employee benefit programs and expenses through prepaid vouchers. It has grown steadily through geographic and service expansion, while digitization has reduced operating costs. The stock fell during the reporting period due to regulatory uncertainty in some of its geographies.
HelloFresh SE | A German company that is the largest meal kit provider in the US, as well as several other markets. In our opinion, it is the one company with the scale necessary to achieve attractive profitability in the industry. However, it is taking management longer to execute their growth plans than we had expected when valuing the company. We have therefore exited the position.
AIXTRON SE | A German company which makes the “metal organic chemical vapor deposition equipment” -“MOCVD equipment” – used in the manufacture of layered semiconductors made of compounds other than just silicon. In our opinion, AIXTRON is well-placed in the value chain of a growing segment of semiconductor evolution.
How Has The Fund Historically Performed?
Growth of $10,000 Investment
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Invesco Oppenheimer International Growth Fund (Class R6) | 22.71% | 5.77% | 5.14% |
| MSCI ACWI ex USA® Index (Net) | 24.33% | 5.78% | 4.79% |
Effective after the close of business on May 24, 2019, Class I shares of Oppenheimer International Growth Fund, (the predecessor fund), were reorganized into Class R6 shares of the Fund. Returns shown above for periods ending on or prior to May 24, 2019 are those of Class I shares of the predecessor fund. Share class returns will differ from the predecessor fund because of different expenses.
The performance data quoted represents past performance and cannot guarantee future results; current performance may be lower or higher. Please visit invesco.com/performance for more recent performance information.
Performance figures do not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.
What Are Key Statistics About The Fund?
(as of October 31, 2024)
| Fund net assets | $6,342,467,179% |
| Total number of portfolio holdings | $64% |
| Total advisory fees paid | $46,884,667% |
| Portfolio turnover rate | $10% |
What Comprised The Fund's Holdings?
(as of October 31, 2024)
Top ten holdings*
(% of net assets)
| Novo Nordisk A/S, Class B | 3.45% |
| Dollarama, Inc. | 3.17% |
| London Stock Exchange Group PLC | 3.10% |
| Next PLC | 2.99% |
| Reliance Industries Ltd. | 2.96% |
| Compass Group PLC | 2.85% |
| Flutter Entertainment PLC | 2.76% |
| ResMed, Inc. | 2.73% |
| Epiroc AB, Class A | 2.69% |
| ASML Holding N.V. | 2.57% |
| * Excluding money market fund holdings, if any. | |
Sector allocation
(% of net assets)
Where Can I Find More Information?
You can find more information about the Fund, including the Fund's prospectus, financial information, and holdings at invesco.com/reports. Additionally, the Fund's proxy voting information can be found at invesco.com/proxy-voting.
What Should I Know About Delivery Of Important Regulatory Documents?
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at (800) 959-4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.
For additional information, please scan the QR code at the left to navigate to additional material at invesco.com/reports.
The Registrant has adopted a Code of Ethics (the "Code") that applies to the Registrant's Principal Executive Officer ("PEO") and Principal Financial Officer ("PFO"). This Code is filed as an exhibit to this report on Form N-CSR under Item 19(a)(1). No substantive amendments to this Code were made during the reporting period. The Code was revised to include PEOs and PFOs of certain Invesco exchange traded funds, previously covered by a separate code of ethics. There were no waivers for the fiscal year ended October 31, 2024.
Item 3. Audit Committee Financial Expert.
The Board of Trustees has determined that the Registrant has at least one audit committee financial expert serving on its Audit Committee. The Audit Committee financial expert is Anthony J. LaCava, Jr. Anthony J. LaCava, Jr. is "independent" within the meaning of that term as used in Form N-CSR.
Item 4. Principal Accountant Fees and Services.
(a) to (d)
Fees Billed by PwC Related to the Registrant
PricewaterhouseCoopers LLP (“PwC”), the Registrant’s independent registered public accounting firm, billed the Registrant aggregate fees for services rendered to the Registrant for the last two fiscal years as shown in the following table. The Audit Committee pre-approved all audit and non-audit services provided to the Registrant.
| | | |
| Fees Billed by PwC for Services Rendered to the Registrant for Fiscal Year Ended 2024 | Fees Billed by PwC for Services Rendered to the Registrant for Fiscal Year Ended 2023 |
| | |
Audit Fees | $ 387,628 | $ 381,364 |
Audit-Related Fees(1) | $ 6,996 | $ 11,000 |
Tax Fees(2) | $ 211,007 | $ 505,760 |
All Other Fees | $ 0 | $ 0 |
Total Fees | $ 605,631 | $ 898,124 |
(1) | Audit-Related Fees for the fiscal years ended 2024 and 2023 includes fees billed for reviewing regulatory filings. |
(2) | Tax Fees for the fiscal years ended 2024 and 2023 includes fees billed for preparation of U.S. Tax Returns and Taxable Income calculations, including excise tax and year-to-date estimates for various book-to-tax differences. |
Fees Billed by PwC Related to Invesco and Affiliates
PwC billed Invesco Advisers, Inc. (“Invesco”), the Registrant’s investment adviser, and any entity controlling, controlled by or under common control with Invesco that provides ongoing services to the Registrant (“Affiliates”) aggregate fees for pre-approved non-audit services rendered to Invesco and Affiliates for the last two fiscal years as shown in the following table. The Audit Committee pre-approved all non-audit services provided to Invesco and Affiliates that were required to be pre-approved.
| | | |
| Fees Billed for Non- Audit Services Rendered to Invesco and Affiliates for Fiscal Year Ended 2024 That Were Required to be Pre-Approved by the Registrant’s Audit Committee | Fees Billed for Non- Audit Services Rendered to Invesco and Affiliates for Fiscal Year Ended 2023 That Were Required to be Pre-Approved by the Registrant’s Audit Committee |
Audit-Related Fees(1) | $ 1,134,000 | $ 1,067,000 |
Tax Fees | $ 0 | $ 0 |
All Other Fees | $ 0 | $ 0 |
Total Fees | $ 1,134 ,000 | $ 1,067,000 |
(1) Audit-Related Fees for the fiscal years ended 2024 and 2023 include fees billed related to reviewing controls at a service organization.
(e)(1)
PRE-APPROVAL OF AUDIT AND NON-AUDIT SERVICES
POLICIES AND PROCEDURES
As adopted by the Audit Committees
of the Invesco Funds (the “Funds”)
Last Amended March 29, 2017
I. | Statement of Principles |
The Audit Committees (the “Audit Committee”) of the Boards of Trustees of the Funds (the “Board”) have adopted these policies and procedures (the “Procedures”) with respect to the pre-approval of audit and non-audit services to be provided by the Funds’ independent auditor (the “Auditor”) to the Funds, and to the Funds’ investment adviser(s) and any entity controlling, controlled by, or under common control with the investment adviser(s) that provides ongoing services to the Funds (collectively, “Service Affiliates”).
Under Section 202 of the Sarbanes-Oxley Act of 2002, all audit and non-audit services provided to the Funds by the Auditor must be preapproved by the Audit Committee. Rule 2-01 of Regulation S-X requires that the Audit Committee also pre-approve a Service Affiliate’s engagement of the Auditor for non-audit services if the engagement relates directly to the operations and financial reporting of the Funds (a “Service Affiliate’s Covered Engagement”).
These Procedures set forth the procedures and the conditions pursuant to which the Audit Committee may pre-approve audit and non-audit services for the Funds and a Service Affiliate’s Covered Engagement pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”) and other organizations and regulatory bodies applicable to the Funds (“Applicable Rules”).1 They address both general pre-approvals without consideration of specific case-by-case services (“general pre-approvals”) and pre-approvals on a case-by-case basis (“specific pre-approvals”). Any services requiring pre-approval that are not within the scope of general pre-approvals hereunder are subject to specific pre-approval. These Procedures also address the delegation by the Audit Committee of pre-approval authority to the Audit Committee Chair or Vice Chair.
II. | Pre-Approval of Fund Audit Services |
The annual Fund audit services engagement, including terms and fees, is subject to specific pre-approval by the Audit Committee. Audit services include the annual financial statement audit and other procedures required to be performed by an independent auditor to be able to form an opinion on the Funds’ financial statements. The Audit Committee will receive, review and consider sufficient information concerning a proposed Fund audit engagement to make a reasonable evaluation of the Auditor’s qualifications and independence. The Audit Committee will oversee the Fund audit services engagement as necessary, including approving any changes in terms, audit scope, conditions and fees.
In addition to approving the Fund audit services engagement at least annually and specifically approving any changes, the Audit Committee may generally or specifically pre-approve engagements for other audit services, which are those services that only an independent auditor reasonably can provide. Other audit services may include services associated with SEC registration statements, periodic reports and other documents filed with the SEC.
III. | General and Specific Pre-Approval of Non-Audit Fund Services |
The Audit Committee will consider, at least annually, the list of General Pre-Approved Non-Audit Services which list may be terminated or modified at any time by the Audit Committee. To inform the Audit Committee’s review and approval of General Pre-Approved Non-Audit Services, the Funds’ Treasurer (or his or her designee) and Auditor shall provide such information regarding independence or other matters as the Audit Committee may request.
Any services or fee ranges that are not within the scope of General Pre-Approved Non-Audit Services have not received general pre-approval and require specific pre-approval. Each request for specific pre-approval by the Audit Committee for services to be provided by the Auditor to the Funds must be submitted to the Audit Committee by the Funds’ Treasurer (or his or her designee) and must include detailed information about the services to be provided, the fees or fee ranges to be charged, and other relevant information sufficient to allow the Audit Committee to consider whether to pre-approve such engagement, including evaluating whether the provision of such services will impair the independence of the Auditor and is otherwise consistent with Applicable Rules.
IV. | Non-Audit Service Types |
The Audit Committee may provide either general or specific pre-approval of audit-related, tax or other services, each as described in more detail below.
“Audit-related services” are assurance and related services that are reasonably related to the performance of the audit or review of the Fund’s financial statements or that are traditionally performed by an independent auditor. Audit-related services include, among others, accounting consultations related to accounting, financial reporting or disclosure matters not classified as “Audit services”; assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities; services related to mergers, acquisitions or dispositions; compliance with ratings agency requirements and interfund lending activities; and assistance with internal control reporting requirements.
“Tax services” include, but are not limited to, the review and signing of the Funds’ federal tax returns, the review of required distributions by the Funds and consultations regarding tax matters such as the tax treatment of new investments or the impact of new regulations. The Audit Committee will not approve proposed services of the Auditor which the Audit Committee believes are to be provided in connection with a service or transaction initially recommended by the Auditor, the sole business purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee will consult with the Funds’ Treasurer (or his or her designee) and may consult with outside counsel or advisers as necessary to ensure the consistency of tax services rendered by the Auditor with the foregoing policy. The Auditor shall not represent any Fund or any Service Affiliate before a tax court, district court or federal court of claims.
Each request to provide tax services under either the general or specific pre-approval of the Audit Committee will include a description from the Auditor in writing of (i) the scope of the service, the fee structure for the engagement, and any side letter or other amendment to the engagement letter, or any other agreement (whether oral, written, or otherwise) between the Auditor and the Funds, relating to the service; and (ii) any compensation arrangement or other agreement, such as a referral agreement, a referral fee or fee-sharing arrangement, between the Auditor (or an affiliate of the Auditor) and any person (other than the Funds or Service Affiliates receiving the services) with respect to the promoting, marketing, or recommending of a transaction covered by the service. The Auditor will also discuss with the Audit Committee the potential effects of the services on the independence of the Auditor, and document the substance of its discussion with the Audit Committee.
The Audit Committee may pre-approve other non-audit services so long as the Audit Committee believes that the service will not impair the independence of the Auditor. Appendix I includes a list of services that the Auditor is prohibited from performing by the SEC rules. Appendix I also includes a list of services that would impair the Auditor’s independence unless the Audit Committee reasonably concludes that the results of the services will not be subject to audit procedures during an audit of the Funds’ financial statements.
V. | Pre-Approval of Service Affiliate’s Covered Engagements |
Rule 2-01 of Regulation S-X requires that the Audit Committee pre-approve a Service Affiliate’s engagement of the Auditor for non-audit services if the engagement relates directly to the operations and financial reporting of the Funds, defined above as a “Service Affiliate’s Covered Engagement”.
The Audit Committee may provide either general or specific pre-approval of any Service Affiliate’s Covered Engagement, including for audit-related, tax or other services, as described above, if the Audit Committee believes that the provision of the services to a Service Affiliate will not impair the independence of the Auditor with respect to the Funds. Any Service Affiliate’s Covered Engagements that are not within the scope of General Pre-Approved Non-Audit Services have not received general pre-approval and require specific pre-approval.
Each request for specific pre-approval by the Audit Committee of a Service Affiliate’s Covered Engagement must be submitted to the Audit Committee by the Funds’ Treasurer (or his or her designee) and must include detailed information about the services to be provided, the fees or fee ranges to be charged, a description of the current status of the pre-approval process involving other audit committees in the Invesco investment company complex (as defined in Rule 2-201 of Regulation S-X) with respect to the proposed engagement, and other relevant information sufficient to allow the Audit Committee to consider whether the provision of such services will impair the independence of the Auditor from the Funds. Additionally, the Funds’ Treasurer (or his or her designee) and the Auditor will provide the Audit Committee with a statement that the proposed engagement requires pre-approval by the Audit Committee, the proposed engagement, in their view, will not impair the independence of the Auditor and is consistent with Applicable Rules, and the description of the proposed engagement provided to the Audit Committee is consistent with that presented to or approved by the Invesco audit committee.
Information about all Service Affiliate engagements of the Auditor for non-audit services, whether or not subject to pre-approval by the Audit Committee, shall be provided to the Audit Committee at least quarterly, to allow the Audit Committee to consider whether the provision of such services is compatible with maintaining the Auditor’s independence from the Funds. The Funds’ Treasurer and Auditor shall provide the Audit Committee with sufficiently detailed information about the scope of services provided and the fees for such services, to ensure that the Audit Committee can adequately consider whether the provision of such services is compatible with maintaining the Auditor’s independence from the Fund.
VI. | Pre-Approved Fee Levels or Established Amounts |
Pre-approved fee levels or ranges for audit and non-audit services to be provided by the Auditor to the Funds, and for a Service Affiliate’s Covered Engagement, under general pre-approval or specific pre-approval will be set periodically by the Audit Committee. Any proposed fees exceeding 110% of the maximum pre-approved fee levels or ranges for such services or engagements will be promptly presented to the Audit Committee and will require specific pre-approval by the Audit Committee before payment of any additional fees is made.
The Audit Committee hereby delegates, subject to the dollar limitations set forth below, specific authority to its Chair, or in his or her absence, Vice Chair, to pre-approve audit and non-audit services proposed to be provided by the Auditor to the Funds and/or a Service Affiliate’s Covered Engagement, between Audit Committee meetings. Such delegation does not preclude the Chair or Vice Chair from declining, on a case-by-case basis, to exercise his or her delegated authority and instead convening the Audit Committee to consider and pre-approve any proposed services or engagements.
Notwithstanding the foregoing, the Audit Committee must pre-approve: (a) any non-audit services to be provided to the Funds for which the fees are estimated to exceed $500,000; (b) any Service Affiliate’s Covered Engagement for which the fees are estimated to exceed $500,000; or (c) any cost increase to any previously approved service or engagement that exceeds the greater of $250,000 or 50% of the previously approved fees up to a maximum increase of $500,000.
VIII. | Compliance with Procedures |
Notwithstanding anything herein to the contrary, failure to pre-approve any services or engagements that are not required to be pre-approved pursuant to the de minimis exception provided for in Rule 2-01(c)(7)(i)(C) of Regulation S-X shall not constitute a violation of these Procedures. The Audit Committee has designated the Funds’ Treasurer to ensure services and engagements are pre-approved in compliance with these Procedures. The Funds’ Treasurer will immediately report to the Chair of the Audit Committee, or the Vice Chair in his or her absence, any breach of these Procedures that comes to the attention of the Funds’ Treasurer or any services or engagements that are not required to be pre-approved pursuant to the de minimis exception provided for in Rule 2-01(c)(7)(i)(C) of Regulation S-X.
On at least an annual basis, the Auditor will provide the Audit Committee with a summary of all non-audit services provided to any entity in the investment company complex (as defined in section 2-01(f)(14) of Regulation S-X, including the Funds and Service Affiliates) that were not pre-approved, including the nature of services provided and the associated fees.
IX. | Amendments to Procedures |
All material amendments to these Procedures must be approved in advance by the Audit Committee. Non-material amendments to these Procedures may be made by the Legal and Compliance Departments and will be reported to the Audit Committee at the next regularly scheduled meeting of the Audit Committee.
Appendix I
Non-Audit Services That May Impair the Auditor’s Independence
The Auditor is not independent if, at any point during the audit and professional engagement, the Auditor provides the following non-audit services:
· | Broker-dealer, investment adviser, or investment banking services; |
· | Expert services unrelated to the audit; |
· | Any service or product provided for a contingent fee or a commission; |
· | Services related to marketing, planning, or opining in favor of the tax treatment of confidential transactions or aggressive tax position transactions, a significant purpose of which is tax avoidance; |
· | Tax services for persons in financial reporting oversight roles at the Fund; and |
· | Any other service that the Public Company Oversight Board determines by regulation is impermissible. |
An Auditor is not independent if, at any point during the audit and professional engagement, the Auditor provides the following non-audit services unless it is reasonable to conclude that the results of the services will not be subject to audit procedures during an audit of the Funds’ financial statements:
· | Bookkeeping or other services related to the accounting records or financial statements of the audit client; |
· | Financial information systems design and implementation; |
· | Appraisal or valuation services, fairness opinions, or contribution-in-kind reports; |
· | Internal audit outsourcing services. |
(e)(2) There were no amounts that were pre-approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) In addition to the amounts shown in the tables above, PwC billed Invesco and Invesco Affiliates aggregate fees of $6,466,000 for the fiscal year ended October 31, 2024 and $6,507,000 for the fiscal year ended October 31, 2023. In total, PwC billed the Registrant, Invesco and Invesco Affiliates aggregate non-audit fees of $7,811,007 for the fiscal year ended October 31, 2024 and $8,079,760 for the fiscal year ended October 31, 2023.
PwC provided audit services to the Investment Company complex of approximately $34 million.
(h) The Audit Committee also has considered whether the provision of non-audit services that were rendered to Invesco and Invesco Affiliates that were not required to be pre-approved pursuant to SEC regulations, if any, is compatible with maintaining PwC’s independence.
(i) Not applicable.
(j) Not applicable.
1 | Applicable Rules include, for example, New York Stock Exchange (“NYSE”) rules applicable to closed-end funds managed by Invesco and listed on NYSE. |
Item 5. Audit Committee of Listed Registrants.
(a) Investments in securities of unaffiliated issuers is filed under Item 7 of this Form N-CSR.
(b) Not applicable.
Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.
| Annual Financial Statements and Other Information | October 31, 2024 |
Invesco Advantage International Fund
Nasdaq:
A: QMGAX ■ C: QMGCX ■ R: QMGRX ■ Y: QMGYX ■ R5: GMAGX ■ R6: QMGIX
Schedule of Investments
October 31, 2024
| | Shares | Value |
| Common Stocks & Other Equity Interests–76.23% |
| Australia–1.61% |
| Commonwealth Bank of Australia | 154 | $14,364 |
| Fortescue Ltd. | 5,150 | 64,493 |
| Glencore PLC(a) | 13,673 | 71,710 |
| Goodman Group | 1,596 | 38,112 |
| National Australia Bank Ltd. | 463 | 11,735 |
| Rio Tinto Ltd. | 1,056 | 82,914 |
| Rio Tinto PLC | 1,931 | 124,797 |
| Telstra Group Ltd. | 2,343 | 5,865 |
| Wesfarmers Ltd. | 1,828 | 80,416 |
| Westpac Banking Corp. | 309 | 6,489 |
| Woolworths Group Ltd. | 798 | 15,651 |
| | | | 516,546 |
| Belgium–0.37% |
| Anheuser-Busch InBev S.A./N.V. | 1,056 | 62,612 |
| UCB S.A. | 283 | 54,491 |
| | | | 117,103 |
| Brazil–2.06% |
| Ambev S.A. | 10,800 | 23,614 |
| B3 S.A. - Brasil, Bolsa, Balcao | 13,300 | 24,433 |
| Banco Bradesco S.A., Preference Shares | 4,400 | 10,937 |
| Banco do Brasil S.A. | 5,600 | 25,506 |
| BB Seguridade Participacoes S.A. | 1,700 | 10,078 |
| Caixa Seguridade Participacoes S.A. | 11,200 | 27,899 |
| Cia de Saneamento Basico do Estado de Sao Paulo SABESP, ADR | 1,000 | 15,928 |
| Equatorial Energia S.A. | 900 | 5,001 |
| Gerdau S.A., Preference Shares | 1,718 | 5,439 |
| Itau Unibanco Holding S.A., Preference Shares | 3,400 | 20,597 |
| Itausa S.A., Preference Shares | 11,065 | 20,308 |
| Petroleo Brasileiro S.A., Preference Shares | 40,600 | 252,201 |
| Suzano S.A. | 2,000 | 20,678 |
| Telefonica Brasil S.A. | 1,500 | 13,659 |
| TIM S.A. | 3,900 | 11,185 |
| Vale S.A. | 13,900 | 149,221 |
| Vibra Energia S.A. | 3,400 | 13,122 |
| WEG S.A. | 1,100 | 10,296 |
| | | | 660,102 |
| Chile–0.24% |
| Banco de Chile | 147,182 | 17,096 |
| Banco de Credito e Inversiones S.A. | 323 | 9,449 |
| Banco Santander Chile | 123,749 | 6,121 |
| Cencosud S.A. | 3,167 | 6,517 |
| Falabella S.A.(a) | 2,889 | 10,348 |
| LATAM Airlines Group S.A.(a) | 1,979,598 | 26,405 |
| | | | 75,936 |
| China–10.36% |
| Agricultural Bank of China Ltd., H Shares | 52,000 | 25,550 |
| Alibaba Group Holding Ltd. | 13,800 | 168,806 |
| | Shares | Value |
| China–(continued) |
| Aluminum Corp. of China Ltd., H Shares | 24,000 | $15,292 |
| Baidu, Inc., A Shares(a) | 3,200 | 36,515 |
| Bank of China Ltd., H Shares | 588,000 | 279,082 |
| Bank of Communications Co. Ltd., H Shares | 101,000 | 76,496 |
| BOC Hong Kong (Holdings) Ltd. | 4,500 | 14,691 |
| BYD Co. Ltd., H Shares | 2,000 | 72,237 |
| China CITIC Bank Corp. Ltd., H Shares | 56,000 | 34,902 |
| China Coal Energy Co. Ltd., H Shares | 30,000 | 37,424 |
| China Construction Bank Corp., H Shares | 559,000 | 433,916 |
| China Hongqiao Group Ltd. | 47,500 | 76,318 |
| China Mengniu Dairy Co. Ltd. | 3,000 | 6,718 |
| China Merchants Bank Co. Ltd., H Shares | 3,500 | 17,127 |
| China Merchants Port Holdings Co. Ltd. | 4,000 | 6,578 |
| China Minsheng Banking Corp. Ltd., H Shares | 19,500 | 7,243 |
| China Overseas Land & Investment Ltd. | 6,500 | 12,420 |
| China Pacific Insurance (Group) Co. Ltd., H Shares | 1,800 | 6,251 |
| China Petroleum & Chemical Corp., H Shares | 16,000 | 9,013 |
| China Resources Gas Group Ltd. | 2,600 | 10,025 |
| China Resources Power Holdings Co. Ltd. | 8,000 | 19,244 |
| China Shenhua Energy Co. Ltd., H Shares | 6,500 | 28,145 |
| China Tower Corp. Ltd., H Shares(b) | 182,000 | 24,557 |
| CITIC Ltd. | 6,000 | 7,048 |
| CMOC Group Ltd., H Shares | 36,000 | 29,800 |
| COSCO SHIPPING Holdings Co. Ltd., H Shares | 10,000 | 14,809 |
| CSPC Pharmaceutical Group Ltd. | 10,640 | 7,877 |
| Full Truck Alliance Co. Ltd., ADR | 2,453 | 21,954 |
| Fuyao Glass Industry Group Co. Ltd., H Shares(b) | 1,600 | 11,318 |
| Geely Automobile Holdings Ltd. | 5,000 | 8,790 |
| Great Wall Motor Co. Ltd., H Shares | 8,000 | 12,721 |
| Haier Smart Home Co. Ltd., H Shares | 9,200 | 33,389 |
| Hansoh Pharmaceutical Group Co. Ltd.(b) | 8,000 | 18,652 |
| Huaneng Power International, Inc., H Shares | 16,000 | 8,573 |
| Industrial & Commercial Bank of China Ltd., H Shares | 486,000 | 291,530 |
| JD.com, Inc., A Shares | 2,416 | 48,995 |
| Jiangxi Copper Co. Ltd., H Shares | 6,000 | 10,093 |
| Kanzhun Ltd., ADR | 1,335 | 19,424 |
| KE Holdings, Inc., ADR | 845 | 18,531 |
| Kuaishou Technology(a)(b) | 800 | 4,714 |
| Kunlun Energy Co. Ltd. | 18,000 | 17,071 |
| Lenovo Group Ltd. | 6,000 | 7,912 |
| Li Auto, Inc., A Shares(a) | 1,400 | 17,605 |
| NetEase, Inc. | 1,800 | 28,960 |
| New Oriental Education & Technology Group, Inc. | 13,100 | 81,981 |
| NXP Semiconductors N.V. | 180 | 42,210 |
| PDD Holdings, Inc., ADR(a) | 2,868 | 345,852 |
| PetroChina Co. Ltd., H Shares | 114,000 | 85,604 |
| PICC Property & Casualty Co. Ltd., H Shares | 8,000 | 12,136 |
| Ping An Insurance (Group) Co. of China Ltd., H Shares | 6,500 | 40,273 |
| Prosus N.V. | 1,107 | 46,681 |
| Silergy Corp. | 1,000 | 15,514 |
| Sino Biopharmaceutical Ltd. | 27,000 | 12,265 |
| Sinotruk Hong Kong Ltd. | 4,500 | 12,146 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 2 | Invesco Advantage International Fund |
| | Shares | Value |
| China–(continued) |
| SITC International Holdings Co. Ltd. | 4,000 | $11,305 |
| Tencent Holdings Ltd. | 1,600 | 83,427 |
| Tencent Music Entertainment Group, ADR | 10,385 | 115,585 |
| Trip.com Group Ltd.(a) | 2,400 | 154,451 |
| Vipshop Holdings Ltd., ADR | 1,185 | 17,111 |
| Want Want China Holdings Ltd. | 21,000 | 13,068 |
| Weichai Power Co. Ltd., H Shares | 20,000 | 30,221 |
| Yankuang Energy Group Co. Ltd., H Shares | 23,800 | 30,967 |
| Yum China Holdings, Inc. | 245 | 10,807 |
| Zijin Mining Group Co. Ltd., H Shares | 38,000 | 80,943 |
| ZTO Express (Cayman), Inc., ADR | 593 | 13,704 |
| | | | 3,314,567 |
| Colombia–0.05% |
| Bancolombia S.A., Preference Shares | 2,126 | 17,017 |
| Czech Republic–0.03% |
| Komercni banka A.S. | 254 | 8,777 |
| Denmark–1.73% |
| A.P. Moller - Maersk A/S, Class B | 27 | 42,708 |
| Carlsberg A/S, Class B | 51 | 5,636 |
| Danske Bank A/S | 978 | 28,918 |
| DSV A/S | 103 | 22,547 |
| Genmab A/S(a) | 77 | 17,245 |
| Novo Nordisk A/S, Class B | 3,811 | 427,461 |
| Vestas Wind Systems A/S(a) | 438 | 8,347 |
| | | | 552,862 |
| Finland–0.21% |
| Nokia OYJ | 6,952 | 32,897 |
| Nordea Bank Abp | 2,189 | 25,627 |
| Sampo OYJ | 180 | 7,981 |
| | | | 66,505 |
| France–4.21% |
| Airbus SE | 283 | 43,169 |
| AXA S.A. | 1,236 | 46,409 |
| BNP Paribas S.A. | 1,519 | 103,739 |
| Capgemini SE | 206 | 35,737 |
| Cie de Saint-Gobain S.A. | 927 | 84,065 |
| Cie Generale des Etablissements Michelin S.C.A. | 1,159 | 39,169 |
| Credit Agricole S.A. | 1,571 | 24,080 |
| Danone S.A. | 489 | 34,933 |
| ENGIE S.A. | 3,862 | 64,733 |
| EssilorLuxottica S.A. | 489 | 114,699 |
| Hermes International S.C.A. | 27 | 61,364 |
| Kering S.A. | 129 | 32,220 |
| Legrand S.A. | 335 | 37,811 |
| L’Oreal S.A. | 232 | 87,040 |
| Orange S.A. | 2,343 | 25,740 |
| Pernod Ricard S.A. | 129 | 16,095 |
| Safran S.A. | 309 | 69,947 |
| Schneider Electric SE | 412 | 106,728 |
| Societe Generale S.A. | 901 | 25,878 |
| Thales S.A. | 26 | 4,191 |
| TotalEnergies SE | 2,549 | 159,964 |
| Vinci S.A. | 1,159 | 129,832 |
| | | | 1,347,543 |
| | Shares | Value |
| Germany–4.35% |
| adidas AG | 180 | $43,108 |
| Allianz SE | 360 | 113,330 |
| BASF SE | 695 | 33,786 |
| Bayer AG | 541 | 14,578 |
| Bayerische Motoren Werke AG | 412 | 32,480 |
| Daimler Truck Holding AG | 360 | 14,886 |
| Deutsche Bank AG | 5,407 | 91,864 |
| Deutsche Post AG | 1,287 | 51,698 |
| Deutsche Telekom AG | 5,510 | 166,587 |
| Dr. Ing. h.c. F. Porsche AG, Preference Shares(b) | 77 | 5,418 |
| E.ON SE | 5,948 | 80,269 |
| Hannover Rueck SE | 51 | 13,392 |
| Henkel AG & Co. KGaA, Preference Shares | 283 | 24,506 |
| Mercedes-Benz Group AG | 927 | 56,316 |
| Merck KGaA | 335 | 55,384 |
| Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Class R | 51 | 26,080 |
| RWE AG | 438 | 14,195 |
| SAP SE | 1,159 | 270,609 |
| Siemens AG | 1,056 | 205,445 |
| Siemens Energy AG, Class A(a) | 566 | 23,247 |
| Volkswagen AG, Preference Shares | 412 | 39,990 |
| Vonovia SE | 463 | 15,180 |
| | | | 1,392,348 |
| Greece–0.17% |
| Eurobank Ergasias Services and Holdings S.A. | 12,165 | 25,172 |
| Hellenic Telecommunications Organization S.A. | 405 | 6,692 |
| National Bank of Greece S.A. | 2,185 | 17,119 |
| OPAP S.A. | 351 | 5,997 |
| | | | 54,980 |
| Hong Kong–1.01% |
| AIA Group Ltd. | 16,000 | 126,277 |
| CK Hutchison Holdings Ltd. | 11,500 | 60,480 |
| Prudential PLC | 1,699 | 14,144 |
| Sun Hung Kai Properties Ltd. | 8,500 | 92,038 |
| Techtronic Industries Co. Ltd. | 2,000 | 28,931 |
| | | | 321,870 |
| Hungary–0.16% |
| MOL Hungarian Oil & Gas PLC | 1,771 | 12,290 |
| OTP Bank Nyrt. | 763 | 37,987 |
| | | | 50,277 |
| Indonesia–0.67% |
| PT Adaro Energy Indonesia Tbk | 45,900 | 10,564 |
| PT Amman Mineral Internasional Tbk(a) | 93,800 | 54,668 |
| PT Astra International Tbk | 35,900 | 11,655 |
| PT Bank Central Asia Tbk | 63,100 | 41,140 |
| PT Bank Mandiri (Persero) Tbk | 109,400 | 46,442 |
| PT Bank Negara Indonesia (Persero) Tbk | 51,700 | 17,244 |
| PT Telkom Indonesia (Persero) Tbk | 188,700 | 33,729 |
| | | | 215,442 |
| Italy–1.74% |
| Assicurazioni Generali S.p.A. | 541 | 15,000 |
| Enel S.p.A. | 4,815 | 36,517 |
| Ferrari N.V. | 180 | 85,927 |
| Intesa Sanpaolo S.p.A. | 27,654 | 118,359 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 3 | Invesco Advantage International Fund |
| | Shares | Value |
| Italy–(continued) |
| Poste Italiane S.p.A.(b) | 681 | $9,576 |
| UniCredit S.p.A. | 6,566 | 290,474 |
| | | | 555,853 |
| Japan–10.56% |
| Asahi Group Holdings Ltd. | 4,100 | 49,222 |
| Astellas Pharma, Inc. | 2,000 | 23,417 |
| Bridgestone Corp. | 1,100 | 39,199 |
| Canon, Inc. | 1,400 | 45,535 |
| Central Japan Railway Co. | 1,900 | 39,347 |
| Chugai Pharmaceutical Co. Ltd. | 1,300 | 61,856 |
| Dai-ichi Life Holdings, Inc. | 2,200 | 54,847 |
| Daiichi Sankyo Co. Ltd. | 1,000 | 32,548 |
| Denso Corp. | 3,700 | 52,553 |
| Disco Corp. | 200 | 56,907 |
| Fast Retailing Co. Ltd. | 100 | 31,972 |
| FUJIFILM Holdings Corp. | 1,100 | 26,167 |
| Fujitsu Ltd. | 800 | 15,381 |
| Hitachi Ltd. | 12,300 | 309,036 |
| Honda Motor Co. Ltd. | 4,600 | 46,263 |
| Hoya Corp. | 200 | 26,759 |
| ITOCHU Corp. | 1,800 | 89,042 |
| Japan Post Bank Co. Ltd. | 1,700 | 15,183 |
| Japan Post Holdings Co. Ltd. | 2,400 | 22,143 |
| Japan Tobacco, Inc. | 2,800 | 78,169 |
| Kao Corp. | 400 | 17,630 |
| KDDI Corp. | 1,300 | 40,533 |
| Komatsu Ltd. | 800 | 20,708 |
| Kyocera Corp. | 900 | 9,128 |
| LY Corp. | 2,200 | 6,001 |
| Mitsubishi Corp. | 7,100 | 129,888 |
| Mitsubishi Electric Corp. | 3,700 | 65,092 |
| Mitsubishi Estate Co. Ltd. | 4,800 | 70,983 |
| Mitsubishi UFJ Financial Group, Inc. | 20,000 | 210,805 |
| Mitsui & Co. Ltd. | 3,300 | 67,279 |
| Mitsui Fudosan Co. Ltd. | 6,300 | 53,754 |
| Mizuho Financial Group, Inc. | 2,970 | 61,690 |
| MS&AD Insurance Group Holdings, Inc. | 1,800 | 39,815 |
| Murata Manufacturing Co. Ltd. | 900 | 15,724 |
| Nidec Corp. | 500 | 9,960 |
| Nintendo Co. Ltd. | 1,000 | 52,823 |
| Nippon Telegraph & Telephone Corp. | 55,100 | 53,162 |
| Olympus Corp. | 3,200 | 56,327 |
| ORIX Corp. | 1,900 | 40,033 |
| Otsuka Holdings Co. Ltd. | 600 | 36,246 |
| Panasonic Holdings Corp. | 9,700 | 79,831 |
| Recruit Holdings Co. Ltd. | 3,000 | 183,188 |
| Renesas Electronics Corp. | 2,100 | 28,136 |
| Seven & i Holdings Co. Ltd. | 1,600 | 23,040 |
| Shin-Etsu Chemical Co. Ltd. | 2,400 | 87,945 |
| SoftBank Corp. | 14,000 | 17,625 |
| SoftBank Group Corp. | 400 | 23,847 |
| Sompo Holdings, Inc. | 2,100 | 45,022 |
| Sony Group Corp. | 4,000 | 70,390 |
| Sumitomo Corp. | 2,700 | 56,960 |
| Sumitomo Mitsui Financial Group, Inc. | 6,200 | 131,530 |
| Suzuki Motor Corp. | 1,700 | 16,870 |
| Takeda Pharmaceutical Co. Ltd. | 1,238 | 34,542 |
| Terumo Corp. | 900 | 17,141 |
| | Shares | Value |
| Japan–(continued) |
| Tokio Marine Holdings, Inc. | 2,300 | $82,837 |
| Tokyo Electron Ltd. | 1,000 | 147,153 |
| Toyota Industries Corp. | 200 | 13,864 |
| Toyota Motor Corp. | 7,900 | 136,120 |
| Unicharm Corp. | 300 | 9,673 |
| | | | 3,378,841 |
| Luxembourg–0.09% |
| ArcelorMittal S.A. | 1,210 | 29,928 |
| Malaysia–0.87% |
| CIMB Group Holdings Bhd. | 26,400 | 47,872 |
| IHH Healthcare Bhd. | 6,200 | 10,261 |
| Kuala Lumpur Kepong Bhd. | 1,200 | 5,847 |
| Malayan Banking Bhd. | 25,500 | 61,068 |
| MISC Bhd. | 11,400 | 19,500 |
| Petronas Chemicals Group Bhd. | 5,400 | 6,651 |
| Press Metal Aluminium Holdings Bhd. | 7,100 | 7,641 |
| Public Bank Bhd. | 18,200 | 18,314 |
| RHB Bank Bhd. | 4,800 | 7,016 |
| Telekom Malaysia Bhd. | 7,700 | 11,400 |
| Tenaga Nasional Bhd. | 11,700 | 37,430 |
| TIME dotCom Bhd. | 6,000 | 6,664 |
| YTL Corp. Bhd. | 32,200 | 14,394 |
| YTL Power International Bhd. | 36,200 | 25,215 |
| | | | 279,273 |
| Mexico–0.83% |
| America Movil S.A.B. de C.V., Class B | 37,500 | 29,630 |
| Arca Continental S.A.B. de C.V. | 2,800 | 23,972 |
| CEMEX S.A.B. de C.V., Series CPO | 10,600 | 5,583 |
| Coca-Cola FEMSA S.A.B. de C.V., Series CPO | 700 | 5,825 |
| Fomento Economico Mexicano S.A.B. de C.V., Series CPO | 3,300 | 32,033 |
| Grupo Elektra S.A.B. de C.V.(c) | 165 | 3,422 |
| Grupo Financiero Banorte S.A.B. de C.V., Class O | 6,500 | 45,261 |
| Grupo Financiero Inbursa S.A.B. de C.V., Class O(a) | 6,400 | 14,371 |
| Grupo Mexico S.A.B. de C.V., Class B | 16,400 | 85,805 |
| Industrias Penoles S.A.B. de C.V.(a) | 500 | 7,854 |
| Wal-Mart de Mexico S.A.B. de C.V., Series V | 4,173 | 11,474 |
| | | | 265,230 |
| Netherlands–1.31% |
| Adyen N.V.(a)(b) | 77 | 117,630 |
| ASM International N.V. | 26 | 14,521 |
| EXOR N.V. | 273 | 28,834 |
| Heineken Holding N.V. | 154 | 10,670 |
| ING Groep N.V. | 4,223 | 71,666 |
| Koninklijke Ahold Delhaize N.V. | 1,725 | 56,922 |
| Koninklijke Philips N.V.(a) | 1,390 | 36,569 |
| Universal Music Group N.V. | 463 | 11,652 |
| Wolters Kluwer N.V. | 412 | 69,251 |
| | | | 417,715 |
| Peru–0.08% |
| Credicorp Ltd. | 136 | 25,042 |
| Philippines–0.25% |
| Bank of the Philippine Islands | 5,290 | 12,995 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 4 | Invesco Advantage International Fund |
| | Shares | Value |
| Philippines–(continued) |
| BDO Unibank, Inc. | 3,540 | $9,265 |
| International Container Terminal Services, Inc. | 7,740 | 52,599 |
| Manila Electric Co. | 750 | 6,319 |
| | | | 81,178 |
| Poland–0.51% |
| Bank Polska Kasa Opieki S.A. | 1,442 | 50,450 |
| KGHM Polska Miedz S.A. | 300 | 11,228 |
| LPP S.A. | 3 | 10,918 |
| Powszechna Kasa Oszczednosci Bank Polski S.A. | 4,480 | 62,246 |
| Powszechny Zaklad Ubezpieczen S.A. | 1,390 | 13,785 |
| Santander Bank Polska S.A. | 136 | 15,251 |
| | | | 163,878 |
| Russia–0.00% |
| Sberbank of Russia PJSC(c) | 9,800 | 0 |
| Tatneft PJSC(c) | 1,980 | 0 |
| VTB Bank PJSC(a)(c) | 1,943 | 0 |
| | | | 0 |
| Singapore–0.52% |
| DBS Group Holdings Ltd. | 1,200 | 34,794 |
| Oversea-Chinese Banking Corp. Ltd. | 2,700 | 30,977 |
| Sea Ltd., ADR(a) | 644 | 60,568 |
| STMicroelectronics N.V. | 360 | 9,789 |
| United Overseas Bank Ltd. | 1,200 | 29,171 |
| | | | 165,299 |
| South Africa–0.69% |
| Absa Group Ltd. | 1,024 | 9,814 |
| Anglo American PLC | 772 | 23,932 |
| Bid Corp. Ltd. | 382 | 9,006 |
| Capitec Bank Holdings Ltd. | 273 | 49,318 |
| FirstRand Ltd. | 3,134 | 13,770 |
| Gold Fields Ltd. | 2,970 | 48,978 |
| Nedbank Group Ltd. | 2,131 | 36,119 |
| Sasol Ltd. | 1,172 | 6,587 |
| Shoprite Holdings Ltd. | 627 | 10,829 |
| Standard Bank Group Ltd. | 845 | 11,634 |
| | | | 219,987 |
| South Korea–2.45% |
| Celltrion, Inc. | 324 | 42,601 |
| Hyundai Motor Co. | 300 | 46,209 |
| KB Financial Group, Inc. | 191 | 12,428 |
| Kia Corp. | 899 | 59,450 |
| LG Energy Solution Ltd.(a) | 28 | 8,217 |
| NAVER Corp. | 438 | 53,577 |
| Samsung C&T Corp. | 463 | 39,094 |
| Samsung Electronics Co. Ltd. | 6,905 | 293,193 |
| Shinhan Financial Group Co. Ltd. | 382 | 14,230 |
| SK hynix, Inc. | 1,645 | 215,353 |
| | | | 784,352 |
| Spain–1.95% |
| Aena SME S.A.(b) | 51 | 11,303 |
| Amadeus IT Group S.A. | 309 | 22,400 |
| Banco Bilbao Vizcaya Argentaria S.A. | 14,754 | 146,871 |
| Banco Santander S.A. | 33,036 | 161,394 |
| CaixaBank S.A. | 5,871 | 35,777 |
| | Shares | Value |
| Spain–(continued) |
| Endesa S.A. | 335 | $7,230 |
| Iberdrola S.A. | 4,789 | 71,138 |
| Industria de Diseno Textil S.A. | 1,365 | 77,825 |
| Repsol S.A. | 3,785 | 47,382 |
| Telefonica S.A. | 8,703 | 40,840 |
| | | | 622,160 |
| Sweden–1.78% |
| Assa Abloy AB, Class B | 1,262 | 39,529 |
| Atlas Copco AB, Class A | 3,425 | 56,524 |
| EQT AB | 695 | 20,164 |
| Essity AB, Class B | 386 | 10,908 |
| Hexagon AB, Class B | 1,004 | 9,387 |
| Investor AB, Class B | 3,167 | 89,639 |
| Sandvik AB | 1,184 | 23,306 |
| Skandinaviska Enskilda Banken AB, Class A | 1,674 | 23,642 |
| Spotify Technology S.A.(a) | 489 | 188,314 |
| Svenska Handelsbanken AB, Class A | 3,013 | 31,307 |
| Swedbank AB, Class A | 1,287 | 26,114 |
| Telefonaktiebolaget LM Ericsson, Class B | 1,596 | 13,381 |
| Volvo AB, Class B | 1,416 | 36,882 |
| | | | 569,097 |
| Switzerland–3.86% |
| ABB Ltd. | 2,472 | 137,372 |
| DSM-Firmenich AG | 489 | 57,987 |
| Geberit AG | 27 | 16,915 |
| Givaudan S.A. | 12 | 56,969 |
| Lonza Group AG | 51 | 31,382 |
| Nestle S.A. | 1,416 | 133,802 |
| Novartis AG | 3,759 | 407,875 |
| Partners Group Holding AG | 51 | 70,167 |
| Schindler Holding AG, PC | 51 | 14,842 |
| Straumann Holding AG(a) | 51 | 6,724 |
| Swisscom AG | 25 | 15,232 |
| UBS Group AG(a) | 9,373 | 286,701 |
| | | | 1,235,968 |
| Taiwan–10.48% |
| Advantech Co. Ltd. | 1,000 | 9,800 |
| ASE Technology Holding Co. Ltd., ADR | 4,747 | 45,381 |
| Asia Cement Corp. | 6,000 | 8,719 |
| Asia Vital Components Co. Ltd. | 3,000 | 57,470 |
| ASML Holding N.V. | 515 | 346,662 |
| Asustek Computer, Inc. | 1,000 | 17,658 |
| Catcher Technology Co. Ltd. | 5,000 | 36,391 |
| Cathay Financial Holding Co. Ltd. | 3,000 | 6,336 |
| Chang Hwa Commercial Bank Ltd. | 10,320 | 5,671 |
| Cheng Shin Rubber Industry Co. Ltd. | 6,000 | 8,618 |
| China Steel Corp. | 11,000 | 7,693 |
| Chunghwa Telecom Co. Ltd., ADR | 2,549 | 96,072 |
| CTBC Financial Holding Co. Ltd. | 41,000 | 45,452 |
| Delta Electronics, Inc. | 2,000 | 24,702 |
| E Ink Holdings, Inc. | 2,000 | 18,718 |
| E.Sun Financial Holding Co. Ltd. | 23,460 | 19,949 |
| Evergreen Marine Corp. Taiwan Ltd. | 3,800 | 24,077 |
| Far Eastern New Century Corp. | 21,000 | 24,232 |
| Far EasTone Telecommunications Co. Ltd. | 11,000 | 30,375 |
| First Financial Holding Co. Ltd. | 17,510 | 14,744 |
| Formosa Chemicals & Fibre Corp. | 13,000 | 15,509 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Advantage International Fund |
| | Shares | Value |
| Taiwan–(continued) |
| Formosa Plastics Corp. | 9,000 | $13,198 |
| Fubon Financial Holding Co. Ltd. | 12,757 | 35,636 |
| Hon Hai Precision Industry Co. Ltd. | 45,000 | 288,438 |
| Hua Nan Financial Holdings Co. Ltd. | 21,210 | 16,725 |
| KGI Financial Holding Co. Ltd. | 20,000 | 10,305 |
| MediaTek, Inc. | 7,000 | 272,497 |
| Mega Financial Holding Co. Ltd. | 25,750 | 31,374 |
| Nan Ya Plastics Corp. | 9,000 | 11,596 |
| Novatek Microelectronics Corp. | 3,000 | 46,354 |
| Pegatron Corp. | 13,000 | 39,418 |
| President Chain Store Corp. | 2,000 | 18,364 |
| Quanta Computer, Inc. | 4,000 | 36,325 |
| Radiant Opto-Electronics Corp. | 1,000 | 6,509 |
| Realtek Semiconductor Corp. | 1,000 | 14,672 |
| Shanghai Commercial & Savings Bank Ltd. (The) | 7,000 | 8,696 |
| SinoPac Financial Holdings Co. Ltd. | 24,600 | 17,463 |
| Synnex Technology International Corp. | 2,000 | 4,393 |
| Taiwan Cooperative Financial Holding Co. Ltd. | 13,455 | 10,520 |
| Taiwan High Speed Rail Corp. | 10,000 | 9,070 |
| Taiwan Mobile Co. Ltd. | 15,000 | 52,867 |
| Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 7,107 | 1,354,168 |
| TCC Group Holdings Co. Ltd. | 8,000 | 7,947 |
| Uni-President Enterprises Corp. | 24,000 | 67,210 |
| United Microelectronics Corp., ADR | 5,287 | 36,163 |
| Wistron Corp. | 7,000 | 23,528 |
| WPG Holdings Ltd. | 3,000 | 6,816 |
| Yageo Corp. | 1,194 | 20,308 |
| Yuanta Financial Holding Co. Ltd. | 29,859 | 29,948 |
| | | | 3,354,737 |
| Turkey–0.73% |
| Akbank T.A.S. | 40,529 | 59,916 |
| Aselsan Elektronik Sanayi Ve Ticaret A.S. | 4,060 | 7,220 |
| BIM Birlesik Magazalar A.S. | 2,207 | 30,114 |
| Ford Otomotiv Sanayi A.S. | 300 | 8,569 |
| KOC Holding A.S. | 3,652 | 18,010 |
| Turk Hava Yollari AO(a) | 3,216 | 25,578 |
| Turkiye Garanti Bankasi A.S. | 2,235 | 6,987 |
| Turkiye Is Bankasi A.S., Class C | 87,012 | 29,911 |
| Turkiye Petrol Rafinerileri A.S. | 4,823 | 20,379 |
| Yapi ve Kredi Bankasi A.S. | 37,960 | 27,150 |
| | | | 233,834 |
| United Kingdom–5.26% |
| 3i Group PLC | 1,313 | 53,843 |
| AngloGold Ashanti PLC | 1,036 | 28,904 |
| Associated British Foods PLC | 515 | 14,802 |
| BAE Systems PLC | 7,210 | 116,206 |
| Barclays PLC | 32,135 | 98,510 |
| British American Tobacco PLC | 2,781 | 97,249 |
| Coca-Cola Europacific Partners PLC | 129 | 9,804 |
| Compass Group PLC | 1,699 | 55,177 |
| | Shares | Value |
| United Kingdom–(continued) |
| Haleon PLC | 4,995 | $24,006 |
| HSBC Holdings PLC | 22,453 | 206,074 |
| Imperial Brands PLC | 1,390 | 41,948 |
| Lloyds Banking Group PLC | 144,322 | 99,063 |
| NatWest Group PLC | 17,250 | 81,735 |
| Reckitt Benckiser Group PLC | 386 | 23,416 |
| RELX PLC | 1,210 | 55,490 |
| Rolls-Royce Holdings PLC(a) | 25,208 | 173,945 |
| Shell PLC | 7,313 | 244,162 |
| SSE PLC | 1,313 | 29,836 |
| Standard Chartered PLC | 3,322 | 38,523 |
| Tesco PLC | 11,793 | 52,074 |
| Unilever PLC | 1,287 | 78,510 |
| Vodafone Group PLC | 65,531 | 60,938 |
| | | | 1,684,215 |
| United States–5.04% |
| ARM Holdings PLC, ADR(a) | 1,802 | 254,623 |
| Atlassian Corp., Class A(a) | 180 | 33,937 |
| BP PLC | 27,036 | 132,228 |
| CRH PLC | 1,287 | 122,693 |
| Experian PLC | 901 | 43,974 |
| Ferguson Enterprises, Inc. | 438 | 86,119 |
| GSK PLC | 8,858 | 159,963 |
| Holcim AG(a) | 1,004 | 98,594 |
| JBS S.A. | 1,300 | 8,098 |
| Roche Holding AG | 1,004 | 311,143 |
| Sanofi S.A. | 2,034 | 214,953 |
| Stellantis N.V. | 8,549 | 117,141 |
| Swiss Re AG | 232 | 29,623 |
| | | | 1,613,089 |
| Vietnam–0.00% |
| Vietnam Dairy Products JSC | 2 | 5 |
| Total Common Stocks & Other Equity Interests (Cost $20,393,270) | 24,391,556 |
| Preferred Stocks–0.01% |
| Multinational–0.01% |
| Harambee Re Ltd., Pfd.(c) | 3 | 1,106 |
| Viribus Re Ltd., Pfd.(c) | 29,303 | 1,950 |
| Total Preferred Stocks (Cost $30,046) | 3,056 |
| Money Market Funds–20.19% |
| Invesco Government & Agency Portfolio, Institutional Class, 4.77%(d)(e) | 2,261,715 | 2,261,715 |
| Invesco Treasury Portfolio, Institutional Class, 4.73%(d)(e) | 4,200,310 | 4,200,310 |
| Total Money Market Funds (Cost $6,462,025) | 6,462,025 |
| TOTAL INVESTMENTS IN SECURITIES—96.43% (Cost $26,885,341) | 30,856,637 |
| OTHER ASSETS LESS LIABILITIES–3.57% | 1,142,316 |
| NET ASSETS–100.00% | $31,998,953 |
Investment Abbreviations:
| ADR | – American Depositary Receipt |
| CPO | – Certificates of Ordinary Participation |
| PC | – Participation Certificate |
| Pfd. | – Preferred |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 6 | Invesco Advantage International Fund |
Notes to Schedule of Investments:
| (a) | Non-income producing security. |
| (b) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $203,168, which represented less than 1% of the Fund’s Net Assets. |
| (c) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
| (d) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | Value
October 31, 2023 | Purchases
at Cost | Proceeds
from Sales | Change in
Unrealized
Appreciation
(Depreciation) | Realized
Gain
(Loss) | Value
October 31, 2024 | Dividend Income |
| Investments in Affiliated Money Market Funds: | | | | | | | |
| Invesco Government & Agency Portfolio, Institutional Class | $1,066,143 | $5,635,735 | $(4,440,163) | $- | $- | $2,261,715 | $47,068 |
| Invesco Liquid Assets Portfolio, Institutional Class | 761,496 | 2,334,288 | (3,095,850) | (120) | 186 | - | 20,393 |
| Invesco Treasury Portfolio, Institutional Class | 1,218,450 | 8,341,189 | (5,359,329) | - | - | 4,200,310 | 67,134 |
| Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
| Invesco Private Government Fund | - | 309,673 | (309,673) | - | - | - | 461* |
| Invesco Private Prime Fund | - | 784,443 | (784,435) | - | (8) | - | 1,234* |
| Total | $3,046,089 | $17,405,328 | $(13,989,450) | $(120) | $178 | $6,462,025 | $136,290 |
| * | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
| (e) | The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| Open Futures Contracts(a) |
| Long Futures Contracts | Number of
Contracts | Expiration
Month | Notional
Value | Value | Unrealized
Appreciation
(Depreciation) |
| Currency Risk |
| Canadian Dollar | 34 | December-2024 | $2,448,000 | $(56,690) | $(56,690) |
| Equity Risk |
| S&P/TSX 60 Index | 12 | December-2024 | 2,494,718 | 60,286 | 60,286 |
| Total Futures Contracts | $3,596 | $3,596 |
| (a) | Futures contracts collateralized by $170,957 cash held with Merrill Lynch International, the futures commission merchant. |
| Open Over-The-Counter Total Return Swap Agreements(a) |
| Counterparty | Pay/
Receive | Reference Entity | Floating
Rate
Index | Payment
Frequency | Number of
Contracts | Maturity Date | Notional Value | Upfront
Payments
Paid
(Received) | Value | Unrealized
Appreciation
(Depreciation) |
| Equity Risk | | | | | | | | | | | |
| Citibank, N.A. | Receive | MSCI Emerging Markets Minimum Volatility Index | SOFR + 0.340% | Monthly | 1,102 | November—2024 | USD | 2,606,990 | $— | $(68,247) | $(68,247) |
| Citibank, N.A. | Receive | MSCI Emerging Markets Minimum Volatility Index | SOFR + 0.700% | Monthly | 1,070 | January—2025 | USD | 2,531,288 | — | (66,265) | (66,265) |
| Total — Total Return Swap Agreements | | | | | $— | $(134,512) | $(134,512) |
| (a) | The Fund receives or pays payments based on any positive or negative return on the Reference Entity, respectively. |
| Abbreviations: |
| SOFR | —Secured Overnight Financing Rate |
| USD | —U.S. Dollar |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 7 | Invesco Advantage International Fund |
Statement of Assets and Liabilities
October 31, 2024
| Assets: | |
Investments in unaffiliated securities, at value
(Cost $20,423,316) | $24,394,612 |
| Investments in affiliated money market funds, at value (Cost $6,462,025) | 6,462,025 |
| Other investments: | |
| Variation margin receivable — futures contracts | 841,872 |
| Deposits with brokers: | |
| Cash collateral — exchange-traded futures contracts | 170,957 |
| Cash | 74,505 |
| Foreign currencies, at value (Cost $98,762) | 97,773 |
| Receivable for: | |
| Fund shares sold | 5,545 |
| Dividends | 158,555 |
| Interest | 854 |
| Investment for trustee deferred compensation and retirement plans | 19,451 |
| Other assets | 43,464 |
| Total assets | 32,269,613 |
| Liabilities: | |
| Other investments: | |
| Swaps payable — OTC | 7,850 |
| Unrealized depreciation on swap agreements—OTC | 134,512 |
| Payable for: | |
| Fund shares reacquired | 28,074 |
| Accrued fees to affiliates | 9,969 |
| Accrued trustees’ and officers’ fees and benefits | 1,185 |
| Accrued other operating expenses | 69,619 |
| Trustee deferred compensation and retirement plans | 19,451 |
| Total liabilities | 270,660 |
| Net assets applicable to shares outstanding | $31,998,953 |
| Net assets consist of: | |
| Shares of beneficial interest | $30,082,735 |
| Distributable earnings | 1,916,218 |
| | $31,998,953 |
| Net Assets: |
| Class A | $15,506,071 |
| Class C | $3,104,267 |
| Class R | $4,384,068 |
| Class Y | $1,213,231 |
| Class R5 | $11,065 |
| Class R6 | $7,780,251 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 1,378,518 |
| Class C | 289,230 |
| Class R | 395,610 |
| Class Y | 106,376 |
| Class R5 | 974 |
| Class R6 | 680,756 |
| Class A: | |
| Net asset value per share | $11.25 |
Maximum offering price per share
(Net asset value of $11.25 ÷ 94.50%) | $11.90 |
| Class C: | |
| Net asset value and offering price per share | $10.73 |
| Class R: | |
| Net asset value and offering price per share | $11.08 |
| Class Y: | |
| Net asset value and offering price per share | $11.41 |
| Class R5: | |
| Net asset value and offering price per share | $11.36 |
| Class R6: | |
| Net asset value and offering price per share | $11.43 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 8 | Invesco Advantage International Fund |
Statement of Operations
For the year ended October 31, 2024
| Investment income: | |
| Interest | $161,782 |
| Dividends (net of foreign withholding taxes of $113,411) | 940,282 |
| Dividends from affiliated money market funds (includes net securities lending income of $69) | 134,664 |
| Foreign withholding tax claims | 24,329 |
| Total investment income | 1,261,057 |
| Expenses: | |
| Advisory fees | 156,655 |
| Administrative services fees | 4,550 |
| Custodian fees | 23,956 |
| Distribution fees: | |
| Class A | 36,639 |
| Class C | 31,005 |
| Class R | 22,632 |
| Transfer agent fees — A, C, R and Y | 38,966 |
| Transfer agent fees — R5 | 4 |
| Transfer agent fees — R6 | 2,329 |
| Trustees’ and officers’ fees and benefits | 22,175 |
| Registration and filing fees | 78,011 |
| Index review fees | 75,757 |
| Reports to shareholders | 15,306 |
| Professional services fees | 97,252 |
| Other | 25,333 |
| Total expenses | 630,570 |
| Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (276,589) |
| Net expenses | 353,981 |
| Net investment income | 907,076 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Unaffiliated investment securities | 1,293,804 |
| Affiliated investment securities | 178 |
| Foreign currencies | (1,143) |
| Forward foreign currency contracts | (851) |
| Futures contracts | (778,245) |
| Option contracts written | (307,799) |
| Swap agreements | 491,327 |
| | 697,271 |
| Change in net unrealized appreciation (depreciation) of: | |
| Unaffiliated investment securities | 2,941,020 |
| Affiliated investment securities | (120) |
| Foreign currencies | 1,572 |
| Futures contracts | 49,134 |
| Option contracts written | (19,528) |
| Swap agreements | (26,438) |
| | 2,945,640 |
| Net realized and unrealized gain | 3,642,911 |
| Net increase in net assets resulting from operations | $4,549,987 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 9 | Invesco Advantage International Fund |
Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| | 2024 | 2023 |
| Operations: | | |
| Net investment income | $907,076 | $1,043,561 |
| Net realized gain (loss) | 697,271 | (1,458,142) |
| Change in net unrealized appreciation | 2,945,640 | 645,339 |
| Net increase in net assets resulting from operations | 4,549,987 | 230,758 |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (762,544) | — |
| Class C | (134,768) | — |
| Class R | (213,318) | — |
| Class Y | (88,402) | — |
| Class R5 | (558) | — |
| Class R6 | (367,859) | — |
| Total distributions from distributable earnings | (1,567,449) | — |
| Share transactions–net: | | |
| Class A | (373,213) | 1,837,833 |
| Class C | (63,802) | (77,550) |
| Class R | (105,805) | 506,500 |
| Class Y | (504,755) | (1,596,304) |
| Class R6 | 378,223 | 6,844,401 |
| Net increase (decrease) in net assets resulting from share transactions | (669,352) | 7,514,880 |
| Net increase in net assets | 2,313,186 | 7,745,638 |
| Net assets: | | |
| Beginning of year | 29,685,767 | 21,940,129 |
| End of year | $31,998,953 | $29,685,767 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 10 | Invesco Advantage International Fund |
Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| | Net asset
value,
beginning
of period | Net
investment
income(a) | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Dividends
from net
investment
income | Distributions
from net
realized
gains | Total
distributions | Net asset
value, end
of period | Total
return(b) | Net assets,
end of period
(000’s omitted) | Ratio of
expenses
to average
net assets
with fee waivers
and/or
expenses
absorbed | Ratio of
expenses
to average net
assets without
fee waivers
and/or
expenses
absorbed | Ratio of net
investment
income
to average
net assets | Portfolio
turnover (c) |
| Class A |
| Year ended 10/31/24 | $10.25 | $0.31 | $1.23 | $1.54 | $(0.54) | $— | $(0.54) | $11.25 | 15.61%(d) | $15,506 | 1.06%(d) | 1.95%(d) | 2.88%(d) | 156% |
| Year ended 10/31/23 | 10.06 | 0.39 | (0.20) | 0.19 | — | — | — | 10.25 | 1.89(d) | 14,417 | 0.83(d) | 1.84(d) | 3.65(d) | 196 |
| Year ended 10/31/22 | 13.37 | 0.32 | (2.00) | (1.68) | (0.14) | (1.49) | (1.63) | 10.06 | (14.27)(d) | 12,412 | 0.83(d) | 1.87(d) | 2.85(d) | 157 |
| Year ended 10/31/21 | 10.83 | 0.25 | 2.30 | 2.55 | — | (0.01) | (0.01) | 13.37 | 23.54(d) | 12,502 | 0.87(d) | 2.27(d) | 1.89(d) | 141 |
| Year ended 10/31/20 | 10.90 | 0.12 | (0.13) | (0.01) | — | (0.06) | (0.06) | 10.83 | (0.09) | 9,934 | 0.94 | 1.74 | 1.08 | 238 |
| Class C |
| Year ended 10/31/24 | 9.78 | 0.22 | 1.18 | 1.40 | (0.45) | — | (0.45) | 10.73 | 14.79 | 3,104 | 1.81 | 2.72 | 2.13 | 156 |
| Year ended 10/31/23 | 9.67 | 0.29 | (0.18) | 0.11 | — | — | — | 9.78 | 1.14 | 2,878 | 1.58 | 2.60 | 2.90 | 196 |
| Year ended 10/31/22 | 12.90 | 0.23 | (1.93) | (1.70) | (0.04) | (1.49) | (1.53) | 9.67 | (14.94) | 2,920 | 1.58 | 2.64 | 2.10 | 157 |
| Year ended 10/31/21 | 10.52 | 0.14 | 2.25 | 2.39 | — | (0.01) | (0.01) | 12.90 | 22.72 | 3,350 | 1.62 | 3.04 | 1.14 | 141 |
| Year ended 10/31/20 | 10.66 | 0.04 | (0.12) | (0.08) | — | (0.06) | (0.06) | 10.52 | (0.75) | 3,241 | 1.65 | 2.49 | 0.37 | 238 |
| Class R |
| Year ended 10/31/24 | 10.10 | 0.28 | 1.21 | 1.49 | (0.51) | — | (0.51) | 11.08 | 15.31 | 4,384 | 1.31 | 2.22 | 2.63 | 156 |
| Year ended 10/31/23 | 9.94 | 0.36 | (0.20) | 0.16 | — | — | — | 10.10 | 1.61 | 4,071 | 1.08 | 2.10 | 3.40 | 196 |
| Year ended 10/31/22 | 13.23 | 0.29 | (1.98) | (1.69) | (0.11) | (1.49) | (1.60) | 9.94 | (14.53) | 3,521 | 1.08 | 2.14 | 2.60 | 157 |
| Year ended 10/31/21 | 10.74 | 0.21 | 2.29 | 2.50 | — | (0.01) | (0.01) | 13.23 | 23.27 | 4,360 | 1.12 | 2.54 | 1.64 | 141 |
| Year ended 10/31/20 | 10.83 | 0.09 | (0.12) | (0.03) | — | (0.06) | (0.06) | 10.74 | (0.28) | 3,607 | 1.14 | 1.99 | 0.88 | 238 |
| Class Y |
| Year ended 10/31/24 | 10.40 | 0.35 | 1.23 | 1.58 | (0.57) | — | (0.57) | 11.41 | 15.81 | 1,213 | 0.79 | 1.72 | 3.15 | 156 |
| Year ended 10/31/23 | 10.17 | 0.42 | (0.19) | 0.23 | — | — | — | 10.40 | 2.26 | 1,586 | 0.58 | 1.60 | 3.90 | 196 |
| Year ended 10/31/22 | 13.51 | 0.34 | (2.01) | (1.67) | (0.18) | (1.49) | (1.67) | 10.17 | (14.12) | 3,076 | 0.58 | 1.64 | 3.10 | 157 |
| Year ended 10/31/21 | 10.91 | 0.28 | 2.33 | 2.61 | — | (0.01) | (0.01) | 13.51 | 23.92 | 1,178 | 0.62 | 2.04 | 2.14 | 141 |
| Year ended 10/31/20 | 10.95 | 0.14 | (0.12) | 0.02 | — | (0.06) | (0.06) | 10.91 | 0.18 | 890 | 0.71 | 1.49 | 1.31 | 238 |
| Class R5 |
| Year ended 10/31/24 | 10.35 | 0.34 | 1.24 | 1.58 | (0.57) | — | (0.57) | 11.36 | 15.88 | 11 | 0.82 | 1.59 | 3.12 | 156 |
| Year ended 10/31/23 | 10.14 | 0.42 | (0.21) | 0.21 | — | — | — | 10.35 | 2.07 | 10 | 0.58 | 1.42 | 3.90 | 196 |
| Year ended 10/31/22 | 13.46 | 0.35 | (2.00) | (1.65) | (0.18) | (1.49) | (1.67) | 10.14 | (14.02) | 10 | 0.58 | 1.47 | 3.10 | 157 |
| Year ended 10/31/21 | 10.88 | 0.28 | 2.31 | 2.59 | — | (0.01) | (0.01) | 13.46 | 23.80 | 13 | 0.62 | 1.85 | 2.14 | 141 |
| Year ended 10/31/20 | 10.91 | 0.15 | (0.12) | 0.03 | — | (0.06) | (0.06) | 10.88 | 0.28 | 11 | 0.66 | 1.47 | 1.36 | 238 |
| Class R6 |
| Year ended 10/31/24 | 10.41 | 0.35 | 1.24 | 1.59 | (0.57) | — | (0.57) | 11.43 | 15.89 | 7,780 | 0.82 | 1.59 | 3.12 | 156 |
| Year ended 10/31/23 | 10.19 | 0.42 | (0.20) | 0.22 | — | — | — | 10.41 | 2.16 | 6,724 | 0.58 | 1.42 | 3.90 | 196 |
| Year ended 10/31/22 | 13.53 | 0.35 | (2.02) | (1.67) | (0.18) | (1.49) | (1.67) | 10.19 | (14.10) | 1 | 0.58 | 1.47 | 3.10 | 157 |
| Year ended 10/31/21 | 10.93 | 0.28 | 2.33 | 2.61 | — | (0.01) | (0.01) | 13.53 | 23.88 | 2 | 0.62 | 1.85 | 2.14 | 141 |
| Year ended 10/31/20 | 10.96 | 0.14 | (0.11) | 0.03 | — | (0.06) | (0.06) | 10.93 | 0.28 | 2 | 0.68 | 1.47 | 1.34 | 238 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| (d) | The total return, ratios of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.23%, 0.24%, 0.23% and 0.23% for the years ended October 31, 2024, 2023, 2022 and 2021, respectively. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 11 | Invesco Advantage International Fund |
Notes to Financial Statements
October 31, 2024
NOTE 1—Significant Accounting Policies
Invesco Advantage International Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company 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.
Prior to February 10, 2020, the Fund sought to gain exposure to Regulation S securities primarily through investments in the Invesco Oppenheimer Global Multi-Asset Growth Fund (Cayman) Ltd. (the “Subsidiary”), a wholly owned and controlled subsidiary by the Fund that was organized under the laws of the Cayman Islands. Effective February 10, 2020, the Subsidiary liquidated and ceased operations. For periods prior to February 10, 2020, the Subsidiary operations were consolidated on the Financial Highlights.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges ("CDSC"). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the "Conversion Feature"). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
Effective after the close of business on September 30, 2024, Class R5 shares are closed to new investors.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
| A. | Security Valuations – Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
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Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
| C. | Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
| F. | Foreign Withholding Taxes – The Fund is subject to foreign withholding tax imposed by certain foreign countries in which the Fund may invest. Withholding taxes are incurred on certain foreign dividends and are accrued at the time the dividend is recognized based on applicable foreign tax laws. The Fund may file withholding tax refunds in certain jurisdictions to seek to recover a portion of amounts previously withheld. The Fund will record a receivable for such tax refunds based on several factors including; an assessment of a jurisdiction’s legal obligation to pay reclaims, administrative practices and payment history. Any receivables recorded will be shown under receivables for Foreign withholding tax claims on the Statement of Assets and Liabilities. There is no guarantee that the Fund will receive refunds applied for in a timely manner or at all. |
As a result of recent court rulings in certain countries across the European Union, tax refunds for previously withheld taxes on dividends earned in those countries have been received by investment companies. Any tax refund payments are reflected as Foreign withholding tax claims in the Statement of Operations, and any related interest is included in Interest income. The Fund may incur fees paid to third party providers that assist in the recovery of the tax reclaims. These fees are reflected on the Statement of Operations as Professional services fees, if any. In the event tax refunds received by the Fund during the fiscal year exceed the foreign withholding taxes paid by the Fund for the year, and the Fund previously passed foreign tax credits on to its shareholders, the Fund intends to enter into a closing agreement with the Internal Revenue Service in order to pay the associated liability on behalf of the Funds’ shareholders. For the year ended October 31, 2024, the Fund did not enter into any closing agreements.
| G. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| H. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
| I. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown |
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| | as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| J. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, "affiliated money market funds") and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the year ended October 31, 2024, the Fund paid the Adviser fees for securities lending agent services, which were less than $500. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
| K. | Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| L. | Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
| M. | Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between Counterparties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying instrument or asset. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would |
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| | continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities. |
| N. | Call Options Purchased and Written – The Fund may write call options and/or buy call options. A covered call option gives the purchaser of such option the right to buy, and the writer the obligation to sell, the underlying security or foreign currency at the stated exercise price during the option period. An uncovered call option exists without the ownership of the underlying security. Options written by the Fund normally will have expiration dates between three and nine months from the date written. The exercise price of a call option may be below, equal to, or above the current market value of the underlying security at the time the option is written. |
Additionally, the Fund may enter into an option on a swap agreement, also called a “swaption”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the Counterparties.
When the Fund writes a covered call option, an amount equal to the premium received by the Fund is recorded as an asset and an equivalent liability in the Statement of Assets and Liabilities. The amount of the liability is subsequently “marked-to-market” to reflect the current market value of the option written. If a written covered call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written covered call option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. Realized and unrealized gains and losses on call options written are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Option contracts written. A risk in writing a covered call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. The risk in writing an uncovered call option is that the Fund may incur significant losses if the value of the written security exceeds the exercise price of the option.
When the Fund buys a call option, an amount equal to the premium paid by the Fund is recorded as an investment on the Statement of Assets and Liabilities. The amount of the investment is subsequently “marked-to-market” to reflect the current value of the option purchased. Realized and unrealized gains and losses on call options purchased are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.
| O. | Put Options Purchased 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 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. |
| P. | Swap Agreements — The Fund may enter into various swap transactions, including interest rate, total return, index, currency and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency or credit risk. Such transactions are agreements between Counterparties. A swap agreement may be negotiated bilaterally and traded over-the-counter (“OTC”) between two parties (“uncleared/ OTC”) or, in some instances, must be transacted through a future commission merchant (“FCM”) and cleared through a clearinghouse that serves as a central Counterparty (“centrally cleared swap”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/ or provide limits regarding the decline of the Fund’s 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
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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 Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statement of Operations. Cash held as collateral is recorded as deposits with brokers on the Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations, which could result in the Fund accruing additional expenses. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. Additionally, an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) includes credit related contingent features which allow Counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreements, which would cause the Fund to accelerate payment of any net liability owed to the Counterparty. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.
Notional amounts of each individual credit default swap agreement outstanding as of October 31, 2024, if any, for which the Fund is the seller of protection are disclosed in the open swap agreements table. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.
| Q. | Leverage Risk — Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction. |
| R. | Other Risks - Active trading of portfolio securities may result in added expenses, a lower return and increased tax liability. |
Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic instability, uncertain trading markets and more governmental limitations on foreign investment than more developed markets. In addition, companies operating in emerging markets may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. As a result, information, including financial information, about such companies may be less available and reliable, which can impede the Fund’s ability to evaluate such companies. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably, and the ability to bring and enforce actions (including bankruptcy, confiscatory taxation, expropriation, nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets from the country, protectionist measures and practices such as share blocking), or to obtain information needed to pursue or enforce such actions, may be limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging market countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information.
Investments in companies located or operating in Greater China (normally considered to be the geographical area that includes mainland China, Hong Kong, Macau and Taiwan) involve risks and considerations not typically associated with investments in the U.S. and other Western nations, such as greater government control over the economy; political, legal and regulatory uncertainty; nationalization, expropriation, or confiscation of property; lack of willingness or ability of the Chinese government to support the economies and markets of the Greater China region; difficulty in obtaining information necessary for investigations into and/or litigation against Chinese companies, as well as in obtaining and/or enforcing judgments; lack of publicly available information; limited legal remedies for shareholders; alteration or discontinuation of economic reforms; military conflicts and the risk of war, either internal or with other countries; public health emergencies resulting in market closures, travel restrictions, quarantines or other interventions; inflation, currency fluctuations and fluctuations in inflation and interest rates that may have negative effects on the economy and securities markets of Greater China; and Greater China’s dependency on the economies of other Asian countries, many of which are developing countries. Events in any one country within Greater China may impact the other countries in the region or Greater China as a whole.
The level of development of the economies of countries in the Asia Pacific region varies greatly. Furthermore, since the economies of the countries in the region are largely intertwined, if an economic recession is experienced by any of these countries, it will likely adversely impact the economic performance of other countries in the region. In addition, export growth continues to be a major driver of China’s rapid economic growth. As a result, a reduction in spending on Chinese products and services, the institution of tariffs, sanctions, capital controls, embargoes, trade wars or other trade barriers, or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy. The current political climate has intensified concerns about a potential trade war between China and the U.S., as each country has recently imposed tariffs on the other country’s products. Further, actions by the U.S. government, such as delisting of certain Chinese companies from U.S. securities exchanges or otherwise restricting their operations in the U.S., may negatively impact the value of such securities held by the Fund.
Certain securities issued by companies located or operating in Greater China, such as China A-shares, are subject to trading restrictions and suspensions, quota limitations and sudden changes in those limitations, and operational, clearing and settlement risks. Significant portions of the Chinese securities markets may become rapidly illiquid, as Chinese issuers have the ability to suspend the trading of their equity securities, and have shown a willingness to exercise that option in response to market volatility and other events. The liquidity of Chinese securities may shrink or disappear suddenly and without warning as a result of adverse economic, market or political events, or adverse investor perceptions, whether or not accurate.
| 16 | Invesco Advantage International Fund |
The Fund’s Japanese investments may be adversely affected by protectionist trade policies, slow economic activity worldwide, dependence on exports and international trade, increasing competition from Asia’s other low-cost emerging economies, political and social instability, regional and global conflicts and natural disasters, as well as by commodity markets fluctuations related to Japan’s limited natural resource supply. The Japanese economy also faces several other concerns, including a financial system with large levels of nonperforming loans, over-leveraged corporate balance sheets, extensive cross-ownership by major corporations, a changing corporate governance structure, and large government deficits.
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 | 0.490% |
| Next $500 million | 0.470% |
| Next $4.0 billion | 0.440% |
| Over $5.0 billion | 0.420% |
For the year ended October 31, 2024, the effective advisory fee rate incurred by the Fund was 0.49%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the "Affiliated Sub-Advisers") the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has contractually agreed, through at least February 28, 2025, to waive advisory fees and/or reimburse expenses 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 1.18%, 1.93%, 1.43%, 0.93%, 0.93% and 0.93%, respectively, of the Fund’s average daily net assets (the “expense limits”). Prior to March 1, 2024, the Adviser had contractually agreed, 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 0.85%, 1.60%, 1.10%, 0.60%, 0.60% and 0.60%, 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 expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on February 28, 2025. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees.
Further, the Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $156,655, reimbursed fund level expenses of $74,861 and reimbursed class level expenses of $24,788, $4,915, $7,175, $2,088, $4 and $2,329 of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2024, IDI advised the Fund that IDI retained $10,225 in front-end sales commissions from the sale of Class A shares and $0 and $1 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3—Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. 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.
| 17 | Invesco Advantage International 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. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| | Level 1 | Level 2 | Level 3 | Total |
| Investments in Securities | | | | |
| Australia | $— | $516,546 | $— | $516,546 |
| Belgium | — | 117,103 | — | 117,103 |
| Brazil | 660,102 | — | — | 660,102 |
| Chile | — | 75,936 | — | 75,936 |
| China | 605,178 | 2,709,389 | — | 3,314,567 |
| Colombia | 17,017 | — | — | 17,017 |
| Czech Republic | — | 8,777 | — | 8,777 |
| Denmark | — | 552,862 | — | 552,862 |
| Finland | — | 66,505 | — | 66,505 |
| France | — | 1,347,543 | — | 1,347,543 |
| Germany | — | 1,392,348 | — | 1,392,348 |
| Greece | — | 54,980 | — | 54,980 |
| Hong Kong | — | 321,870 | — | 321,870 |
| Hungary | — | 50,277 | — | 50,277 |
| Indonesia | — | 215,442 | — | 215,442 |
| Italy | — | 555,853 | — | 555,853 |
| Japan | — | 3,378,841 | — | 3,378,841 |
| Luxembourg | — | 29,928 | — | 29,928 |
| Malaysia | — | 279,273 | — | 279,273 |
| Mexico | 261,808 | — | 3,422 | 265,230 |
| Multinational | — | — | 3,056 | 3,056 |
| Netherlands | — | 417,715 | — | 417,715 |
| Peru | 25,042 | — | — | 25,042 |
| Philippines | — | 81,178 | — | 81,178 |
| Poland | — | 163,878 | — | 163,878 |
| Russia | — | — | 0 | 0 |
| Singapore | 60,568 | 104,731 | — | 165,299 |
| South Africa | — | 219,987 | — | 219,987 |
| South Korea | — | 784,352 | — | 784,352 |
| Spain | — | 622,160 | — | 622,160 |
| Sweden | 188,314 | 380,783 | — | 569,097 |
| Switzerland | — | 1,235,968 | — | 1,235,968 |
| Taiwan | 1,531,784 | 1,822,953 | — | 3,354,737 |
| Turkey | — | 233,834 | — | 233,834 |
| United Kingdom | 9,804 | 1,674,411 | — | 1,684,215 |
| United States | 296,658 | 1,316,431 | — | 1,613,089 |
| Vietnam | — | 5 | — | 5 |
| Money Market Funds | 6,462,025 | — | — | 6,462,025 |
| Total Investments in Securities | 10,118,300 | 20,731,859 | 6,478 | 30,856,637 |
| Other Investments - Assets* | | | | |
| Futures Contracts | 60,286 | — | — | 60,286 |
| Other Investments - Liabilities* | | | | |
| Futures Contracts | (56,690) | — | — | (56,690) |
| Swap Agreements | — | (134,512) | — | (134,512) |
| | (56,690) | (134,512) | — | (191,202) |
| Total Other Investments | 3,596 | (134,512) | — | (130,916) |
| Total Investments | $10,121,896 | $20,597,347 | $6,478 | $30,725,721 |
| * | Unrealized appreciation (depreciation). |
| 18 | Invesco Advantage International Fund |
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 October 31, 2024:
| | Value |
| Derivative Assets | Equity
Risk |
| Unrealized appreciation on futures contracts —Exchange-Traded(a) | $60,286 |
| Derivatives not subject to master netting agreements | (60,286) |
| Total Derivative Assets subject to master netting agreements | $— |
| | Value |
| Derivative Liabilities | Currency
Risk | Equity
Risk | Total |
| Unrealized depreciation on futures contracts —Exchange-Traded(a) | $(56,690) | $— | $(56,690) |
| Unrealized depreciation on swap agreements — OTC | — | (134,512) | (134,512) |
| Total Derivative Liabilities | (56,690) | (134,512) | (191,202) |
| Derivatives not subject to master netting agreements | 56,690 | — | 56,690 |
| Total Derivative Liabilities subject to master netting agreements | $— | $(134,512) | $(134,512) |
| (a) | The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities. |
Offsetting Assets and Liabilities
The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of October 31, 2024.
| | Financial
Derivative
Liabilities | | Collateral
(Received)/Pledged | |
| Counterparty | Swap
Agreements | Net Value of
Derivatives | Non-Cash | Cash | Net
Amount |
| Citibank, N.A. | $(142,362) | $(142,362) | $— | $— | $(142,362) |
Effect of Derivative Investments for the year ended October 31, 2024
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
| | Location of Gain (Loss) on
Statement of Operations |
| | Currency
Risk | Equity
Risk | Total |
| Realized Gain (Loss): | | | |
| Forward foreign currency contracts | $(851) | $- | $(851) |
| Futures contracts | (30,231) | (748,014) | (778,245) |
| Options written | - | (307,799) | (307,799) |
| Swap agreements | - | 491,327 | 491,327 |
| Change in Net Unrealized Appreciation (Depreciation): | | | |
| Futures contracts | 748 | 48,386 | 49,134 |
| Options written | - | (19,528) | (19,528) |
| Swap agreements | - | (26,438) | (26,438) |
| Total | $(30,334) | $(562,066) | $(592,400) |
The table below summarizes the average notional value of derivatives held during the period.
| | Forward
Foreign Currency
Contracts | Futures
Contracts | Index
Options
Written | Swap
Agreements |
| Average notional value | $51,356 | $6,752,116 | $10,264,333 | $3,795,798 |
| Average contracts | — | — | 61 | — |
| 19 | Invesco Advantage International Fund |
NOTE 5—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $3,774.
NOTE 6—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 7—Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8—Distributions to Shareholders and Tax Components of Net Assets
| Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023: |
| | 2024 | 2023 |
| Ordinary income* | $1,567,449 | $— |
| * | Includes short-term capital gain distributions, if any. |
| Tax Components of Net Assets at Period-End: |
| | 2024 |
| Undistributed ordinary income | $1,309,276 |
| Net unrealized appreciation — investments | 3,640,786 |
| Net unrealized appreciation (depreciation) — foreign currencies | (2,660) |
| Temporary book/tax differences | (14,029) |
| Capital loss carryforward | (3,017,155) |
| Shares of beneficial interest | 30,082,735 |
| Total net assets | $31,998,953 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to wash sales, derivative instruments and passive foreign investment companies.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund has a capital loss carryforward as of October 31, 2024, as follows:
| Capital Loss Carryforward* |
| Expiration | Short-Term | Long-Term | Total |
| Not subject to expiration | $967,011 | $2,050,144 | $3,017,155 |
| * | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 9—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2024 was $40,035,883 and $42,400,021, respectively. As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $4,512,734 |
| Aggregate unrealized (depreciation) of investments | (871,948) |
| Net unrealized appreciation of investments | $3,640,786 |
Cost of investments for tax purposes is $27,084,935.
| 20 | Invesco Advantage International Fund |
NOTE 10—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of passive foreign investment companies and derivative instruments, on October 31, 2024, undistributed net investment income was increased by $489,090, undistributed net realized gain (loss) was decreased by $486,804 and shares of beneficial interest was decreased by $2,286. This reclassification had no effect on the net assets of the Fund.
NOTE 11—Share Information
| | Summary of Share Activity |
| | Year ended
October 31, 2024(a) | | Year ended
October 31, 2023 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 193,328 | $2,106,388 | | 408,886 | $4,344,778 |
| Class C | 49,139 | 511,583 | | 67,888 | 689,747 |
| Class R | 70,107 | 751,718 | | 109,216 | 1,142,005 |
| Class Y | 51,549 | 572,902 | | 108,903 | 1,171,806 |
| Class R6 | 62,240 | 690,174 | | 755,173 | 8,027,473 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 72,759 | 741,416 | | - | - |
| Class C | 13,510 | 132,132 | | - | - |
| Class R | 21,205 | 213,318 | | - | - |
| Class Y | 6,344 | 65,412 | | - | - |
| Class R6 | 35,577 | 367,514 | | - | - |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 9,538 | 102,496 | | 6,941 | 73,067 |
| Class C | (9,959) | (102,496) | | (7,243) | (73,067) |
| Reacquired: | | | | | |
| Class A | (303,613) | (3,323,513) | | (242,799) | (2,580,012) |
| Class C | (57,646) | (605,021) | | (68,377) | (694,230) |
| Class R | (98,772) | (1,070,841) | | (60,313) | (635,505) |
| Class Y | (104,061) | (1,143,069) | | (258,690) | (2,768,110) |
| Class R6 | (63,195) | (679,465) | | (109,179) | (1,183,072) |
| Net increase (decrease) in share activity | (51,950) | $(669,352) | | 710,406 | $7,514,880 |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 21% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
| 21 | Invesco Advantage International Fund |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM International Mutual Funds (Invesco International Mutual Funds) and Shareholders of Invesco Advantage International Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Invesco Advantage International Fund (one of the funds constituting AIM International Mutual Funds (Invesco International Mutual Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related statement of operations for the year ended October 31, 2024, the statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent, insurance companies and brokers; when replies were not received from insurance companies, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Houston, Texas
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
| 22 | Invesco Advantage International Fund |
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM International Mutual Funds (Invesco International Mutual Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Advantage International Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC, Invesco Asset Management (India) Private Limited and OppenheimerFunds, Inc. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees, that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior
Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy and cybersecurity, including related testing. The
Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
B. Fund Investment Performance
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the MSCI ACWI ex-USA Index (Index). The Board noted that performance of Class A shares of the Fund was in the fifth quintile of its performance universe for the one, three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was below the performance of the Index for the one, three and five year periods. The Board considered that the Fund was created in connection with Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the “Transaction”) and that the Fund’s
| 23 | Invesco Advantage International Fund |
performance prior to the closing of the Transaction on May 24, 2019 is that of its predecessor fund. The Board noted that, prior to November 18, 2019, the Fund was sub-advised by Barings. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board considered that the Fund’s factor-driven investment process results in lower equity beta relative to peers, and that the Fund’s exposure to low volatility stocks and its options-based defensive positioning led to underperformance in the recent rising equity markets. The Board further considered that the Fund had changed its name, investment strategy and index against which future performance will be compared in 2020 and that performance results prior to such date reflected that of the Fund’s former strategy. As a result, the Board did not consider performance of the Fund prior to such date to be particularly relevant. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
| C. | Advisory and Sub-Advisory Fees and Fund Expenses |
The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Class A shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board also noted that the Fund’s actual management fee rate was 0.00% due to expense limits and/or waivers, which was below the median actual management fee rate of its expense group. The Board noted that the Fund’s contractual management fee schedule was reduced at certain breakpoint levels effective in 2020. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.
The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other similarly managed mutual funds or client accounts.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.
| D. | Economies of Scale and Breakpoints |
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the difficulty in calculating and measuring economies of scale at the individual fund level; noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund also shares in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
| E. | Profitability and Financial Resources |
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
| F. | Collateral Benefits to Invesco Advisers and its Affiliates |
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the
performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives from Invesco Advisers periodic reports that include a representation to the effect that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities Lending Governance Committee and its related responsibilities. The Board noted that to the extent the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services without obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending services provided
| 24 | Invesco Advantage International Fund |
to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such securities lending activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades were executed in compliance with rules under the federal securities laws and consistent with best execution obligations.
| 25 | Invesco Advantage International Fund |
Tax Information
Form 1099-DIV, Form 1042-S and other year–end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
| Federal and State Income Tax | | |
| Qualified Dividend Income* | 46.49% | |
| Corporate Dividends Received Deduction* | 0.00% | |
| U.S. Treasury Obligations* | 6.55% | |
| Qualified Business Income* | 0.00% | |
| Business Interest Income* | 5.25% | |
| Foreign Taxes | $0.0375 | per share |
| Foreign Source Income | $0.3675 | per share |
| * | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
| 26 | Invesco Advantage International Fund |
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Not applicable.
Proxy Disclosures for Open-End Management Investment Companies
Not applicable.
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
| 27 | Invesco Advantage International Fund |
| SEC file number(s): 811-06463 and 033-44611 | Invesco Distributors, Inc. | O-GLMAG-NCSR |
| Annual Financial Statements and Other Information | October 31, 2024 |
Invesco EQV Asia Pacific Equity Fund
Nasdaq:
A: ASIAX ■ C: ASICX ■ Y: ASIYX ■ R6: ASISX
Schedule of Investments
October 31, 2024
| | Shares | Value |
| Common Stocks & Other Equity Interests–97.87% |
| Australia–5.05% |
| Aristocrat Leisure Ltd. | 334,848 | $13,474,158 |
| CSL Ltd. | 35,915 | 6,743,228 |
| | | | 20,217,386 |
| China–23.46% |
| Airtac International Group | 406,000 | 11,238,052 |
| China Mengniu Dairy Co. Ltd. | 2,399,000 | 5,372,462 |
| China Resources Beer (Holdings) Co. Ltd. | 1,746,000 | 6,467,697 |
| Fuyao Glass Industry Group Co. Ltd., H Shares(a) | 1,640,400 | 11,603,526 |
| New Oriental Education & Technology Group, Inc. | 297,600 | 1,862,397 |
| Shenzhen Inovance Technology Co. Ltd., A Shares | 860,600 | 6,719,451 |
| Sunresin New Materials Co. Ltd., A Shares | 493,587 | 3,391,511 |
| Tencent Holdings Ltd. | 412,700 | 21,519,040 |
| Tongcheng Travel Holdings Ltd.(a) | 5,489,600 | 12,419,837 |
| Trip.com Group Ltd.(b) | 103,900 | 6,686,430 |
| Wuliangye Yibin Co. Ltd., A Shares | 324,438 | 6,698,783 |
| | | | 93,979,186 |
| Hong Kong–5.05% |
| AIA Group Ltd. | 1,033,000 | 8,152,765 |
| Techtronic Industries Co. Ltd. | 834,500 | 12,071,414 |
| | | | 20,224,179 |
| India–10.85% |
| Cyient Ltd. | 135,754 | 2,951,554 |
| Emami Ltd. | 1,028,644 | 8,585,121 |
| HDFC Bank Ltd., ADR | 262,836 | 16,566,553 |
| MakeMyTrip Ltd.(b)(c) | 45,599 | 4,627,842 |
| SBI Life Insurance Co. Ltd.(a) | 557,318 | 10,729,912 |
| | | | 43,460,982 |
| Indonesia–9.81% |
| PT Bank Central Asia Tbk | 14,588,600 | 9,511,461 |
| PT Bank Rakyat Indonesia (Persero) Tbk | 15,849,500 | 4,831,783 |
| PT Kalbe Farma Tbk | 91,271,900 | 9,404,223 |
| PT Mitra Keluarga Karyasehat Tbk(a) | 51,572,600 | 8,895,357 |
| PT Pakuwon Jati Tbk | 218,979,500 | 6,664,555 |
| | | | 39,307,379 |
| Macau–0.94% |
| Galaxy Entertainment Group Ltd. | 846,000 | 3,765,188 |
| Malaysia–5.06% |
| Bursa Malaysia Bhd. | 3,480,350 | 7,171,261 |
| Heineken Malaysia Bhd. | 1,574,800 | 8,159,229 |
| KPJ Healthcare Bhd. | 10,425,200 | 4,951,310 |
| | | | 20,281,800 |
| New Zealand–1.96% |
| Auckland International Airport Ltd. | 745,564 | 3,253,296 |
| Freightways Group Ltd. | 734,490 | 4,604,598 |
| | | | 7,857,894 |
| | Shares | Value |
| Philippines–7.34% |
| BDO Unibank, Inc. | 4,692,158 | $12,280,231 |
| SM Investments Corp. | 506,436 | 8,166,080 |
| SM Prime Holdings, Inc. | 17,029,000 | 8,956,959 |
| | | | 29,403,270 |
| Singapore–2.15% |
| United Overseas Bank Ltd. | 354,400 | 8,615,123 |
| South Korea–4.31% |
| LEENO Industrial, Inc. | 20,732 | 2,701,282 |
| Samsung Electronics Co. Ltd. | 272,433 | 11,567,774 |
| Tokai Carbon Korea Co. Ltd. | 49,143 | 3,011,234 |
| | | | 17,280,290 |
| Taiwan–12.29% |
| ASPEED Technology, Inc. | 25,000 | 3,170,177 |
| MediaTek, Inc. | 270,000 | 10,510,605 |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 1,039,464 | 32,597,052 |
| Visual Photonics Epitaxy Co. Ltd. | 683,000 | 2,941,459 |
| | | | 49,219,293 |
| Thailand–6.08% |
| Bangkok Dusit Medical Services PCL, Foreign Shares | 9,953,000 | 8,182,097 |
| Central Pattana PCL, Foreign Shares | 6,475,300 | 11,985,745 |
| Humanica PCL, Foreign Shares | 12,927,200 | 4,167,557 |
| | | | 24,335,399 |
| United States–3.52% |
| Broadcom, Inc. | 83,148 | 14,116,036 |
| Total Common Stocks & Other Equity Interests (Cost $269,305,922) | 392,063,405 |
| Money Market Funds–2.30% |
| Invesco Government & Agency Portfolio, Institutional Class, 4.77%(d)(e) | 3,224,755 | 3,224,755 |
| Invesco Treasury Portfolio, Institutional Class, 4.73%(d)(e) | 6,011,717 | 6,011,717 |
| Total Money Market Funds (Cost $9,236,472) | 9,236,472 |
| TOTAL INVESTMENTS IN SECURITIES (excluding Investments purchased with cash collateral from securities on loan)-100.17% (Cost $278,542,394) | | | 401,299,877 |
| Investments Purchased with Cash Collateral from Securities on Loan |
| Money Market Funds–1.12% |
| Invesco Private Government Fund, 4.84%(d)(e)(f) | 1,239,365 | 1,239,365 |
| Invesco Private Prime Fund, 4.99%(d)(e)(f) | 3,231,716 | 3,232,685 |
| Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $4,472,050) | 4,472,050 |
| TOTAL INVESTMENTS IN SECURITIES—101.29% (Cost $283,014,444) | 405,771,927 |
| OTHER ASSETS LESS LIABILITIES–(1.29)% | (5,182,722) |
| NET ASSETS–100.00% | $400,589,205 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 2 | Invesco EQV Asia Pacific Equity Fund |
Investment Abbreviations:
| ADR | – American Depositary Receipt |
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 October 31, 2024 was $43,648,632, which represented 10.90% of the Fund’s Net Assets. |
| (b) | Non-income producing security. |
| (c) | All or a portion of this security was out on loan at October 31, 2024. |
| (d) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | Value
October 31, 2023 | Purchases
at Cost | Proceeds
from Sales | Change in
Unrealized
Appreciation
(Depreciation) | Realized
Gain | Value
October 31, 2024 | Dividend Income |
| Investments in Affiliated Money Market Funds: | | | | | | | |
| Invesco Government & Agency Portfolio, Institutional Class | $3,163,086 | $37,036,558 | $(36,974,889) | $- | $- | $3,224,755 | $199,126 |
| Invesco Liquid Assets Portfolio, Institutional Class | 2,282,532 | 21,455,532 | (23,737,765) | (1,487) | 1,188 | - | 100,944 |
| Invesco Treasury Portfolio, Institutional Class | 3,614,956 | 50,691,659 | (48,294,898) | - | - | 6,011,717 | 271,119 |
| Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
| Invesco Private Government Fund | 947,423 | 28,175,984 | (27,884,042) | - | - | 1,239,365 | 69,380* |
| Invesco Private Prime Fund | 2,436,851 | 63,508,704 | (62,713,233) | - | 363 | 3,232,685 | 187,360* |
| Total | $12,444,848 | $200,868,437 | $(199,604,827) | $(1,487) | $1,551 | $13,708,522 | $827,929 |
| * | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
| (e) | The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| (f) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 3 | Invesco EQV Asia Pacific Equity Fund |
Statement of Assets and Liabilities
October 31, 2024
| Assets: | |
Investments in unaffiliated securities, at value
(Cost $269,305,922)* | $392,063,405 |
| Investments in affiliated money market funds, at value (Cost $13,708,522) | 13,708,522 |
| Foreign currencies, at value (Cost $518,701) | 518,412 |
| Receivable for: | |
| Investments sold | 549 |
| Fund shares sold | 84,417 |
| Dividends | 106,532 |
| Investment for trustee deferred compensation and retirement plans | 110,241 |
| Other assets | 34,407 |
| Total assets | 406,626,485 |
| Liabilities: | |
| Payable for: | |
| Fund shares reacquired | 133,408 |
| Accrued foreign taxes | 944,314 |
| Collateral upon return of securities loaned | 4,472,050 |
| Accrued fees to affiliates | 260,437 |
| Accrued trustees’ and officers’ fees and benefits | 1,373 |
| Accrued other operating expenses | 109,228 |
| Trustee deferred compensation and retirement plans | 116,470 |
| Total liabilities | 6,037,280 |
| Net assets applicable to shares outstanding | $400,589,205 |
| Net assets consist of: | |
| Shares of beneficial interest | $247,933,250 |
| Distributable earnings | 152,655,955 |
| | $400,589,205 |
| Net Assets: |
| Class A | $299,432,625 |
| Class C | $5,167,228 |
| Class Y | $83,410,911 |
| Class R6 | $12,578,441 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 9,855,839 |
| Class C | 194,120 |
| Class Y | 2,737,285 |
| Class R6 | 413,416 |
| Class A: | |
| Net asset value per share | $30.38 |
Maximum offering price per share
(Net asset value of $30.38 ÷ 94.50%) | $32.15 |
| Class C: | |
| Net asset value and offering price per share | $26.62 |
| Class Y: | |
| Net asset value and offering price per share | $30.47 |
| Class R6: | |
| Net asset value and offering price per share | $30.43 |
| * | At October 31, 2024, security with a value of $4,375,538 was on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 4 | Invesco EQV Asia Pacific Equity Fund |
Statement of Operations
For the year ended October 31, 2024
| Investment income: | |
| Dividends (net of foreign withholding taxes of $782,980) | $7,680,736 |
| Dividends from affiliated money market funds (includes net securities lending income of $6,567) | 577,756 |
| Total investment income | 8,258,492 |
| Expenses: | |
| Advisory fees | 3,751,817 |
| Administrative services fees | 56,406 |
| Custodian fees | 96,052 |
| Distribution fees: | |
| Class A | 742,584 |
| Class C | 54,855 |
| Transfer agent fees — A, C and Y | 850,456 |
| Transfer agent fees — R6 | 5,008 |
| Trustees’ and officers’ fees and benefits | 26,236 |
| Registration and filing fees | 63,644 |
| Reports to shareholders | 153,668 |
| Professional services fees | 74,101 |
| Other | 14,964 |
| Total expenses | 5,889,791 |
| Less: Fees waived and/or expense offset arrangement(s) | (28,586) |
| Net expenses | 5,861,205 |
| Net investment income | 2,397,287 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Unaffiliated investment securities (net of foreign taxes of $195,198) | 31,106,377 |
| Affiliated investment securities | 1,551 |
| Foreign currencies | (115,665) |
| | 30,992,263 |
| Change in net unrealized appreciation (depreciation) of: | |
| Unaffiliated investment securities (net of foreign taxes of $405,223) | 43,955,955 |
| Affiliated investment securities | (1,487) |
| Foreign currencies | (3,017) |
| | 43,951,451 |
| Net realized and unrealized gain | 74,943,714 |
| Net increase in net assets resulting from operations | $77,341,001 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 5 | Invesco EQV Asia Pacific Equity Fund |
Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| | 2024 | 2023 |
| Operations: | | |
| Net investment income | $2,397,287 | $4,671,367 |
| Net realized gain | 30,992,263 | 7,701,713 |
| Change in net unrealized appreciation | 43,951,451 | 38,777,087 |
| Net increase in net assets resulting from operations | 77,341,001 | 51,150,167 |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (8,556,752) | (23,019,545) |
| Class C | (121,876) | (689,858) |
| Class Y | (2,933,225) | (9,157,836) |
| Class R6 | (619,767) | (1,652,040) |
| Total distributions from distributable earnings | (12,231,620) | (34,519,279) |
| Share transactions–net: | | |
| Class A | (41,934,635) | (11,959,783) |
| Class C | (1,734,382) | (3,328,057) |
| Class Y | (32,613,271) | (25,793,836) |
| Class R6 | (11,425,653) | 519,455 |
| Net increase (decrease) in net assets resulting from share transactions | (87,707,941) | (40,562,221) |
| Net increase (decrease) in net assets | (22,598,560) | (23,931,333) |
| Net assets: | | |
| Beginning of year | 423,187,765 | 447,119,098 |
| End of year | $400,589,205 | $423,187,765 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 6 | Invesco EQV Asia Pacific Equity Fund |
Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| | Net asset
value,
beginning
of period | Net
investment
income
(loss)(a) | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Dividends
from net
investment
income | Distributions
from net
realized
gains | Total
distributions | Net asset
value, end
of period | Total
return(b) | Net assets,
end of period
(000’s omitted) | Ratio of
expenses
to average
net assets
with fee waivers
and/or
expenses
absorbed | Ratio of
expenses
to average net
assets without
fee waivers
and/or
expenses
absorbed | Ratio of net
investment
income
(loss)
to average
net assets | Portfolio
turnover (c) |
| Class A |
| Year ended 10/31/24 | $25.87 | $0.15 | $5.13 | $5.28 | $(0.26) | $(0.51) | $(0.77) | $30.38 | 20.85% | $299,433 | 1.51% | 1.51% | 0.53% | 15% |
| Year ended 10/31/23 | 25.07 | 0.24 | 2.56 | 2.80 | (0.16) | (1.84) | (2.00) | 25.87 | 10.66 | 293,668 | 1.44 | 1.45 | 0.87 | 16 |
| Year ended 10/31/22 | 36.69 | 0.17 | (9.22) | (9.05) | (0.07) | (2.50) | (2.57) | 25.07 | (26.39) | 295,255 | 1.45 | 1.45 | 0.53 | 13 |
| Year ended 10/31/21 | 36.20 | 0.07 | 3.23 | 3.30 | (0.10) | (2.71) | (2.81) | 36.69 | 8.97 | 447,947 | 1.38 | 1.38 | 0.17 | 15 |
| Year ended 10/31/20 | 33.15 | 0.13 | 5.12 | 5.25 | (0.35) | (1.85) | (2.20) | 36.20 | 16.67 | 438,473 | 1.44 | 1.45 | 0.40 | 27 |
| Class C |
| Year ended 10/31/24 | 22.67 | (0.05) | 4.51 | 4.46 | — | (0.51) | (0.51) | 26.62 | 19.97 | 5,167 | 2.26 | 2.26 | (0.22) | 15 |
| Year ended 10/31/23 | 22.19 | 0.03 | 2.29 | 2.32 | — | (1.84) | (1.84) | 22.67 | 9.85 | 6,022 | 2.19 | 2.20 | 0.12 | 16 |
| Year ended 10/31/22 | 32.94 | (0.06) | (8.19) | (8.25) | — | (2.50) | (2.50) | 22.19 | (26.94) | 8,847 | 2.20 | 2.20 | (0.22) | 13 |
| Year ended 10/31/21 | 32.90 | (0.20) | 2.95 | 2.75 | — | (2.71) | (2.71) | 32.94 | 8.16 | 15,631 | 2.13 | 2.13 | (0.58) | 15 |
| Year ended 10/31/20 | 30.25 | (0.10) | 4.65 | 4.55 | (0.05) | (1.85) | (1.90) | 32.90 | 15.78 | 23,167 | 2.19 | 2.20 | (0.35) | 27 |
| Class Y |
| Year ended 10/31/24 | 25.95 | 0.22 | 5.15 | 5.37 | (0.34) | (0.51) | (0.85) | 30.47 | 21.17 | 83,411 | 1.26 | 1.26 | 0.78 | 15 |
| Year ended 10/31/23 | 25.15 | 0.32 | 2.57 | 2.89 | (0.25) | (1.84) | (2.09) | 25.95 | 10.94 | 102,149 | 1.19 | 1.20 | 1.12 | 16 |
| Year ended 10/31/22 | 36.83 | 0.24 | (9.25) | (9.01) | (0.17) | (2.50) | (2.67) | 25.15 | (26.24) | 122,929 | 1.20 | 1.20 | 0.78 | 13 |
| Year ended 10/31/21 | 36.31 | 0.16 | 3.25 | 3.41 | (0.18) | (2.71) | (2.89) | 36.83 | 9.28 | 167,045 | 1.13 | 1.13 | 0.42 | 15 |
| Year ended 10/31/20 | 33.25 | 0.21 | 5.13 | 5.34 | (0.43) | (1.85) | (2.28) | 36.31 | 16.95 | 154,378 | 1.19 | 1.20 | 0.65 | 27 |
| Class R6 |
| Year ended 10/31/24 | 25.92 | 0.27 | 5.14 | 5.41 | (0.39) | (0.51) | (0.90) | 30.43 | 21.39 | 12,578 | 1.07 | 1.07 | 0.97 | 15 |
| Year ended 10/31/23 | 25.13 | 0.36 | 2.57 | 2.93 | (0.30) | (1.84) | (2.14) | 25.92 | 11.13 | 21,349 | 1.03 | 1.04 | 1.28 | 16 |
| Year ended 10/31/22 | 36.83 | 0.31 | (9.28) | (8.97) | (0.23) | (2.50) | (2.73) | 25.13 | (26.16) | 20,088 | 1.03 | 1.03 | 0.95 | 13 |
| Year ended 10/31/21 | 36.32 | 0.22 | 3.25 | 3.47 | (0.25) | (2.71) | (2.96) | 36.83 | 9.44 | 92,813 | 0.97 | 0.97 | 0.58 | 15 |
| Year ended 10/31/20 | 33.27 | 0.28 | 5.12 | 5.40 | (0.50) | (1.85) | (2.35) | 36.32 | 17.16 | 107,226 | 0.99 | 1.00 | 0.85 | 27 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 7 | Invesco EQV Asia Pacific Equity Fund |
Notes to Financial Statements
October 31, 2024
NOTE 1—Significant Accounting Policies
Invesco EQV Asia Pacific Equity Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company 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 four different classes of shares: Class A, Class C, Class Y and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges ("CDSC"). Class C shares are sold with a CDSC. Class Y and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the "Conversion Feature"). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
| A. | Security Valuations — Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
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
| 8 | Invesco EQV Asia Pacific Equity 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 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
| 9 | Invesco EQV Asia Pacific Equity Fund |
consistent with the federal securities laws. For the year ended October 31, 2024, the Fund paid the Adviser fees for securities lending agent services, which were less than $500. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
| J. | Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| K. | Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
| L. | Other Risks - Investing in a single-country or region mutual fund involves greater risk than investing in a more diversified fund due to lack of exposure to other countries or regions. |
Investments in companies located or operating in Greater China (normally considered to be the geographical area that includes mainland China, Hong Kong, Macau and Taiwan) involve risks and considerations not typically associated with investments in the U.S. and other Western nations, such as greater government control over the economy; political, legal and regulatory uncertainty; nationalization, expropriation, or confiscation of property; lack of willingness or ability of the Chinese government to support the economies and markets of the Greater China region; difficulty in obtaining information necessary for investigations into and/or litigation against Chinese companies, as well as in obtaining and/or enforcing judgments; lack of publicly available information; limited legal remedies for shareholders; alteration or discontinuation of economic reforms; military conflicts and the risk of war, either internal or with other countries; public health emergencies resulting in market closures, travel restrictions, quarantines or other interventions; inflation, currency fluctuations and fluctuations in inflation and interest rates that may have negative effects on the economy and securities markets of Greater China; and Greater China’s dependency on the economies of other Asian countries, many of which are developing countries. Events in any one country within Greater China may impact the other countries in the region or Greater China as a whole.
The level of development of the economies of countries in the Asia Pacific region varies greatly. Furthermore, since the economies of the countries in the region are largely intertwined, if an economic recession is experienced by any of these countries, it will likely adversely impact the economic performance of other countries in the region. In addition, export growth continues to be a major driver of China’s rapid economic growth. As a result, a reduction in spending on Chinese products and services, the institution of tariffs, sanctions, capital controls, embargoes, trade wars or other trade barriers, or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy. The current political climate has intensified concerns about a potential trade war between China and the U.S., as each country has recently imposed tariffs on the other country’s products. Further, actions by the U.S. government, such as delisting of certain Chinese companies from U.S. securities exchanges or otherwise restricting their operations in the U.S., may negatively impact the value of such securities held by the Fund.
Certain securities issued by companies located or operating in Greater China, such as China A-shares, are subject to trading restrictions and suspensions, quota limitations and sudden changes in those limitations, and operational, clearing and settlement risks. Significant portions of the Chinese securities markets may become rapidly illiquid, as Chinese issuers have the ability to suspend the trading of their equity securities, and have shown a willingness to exercise that option in response to market volatility and other events. The liquidity of Chinese securities may shrink or disappear suddenly and without warning as a result of adverse economic, market or political events, or adverse investor perceptions, whether or not accurate.
| 10 | Invesco EQV Asia Pacific Equity 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 $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% |
| Amount over $10 billion | 0.760% |
Effective on or about February 21, 2025, the Fund will accrue daily and pay monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:
| Average Daily Net Assets | Rate |
| First $1 billion | 0.870% |
| Next $1 billion | 0.820% |
| Next $49 billion | 0.770% |
| Over $51 billion | 0.760% |
For the year ended October 31, 2024, the effective advisory fee rate incurred by the Fund was 0.93%.
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. (collectively, the "Affiliated Sub-Advisers") the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has agreed, for an indefinite period, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class Y and Class R6 shares to 2.25%, 3.00%, 2.00% and 2.00%, respectively, of the Fund’s average daily net assets (the “boundary limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
Further, the Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $11,791.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class Y 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. Effective on or about February 21, 2025, the Plans will be replaced with reimbursement styled Plans. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2024, IDI advised the Fund that IDI retained $26,496 in front-end sales commissions from the sale of Class A shares and $323 and $1,257 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the year ended October 31, 2024, the Fund incurred $633 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
| 11 | Invesco EQV Asia Pacific Equity Fund |
available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| | Level 1 | Level 2 | Level 3 | Total |
| Investments in Securities | | | | |
| Australia | $— | $20,217,386 | $— | $20,217,386 |
| China | — | 93,979,186 | — | 93,979,186 |
| Hong Kong | — | 20,224,179 | — | 20,224,179 |
| India | 21,194,395 | 22,266,587 | — | 43,460,982 |
| Indonesia | — | 39,307,379 | — | 39,307,379 |
| Macau | — | 3,765,188 | — | 3,765,188 |
| Malaysia | — | 20,281,800 | — | 20,281,800 |
| New Zealand | — | 7,857,894 | — | 7,857,894 |
| Philippines | — | 29,403,270 | — | 29,403,270 |
| Singapore | — | 8,615,123 | — | 8,615,123 |
| South Korea | — | 17,280,290 | — | 17,280,290 |
| Taiwan | — | 49,219,293 | — | 49,219,293 |
| Thailand | — | 24,335,399 | — | 24,335,399 |
| United States | 14,116,036 | — | — | 14,116,036 |
| Money Market Funds | 9,236,472 | 4,472,050 | — | 13,708,522 |
| Total Investments | $44,546,903 | $361,225,024 | $— | $405,771,927 |
NOTE 4—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $16,795.
NOTE 5—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 6—Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 7—Distributions to Shareholders and Tax Components of Net Assets
| Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023: |
| | 2024 | 2023 |
| Ordinary income* | $4,393,471 | $3,201,721 |
| Long-term capital gain | 7,838,149 | 31,317,558 |
| Total distributions | $12,231,620 | $34,519,279 |
| * | Includes short-term capital gain distributions, if any. |
| 12 | Invesco EQV Asia Pacific Equity Fund |
| Tax Components of Net Assets at Period-End: |
| | 2024 |
| Undistributed ordinary income | $3,109,795 |
| Undistributed long-term capital gain | 27,816,302 |
| Net unrealized appreciation — investments | 121,805,350 |
| Net unrealized appreciation (depreciation) — foreign currencies | (3,151) |
| Temporary book/tax differences | (72,341) |
| Shares of beneficial interest | 247,933,250 |
| Total net assets | $400,589,205 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to wash sales.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund does not have a capital loss carryforward as of October 31, 2024.
NOTE 8—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2024 was $59,299,712 and $157,704,828, respectively. As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $132,301,045 |
| Aggregate unrealized (depreciation) of investments | (10,495,695) |
| Net unrealized appreciation of investments | $121,805,350 |
Cost of investments for tax purposes is $283,966,577.
NOTE 9—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of equalization, on October 31, 2024, undistributed net investment income was decreased by $310,863, undistributed net realized gain was decreased by $2,082,140 and shares of beneficial interest was increased by $2,393,003. This reclassification had no effect on the net assets of the Fund.
NOTE 10—Share Information
| | Summary of Share Activity |
| | Year ended
October 31, 2024(a) | | Year ended
October 31, 2023 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 381,255 | $10,629,578 | | 695,630 | $19,794,347 |
| Class C | 34,197 | 844,803 | | 75,545 | 1,892,280 |
| Class Y | 638,799 | 17,894,179 | | 1,480,206 | 42,272,526 |
| Class R6 | 100,377 | 2,776,226 | | 379,927 | 10,612,533 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 298,999 | 7,905,526 | | 769,158 | 21,290,293 |
| Class C | 4,860 | 113,343 | | 26,435 | 645,553 |
| Class Y | 82,596 | 2,185,488 | | 248,393 | 6,882,957 |
| Class R6 | 13,968 | 368,467 | | 36,539 | 1,009,929 |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 27,725 | 776,339 | | 55,168 | 1,553,764 |
| Class C | (31,550) | (776,339) | | (62,693) | (1,553,764) |
| 13 | Invesco EQV Asia Pacific Equity Fund |
| | Summary of Share Activity |
| | Year ended
October 31, 2024(a) | | Year ended
October 31, 2023 |
| | Shares | Amount | | Shares | Amount |
| Reacquired: | | | | | |
| Class A | (2,205,271) | $(61,246,078) | | (1,945,232) | $(54,598,187) |
| Class C | (79,044) | (1,916,189) | | (172,253) | (4,312,126) |
| Class Y | (1,920,488) | (52,692,938) | | (2,679,555) | (74,949,319) |
| Class R6 | (524,696) | (14,570,346) | | (392,057) | (11,103,007) |
| Net increase (decrease) in share activity | (3,178,273) | $(87,707,941) | | (1,484,789) | $(40,562,221) |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 41% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
NOTE 11—Subsequent Event
At the meeting held September 9-11, 2024, the Board of Trustees of the Fund unanimously approved an Agreement and Plan of Reorganization (the “Agreement”) pursuant to which the Fund would acquire all of the assets and liabilities of Invesco Greater China 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 February 21, 2025. The Fund will launch Class R Shares to coincide with the reorganization. Upon closing of the reorganization, shareholders of the Target Fund will receive shares of the Fund in exchange for their shares of the Target Fund, and the Target Fund will liquidate and cease operations.
| 14 | Invesco EQV Asia Pacific Equity Fund |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM International Mutual Funds (Invesco International Mutual Funds) and Shareholders of Invesco EQV Asia Pacific Equity Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Invesco EQV Asia Pacific Equity Fund (one of the funds constituting AIM International Mutual Funds (Invesco International Mutual Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related statement of operations for the year ended October 31, 2024, the statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent and broker. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Houston, Texas
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
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Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM International Mutual Funds (Invesco International Mutual Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco EQV Asia Pacific Equity Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees, that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees
are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
| A. | Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers |
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy and cybersecurity, including related testing. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back
office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
| B. | Fund Investment Performance |
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the MSCI All Country Asia Pacific ex-Japan Index (Index). The Board noted that performance of Class A shares of the Fund was in the fourth quintile of its performance universe for the one year period and the second quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was below the performance of the Index for the one and three year periods and reasonably comparable to the performance of the Index for the five year period. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results.
| 16 | Invesco EQV Asia Pacific Equity Fund |
The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
| C. | Advisory and Sub-Advisory Fees and Fund Expenses |
The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management and actual management fee rates for Class A shares of the Fund were reasonably comparable to and above, respectively, the median contractual management and actual management fee rates of funds in its expense group. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that the Fund’s actual management fees, contractual management fees, and total expense ratio were in the fifth quintile of its expense group and discussed with management reasons for such relative actual and contractual management fees and total expenses. The Board requested and considered additional information from management regarding the Fund’s actual and contractual management fees in light of current asset levels, as well as the Fund’s total expenses relative to peers. As previously noted, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer, and subsequently with representatives of management. The Board acknowledged limitations regarding the Broadridge data, in particular that the Fund is an all-cap product in a peer group which includes several giant- and large-cap products. The Board also considered information provided by management in response to follow-up requests for information submitted by the independent Trustees to management regarding how the Fund’s actual and contractual management fees compare to other similar funds not included in the expense group.
The Board noted that Invesco Advisers has voluntarily agreed to waive fees and/or limit expenses of the Fund for an indefinite period until further notice to the Board in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other similarly managed mutual funds or client accounts.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.
| D. | Economies of Scale and Breakpoints |
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the difficulty in calculating and measuring economies of scale at the individual fund level; noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund also shares in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
| E. | Profitability and Financial Resources |
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
F. Collateral Benefits to Invesco Advisers and its Affiliates
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the
performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives from Invesco Advisers periodic reports that include a representation to the effect that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities Lending Governance Committee and its related responsibilities. The Board noted that to the extent the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services without obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending
| 17 | Invesco EQV Asia Pacific Equity Fund |
services provided to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such securities lending activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades were executed in compliance with rules under the federal securities laws and consistent with best execution obligations.
| 18 | Invesco EQV Asia Pacific Equity Fund |
Tax Information
Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
| Federal and State Income Tax | | |
| Long-Term Capital Gain Distributions | $10,231,149 | |
| Qualified Dividend Income* | 100.00% | |
| Corporate Dividends Received Deduction* | 16.22% | |
| U.S. Treasury Obligations* | 0.00% | |
| Qualified Business Income* | 0.00% | |
| Business Interest Income* | 0.00% | |
| Foreign Taxes | $0.0606 | per share |
| Foreign Source Income | $0.6156 | per share |
| * | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
| 19 | Invesco EQV Asia Pacific Equity Fund |
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Not applicable.
Proxy Disclosures for Open-End Management Investment Companies
Not applicable.
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
| 20 | Invesco EQV Asia Pacific Equity Fund |
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| SEC file number(s): 811-06463 and 033-44611 | Invesco Distributors, Inc. | APG-NCSR |
Annual Financial Statements and Other InformationOctober 31, 2024
Invesco EQV European Equity Fund
A: AEDAX ■ C: AEDCX ■ R: AEDRX ■ Y: AEDYX ■ Investor: EGINX ■ R6: AEGSX
| |
| |
| |
| Notes to Financial Statements |
| Report of Independent Registered Public Accounting Firm |
| Approval of Investment Advisory and Sub-Advisory Contracts |
| |
| Other Information Required in Form N-CSR (Items 8-11) |
| | |
Common Stocks & Other Equity Interests–99.66% |
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Novo Nordisk A/S, Class B | | |
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LVMH Moet Hennessy Louis Vuitton SE | | |
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CTS Eventim AG & Co. KGaA | | |
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Flutter Entertainment PLC(a) | | |
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Teva Pharmaceutical Industries Ltd., | | |
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Danieli & C. Officine Meccaniche S.p.A., RSP | | |
FinecoBank Banca Fineco S.p.A. | | |
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Sberbank of Russia PJSC, Preference | | |
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Construcciones y Auxiliar de Ferrocarriles S.A. | | |
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Svenska Handelsbanken AB, Class A | | |
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Cie Financiere Richemont S.A. | | |
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London Stock Exchange Group PLC | | |
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Total Common Stocks & Other Equity Interests (Cost $324,959,296) | |
|
Invesco Government & Agency Portfolio, Institutional Class, 4.77%(d)(e) | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
2
Invesco EQV European Equity Fund
| | |
Money Market Funds–(continued) |
Invesco Treasury Portfolio, Institutional | | |
Total Money Market Funds (Cost $846,509) | |
TOTAL INVESTMENTS IN SECURITIES—99.85% (Cost $325,805,805) | |
OTHER ASSETS LESS LIABILITIES–0.15% | |
| |
Investment Abbreviations:
| – American Depositary Receipt |
| – Registered Savings Plan Shares |
Notes to Schedule of Investments:
| Non-income producing security. |
| Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $11,994,635, which represented 2.66% of the Fund’s Net Assets. |
| Security valued using significant unobservable inputs (Level 3). See Note 3. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in
Unrealized
Appreciation
(Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Invesco Liquid Assets Portfolio, Institutional Class | | | | | | | |
Invesco Treasury Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
| | | | | | | |
| Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
3
Invesco EQV European Equity Fund
Statement of Assets and Liabilities
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Investments in unaffiliated securities, at value
(Cost $324,959,296) | |
Investments in affiliated money market funds, at value (Cost $846,509) | |
Foreign currencies, at value (Cost $725,327) | |
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Investment for trustee deferred compensation and retirement plans | |
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Accrued fees to affiliates | |
Accrued trustees’ and officers’ fees and benefits | |
Accrued other operating expenses | |
IRS closing agreement fees for foreign withholding tax claims | |
Trustee deferred compensation and retirement plans | |
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Net assets applicable to shares outstanding | |
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Shares of beneficial interest | |
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Shares outstanding, no par value, with an unlimited number of shares authorized: |
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Net asset value per share | |
Maximum offering price per share
(Net asset value of $36.41 ÷ 94.50%) | |
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Net asset value and offering price per share | |
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Net asset value and offering price per share | |
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Net asset value and offering price per share | |
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Net asset value and offering price per share | |
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Net asset value and offering price per share | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
4
Invesco EQV European Equity Fund
Statement of Operations
For the year ended October 31, 2024
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Dividends (net of foreign withholding taxes of $1,350,617) | |
Dividends from affiliated money market funds (includes net securities lending income of $40,728) | |
Foreign withholding tax claims | |
Less: IRS closing agreement fees for foreign withholding tax claims | |
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Administrative services fees | |
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Transfer agent fees — A, C, R, Y and Investor | |
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Trustees’ and officers’ fees and benefits | |
Registration and filing fees | |
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Professional services fees | |
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Less: Fees waived and/or expense offset arrangement(s) | |
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Realized and unrealized gain (loss) from: | |
Net realized gain (loss) from: | |
Unaffiliated investment securities | |
Affiliated investment securities | |
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Change in net unrealized appreciation (depreciation) of: | |
Unaffiliated investment securities | |
Affiliated investment securities | |
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Net realized and unrealized gain | |
Net increase in net assets resulting from operations | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5
Invesco EQV European Equity Fund
Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
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Change in net unrealized appreciation | | |
Net increase in net assets resulting from operations | | |
Distributions to shareholders from distributable earnings: | | |
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Total distributions from distributable earnings | | |
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Net increase (decrease) in net assets resulting from share transactions | | |
Net increase (decrease) in net assets | | |
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See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6
Invesco EQV European Equity Fund
Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| Net asset
value,
beginning
of period | | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Dividends
from net
investment
income | Distributions
from net
realized
gains | | Net asset
value, end
of period | | Net assets,
end of period
(000’s omitted) | Ratio of
expenses
to average
net assets
with fee waivers
and/or
expenses
absorbed | Ratio of
expenses
to average net
assets without
fee waivers
and/or
expenses
absorbed
| Ratio of net
investment
income
to average
net assets | |
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| Calculated using average shares outstanding. |
| Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| Net investment income per share and the ratio of net investment income to average net assets include significant dividends received during the year ended October 31, 2023. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.29 and 0.91%, $0.03 and 0.16%, $0.21 and 0.66%, $0.38 and 1.16%, $0.32 and 1.00%, $0.42 and 1.29% for Class A, Class C, Class R, Class Y, Investor Class and Class R6 shares, respectively. |
| The total return, ratios of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.17%, 0.16%, 0.18%, 0.14% and 0.16% for the years ended October 31, 2024, 2023, 2022, 2021 and 2020, respectively. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7
Invesco EQV European Equity Fund
Notes to Financial Statements
NOTE 1—Significant Accounting Policies
Invesco EQV European Equity Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company 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, 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 R, Class Y, Investor Class and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the "Conversion Feature"). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A.
Security Valuations — Securities, including restricted securities, are valued according to the following policy.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
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Invesco EQV European Equity Fund
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B.
Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.
Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.
Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.
Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.
Foreign Withholding Taxes – The Fund is subject to foreign withholding tax imposed by certain foreign countries in which the Fund may invest. Withholding taxes are incurred on certain foreign dividends and are accrued at the time the dividend is recognized based on applicable foreign tax laws. The Fund may file withholding tax refunds in certain jurisdictions to seek to recover a portion of amounts previously withheld. The Fund will record a receivable for such tax refunds based on several factors including; an assessment of a jurisdiction’s legal obligation to pay reclaims, administrative practices and payment history. Any receivables recorded will be shown under receivables for Foreign withholding tax claims on the Statement of Assets and Liabilities. There is no guarantee that the Fund will receive refunds applied for in a timely manner or at all.
As a result of recent court rulings in certain countries across the European Union, tax refunds for previously withheld taxes on dividends earned in those countries have been received by investment companies. Any tax refund payments are reflected as Foreign withholding tax claims in the Statement of Operations, and any related interest is included in Interest income. The Fund may incur fees paid to third party providers that assist in the recovery of the tax reclaims. These fees are reflected on the Statement of Operations as Professional services fees, if any. In the event tax refunds received by the Fund during the fiscal year exceed the foreign withholding taxes paid by the Fund for the year, and the Fund previously passed foreign tax credits on to its shareholders, the Fund intends to enter into a closing agreement with the Internal Revenue Service in order to pay the associated liability on behalf of the Funds’ shareholders. For the year ended October 31, 2024, the Fund received refunds in excess of the foreign tax paid during the year and has recorded the estimated liability as a reduction to income which is reflected as IRS closing agreement fees for foreign withholding tax claims on the Statement of Operations.
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 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.
H.
Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
I.
Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
J.
Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds
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Invesco EQV European Equity Fund
(collectively, "affiliated money market funds") and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the year ended October 31, 2024, the Fund paid the Adviser fees for securities lending agent services, which were less than $500. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
K.
Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
L.
Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
M.
Other Risks - Investing in a single-country or region mutual fund involves greater risk than investing in a more diversified fund due to lack of exposure to other countries or regions.
The Economic and Monetary Union of the European Union (the “EU”) requires compliance with restrictions on inflation rates, deficits, interest rates, debt levels and fiscal and monetary controls, each of which may significantly affect every country in Europe. Decreasing imports or exports, changes in governmental or EU regulations on trade, changes in the exchange rate of the euro, the default or threat of default by an EU member country on its sovereign debt, and recessions in an EU member country may have significant adverse effects on the economies of EU member countries. Responses to financial problems by EU countries may not produce the desired results, may limit future growth and economic recovery, may result in social unrest, or have other unintended consequences. Further defaults or restructurings by governments and other entities of their debt could have additional adverse effects on economies, financial markets, and asset valuations around the world. A number of countries in Eastern Europe remain relatively undeveloped and can be particularly sensitive to political and economic developments. Separately, the EU faces issues involving its membership, structure, procedures and policies. The exit of one or more member states from the EU, such as the departure of the United Kingdom, referred to as “Brexit”, could place the departing member’s currency and banking system under severe stress or even in jeopardy. An exit by other member states will likely result in increased volatility, illiquidity and potentially lower economic growth in the affected markets, which will adversely affect the Fund’s investments.
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Invesco EQV European Equity 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:
For the year ended October 31, 2024, the effective advisory fee rate incurred by the Fund was 0.92%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the "Affiliated Sub-Advisers") the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).
The Adviser has agreed, for an indefinite period, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Investor Class and Class R6 shares to 2.25%, 3.00%, 2.50%, 2.00%, 2.25% and 2.00%, respectively, of the Fund’s average daily net assets (the “boundary limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
Further, the Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $7,047.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, 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, Class R, Investor Class shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The Fund, pursuant to the Investor Class Plan, reimburses IDI for its allocated share of expenses incurred pursuant to the Investor Class Plan for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Investor Class shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2024, IDI advised the Fund that IDI retained $13,480 in front-end sales commissions from the sale of Class A shares and $18 and $308 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the year ended October 31, 2024, the Fund incurred $234 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
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Invesco EQV European Equity Fund
rates, volatilities and others. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
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NOTE 4—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $23,100.
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.
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 7—Distributions to Shareholders and Tax Components of Net Assets
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023: |
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| Includes short-term capital gain distributions, if any. |
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Invesco EQV European Equity Fund
Tax Components of Net Assets at Period-End: |
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Undistributed ordinary income | |
Undistributed long-term capital gain | |
Net unrealized appreciation — investments | |
Net unrealized appreciation (depreciation) — foreign currencies | |
Temporary book/tax differences | |
Shares of beneficial interest | |
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The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to passive foreign investment companies.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund does not have a capital loss carryforward as of October 31, 2024.
NOTE 8—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2024 was $88,234,652 and $154,570,402, respectively. As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
Aggregate unrealized appreciation of investments | |
Aggregate unrealized (depreciation) of investments | |
Net unrealized appreciation of investments | |
Cost of investments for tax purposes is $340,413,721.
NOTE 9—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of passive foreign investment companies, foreign currency transactions and equalization, on October 31, 2024, undistributed net investment income was increased by $3,993,626, undistributed net realized gain was decreased by $6,798,627 and shares of beneficial interest was increased by $2,805,001. This reclassification had no effect on the net assets of the Fund.
NOTE 10—Share Information
| Summary of Share Activity |
| | Year ended
October 31, 2023 |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Issued as reinvestment of dividends: | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Automatic conversion of Class C shares to Class A shares: | | | | |
| | | | |
| | | | |
13
Invesco EQV European Equity Fund
| Summary of Share Activity |
| Year ended October 31, 2024(a) | Year ended October 31, 2023 |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Net increase (decrease) in share activity | | | | |
| There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 41% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
14
Invesco EQV European Equity Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM International Mutual Funds (Invesco International Mutual Funds) and Shareholders of Invesco EQV European Equity Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Invesco EQV European Equity Fund (one of the funds constituting AIM International Mutual Funds (Invesco International Mutual Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related statement of operations for the year ended October 31, 2024, the statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian and transfer agent. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
15
Invesco EQV European Equity Fund
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM International Mutual Funds (Invesco International Mutual Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco EQV European Equity Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees, that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior
Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
A.
Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy and cybersecurity, including related testing. The
Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
B.
Fund Investment Performance
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the MSCI Europe Index (Index). The Board noted that performance of Class A shares of the Fund was in the third quintile of its performance universe for the one year period, the fourth quintile for the three year period and the fifth quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was reasonably comparable to the performance of the Index for the one year period and below the performance of the Index for the three and five year periods. The Board noted that the Fund’s
16
Invesco EQV European Equity Fund
underperformance relative to its peers was attributable to its smaller market cap profile and growth tilt relative to peers, as well as stock selection in certain sectors. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
C.
Advisory and Sub-Advisory Fees and Fund Expenses
The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management and actual management fee rates for Class A shares of the Fund were each above the median contractual management and actual management fee rates of funds in its expense group. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group.
The Board also considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that the Fund’s actual management fees were in the fifth quintile of its expense group and discussed with management reasons for such actual management fees. The Board requested and considered additional information from management regarding the Fund’s actual management fees in light of current asset levels, as well as the Fund’s total expenses relative to peers. As previously noted, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management, including with respect to the Fund’s total expenses relative to peers and how the Fund’s expense group does not differentiate by capitalization weightings. The Board also considered information provided by management in response to follow-up requests for information submitted by the independent Trustees to management regarding how the Fund’s actual and contractual management fees compare to other similar funds not included in the expense group. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer, and subsequently with representatives of management.
The Board noted that Invesco Advisers has voluntarily agreed to waive fees and/or limit expenses of the Fund for an indefinite period until further notice to the Board in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board also considered the fees charged by Invesco Advisers and its affiliates to other client accounts that are similarly managed. Invesco
Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to that provided by Invesco Advisers and its affiliates to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations. Invesco Advisers also advised the Board that many of the similarly managed client accounts have all-inclusive fee structures, which are not easily un-bundled.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.
D.
Economies of Scale and Breakpoints
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the difficulty in calculating and measuring economies of scale at the individual fund level; noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund also shares in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
E. Profitability and Financial Resources
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided
information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
F.
Collateral Benefits to Invesco Advisers and its Affiliates
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives from Invesco Advisers periodic reports that include a representation to the effect that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
17
Invesco EQV European Equity Fund
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities Lending Governance Committee and its related responsibilities. The Board noted that to the extent the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services without obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending services provided to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such securities lending activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades were executed in compliance with rules under the federal securities laws and consistent with best execution obligations.
18
Invesco EQV European Equity Fund
Tax Information
Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
Federal and State Income Tax | |
Long-Term Capital Gain Distributions | |
Qualified Dividend Income* | |
Corporate Dividends Received Deduction* | |
U.S. Treasury Obligations* | |
Qualified Business Income* | |
Business Interest Income* | |
*
The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.
19
Invesco EQV European Equity Fund
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Proxy Disclosures for Open-End Management Investment Companies
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
20
Invesco EQV European Equity Fund
SEC file number(s): 811-06463 and 033-44611
Invesco Distributors, Inc.
EGR-NCSR
| Annual Financial Statements and Other Information | October 31, 2024 |
Invesco EQV International Equity Fund
Nasdaq:
A: AIIEX ■ C: AIECX ■ R: AIERX ■ Y: AIIYX ■ R5: AIEVX ■ R6: IGFRX
Schedule of Investments
October 31, 2024
| | Shares | Value |
| Common Stocks & Other Equity Interests–98.62% |
| Australia–3.25% |
| Aristocrat Leisure Ltd. | 1,501,445 | $60,417,585 |
| CSL Ltd. | 131,730 | 24,732,991 |
| | | | 85,150,576 |
| Brazil–2.32% |
| MercadoLibre, Inc.(a) | 17,597 | 35,848,257 |
| TOTVS S.A. | 4,798,000 | 24,766,441 |
| | | | 60,614,698 |
| Canada–6.97% |
| Canadian Pacific Kansas City Ltd. | 526,719 | 40,632,662 |
| Celestica, Inc.(a) | 485,088 | 33,195,091 |
| CGI, Inc., Class A(a) | 502,854 | 55,704,529 |
| RB Global, Inc. | 623,862 | 52,858,118 |
| | | | 182,390,400 |
| China–5.63% |
| Airtac International Group | 1,396,000 | 38,641,184 |
| China Resources Beer (Holdings) Co. Ltd. | 4,603,500 | 17,052,716 |
| New Oriental Education & Technology Group, Inc. | 1,936,500 | 12,118,721 |
| Shenzhen Inovance Technology Co. Ltd., A Shares | 3,544,616 | 27,675,893 |
| Trip.com Group Ltd.(a) | 552,500 | 35,555,846 |
| Wuliangye Yibin Co. Ltd., A Shares | 783,976 | 16,187,022 |
| | | | 147,231,382 |
| Denmark–3.72% |
| Coloplast A/S, Class B | 257,547 | 32,257,913 |
| Novo Nordisk A/S, Class B | 579,482 | 64,997,593 |
| | | | 97,255,506 |
| France–12.41% |
| Air Liquide S.A. | 195,005 | 34,964,641 |
| Arkema S.A. | 317,685 | 27,995,071 |
| Capgemini SE | 152,440 | 26,445,412 |
| Edenred SE | 498,495 | 16,122,649 |
| LVMH Moet Hennessy Louis Vuitton SE | 66,981 | 44,590,614 |
| Pernod Ricard S.A. | 225,683 | 28,158,140 |
| Publicis Groupe S.A. | 454,135 | 48,266,980 |
| Schneider Electric SE | 221,131 | 57,283,687 |
| TotalEnergies SE | 650,744 | 40,837,859 |
| | | | 324,665,053 |
| Germany–2.00% |
| Deutsche Boerse AG | 102,630 | 23,838,719 |
| Deutsche Telekom AG | 946,750 | 28,623,577 |
| | | | 52,462,296 |
| Hong Kong–2.63% |
| AIA Group Ltd. | 2,847,400 | 22,472,588 |
| Techtronic Industries Co. Ltd. | 3,211,500 | 46,455,777 |
| | | | 68,928,365 |
| India–3.39% |
| HDFC Bank Ltd., ADR | 818,373 | 51,582,050 |
| | Shares | Value |
| India–(continued) |
| SBI Life Insurance Co. Ltd.(b) | 1,923,800 | $37,038,467 |
| | | | 88,620,517 |
| Ireland–2.40% |
| Flutter Entertainment PLC(a) | 128,510 | 29,913,273 |
| Kingspan Group PLC | 372,919 | 32,931,321 |
| | | | 62,844,594 |
| Israel–1.28% |
| Teva Pharmaceutical Industries Ltd., ADR(a) | 1,812,797 | 33,427,977 |
| Italy–1.55% |
| FinecoBank Banca Fineco S.p.A. | 2,548,351 | 40,682,216 |
| Japan–11.57% |
| Asahi Group Holdings Ltd. | 3,986,100 | 47,854,222 |
| FANUC Corp.(c) | 1,027,060 | 27,249,258 |
| Hoya Corp. | 257,800 | 34,492,084 |
| Keyence Corp. | 82,500 | 37,241,598 |
| M3, Inc.(c) | 1,917,600 | 19,708,199 |
| Shimano, Inc. | 290,200 | 42,633,170 |
| SMC Corp. | 76,100 | 32,307,963 |
| Sony Group Corp. | 2,642,500 | 46,501,429 |
| Tokyo Electron Ltd. | 100,600 | 14,803,587 |
| | | | 302,791,510 |
| Mexico–1.47% |
| Wal-Mart de Mexico S.A.B. de C.V., Series V | 13,990,802 | 38,470,423 |
| Netherlands–2.71% |
| Heineken N.V.(c) | 310,122 | 25,435,186 |
| Wolters Kluwer N.V. | 270,746 | 45,507,956 |
| | | | 70,943,142 |
| Singapore–1.96% |
| STMicroelectronics N.V. | 790,460 | 21,486,617 |
| United Overseas Bank Ltd. | 1,231,866 | 29,945,478 |
| | | | 51,432,095 |
| South Korea–1.21% |
| Samsung Electronics Co. Ltd. | 743,218 | 31,557,769 |
| Sweden–4.11% |
| Investor AB, Class B(c) | 3,029,246 | 85,739,943 |
| Svenska Handelsbanken AB, Class A | 2,094,139 | 21,759,444 |
| | | | 107,499,387 |
| Switzerland–3.21% |
| Cie Financiere Richemont S.A. | 203,129 | 29,575,656 |
| Nestle S.A. | 371,861 | 35,138,115 |
| SGS S.A. | 181,923 | 19,259,594 |
| | | | 83,973,365 |
| Taiwan–4.63% |
| ASML Holding N.V. | 47,196 | 31,769,092 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 2 | Invesco EQV International Equity Fund |
| | Shares | Value |
| Taiwan–(continued) |
| Taiwan Semiconductor Manufacturing Co. Ltd. | 2,853,887 | $89,496,417 |
| | | | 121,265,509 |
| Thailand–0.54% |
| Bangkok Dusit Medical Services PCL, Foreign Shares | 17,147,700 | 14,096,670 |
| United Kingdom–12.05% |
| Ashtead Group PLC | 579,090 | 43,320,378 |
| BAE Systems PLC | 2,380,879 | 38,373,369 |
| DCC PLC | 316,990 | 20,054,077 |
| Haleon PLC | 8,665,332 | 41,646,174 |
| London Stock Exchange Group PLC | 288,765 | 39,138,009 |
| RELX PLC | 1,579,302 | 72,426,299 |
| Rentokil Initial PLC | 3,789,997 | 19,009,763 |
| Shell PLC | 1,236,179 | 41,272,720 |
| | | | 315,240,789 |
| United States–7.61% |
| Broadcom, Inc. | 337,953 | 57,374,281 |
| CRH PLC | 630,849 | 60,201,920 |
| ICON PLC(a) | 204,412 | 45,401,949 |
| Linde PLC | 79,084 | 36,074,167 |
| | | | 199,052,317 |
| Total Common Stocks & Other Equity Interests (Cost $1,808,104,089) | 2,580,596,556 |
| | Shares | Value |
| Money Market Funds–1.29% |
| Invesco Government & Agency Portfolio, Institutional Class, 4.77%(d)(e) | 11,838,328 | $11,838,328 |
| Invesco Treasury Portfolio, Institutional Class, 4.73%(d)(e) | 21,951,404 | 21,951,404 |
| Total Money Market Funds (Cost $33,789,732) | 33,789,732 |
| TOTAL INVESTMENTS IN SECURITIES (excluding Investments purchased with cash collateral from securities on loan)-99.91% (Cost $1,841,893,821) | | | 2,614,386,288 |
| Investments Purchased with Cash Collateral from Securities on Loan |
| Money Market Funds–1.23% |
| Invesco Private Government Fund, 4.84%(d)(e)(f) | 8,866,594 | 8,866,594 |
| Invesco Private Prime Fund, 4.99%(d)(e)(f) | 23,229,566 | 23,236,535 |
| Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $32,104,540) | 32,103,129 |
| TOTAL INVESTMENTS IN SECURITIES—101.14% (Cost $1,873,998,361) | 2,646,489,417 |
| OTHER ASSETS LESS LIABILITIES–(1.14)% | (29,892,859) |
| NET ASSETS–100.00% | $2,616,596,558 |
Investment Abbreviations:
| ADR | – American Depositary Receipt |
Notes to Schedule of Investments:
| (a) | Non-income producing security. |
| (b) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The value of this security at October 31, 2024 represented 1.42% of the Fund’s Net Assets. |
| (c) | All or a portion of this security was out on loan at October 31, 2024. |
| (d) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | Value
October 31, 2023 | Purchases
at Cost | Proceeds
from Sales | Change in
Unrealized
Appreciation
(Depreciation) | Realized
Gain | Value
October 31, 2024 | Dividend Income |
| Investments in Affiliated Money Market Funds: | | | | | | | |
| Invesco Government & Agency Portfolio, Institutional Class | $12,896,297 | $191,722,219 | $(192,780,188) | $- | $- | $11,838,328 | $975,552 |
| Invesco Liquid Assets Portfolio, Institutional Class | 9,177,617 | 107,221,537 | (116,399,114) | (1,515) | 1,475 | - | 545,302 |
| Invesco Treasury Portfolio, Institutional Class | 14,738,625 | 259,634,496 | (252,421,717) | - | - | 21,951,404 | 1,271,929 |
| Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
| Invesco Private Government Fund | 26,296,305 | 193,054,312 | (210,484,023) | - | - | 8,866,594 | 919,459* |
| Invesco Private Prime Fund | 67,627,586 | 459,748,523 | (504,162,126) | (1,667) | 24,219 | 23,236,535 | 2,426,808* |
| Total | $130,736,430 | $1,211,381,087 | $(1,276,247,168) | $(3,182) | $25,694 | $65,892,861 | $6,139,050 |
| * | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
| (e) | The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| (f) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 3 | Invesco EQV International Equity Fund |
Statement of Assets and Liabilities
October 31, 2024
| Assets: | |
Investments in unaffiliated securities, at value
(Cost $1,808,104,089)* | $2,580,596,556 |
| Investments in affiliated money market funds, at value (Cost $65,894,272) | 65,892,861 |
| Foreign currencies, at value (Cost $1,974,412) | 1,970,887 |
| Receivable for: | |
| Investments sold | 5,408 |
| Fund shares sold | 590,652 |
| Dividends | 8,779,452 |
| Foreign withholding tax claims | 334,745 |
| Investment for trustee deferred compensation and retirement plans | 792,579 |
| Other assets | 59,179 |
| Total assets | 2,659,022,319 |
| Liabilities: | |
| Payable for: | |
| Investments purchased | 2,520,323 |
| Fund shares reacquired | 1,492,567 |
| Accrued foreign taxes | 1,140,624 |
| Collateral upon return of securities loaned | 32,104,540 |
| Accrued fees to affiliates | 969,210 |
| Accrued trustees’ and officers’ fees and benefits | 7,312 |
| Accrued other operating expenses | 191,062 |
| IRS closing agreement fees for foreign withholding tax claims | 3,104,028 |
| Trustee deferred compensation and retirement plans | 896,095 |
| Total liabilities | 42,425,761 |
| Net assets applicable to shares outstanding | $2,616,596,558 |
| Net assets consist of: | |
| Shares of beneficial interest | $1,758,223,935 |
| Distributable earnings | 858,372,623 |
| | $2,616,596,558 |
| Net Assets: |
| Class A | $1,046,661,457 |
| Class C | $17,446,386 |
| Class R | $54,539,374 |
| Class Y | $326,842,702 |
| Class R5 | $108,657,424 |
| Class R6 | $1,062,449,215 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 44,447,229 |
| Class C | 884,150 |
| Class R | 2,378,254 |
| Class Y | 13,793,864 |
| Class R5 | 4,462,027 |
| Class R6 | 43,799,992 |
| Class A: | |
| Net asset value per share | $23.55 |
Maximum offering price per share
(Net asset value of $23.55 ÷ 94.50%) | $24.92 |
| Class C: | |
| Net asset value and offering price per share | $19.73 |
| Class R: | |
| Net asset value and offering price per share | $22.93 |
| Class Y: | |
| Net asset value and offering price per share | $23.69 |
| Class R5: | |
| Net asset value and offering price per share | $24.35 |
| Class R6: | |
| Net asset value and offering price per share | $24.26 |
| * | At October 31, 2024, securities with an aggregate value of $30,062,963 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 4 | Invesco EQV International Equity Fund |
Statement of Operations
For the year ended October 31, 2024
| Investment income: | |
| Interest | $1,650,286 |
| Dividends (net of foreign withholding taxes of $3,788,994) | 48,851,283 |
| Dividends from affiliated money market funds (includes net securities lending income of $271,314) | 3,064,097 |
| Foreign withholding tax claims | 10,006,628 |
| Less: IRS closing agreement fees for foreign withholding tax claims | (1,494,000) |
| Total investment income | 62,078,294 |
| Expenses: | |
| Advisory fees | 21,448,466 |
| Administrative services fees | 423,883 |
| Custodian fees | 287,326 |
| Distribution fees: | |
| Class A | 2,729,765 |
| Class C | 198,339 |
| Class R | 285,194 |
| Transfer agent fees — A, C, R and Y | 2,854,329 |
| Transfer agent fees — R5 | 115,273 |
| Transfer agent fees — R6 | 339,725 |
| Trustees’ and officers’ fees and benefits | 66,677 |
| Registration and filing fees | 116,403 |
| Reports to shareholders | 660,248 |
| Professional services fees | 122,614 |
| Other | 73,311 |
| Total expenses | 29,721,553 |
| Less: Fees waived and/or expense offset arrangement(s) | (112,013) |
| Net expenses | 29,609,540 |
| Net investment income | 32,468,754 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain from: | |
| Unaffiliated investment securities (net of foreign taxes of $95,574) | 139,216,562 |
| Affiliated investment securities | 25,694 |
| Foreign currencies | 687,970 |
| | 139,930,226 |
| Change in net unrealized appreciation (depreciation) of: | |
| Unaffiliated investment securities (net of foreign taxes of $885,740) | 289,662,769 |
| Affiliated investment securities | (3,182) |
| Foreign currencies | 322,874 |
| | 289,982,461 |
| Net realized and unrealized gain | 429,912,687 |
| Net increase in net assets resulting from operations | $462,381,441 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 5 | Invesco EQV International Equity Fund |
Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| | 2024 | 2023 |
| Operations: | | |
| Net investment income | $32,468,754 | $19,008,802 |
| Net realized gain | 139,930,226 | 17,859,667 |
| Change in net unrealized appreciation | 289,982,461 | 114,372,090 |
| Net increase in net assets resulting from operations | 462,381,441 | 151,240,559 |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (17,247,141) | (98,094,559) |
| Class C | (267,514) | (1,912,258) |
| Class R | (820,507) | (3,534,697) |
| Class Y | (6,780,324) | (36,124,026) |
| Class R5 | (2,158,596) | (11,669,366) |
| Class R6 | (22,523,947) | (60,952,005) |
| Total distributions from distributable earnings | (49,798,029) | (212,286,911) |
| Share transactions–net: | | |
| Class A | (106,521,346) | 129,098,707 |
| Class C | (4,865,533) | 5,494,619 |
| Class R | (5,294,540) | 23,890,337 |
| Class Y | (72,112,238) | (8,718,276) |
| Class R5 | (11,915,941) | (725,360) |
| Class R6 | (153,343,665) | 655,972,473 |
| Net increase (decrease) in net assets resulting from share transactions | (354,053,263) | 805,012,500 |
| Net increase in net assets | 58,530,149 | 743,966,148 |
| Net assets: | | |
| Beginning of year | 2,558,066,409 | 1,814,100,261 |
| End of year | $2,616,596,558 | $2,558,066,409 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 6 | Invesco EQV International Equity Fund |
Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| | Net asset
value,
beginning
of period | Net
investment
income
(loss)(a) | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Dividends
from net
investment
income | Distributions
from net
realized
gains | Total
distributions | Net asset
value, end
of period | Total
return(b) | Net assets,
end of period
(000’s omitted) | Ratio of
expenses
to average
net assets
with fee waivers
and/or
expenses
absorbed | Ratio of
expenses
to average net
assets without
fee waivers
and/or
expenses
absorbed | Ratio of net
investment
income
(loss)
to average
net assets | Portfolio
turnover (c) |
| Class A |
| Year ended 10/31/24 | $20.26 | $0.23 | $3.41 | $3.64 | $(0.14) | $(0.21) | $(0.35) | $23.55 | 18.12% | $1,046,661 | 1.28% | 1.28% | 0.96% | 28% |
| Year ended 10/31/23 | 20.15 | 0.14 | 2.32 | 2.46 | — | (2.35) | (2.35) | 20.26 | 12.52 | 992,449 | 1.34 | 1.34 | 0.67 | 32 |
| Year ended 10/31/22 | 33.82 | 0.19 | (6.92) | (6.73) | (0.55) | (6.39) | (6.94) | 20.15 | (24.90) | 866,495 | 1.35 | 1.35 | 0.80 | 39 |
| Year ended 10/31/21 | 31.34 | 0.05 | 6.54 | 6.59 | (0.30) | (3.81) | (4.11) | 33.82 | 21.99 | 1,338,896 | 1.32 | 1.32 | 0.14 | 25 |
| Year ended 10/31/20 | 34.10 | 0.11 | 0.62 | 0.73 | (0.65) | (2.84) | (3.49) | 31.34 | 1.97 | 1,262,456 | 1.35 | 1.35 | 0.36 | 35 |
| Class C |
| Year ended 10/31/24 | 17.05 | 0.04 | 2.88 | 2.92 | (0.03) | (0.21) | (0.24) | 19.73 | 17.23 | 17,446 | 2.03 | 2.03 | 0.21 | 28 |
| Year ended 10/31/23 | 17.42 | (0.01) | 1.99 | 1.98 | — | (2.35) | (2.35) | 17.05 | 11.63 | 19,287 | 2.09 | 2.09 | (0.08) | 32 |
| Year ended 10/31/22 | 30.08 | 0.01 | (6.01) | (6.00) | (0.27) | (6.39) | (6.66) | 17.42 | (25.45) | 14,712 | 2.10 | 2.10 | 0.05 | 39 |
| Year ended 10/31/21 | 28.22 | (0.19) | 5.88 | 5.69 | (0.02) | (3.81) | (3.83) | 30.08 | 21.09 | 27,874 | 2.07 | 2.07 | (0.61) | 25 |
| Year ended 10/31/20 | 31.01 | (0.11) | 0.56 | 0.45 | (0.40) | (2.84) | (3.24) | 28.22 | 1.20 | 36,108 | 2.10 | 2.10 | (0.39) | 35 |
| Class R |
| Year ended 10/31/24 | 19.75 | 0.16 | 3.33 | 3.49 | (0.10) | (0.21) | (0.31) | 22.93 | 17.82 | 54,539 | 1.53 | 1.53 | 0.71 | 28 |
| Year ended 10/31/23 | 19.75 | 0.09 | 2.26 | 2.35 | — | (2.35) | (2.35) | 19.75 | 12.19 | 51,541 | 1.59 | 1.59 | 0.42 | 32 |
| Year ended 10/31/22 | 33.25 | 0.13 | (6.79) | (6.66) | (0.45) | (6.39) | (6.84) | 19.75 | (25.06) | 29,868 | 1.60 | 1.60 | 0.55 | 39 |
| Year ended 10/31/21 | 30.87 | (0.04) | 6.44 | 6.40 | (0.21) | (3.81) | (4.02) | 33.25 | 21.66 | 44,016 | 1.57 | 1.57 | (0.11) | 25 |
| Year ended 10/31/20 | 33.64 | 0.03 | 0.61 | 0.64 | (0.57) | (2.84) | (3.41) | 30.87 | 1.71 | 47,493 | 1.60 | 1.60 | 0.11 | 35 |
| Class Y |
| Year ended 10/31/24 | 20.38 | 0.29 | 3.43 | 3.72 | (0.20) | (0.21) | (0.41) | 23.69 | 18.42 | 326,843 | 1.03 | 1.03 | 1.21 | 28 |
| Year ended 10/31/23 | 20.24 | 0.20 | 2.31 | 2.51 | (0.02) | (2.35) | (2.37) | 20.38 | 12.74 | 344,435 | 1.09 | 1.09 | 0.92 | 32 |
| Year ended 10/31/22 | 33.96 | 0.26 | (6.95) | (6.69) | (0.64) | (6.39) | (7.03) | 20.24 | (24.71) | 350,174 | 1.10 | 1.10 | 1.05 | 39 |
| Year ended 10/31/21 | 31.46 | 0.13 | 6.56 | 6.69 | (0.38) | (3.81) | (4.19) | 33.96 | 22.30 | 738,512 | 1.07 | 1.07 | 0.39 | 25 |
| Year ended 10/31/20 | 34.21 | 0.19 | 0.62 | 0.81 | (0.72) | (2.84) | (3.56) | 31.46 | 2.22 | 751,518 | 1.10 | 1.10 | 0.61 | 35 |
| Class R5 |
| Year ended 10/31/24 | 20.94 | 0.31 | 3.54 | 3.85 | (0.23) | (0.21) | (0.44) | 24.35 | 18.53 | 108,657 | 0.94 | 0.94 | 1.30 | 28 |
| Year ended 10/31/23 | 20.74 | 0.23 | 2.37 | 2.60 | (0.05) | (2.35) | (2.40) | 20.94 | 12.86 | 103,658 | 0.99 | 0.99 | 1.02 | 32 |
| Year ended 10/31/22 | 34.62 | 0.29 | (7.11) | (6.82) | (0.67) | (6.39) | (7.06) | 20.74 | (24.63) | 102,737 | 1.02 | 1.02 | 1.13 | 39 |
| Year ended 10/31/21 | 32.02 | 0.16 | 6.67 | 6.83 | (0.42) | (3.81) | (4.23) | 34.62 | 22.35 | 392,893 | 0.99 | 0.99 | 0.47 | 25 |
| Year ended 10/31/20 | 34.76 | 0.22 | 0.63 | 0.85 | (0.75) | (2.84) | (3.59) | 32.02 | 2.32 | 486,808 | 1.00 | 1.00 | 0.71 | 35 |
| Class R6 |
| Year ended 10/31/24 | 20.86 | 0.33 | 3.52 | 3.85 | (0.24) | (0.21) | (0.45) | 24.26 | 18.63 | 1,062,449 | 0.87 | 0.87 | 1.37 | 28 |
| Year ended 10/31/23 | 20.68 | 0.24 | 2.36 | 2.60 | (0.07) | (2.35) | (2.42) | 20.86 | 12.92 | 1,046,696 | 0.93 | 0.93 | 1.08 | 32 |
| Year ended 10/31/22 | 34.56 | 0.30 | (7.09) | (6.79) | (0.70) | (6.39) | (7.09) | 20.68 | (24.59) | 450,115 | 0.95 | 0.95 | 1.20 | 39 |
| Year ended 10/31/21 | 31.97 | 0.19 | 6.66 | 6.85 | (0.45) | (3.81) | (4.26) | 34.56 | 22.48 | 794,749 | 0.91 | 0.91 | 0.55 | 25 |
| Year ended 10/31/20 | 34.71 | 0.25 | 0.63 | 0.88 | (0.78) | (2.84) | (3.62) | 31.97 | 2.41 | 914,873 | 0.91 | 0.91 | 0.80 | 35 |
| (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 months ended October 31, 2023, the portfolio turnover calculation excludes the value of securities purchased of $679,923,194 in connection with the acquisition of Invesco International Equity Fund into the Fund. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 7 | Invesco EQV International Equity Fund |
Notes to Financial Statements
October 31, 2024
NOTE 1—Significant Accounting Policies
Invesco EQV International Equity Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company 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.
Effective after the close of business on September 30, 2024, Class R5 shares are closed to new investors.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
| A. | Security Valuations — Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| 8 | Invesco EQV International Equity Fund |
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
| C. | Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
| F. | Foreign Withholding Taxes – The Fund is subject to foreign withholding tax imposed by certain foreign countries in which the Fund may invest. Withholding taxes are incurred on certain foreign dividends and are accrued at the time the dividend is recognized based on applicable foreign tax laws. The Fund may file withholding tax refunds in certain jurisdictions to seek to recover a portion of amounts previously withheld. The Fund will record a receivable for such tax refunds based on several factors including; an assessment of a jurisdiction’s legal obligation to pay reclaims, administrative practices and payment history. Any receivables recorded will be shown under receivables for Foreign withholding tax claims on the Statement of Assets and Liabilities. There is no guarantee that the Fund will receive refunds applied for in a timely manner or at all. |
As a result of recent court rulings in certain countries across the European Union, tax refunds for previously withheld taxes on dividends earned in those countries have been received by investment companies. Any tax refund payments are reflected as Foreign withholding tax claims in the Statement of Operations, and any related interest is included in Interest income. The Fund may incur fees paid to third party providers that assist in the recovery of the tax reclaims. These fees are reflected on the Statement of Operations as Professional services fees, if any. In the event tax refunds received by the Fund during the fiscal year exceed the foreign withholding taxes paid by the Fund for the year, and the Fund previously passed foreign tax credits on to its shareholders, the Fund intends to enter into a closing agreement with the Internal Revenue Service in order to pay the associated liability on behalf of the Funds’ shareholders. For the year ended October 31, 2024, the Fund received refunds in excess of the foreign tax paid during the year and has recorded the estimated liability as a reduction to income which is reflected as IRS closing agreement fees for foreign withholding tax claims on the Statement of Operations.
| G. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| H. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
| I. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| J. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in |
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| | 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 year ended October 31, 2024, the Fund paid the Adviser fees for securities lending agent services, which were less than $500. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
| K. | Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| L. | Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
| M. | Other Risks - Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic instability, uncertain trading markets and more governmental limitations on foreign investment than more developed markets. In addition, companies operating in emerging markets may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. As a result, information, including financial information, about such companies may be less available and reliable, which can impede the Fund’s ability to evaluate such companies. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably, and the ability to bring and enforce actions (including bankruptcy, confiscatory taxation, expropriation, nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets from the country, protectionist measures and practices such as share blocking), or to obtain information needed to pursue or enforce such actions, may be limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging market countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information. |
Investments in companies located or operating in Greater China (normally considered to be the geographical area that includes mainland China, Hong Kong, Macau and Taiwan) involve risks and considerations not typically associated with investments in the U.S. and other Western nations, such as greater government control over the economy; political, legal and regulatory uncertainty; nationalization, expropriation, or confiscation of property; lack of willingness or ability of the Chinese government to support the economies and markets of the Greater China region; difficulty in obtaining information necessary for investigations into and/or
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litigation against Chinese companies, as well as in obtaining and/or enforcing judgments; lack of publicly available information; limited legal remedies for shareholders; alteration or discontinuation of economic reforms; military conflicts and the risk of war, either internal or with other countries; public health emergencies resulting in market closures, travel restrictions, quarantines or other interventions; inflation, currency fluctuations and fluctuations in inflation and interest rates that may have negative effects on the economy and securities markets of Greater China; and Greater China’s dependency on the economies of other Asian countries, many of which are developing countries. Events in any one country within Greater China may impact the other countries in the region or Greater China as a whole.
The level of development of the economies of countries in the Asia Pacific region varies greatly. Furthermore, since the economies of the countries in the region are largely intertwined, if an economic recession is experienced by any of these countries, it will likely adversely impact the economic performance of other countries in the region. In addition, export growth continues to be a major driver of China’s rapid economic growth. As a result, a reduction in spending on Chinese products and services, the institution of tariffs, sanctions, capital controls, embargoes, trade wars or other trade barriers, or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy. The current political climate has intensified concerns about a potential trade war between China and the U.S., as each country has recently imposed tariffs on the other country’s products. Further, actions by the U.S. government, such as delisting of certain Chinese companies from U.S. securities exchanges or otherwise restricting their operations in the U.S., may negatively impact the value of such securities held by the Fund.
Certain securities issued by companies located or operating in Greater China, such as China A-shares, are subject to trading restrictions and suspensions, quota limitations and sudden changes in those limitations, and operational, clearing and settlement risks. Significant portions of the Chinese securities markets may become rapidly illiquid, as Chinese issuers have the ability to suspend the trading of their equity securities, and have shown a willingness to exercise that option in response to market volatility and other events. The liquidity of Chinese securities may shrink or disappear suddenly and without warning as a result of adverse economic, market or political events, or adverse investor perceptions, whether or not accurate.
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 | 0.850% |
| Next $250 million | 0.825% |
| Next $500 million | 0.785% |
| Next $1.5 billion | 0.760% |
| Next $2.5 billion | 0.720% |
| Over $5 billion | 0.690% |
For the year ended October 31, 2024, 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).
The Adviser has contractually agreed, through at least February 28, 2025, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 1.30%, 2.05%, 1.55%, 1.05%, 1.05% and 1.05%, respectively, of the Fund’s average daily net assets (the "expense limits"). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on February 28, 2025. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waivers without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.
Further, the Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $55,057.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the 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
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shareholder. During the year ended October 31, 2024, IDI advised the Fund that IDI retained $105,825 in front-end sales commissions from the sale of Class A shares and $7,390 and $1,036 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the year ended October 31, 2024, the Fund incurred $16,910 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3—Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| | Level 1 | Level 2 | Level 3 | Total |
| Investments in Securities | | | | |
| Australia | $— | $85,150,576 | $— | $85,150,576 |
| Brazil | 60,614,698 | — | — | 60,614,698 |
| Canada | 182,390,400 | — | — | 182,390,400 |
| China | — | 147,231,382 | — | 147,231,382 |
| Denmark | — | 97,255,506 | — | 97,255,506 |
| France | — | 324,665,053 | — | 324,665,053 |
| Germany | — | 52,462,296 | — | 52,462,296 |
| Hong Kong | — | 68,928,365 | — | 68,928,365 |
| India | 51,582,050 | 37,038,467 | — | 88,620,517 |
| Ireland | 29,913,273 | 32,931,321 | — | 62,844,594 |
| Israel | 33,427,977 | — | — | 33,427,977 |
| Italy | — | 40,682,216 | — | 40,682,216 |
| Japan | — | 302,791,510 | — | 302,791,510 |
| Mexico | 38,470,423 | — | — | 38,470,423 |
| Netherlands | — | 70,943,142 | — | 70,943,142 |
| Singapore | — | 51,432,095 | — | 51,432,095 |
| South Korea | — | 31,557,769 | — | 31,557,769 |
| Sweden | — | 107,499,387 | — | 107,499,387 |
| Switzerland | — | 83,973,365 | — | 83,973,365 |
| Taiwan | — | 121,265,509 | — | 121,265,509 |
| Thailand | — | 14,096,670 | — | 14,096,670 |
| United Kingdom | — | 315,240,789 | — | 315,240,789 |
| United States | 199,052,317 | — | — | 199,052,317 |
| Money Market Funds | 33,789,732 | 32,103,129 | — | 65,892,861 |
| Total Investments | $629,240,870 | $2,017,248,547 | $— | $2,646,489,417 |
NOTE 4—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $56,956.
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.
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NOTE 6—Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 7—Distributions to Shareholders and Tax Components of Net Assets
| Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023: |
| | 2024 | 2023 |
| Ordinary income* | $23,587,564 | $2,291,926 |
| Long-term capital gain | 26,210,465 | 209,994,985 |
| Total distributions | $49,798,029 | $212,286,911 |
| * | Includes short-term capital gain distributions, if any. |
| Tax Components of Net Assets at Period-End: |
| | 2024 |
| Undistributed ordinary income | $68,832,147 |
| Undistributed long-term capital gain | 108,435,426 |
| Net unrealized appreciation — investments | 681,717,795 |
| Net unrealized appreciation (depreciation) — foreign currencies | (20,222) |
| Temporary book/tax differences | (592,523) |
| Shares of beneficial interest | 1,758,223,935 |
| Total net assets | $2,616,596,558 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to wash sales and passive foreign investment companies.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund does not have a capital loss carryforward as of October 31, 2024.
NOTE 8—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2024 was $745,728,176 and $1,103,957,443, respectively. As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $760,687,414 |
| Aggregate unrealized (depreciation) of investments | (78,969,619) |
| Net unrealized appreciation of investments | $681,717,795 |
Cost of investments for tax purposes is $1,964,771,622.
NOTE 9—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of passive foreign investment companies and equalization, on October 31, 2024, undistributed net investment income was increased by $7,394,998, undistributed net realized gain was decreased by $19,357,998 and shares of beneficial interest was increased by $11,963,000. This reclassification had no effect on the net assets of the Fund.
| 13 | Invesco EQV International Equity Fund |
NOTE 10—Share Information
| | Summary of Share Activity |
| | Year ended
October 31, 2024(a) | | Year ended
October 31, 2023 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 2,618,114 | $60,665,062 | | 2,740,206 | $58,557,362 |
| Class C | 105,453 | 2,060,704 | | 118,760 | 2,145,590 |
| Class R | 363,655 | 8,273,792 | | 290,572 | 6,079,236 |
| Class Y | 1,925,416 | 44,808,516 | | 2,677,180 | 56,728,039 |
| Class R5 | 572,859 | 13,709,818 | | 753,941 | 16,536,875 |
| Class R6 | 5,094,023 | 122,341,445 | | 7,875,597 | 174,601,019 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 755,625 | 16,676,649 | | 4,635,096 | 91,404,102 |
| Class C | 14,112 | 262,768 | | 108,492 | 1,812,907 |
| Class R | 38,080 | 820,238 | | 183,420 | 3,534,504 |
| Class Y | 252,286 | 5,590,655 | | 1,235,334 | 24,459,610 |
| Class R5 | 86,178 | 1,961,403 | | 553,998 | 11,262,780 |
| Class R6 | 967,389 | 21,911,368 | | 2,860,784 | 57,902,265 |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 132,392 | 3,106,291 | | 162,304 | 3,451,978 |
| Class C | (157,455) | (3,106,291) | | (191,925) | (3,451,978) |
| Issued in connection with acquisitions:(b) | | | | | |
| Class A | - | - | | 6,532,262 | 147,812,108 |
| Class C | - | - | | 443,936 | 8,470,592 |
| Class R | - | - | | 1,032,539 | 22,794,466 |
| Class Y | - | - | | 2,303,183 | 52,409,731 |
| Class R5 | - | - | | 56,786 | 1,327,353 |
| Class R6 | - | - | | 26,197,678 | 609,992,929 |
| Reacquired: | | | | | |
| Class A | (8,052,506) | (186,969,348) | | (8,073,414) | (172,126,843) |
| Class C | (209,276) | (4,082,714) | | (192,511) | (3,482,492) |
| Class R | (633,287) | (14,388,570) | | (409,321) | (8,517,869) |
| Class Y | (5,281,357) | (122,511,409) | | (6,620,529) | (142,315,656) |
| Class R5 | (1,146,664) | (27,587,162) | | (1,368,746) | (29,852,368) |
| Class R6 | (12,434,558) | (297,596,478) | | (8,527,279) | (186,523,740) |
| Net increase (decrease) in share activity | (14,989,521) | $(354,053,263) | | 35,378,343 | $805,012,500 |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 46% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.
In addition, 16% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser. |
| (b) | After the close of business on July 28, 2023, the Fund acquired all the net assets of Invesco International Equity Fund (the “Target Fund”) pursuant to a plan of reorganization approved by the Board of Trustees of the Fund on March 17, 2023 and by the shareholders of the Target Fund on July 12, 2023. The reorganization was executed in order to reduce overlap and increase efficiencies in the Adviser’s product line. The acquisition was accomplished by a tax-free exchange of 36,566,384 shares of the Fund for 38,849,581 shares outstanding of the Target Fund as of the close of business on July 28, 2023. Shares of the Target Fund were exchanged for the like class of shares of the Fund, based on the relative net asset value of the Target Fund to the net asset value of the Fund on the close of business, July 28, 2023. The Target Fund’s net assets as of the close of business on July 28, 2023 of $842,807,179, including $99,747,081 of unrealized appreciation, were combined with those of the Fund. The net assets of the Fund immediately before the acquisition were $2,129,529,183 and $2,972,336,362 immediately after the acquisition.
The pro forma results of operations for the October 31, 2023 assuming the reorganization had been completed on November 1, 2022, the beginning of the annual reporting period are as follows: |
| Net investment income | $26,799,964 |
| Net realized/unrealized gains | 308,877,934 |
| Change in net assets resulting from operations | $335,677,898 |
As the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Target Fund that has been included in the Fund’s Statement of Operations since July 31, 2023.
| 14 | Invesco EQV International Equity Fund |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM International Mutual Funds (Invesco International Mutual Funds) and Shareholders of Invesco EQV International Equity Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Invesco EQV International Equity Fund (one of the funds constituting AIM International Mutual Funds (Invesco International Mutual Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related statement of operations for the year ended October 31, 2024, the statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Houston, Texas
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
| 15 | Invesco EQV International Equity Fund |
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM International Mutual Funds (Invesco International Mutual Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco EQV International Equity Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees, that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior
Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis, and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy and cybersecurity, including related testing. The
Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
B. Fund Investment Performance
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the MSCI All Country World ex-U.S.® Index (Index). The Board noted that performance of Class A shares of the Fund was in the second quintile of its performance universe for the one and three year periods and the third quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was above the performance of the Index for the one and five year periods and below the performance of the Index for the three year period. The Board considered that the Invesco International
| 16 | Invesco EQV International Equity Fund |
Equity Fund reorganized into the Fund on July 28, 2023. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
| C. | Advisory and Sub-Advisory Fees and Fund Expenses |
The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management and actual management fee rates for Class A shares of the Fund were each reasonably comparable to the median contractual management and actual management fee rates of funds in its expense group. The Board noted that the Fund’s contractual management fee schedule was reduced at certain breakpoint levels effective 2023. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that the Fund’s total expense ratio was in the fourth quintile of its expense group and discussed with management reasons for such relative total expenses.
The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board also considered the fees charged by Invesco Advisers and its affiliates to other client accounts that are similarly managed. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to that provided by Invesco Advisers and its affiliates to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations. Invesco Advisers also advised the Board that many of the similarly managed client accounts have all-inclusive fee structures, which are not easily un-bundled.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.
| D. | Economies of Scale and Breakpoints |
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the difficulty in calculating and measuring economies of scale at the individual fund level; noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund also shares in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
E. Profitability and Financial Resources
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
F. Collateral Benefits to Invesco Advisers and its Affiliates
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the
performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives from Invesco Advisers periodic reports that include a representation to the effect that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities Lending Governance Committee and its related responsibilities. The Board noted that to the extent the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services without obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending
| 17 | Invesco EQV International Equity Fund |
services provided to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such securities lending activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades were executed in compliance with rules under the federal securities laws and consistent with best execution obligations.
| 18 | Invesco EQV International Equity Fund |
Tax Information
Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
| Federal and State Income Tax | |
| Long-Term Capital Gain Distributions | $38,173,465 |
| Qualified Dividend Income* | 98.06% |
| Corporate Dividends Received Deduction* | 8.45% |
| U.S. Treasury Obligations* | 0.00% |
| Qualified Business Income* | 0.00% |
| Business Interest Income* | 0.00% |
| * | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
| 19 | Invesco EQV International Equity Fund |
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Not applicable.
Proxy Disclosures for Open-End Management Investment Companies
Not applicable.
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
| 20 | Invesco EQV International Equity Fund |
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| SEC file number(s): 811-06463 and 033-44611 | Invesco Distributors, Inc. | IGR-NCSR |
| Annual Financial Statements and Other Information | October 31, 2024 |
Invesco Global Focus Fund
Nasdaq:
A: GLVAX ■ C: GLVCX ■ R: GLVNX ■ Y: GLVYX ■ R5: GFFDX ■ R6: GLVIX
Schedule of Investments(a)
October 31, 2024
| | Shares | Value |
| Common Stocks & Other Equity Interests–99.37% |
| Apparel Retail–0.53% |
| TJX Cos., Inc. (The) | 26,160 | $2,956,865 |
| Apparel, Accessories & Luxury Goods–5.55% |
| Hermes International S.C.A. (France) | 11,708 | 26,609,366 |
| Moncler S.p.A. (Italy) | 78,456 | 4,358,817 |
| | | | 30,968,183 |
| Application Software–5.92% |
| Nice Ltd., ADR (Israel)(b) | 74,264 | 12,899,657 |
| Salesforce, Inc. | 60,791 | 17,712,674 |
| Synopsys, Inc.(b) | 4,722 | 2,425,266 |
| | | | 33,037,597 |
| Broadline Retail–8.67% |
| Amazon.com, Inc.(b) | 197,130 | 36,745,032 |
| JD.com, Inc., ADR (China) | 286,010 | 11,617,726 |
| | | | 48,362,758 |
| Financial Exchanges & Data–1.94% |
| S&P Global, Inc. | 22,603 | 10,857,577 |
| Health Care Equipment–6.50% |
| Boston Scientific Corp.(b) | 83,334 | 7,001,723 |
| IDEXX Laboratories, Inc.(b) | 28,768 | 11,706,274 |
| Stryker Corp. | 49,350 | 17,582,418 |
| | | | 36,290,415 |
| Hotels, Resorts & Cruise Lines–4.63% |
| Airbnb, Inc., Class A(b) | 67,865 | 9,147,524 |
| Amadeus IT Group S.A. (Spain) | 230,172 | 16,685,918 |
| | | | 25,833,442 |
| Industrial Gases–1.15% |
| Linde PLC | 14,051 | 6,409,364 |
| Interactive Media & Services–20.94% |
| Alphabet, Inc., Class A | 227,070 | 38,853,948 |
| Meta Platforms, Inc., Class A | 104,195 | 59,138,998 |
| Tencent Holdings Ltd. (China) | 361,500 | 18,849,365 |
| | | | 116,842,311 |
| Life Sciences Tools & Services–5.95% |
| Lonza Group AG (Switzerland) | 21,126 | 12,999,420 |
| Thermo Fisher Scientific, Inc. | 36,982 | 20,204,006 |
| | | | 33,203,426 |
| Movies & Entertainment–1.93% |
| Netflix, Inc.(b) | 14,238 | 10,764,355 |
| Passenger Ground Transportation–4.11% |
| Uber Technologies, Inc.(b) | 318,572 | 22,953,113 |
| Pharmaceuticals–5.25% |
| Eli Lilly and Co. | 14,007 | 11,622,168 |
| | Shares | Value |
| Pharmaceuticals–(continued) |
| Novo Nordisk A/S, Class B (Denmark) | 157,538 | $17,670,248 |
| | | | 29,292,416 |
| Semiconductor Materials & Equipment–2.61% |
| ASML Holding N.V. (Taiwan) | 17,115 | 11,520,638 |
| BE Semiconductor Industries N.V. (Netherlands) | 28,657 | 3,050,426 |
| | | | 14,571,064 |
| Semiconductors–5.87% |
| Broadcom, Inc. | 36,972 | 6,276,737 |
| Marvell Technology, Inc. | 143,113 | 11,464,782 |
| NVIDIA Corp. | 86,390 | 11,469,136 |
| NXP Semiconductors N.V. (China) | 9,523 | 2,233,144 |
| QUALCOMM, Inc. | 8,264 | 1,345,131 |
| | | | 32,788,930 |
| Specialty Chemicals–0.69% |
| Symrise AG (Germany) | 32,018 | 3,852,746 |
| Systems Software–8.33% |
| CrowdStrike Holdings, Inc., Class A(b) | 57,012 | 16,925,152 |
| Microsoft Corp. | 13,683 | 5,560,087 |
| ServiceNow, Inc.(b) | 25,738 | 24,013,297 |
| | | | 46,498,536 |
| Transaction & Payment Processing Services–8.80% |
| Adyen N.V. (Netherlands)(b)(c) | 4,393 | 6,711,006 |
| Mastercard, Inc., Class A | 52,422 | 26,189,507 |
| Visa, Inc., Class A | 55,884 | 16,197,977 |
| | | | 49,098,490 |
| Total Common Stocks & Other Equity Interests (Cost $282,054,024) | 554,581,588 |
| Money Market Funds–0.53% |
| Invesco Government & Agency Portfolio, Institutional Class, 4.77%(d)(e)(f) | 1,034,474 | 1,034,474 |
| Invesco Treasury Portfolio, Institutional Class, 4.73%(d)(e)(f) | 1,921,165 | 1,921,165 |
| Total Money Market Funds (Cost $2,955,639) | 2,955,639 |
| TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)-99.90% (Cost $285,009,663) | | | 557,537,227 |
| Investments Purchased with Cash Collateral from Securities on Loan |
| Money Market Funds–0.59% |
Invesco Private Prime Fund, 4.99%(d)(e)(f)
(Cost $3,281,189) | 3,280,205 | 3,281,189 |
| TOTAL INVESTMENTS IN SECURITIES–100.49% (Cost $288,290,852) | 560,818,416 |
| OTHER ASSETS LESS LIABILITIES—(0.49)% | (2,748,141) |
| NET ASSETS–100.00% | $558,070,275 |
Investment Abbreviations:
| ADR | – American Depositary Receipt |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 2 | Invesco Global Focus Fund |
Notes to Schedule of Investments:
| (a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
| (b) | Non-income producing security. |
| (c) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The value of this security at October 31, 2024 represented 1.20% of the Fund’s Net Assets. |
| (d) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | Value
October 31, 2023 | Purchases
at Cost | Proceeds
from Sales | Change in
Unrealized
Appreciation
(Depreciation) | Realized
Gain
(Loss) | Value
October 31, 2024 | Dividend Income |
| Investments in Affiliated Money Market Funds: | | | | | | | |
| Invesco Government & Agency Portfolio, Institutional Class | $1,046,863 | $25,362,440 | $(25,374,829) | $- | $- | $1,034,474 | $24,189 |
| Invesco Liquid Assets Portfolio, Institutional Class | 747,833 | 13,342,802 | (14,090,823) | (151) | 339 | - | 15,455 |
| Invesco Treasury Portfolio, Institutional Class | 1,196,415 | 34,010,438 | (33,285,688) | - | - | 1,921,165 | 29,766 |
| Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
| Invesco Private Government Fund | - | 6,820,160 | (6,820,160) | - | - | - | 13,628* |
| Invesco Private Prime Fund | - | 18,179,130 | (14,897,307) | - | (634) | 3,281,189 | 36,749* |
| Total | $2,991,111 | $97,714,970 | $(94,468,807) | $(151) | $(295) | $6,236,828 | $119,787 |
| * | Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
| (e) | The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| (f) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 3 | Invesco Global Focus Fund |
Statement of Assets and Liabilities
October 31, 2024
| Assets: | |
Investments in unaffiliated securities, at value
(Cost $282,054,024) | $554,581,588 |
| Investments in affiliated money market funds, at value (Cost $6,236,828) | 6,236,828 |
| Cash | 100,000 |
| Foreign currencies, at value (Cost $61,108) | 61,242 |
| Receivable for: | |
| Investments sold | 431,854 |
| Fund shares sold | 108,559 |
| Dividends | 380,882 |
| Investment for trustee deferred compensation and retirement plans | 33,446 |
| Other assets | 49,002 |
| Total assets | 561,983,401 |
| Liabilities: | |
| Payable for: | |
| Fund shares reacquired | 300,353 |
| Collateral upon return of securities loaned | 3,281,189 |
| Accrued fees to affiliates | 241,937 |
| Accrued trustees’ and officers’ fees and benefits | 1,479 |
| Accrued other operating expenses | 54,722 |
| Trustee deferred compensation and retirement plans | 33,446 |
| Total liabilities | 3,913,126 |
| Net assets applicable to shares outstanding | $558,070,275 |
| Net assets consist of: | |
| Shares of beneficial interest | $281,514,999 |
| Distributable earnings | 276,555,276 |
| | $558,070,275 |
| Net Assets: |
| Class A | $305,448,431 |
| Class C | $24,515,068 |
| Class R | $31,492,874 |
| Class Y | $159,465,389 |
| Class R5 | $11,892 |
| Class R6 | $37,136,621 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 4,013,271 |
| Class C | 368,772 |
| Class R | 433,254 |
| Class Y | 2,013,391 |
| Class R5 | 153 |
| Class R6 | 458,845 |
| Class A: | |
| Net asset value per share | $76.11 |
Maximum offering price per share
(Net asset value of $76.11 ÷ 94.50%) | $80.54 |
| Class C: | |
| Net asset value and offering price per share | $66.48 |
| Class R: | |
| Net asset value and offering price per share | $72.69 |
| Class Y: | |
| Net asset value and offering price per share | $79.20 |
| Class R5: | |
| Net asset value and offering price per share | $77.73 |
| Class R6: | |
| Net asset value and offering price per share | $80.94 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 4 | Invesco Global Focus Fund |
Statement of Operations
For the year ended October 31, 2024
| Investment income: | |
| Interest | $15,222 |
| Dividends (net of foreign withholding taxes of $237,587) | 2,921,747 |
| Dividends from affiliated money market funds (includes net securities lending income of $2,368) | 71,778 |
| Foreign withholding tax claims | 66,201 |
| Total investment income | 3,074,948 |
| Expenses: | |
| Advisory fees | 4,446,698 |
| Administrative services fees | 82,154 |
| Custodian fees | 32,139 |
| Distribution fees: | |
| Class A | 753,512 |
| Class C | 273,615 |
| Class R | 161,638 |
| Transfer agent fees — A, C, R and Y | 764,405 |
| Transfer agent fees — R5 | 3 |
| Transfer agent fees — R6 | 11,697 |
| Trustees’ and officers’ fees and benefits | 27,032 |
| Registration and filing fees | 96,676 |
| Reports to shareholders | 122,754 |
| Professional services fees | 75,992 |
| Other | 25,761 |
| Total expenses | 6,874,076 |
| Less: Fees waived and/or expense offset arrangement(s) | (24,674) |
| Net expenses | 6,849,402 |
| Net investment income (loss) | (3,774,454) |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Unaffiliated investment securities | 35,292,067 |
| Affiliated investment securities | (295) |
| Foreign currencies | 11,825 |
| Forward foreign currency contracts | (966) |
| | 35,302,631 |
| Change in net unrealized appreciation (depreciation) of: | |
| Unaffiliated investment securities | 136,902,603 |
| Affiliated investment securities | (151) |
| Foreign currencies | 11,122 |
| | 136,913,574 |
| Net realized and unrealized gain | 172,216,205 |
| Net increase in net assets resulting from operations | $168,441,751 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 5 | Invesco Global Focus Fund |
Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| | 2024 | 2023 |
| Operations: | | |
| Net investment income (loss) | $(3,774,454) | $(4,072,870) |
| Net realized gain (loss) | 35,302,631 | (2,396,064) |
| Change in net unrealized appreciation | 136,913,574 | 108,167,018 |
| Net increase in net assets resulting from operations | 168,441,751 | 101,698,084 |
| Share transactions–net: | | |
| Class A | (31,176,453) | (5,772,182) |
| Class C | (7,536,435) | (4,092,133) |
| Class R | (4,921,942) | 409,007 |
| Class Y | (40,785,656) | (62,448,633) |
| Class R5 | 395 | (169) |
| Class R6 | (4,990,066) | (2,477,874) |
| Net increase (decrease) in net assets resulting from share transactions | (89,410,157) | (74,381,984) |
| Net increase in net assets | 79,031,594 | 27,316,100 |
| Net assets: | | |
| Beginning of year | 479,038,681 | 451,722,581 |
| End of year | $558,070,275 | $479,038,681 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 6 | Invesco Global Focus Fund |
Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| | Net asset
value,
beginning
of period | Net
investment
income
(loss)(a) | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Distributions
from net
realized
gains | Net asset
value, end
of period | Total
return(b) | Net assets,
end of period
(000’s omitted) | Ratio of
expenses
to average
net assets
with fee waivers
and/or
expenses
absorbed | Ratio of
expenses
to average net
assets without
fee waivers
and/or
expenses
absorbed | Ratio of net
investment
income
(loss)
to average
net assets | Portfolio
turnover (c) |
| Class A |
| Year ended 10/31/24 | $55.79 | $(0.51) | $20.83 | $20.32 | $— | $76.11 | 36.42% | $305,448 | 1.25% | 1.25% | (0.71)% | 13% |
| Year ended 10/31/23 | 45.11 | (0.48) | 11.16 | 10.68 | — | 55.79 | 23.68 | 247,965 | 1.28 | 1.28 | (0.86) | 9 |
| Year ended 10/31/22 | 85.76 | (0.51)(d) | (37.02) | (37.53) | (3.12) | 45.11 | (45.25) | 206,115 | 1.23 | 1.23 | (0.85)(d) | 25 |
| Year ended 10/31/21 | 72.26 | (0.84) | 17.88 | 17.04 | (3.54) | 85.76 | 24.30(e) | 414,186 | 1.18(e) | 1.18(e) | (1.03)(e) | 24 |
| Year ended 10/31/20 | 52.99 | (0.51) | 25.00 | 24.49 | (5.22) | 72.26 | 50.31(e) | 273,684 | 1.26(e) | 1.26(e) | (0.84)(e) | 43 |
| Class C |
| Year ended 10/31/24 | 49.10 | (0.92) | 18.30 | 17.38 | — | 66.48 | 35.40 | 24,515 | 2.00 | 2.00 | (1.46) | 13 |
| Year ended 10/31/23 | 40.00 | (0.80) | 9.90 | 9.10 | — | 49.10 | 22.75 | 23,898 | 2.03 | 2.03 | (1.61) | 9 |
| Year ended 10/31/22 | 77.00 | (0.89)(d) | (32.99) | (33.88) | (3.12) | 40.00 | (45.66) | 22,964 | 1.98 | 1.98 | (1.60)(d) | 25 |
| Year ended 10/31/21 | 65.69 | (1.31) | 16.16 | 14.85 | (3.54) | 77.00 | 23.36 | 70,996 | 1.94 | 1.94 | (1.79) | 24 |
| Year ended 10/31/20 | 48.95 | (0.88) | 22.84 | 21.96 | (5.22) | 65.69 | 49.20 | 73,587 | 2.01 | 2.02 | (1.59) | 43 |
| Class R |
| Year ended 10/31/24 | 53.41 | (0.66) | 19.94 | 19.28 | — | 72.69 | 36.10 | 31,493 | 1.50 | 1.50 | (0.96) | 13 |
| Year ended 10/31/23 | 43.29 | (0.60) | 10.72 | 10.12 | — | 53.41 | 23.38 | 26,757 | 1.53 | 1.53 | (1.11) | 9 |
| Year ended 10/31/22 | 82.63 | (0.64)(d) | (35.58) | (36.22) | (3.12) | 43.29 | (45.38) | 21,519 | 1.48 | 1.48 | (1.10)(d) | 25 |
| Year ended 10/31/21 | 69.91 | (1.02) | 17.28 | 16.26 | (3.54) | 82.63 | 23.99 | 39,611 | 1.44 | 1.44 | (1.29) | 24 |
| Year ended 10/31/20 | 51.54 | (0.65) | 24.24 | 23.59 | (5.22) | 69.91 | 49.95 | 22,854 | 1.52 | 1.52 | (1.10) | 43 |
| Class Y |
| Year ended 10/31/24 | 57.91 | (0.34) | 21.63 | 21.29 | — | 79.20 | 36.76 | 159,465 | 1.00 | 1.00 | (0.46) | 13 |
| Year ended 10/31/23 | 46.71 | (0.35) | 11.55 | 11.20 | — | 57.91 | 23.98 | 149,616 | 1.03 | 1.03 | (0.61) | 9 |
| Year ended 10/31/22 | 88.48 | (0.38)(d) | (38.27) | (38.65) | (3.12) | 46.71 | (45.11) | 174,208 | 0.98 | 0.98 | (0.60)(d) | 25 |
| Year ended 10/31/21 | 74.28 | (0.66) | 18.40 | 17.74 | (3.54) | 88.48 | 24.60 | 453,276 | 0.94 | 0.94 | (0.79) | 24 |
| Year ended 10/31/20 | 54.21 | (0.38) | 25.67 | 25.29 | (5.22) | 74.28 | 50.68 | 304,779 | 1.02 | 1.02 | (0.60) | 43 |
| Class R5 |
| Year ended 10/31/24 | 56.76 | (0.26) | 21.23 | 20.97 | — | 77.73 | 36.94 | 12 | 0.89 | 0.89 | (0.35) | 13 |
| Year ended 10/31/23 | 45.71 | (0.27) | 11.32 | 11.05 | — | 56.76 | 24.17 | 8 | 0.88 | 0.88 | (0.46) | 9 |
| Year ended 10/31/22 | 86.56 | (0.29)(d) | (37.44) | (37.73) | (3.12) | 45.71 | (45.05) | 7 | 0.85 | 0.85 | (0.47)(d) | 25 |
| Year ended 10/31/21 | 72.67 | (0.56) | 17.99 | 17.43 | (3.54) | 86.56 | 24.72 | 13 | 0.84 | 0.84 | (0.69) | 24 |
| Year ended 10/31/20 | 53.08 | (0.28) | 25.09 | 24.81 | (5.22) | 72.67 | 50.88 | 14 | 0.89 | 0.89 | (0.47) | 43 |
| Class R6 |
| Year ended 10/31/24 | 59.11 | (0.27) | 22.10 | 21.83 | — | 80.94 | 36.93 | 37,137 | 0.89 | 0.89 | (0.35) | 13 |
| Year ended 10/31/23 | 47.62 | (0.28) | 11.77 | 11.49 | — | 59.11 | 24.13 | 30,794 | 0.90 | 0.90 | (0.48) | 9 |
| Year ended 10/31/22 | 90.02 | (0.30)(d) | (38.98) | (39.28) | (3.12) | 47.62 | (45.04) | 26,910 | 0.85 | 0.85 | (0.47)(d) | 25 |
| Year ended 10/31/21 | 75.43 | (0.58) | 18.71 | 18.13 | (3.54) | 90.02 | 24.74 | 55,502 | 0.84 | 0.84 | (0.69) | 24 |
| Year ended 10/31/20 | 54.89 | (0.26) | 26.02 | 25.76 | (5.22) | 75.43 | 50.94 | 33,645 | 0.85 | 0.89 | (0.43) | 43 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| (d) | Net investment income per share and the ratio of net investment income to average net assets include significant dividends received during the year ended October 31, 2022. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $(0.60) and (1.00)%, $(0.98) and (1.75)%, $(0.73) and (1.25)%, $(0.47) and (0.75)%, $(0.38) and (0.62)%, $(0.39) and (0.62)% for Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively. |
| (e) | The total return, ratios of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.24% for the years ended October 31, 2021 and 2020, respectively. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 7 | Invesco Global Focus Fund |
Notes to Financial Statements
October 31, 2024
NOTE 1—Significant Accounting Policies
Invesco Global Focus Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is to seek capital appreciation.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges ("CDSC"). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the "Conversion Feature"). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
Effective after the close of business on September 30, 2024, Class R5 shares are closed to new investors.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
| A. | Security Valuations — Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| 8 | Invesco Global Focus Fund |
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
| C. | Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
| F. | Foreign Withholding Taxes – The Fund is subject to foreign withholding tax imposed by certain foreign countries in which the Fund may invest. Withholding taxes are incurred on certain foreign dividends and are accrued at the time the dividend is recognized based on applicable foreign tax laws. The Fund may file withholding tax refunds in certain jurisdictions to seek to recover a portion of amounts previously withheld. The Fund will record a receivable for such tax refunds based on several factors including; an assessment of a jurisdiction’s legal obligation to pay reclaims, administrative practices and payment history. Any receivables recorded will be shown under receivables for Foreign withholding tax claims on the Statement of Assets and Liabilities. There is no guarantee that the Fund will receive refunds applied for in a timely manner or at all. |
As a result of recent court rulings in certain countries across the European Union, tax refunds for previously withheld taxes on dividends earned in those countries have been received by investment companies. Any tax refund payments are reflected as Foreign withholding tax claims in the Statement of Operations, and any related interest is included in Interest income. The Fund may incur fees paid to third party providers that assist in the recovery of the tax reclaims. These fees are reflected on the Statement of Operations as Professional services fees, if any. In the event tax refunds received by the Fund during the fiscal year exceed the foreign withholding taxes paid by the Fund for the year, and the Fund previously passed foreign tax credits on to its shareholders, the Fund intends to enter into a closing agreement with the Internal Revenue Service in order to pay the associated liability on behalf of the Funds’ shareholders. For the year ended October 31, 2024, the Fund did not enter into any closing agreements.
| G. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| H. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
| I. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| J. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds |
| 9 | Invesco Global Focus Fund |
| | (collectively, "affiliated money market funds") and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the year ended October 31, 2024, the Fund paid the Adviser fees for securities lending agent services, which were less than $500. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
| K. | Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| L. | Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
| M. | Other Risks - Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic instability, uncertain trading markets and more governmental limitations on foreign investment than more developed markets. In addition, companies operating in emerging markets may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. As a result, information, including financial information, about such companies may be less available and reliable, which can impede the Fund’s ability to evaluate such companies. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably, and the ability to bring and enforce actions (including bankruptcy, confiscatory taxation, expropriation, nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets from the country, protectionist measures and practices such as share blocking), or to obtain information needed to pursue or enforce such actions, may be limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging market countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information. |
| 10 | Invesco Global Focus 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 $500 million | 0.800% |
| Next $500 million | 0.750% |
| Over $1 billion | 0.720% |
| * | The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser. |
For the year ended October 31, 2024, the effective advisory fee rate incurred by the Fund was 0.78%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the "Affiliated Sub-Advisers") the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has agreed, for an indefinite period, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 2.25%, 3.00%, 2.50%, 2.00%, 2.00% and 2.00%, respectively, of the Fund’s average daily net assets (the “boundary limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
Further, the Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $1,383.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2024, IDI advised the Fund that IDI retained $61,191 in front-end sales commissions from the sale of Class A shares and $668 and $1,619 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the year ended October 31, 2024, the Fund incurred $946 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3—Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s
| 11 | Invesco Global Focus Fund |
assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| | Level 1 | Level 2 | Level 3 | Total |
| Investments in Securities | | | | |
| Common Stocks & Other Equity Interests | $432,273,638 | $122,307,950 | $— | $554,581,588 |
| Money Market Funds | 2,955,639 | 3,281,189 | — | 6,236,828 |
| Total Investments | $435,229,277 | $125,589,139 | $— | $560,818,416 |
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 year ended October 31, 2024
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
| | Location of Gain (Loss) on
Statement of Operations |
| | Currency
Risk |
| Realized Gain (Loss): | |
| Forward foreign currency contracts | $(966) |
The table below summarizes the average notional value of derivatives held during the period.
| | Forward
Foreign Currency
Contracts |
| Average notional value | $1,460,028 |
NOTE 5—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $23,291.
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.
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NOTE 8—Distributions to Shareholders and Tax Components of Net Assets
| Tax Components of Net Assets at Period-End: |
| | 2024 |
| Undistributed long-term capital gain | $8,890,339 |
| Net unrealized appreciation — investments | 270,647,950 |
| Net unrealized appreciation (depreciation) — foreign currencies | (1,426) |
| Temporary book/tax differences | (26,530) |
| Late-Year ordinary loss deferral | (2,955,057) |
| Shares of beneficial interest | 281,514,999 |
| Total net assets | $558,070,275 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to wash sales and distributions.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund does not have a capital loss carryforward as of October 31, 2024.
NOTE 9—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2024 was $75,134,745 and $163,213,837, respectively. As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $275,353,784 |
| Aggregate unrealized (depreciation) of investments | (4,705,834) |
| Net unrealized appreciation of investments | $270,647,950 |
Cost of investments for tax purposes is $290,170,466.
NOTE 10—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of net operating losses, on October 31, 2024, undistributed net investment income (loss) was increased by $2,764,765, undistributed net realized gain was decreased by $11,825 and shares of beneficial interest was decreased by $2,752,940. This reclassification had no effect on the net assets of the Fund.
NOTE 11—Share Information
| | Summary of Share Activity |
| | Year ended
October 31, 2024(a) | | Year ended
October 31, 2023 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 466,666 | $33,469,124 | | 806,727 | $45,748,421 |
| Class C | 61,467 | 3,872,614 | | 127,854 | 6,432,559 |
| Class R | 78,756 | 5,453,510 | | 168,145 | 9,284,202 |
| Class Y | 250,926 | 18,841,324 | | 508,635 | 30,494,201 |
| Class R5 | 7 | 500 | | 65 | 4,000 |
| Class R6 | 119,906 | 9,032,808 | | 148,722 | 8,976,878 |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 49,861 | 3,602,191 | | 78,120 | 4,306,659 |
| Class C | (56,870) | (3,602,191) | | (88,419) | (4,306,659) |
| 13 | Invesco Global Focus Fund |
| | Summary of Share Activity |
| | Year ended
October 31, 2024(a) | | Year ended
October 31, 2023 |
| | Shares | Amount | | Shares | Amount |
| Reacquired: | | | | | |
| Class A | (948,115) | $(68,247,768) | | (1,009,360) | $(55,827,262) |
| Class C | (122,580) | (7,806,858) | | (126,821) | (6,218,033) |
| Class R | (146,480) | (10,375,452) | | (164,278) | (8,875,195) |
| Class Y | (821,103) | (59,626,980) | | (1,654,558) | (92,942,834) |
| Class R5 | (2) | (105) | | (65) | (4,169) |
| Class R6 | (182,004) | (14,022,874) | | (192,915) | (11,454,752) |
| Net increase (decrease) in share activity | (1,249,565) | $(89,410,157) | | (1,398,148) | $(74,381,984) |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 30% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
| 14 | Invesco Global Focus Fund |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM International Mutual Funds (Invesco International Mutual Funds) and Shareholders of Invesco Global Focus Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Invesco Global Focus Fund (one of the funds constituting AIM International Mutual Funds (Invesco International Mutual Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related statement of operations for the year ended October 31, 2024, the statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent and broker. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Houston, Texas
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
| 15 | Invesco Global Focus Fund |
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM International Mutual Funds (Invesco International Mutual Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Global Focus Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited and OppenheimerFunds, Inc. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees, that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an
independent written evaluation from the Senior Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy
and cybersecurity, including related testing. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
B. Fund Investment Performance
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the MSCI All Country World Growth Index (Index). The Board noted that performance of Class A shares of the Fund was in the first quintile of its performance universe for the one year period, the fifth quintile for the three year period and the third quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was above the performance of the Index for the one year period and below the performance of the Index for the three
| 16 | Invesco Global Focus Fund |
and five year periods. The Board considered that the Fund was created in connection with Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the “Transaction”) and that the Fund’s performance prior to the closing of the Transaction on May 24, 2019 is that of its predecessor fund. The Board considered that the Fund’s stock selection in, and overweight exposure to, certain sectors detracted from the Fund’s performance. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
C. Advisory and Sub-Advisory Fees and Fund Expenses
The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management and actual management fee rates for Class A shares of the Fund were each reasonably comparable to the median contractual management and actual management fee rates of funds in its expense group. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that the Fund’s total expense ratio was in the fourth quintile of its expense group and discussed with management reasons for such relative total expenses.
The Board noted that Invesco Advisers has voluntarily agreed to waive fees and/or limit expenses of the Fund for an indefinite period until further notice to the Board in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board also considered the fees charged by Invesco Advisers and its affiliates to other client accounts that are similarly managed. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to that provided by Invesco Advisers and its affiliates to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations. Invesco Advisers also advised the Board that many of the similarly managed client accounts have all-inclusive fee structures, which are not easily un-bundled.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.
D. Economies of Scale and Breakpoints
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the difficulty in calculating and measuring economies of scale at the individual fund level; noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund also shares in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
E. Profitability and Financial Resources
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
F. Collateral Benefits to Invesco Advisers and its Affiliates
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer
agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives from Invesco Advisers periodic reports that include a representation to the effect that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities Lending Governance Committee and its related responsibilities. The Board noted that to the extent the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for
| 17 | Invesco Global Focus Fund |
those services without obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending services provided to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such securities lending activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades were executed in compliance with rules under the federal securities laws and consistent with best execution obligations.
| 18 | Invesco Global Focus Fund |
Tax Information
Form 1099-DIV, Form 1042-S and other year–end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
| Federal and State Income Tax | |
| Qualified Dividend Income* | 0.00% |
| Corporate Dividends Received Deduction* | 0.00% |
| U.S. Treasury Obligations* | 0.00% |
| Qualified Business Income* | 0.00% |
| Business Interest Income* | 0.00% |
| * | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
| 19 | Invesco Global Focus Fund |
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Not applicable.
Proxy Disclosures for Open-End Management Investment Companies
Not applicable.
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
| 20 | Invesco Global Focus Fund |
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| SEC file number(s): 811-06463 and 033-44611 | Invesco Distributors, Inc. | O-GLF-NCSR |
| Annual Financial Statements and Other Information | October 31, 2024 |
Invesco Global Fund
Nasdaq:
A: OPPAX ■ C: OGLCX ■ R: OGLNX ■ Y: OGLYX ■ R5: GFDDX ■ R6: OGLIX
Schedule of Investments
October 31, 2024
| | Shares | Value |
| Common Stocks & Other Equity Interests–100.42% |
| Argentina–0.23% |
| Ciro Holding S.A.(a)(b) | 79,422,317,553 | $21,244,913 |
| Canada–0.57% |
| Canadian Pacific Kansas City Ltd. | 676,298 | 52,183,154 |
| China–3.52% |
| JD.com, Inc., ADR(c) | 6,478,091 | 263,140,056 |
| Tencent Holdings Ltd. | 1,159,100 | 60,437,896 |
| | | | 323,577,952 |
| Denmark–2.80% |
| Novo Nordisk A/S, Class B | 2,299,846 | 257,962,203 |
| France–6.68% |
| Airbus SE | 1,712,030 | 261,155,105 |
| Dassault Systemes SE | 886,284 | 30,333,214 |
| EssilorLuxottica S.A. | 349,818 | 82,052,569 |
| LVMH Moet Hennessy Louis Vuitton SE | 361,694 | 240,787,052 |
| | | | 614,327,940 |
| Germany–4.38% |
| Allianz SE | 178,922 | 56,325,576 |
| SAP SE | 1,484,523 | 346,613,681 |
| | | | 402,939,257 |
| India–6.88% |
| DLF Ltd. | 44,914,300 | 436,597,187 |
| HDFC Bank Ltd. | 2,157,058 | 44,337,700 |
| ICICI Bank Ltd., ADR | 5,015,935 | 152,534,583 |
| | | | 633,469,470 |
| Israel–0.98% |
| Nice Ltd., ADR(d) | 520,172 | 90,353,876 |
| Italy–1.22% |
| Brunello Cucinelli S.p.A. | 768,461 | 76,016,835 |
| Ferrari N.V. | 39,855 | 19,025,545 |
| Moncler S.p.A. | 311,299 | 17,294,988 |
| | | | 112,337,368 |
| Japan–4.65% |
| Capcom Co. Ltd. | 2,045,000 | 40,467,385 |
| Hoya Corp. | 343,400 | 45,944,848 |
| Keyence Corp. | 520,912 | 235,146,612 |
| TDK Corp. | 9,007,500 | 105,885,802 |
| | | | 427,444,647 |
| Netherlands–0.44% |
| BE Semiconductor Industries N.V. | 184,183 | 19,605,565 |
| Universal Music Group N.V. | 836,649 | 21,055,253 |
| | | | 40,660,818 |
| Spain–1.35% |
| Amadeus IT Group S.A. | 1,717,771 | 124,526,815 |
| Sweden–4.76% |
| Assa Abloy AB, Class B | 6,196,487 | 194,090,885 |
| | Shares | Value |
| Sweden–(continued) |
| Atlas Copco AB, Class A | 14,802,265 | $244,287,832 |
| | | | 438,378,717 |
| Switzerland–0.86% |
| Lonza Group AG | 129,201 | 79,500,993 |
| Taiwan–1.13% |
| ASML Holding N.V. | 155,111 | 104,410,028 |
| United States–59.97% |
| Adobe, Inc.(d) | 474,173 | 226,692,628 |
| Alphabet, Inc., Class A | 6,009,553 | 1,028,294,614 |
| Amazon.com, Inc.(d) | 729,381 | 135,956,618 |
| Analog Devices, Inc. | 1,844,382 | 411,500,068 |
| Avantor, Inc.(c)(d) | 556,276 | 12,443,894 |
| Boston Scientific Corp.(d) | 714,834 | 60,060,353 |
| Broadcom, Inc. | 490,697 | 83,305,630 |
| Danaher Corp. | 175,562 | 43,128,561 |
| Ecolab, Inc. | 168,790 | 41,476,767 |
| Eli Lilly and Co.(c) | 231,000 | 191,669,940 |
| Equifax, Inc.(c) | 579,175 | 153,492,958 |
| IDEXX Laboratories, Inc.(c)(d) | 71,597 | 29,134,251 |
| Illumina, Inc.(c)(d) | 115,814 | 16,693,430 |
| Intuit, Inc. | 493,313 | 301,068,924 |
| Intuitive Surgical, Inc.(d) | 261,302 | 131,654,400 |
| IQVIA Holdings, Inc.(d) | 400,033 | 82,334,792 |
| Lam Research Corp.(c) | 618,230 | 45,965,401 |
| Linde PLC | 63,721 | 29,066,334 |
| Marriott International, Inc., Class A(c) | 338,455 | 88,005,069 |
| Marvell Technology, Inc. | 2,652,557 | 212,496,341 |
| Meta Platforms, Inc., Class A | 1,459,509 | 828,388,118 |
| Microsoft Corp. | 486,218 | 197,574,684 |
| Netflix, Inc.(d) | 85,273 | 64,468,946 |
| NVIDIA Corp. | 2,535,790 | 336,651,480 |
| Phathom Pharmaceuticals, Inc.(c)(d) | 1,975,378 | 33,877,733 |
| QUALCOMM, Inc.(c) | 108,393 | 17,643,129 |
| S&P Global, Inc.(c) | 788,136 | 378,589,009 |
| Synopsys, Inc.(d) | 42,207 | 21,677,937 |
| Thermo Fisher Scientific, Inc. | 64,184 | 35,065,003 |
| TJX Cos., Inc. (The) | 173,274 | 19,585,160 |
| Visa, Inc., Class A | 839,996 | 243,472,841 |
| Zoetis, Inc. | 95,283 | 17,034,695 |
| | | | 5,518,469,708 |
| Total Common Stocks & Other Equity Interests (Cost $3,310,709,040) | 9,241,787,859 |
| Money Market Funds–0.05% |
| Invesco Government & Agency Portfolio, Institutional Class, 4.77%(a)(e) | 1,425,596 | 1,425,596 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| | Shares | Value |
| Money Market Funds–(continued) |
| Invesco Treasury Portfolio, Institutional Class, 4.73%(a)(e) | 2,647,536 | $2,647,536 |
| Total Money Market Funds (Cost $4,073,132) | 4,073,132 |
| TOTAL INVESTMENTS IN SECURITIES (excluding Investments purchased with cash collateral from securities on loan)-100.47% (Cost $3,314,782,172) | | | 9,245,860,991 |
| Investments Purchased with Cash Collateral from Securities on Loan |
| Money Market Funds–1.21% |
| Invesco Private Government Fund, 4.84%(a)(e)(f) | 32,979,192 | 32,979,192 |
| | Shares | Value |
| Money Market Funds–(continued) |
| Invesco Private Prime Fund, 4.99%(a)(e)(f) | 78,593,898 | $78,617,477 |
| Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $111,596,669) | 111,596,669 |
| TOTAL INVESTMENTS IN SECURITIES—101.68% (Cost $3,426,378,841) | 9,357,457,660 |
| OTHER ASSETS LESS LIABILITIES–(1.68)% | (154,684,247) |
| NET ASSETS–100.00% | $9,202,773,413 |
Investment Abbreviations:
| ADR | – American Depositary Receipt |
Notes to Schedule of Investments:
| (a) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | Value
October 31, 2023 | Purchases
at Cost | Proceeds
from Sales | Change in
Unrealized
Appreciation | Realized
Gain
(Loss) | Value
October 31, 2024 | Dividend Income |
| Investments in Affiliated Money Market Funds: | | | | | | | |
| Invesco Government & Agency Portfolio, Institutional Class | $227,675 | $122,816,191 | $(121,618,270) | $- | $- | $1,425,596 | $64,562 |
| Invesco Liquid Assets Portfolio, Institutional Class | 162,637 | 47,689,313 | (47,851,591) | - | (359) | - | 20,033 |
| Invesco Treasury Portfolio, Institutional Class | 260,200 | 188,289,588 | (185,902,252) | - | - | 2,647,536 | 99,603 |
| Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
| Invesco Private Government Fund | 3,927,977 | 777,089,617 | (748,038,402) | - | - | 32,979,192 | 1,701,919* |
| Invesco Private Prime Fund | 10,111,019 | 1,613,073,544 | (1,544,530,150) | - | (36,936) | 78,617,477 | 4,558,752* |
| Investments in Other Affiliates: | | | | | | | |
| Ciro Holding S.A.** | 28,521,445 | - | - | 11,456,134 | (18,732,666) | 21,244,913 | - |
| Total | $43,210,953 | $2,748,958,253 | $(2,647,940,665) | $11,456,134 | $(18,769,961) | $136,914,714 | $6,444,869 |
| * | 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. |
| ** | Formerly known as Reservas de Maternidad - Swiss Medical. |
| (b) | Security valued using significant unobservable inputs (Level 3). See Note 3. |
| (c) | All or a portion of this security was out on loan at October 31, 2024. |
| (d) | Non-income producing security. |
| (e) | The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| (f) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Statement of Assets and Liabilities
October 31, 2024
| Assets: | |
Investments in unaffiliated securities, at value
(Cost $3,299,051,706)* | $9,220,542,946 |
Investments in affiliates, at value
(Cost $127,327,135) | 136,914,714 |
| Cash | 7,000,000 |
| Foreign currencies, at value (Cost $737,608) | 738,386 |
| Receivable for: | |
| Investments sold | 2,748 |
| Fund shares sold | 1,022,100 |
| Dividends | 5,694,544 |
| Foreign withholding tax claims | 3,823,656 |
| Investment for trustee deferred compensation and retirement plans | 1,014,704 |
| Other assets | 76,229 |
| Total assets | 9,376,830,027 |
| Liabilities: | |
| Payable for: | |
| Fund shares reacquired | 5,625,407 |
| Accrued foreign taxes | 48,027,127 |
| Collateral upon return of securities loaned | 111,596,669 |
| Accrued fees to affiliates | 3,703,890 |
| Accrued trustees’ and officers’ fees and benefits | 562,047 |
| Accrued other operating expenses | 497,517 |
| IRS closing agreement fees for foreign withholding tax claims | 3,017,999 |
| Trustee deferred compensation and retirement plans | 1,025,958 |
| Total liabilities | 174,056,614 |
| Net assets applicable to shares outstanding | $9,202,773,413 |
| Net assets consist of: | |
| Shares of beneficial interest | $2,435,042,636 |
| Distributable earnings | 6,767,730,777 |
| | $9,202,773,413 |
| Net Assets: |
| Class A | $6,108,659,968 |
| Class C | $121,722,202 |
| Class R | $184,912,103 |
| Class Y | $1,335,411,167 |
| Class R5 | $10,584,204 |
| Class R6 | $1,441,483,769 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 59,566,580 |
| Class C | 1,448,295 |
| Class R | 1,851,816 |
| Class Y | 12,797,441 |
| Class R5 | 100,774 |
| Class R6 | 13,689,914 |
| Class A: | |
| Net asset value per share | $102.55 |
Maximum offering price per share
(Net asset value of $102.55 ÷ 94.50%) | $108.52 |
| Class C: | |
| Net asset value and offering price per share | $84.05 |
| Class R: | |
| Net asset value and offering price per share | $99.85 |
| Class Y: | |
| Net asset value and offering price per share | $104.35 |
| Class R5: | |
| Net asset value and offering price per share | $105.03 |
| Class R6: | |
| Net asset value and offering price per share | $105.30 |
| * | At October 31, 2024, securities with an aggregate value of $109,277,865 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Statement of Operations
For the year ended October 31, 2024
| Investment income: | |
| Interest | $4,573,534 |
| Dividends (net of foreign withholding taxes of $6,096,187) | 72,057,507 |
| Dividends from affiliated money market funds (includes net securities lending income of $853,741) | 1,037,939 |
| Foreign withholding tax claims | 18,113,434 |
| Less: IRS closing agreement fees for foreign withholding tax claims | (3,017,999) |
| Total investment income | 92,764,415 |
| Expenses: | |
| Advisory fees | 59,707,644 |
| Administrative services fees | 1,329,724 |
| Custodian fees | 970,666 |
| Distribution fees: | |
| Class A | 14,146,792 |
| Class C | 1,305,706 |
| Class R | 928,180 |
| Transfer agent fees — A, C, R and Y | 10,261,782 |
| Transfer agent fees — R5 | 5,376 |
| Transfer agent fees — R6 | 434,872 |
| Trustees’ and officers’ fees and benefits | 267,650 |
| Registration and filing fees | 179,050 |
| Reports to shareholders | 666,516 |
| Professional services fees | 196,474 |
| Other | 158,732 |
| Total expenses | 90,559,164 |
| Less: Fees waived and/or expense offset arrangement(s) | (247,111) |
| Net expenses | 90,312,053 |
| Net investment income | 2,452,362 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Unaffiliated investment securities (net of foreign taxes of $8,760,692) | 1,027,560,583 |
| Affiliated investment securities | (18,769,961) |
| Foreign currencies | 2,734,547 |
| | 1,011,525,169 |
| Change in net unrealized appreciation of: | |
| Unaffiliated investment securities (net of foreign taxes of $26,041,536) | 1,590,011,916 |
| Affiliated investment securities | 11,456,134 |
| Foreign currencies | 88,458 |
| | 1,601,556,508 |
| Net realized and unrealized gain | 2,613,081,677 |
| Net increase in net assets resulting from operations | $2,615,534,039 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| | 2024 | 2023 |
| Operations: | | |
| Net investment income | $2,452,362 | $2,475,783 |
| Net realized gain | 1,011,525,169 | 790,629,381 |
| Change in net unrealized appreciation | 1,601,556,508 | 787,014,903 |
| Net increase in net assets resulting from operations | 2,615,534,039 | 1,580,120,067 |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (571,159,610) | (589,886,821) |
| Class C | (15,496,785) | (18,183,402) |
| Class R | (17,759,400) | (18,897,610) |
| Class Y | (127,890,291) | (170,490,867) |
| Class R5 | (1,061,940) | (889,028) |
| Class R6 | (137,236,150) | (195,083,841) |
| Total distributions from distributable earnings | (870,604,176) | (993,431,569) |
| Share transactions–net: | | |
| Class A | (131,171,622) | 213,331,287 |
| Class C | (17,379,610) | (11,002,979) |
| Class R | (3,543,593) | 2,390,554 |
| Class Y | (96,501,720) | (342,022,486) |
| Class R5 | (788,776) | 1,578,614 |
| Class R6 | (94,909,133) | (384,588,279) |
| Net increase (decrease) in net assets resulting from share transactions | (344,294,454) | (520,313,289) |
| Net increase in net assets | 1,400,635,409 | 66,375,209 |
| Net assets: | | |
| Beginning of year | 7,802,138,004 | 7,735,762,795 |
| End of year | $9,202,773,413 | $7,802,138,004 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| | Net asset
value,
beginning
of period | Net
investment
income
(loss)(a) | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Dividends
from net
investment
income | Distributions
from net
realized
gains | Total
distributions | Net asset
value, end
of period | Total
return(b) | Net assets,
end of period
(000’s omitted) | Ratio of
expenses
to average
net assets
with fee waivers
and/or
expenses
absorbed | Ratio of
expenses
to average net
assets without
fee waivers
and/or
expenses
absorbed | Ratio of net
investment
income
(loss)
to average
net assets | Portfolio
turnover (c) |
| Class A |
| Year ended 10/31/24 | $84.62 | $(0.04) | $27.59 | $27.55 | $— | $(9.62) | $(9.62) | $102.55 | 34.55%(d) | $6,108,660 | 1.05%(d) | 1.05%(d) | (0.05)%(d) | 7% |
| Year ended 10/31/23 | 79.63 | (0.05) | 15.59 | 15.54 | — | (10.55) | (10.55) | 84.62 | 20.54(d) | 5,099,198 | 1.06(d) | 1.06(d) | (0.05)(d) | 7 |
| Year ended 10/31/22 | 135.11 | (0.10) | (46.46) | (46.56) | — | (8.92) | (8.92) | 79.63 | (36.79)(d) | 4,538,019 | 1.04(d) | 1.04(d) | (0.09)(d) | 9 |
| Year ended 10/31/21 | 101.84 | (0.52) | 40.40 | 39.88 | — | (6.61) | (6.61) | 135.11 | 40.51(d) | 8,073,179 | 1.03(d) | 1.03(d) | (0.42)(d) | 7 |
| Year ended 10/31/20 | 90.42 | (0.23) | 12.95 | 12.72 | (0.51) | (0.79) | (1.30) | 101.84 | 14.17 | 6,256,292 | 1.06 | 1.06 | (0.25) | 8 |
| Class C |
| Year ended 10/31/24 | 71.35 | (0.66) | 22.98 | 22.32 | — | (9.62) | (9.62) | 84.05 | 33.52 | 121,722 | 1.82 | 1.82 | (0.82) | 7 |
| Year ended 10/31/23 | 69.09 | (0.59) | 13.40 | 12.81 | — | (10.55) | (10.55) | 71.35 | 19.61 | 117,135 | 1.83 | 1.83 | (0.82) | 7 |
| Year ended 10/31/22 | 119.28 | (0.77) | (40.50) | (41.27) | — | (8.92) | (8.92) | 69.09 | (37.26) | 122,529 | 1.81 | 1.81 | (0.86) | 9 |
| Year ended 10/31/21 | 91.23 | (1.30) | 35.96 | 34.66 | — | (6.61) | (6.61) | 119.28 | 39.44 | 248,647 | 1.80 | 1.80 | (1.19) | 7 |
| Year ended 10/31/20 | 81.75 | (0.85) | 11.63 | 10.78 | (0.51) | (0.79) | (1.30) | 91.23 | 13.28 | 243,600 | 1.83 | 1.83 | (1.02) | 8 |
| Class R |
| Year ended 10/31/24 | 82.82 | (0.30) | 26.95 | 26.65 | — | (9.62) | (9.62) | 99.85 | 34.17 | 184,912 | 1.32 | 1.32 | (0.32) | 7 |
| Year ended 10/31/23 | 78.33 | (0.27) | 15.31 | 15.04 | — | (10.55) | (10.55) | 82.82 | 20.21 | 154,644 | 1.33 | 1.33 | (0.32) | 7 |
| Year ended 10/31/22 | 133.38 | (0.36) | (45.77) | (46.13) | — | (8.92) | (8.92) | 78.33 | (36.95) | 142,467 | 1.31 | 1.31 | (0.36) | 9 |
| Year ended 10/31/21 | 100.86 | (0.84) | 39.97 | 39.13 | — | (6.61) | (6.61) | 133.38 | 40.16 | 247,549 | 1.30 | 1.30 | (0.69) | 7 |
| Year ended 10/31/20 | 89.81 | (0.48) | 12.83 | 12.35 | (0.51) | (0.79) | (1.30) | 100.86 | 13.85 | 197,067 | 1.33 | 1.33 | (0.52) | 8 |
| Class Y |
| Year ended 10/31/24 | 85.77 | 0.19 | 28.01 | 28.20 | — | (9.62) | (9.62) | 104.35 | 34.86 | 1,335,411 | 0.82 | 0.82 | 0.18 | 7 |
| Year ended 10/31/23 | 80.42 | 0.16 | 15.74 | 15.90 | — | (10.55) | (10.55) | 85.77 | 20.82 | 1,168,865 | 0.83 | 0.83 | 0.18 | 7 |
| Year ended 10/31/22 | 136.06 | 0.14 | (46.86) | (46.72) | — | (8.92) | (8.92) | 80.42 | (36.63) | 1,405,313 | 0.81 | 0.81 | 0.14 | 9 |
| Year ended 10/31/21 | 102.29 | (0.23) | 40.61 | 40.38 | — | (6.61) | (6.61) | 136.06 | 40.84 | 2,713,045 | 0.80 | 0.80 | (0.19) | 7 |
| Year ended 10/31/20 | 90.61 | (0.01) | 12.99 | 12.98 | (0.51) | (0.79) | (1.30) | 102.29 | 14.42 | 2,093,441 | 0.83 | 0.83 | (0.02) | 8 |
| Class R5 |
| Year ended 10/31/24 | 86.21 | 0.27 | 28.17 | 28.44 | — | (9.62) | (9.62) | 105.03 | 34.97 | 10,584 | 0.74 | 0.74 | 0.26 | 7 |
| Year ended 10/31/23 | 80.72 | 0.23 | 15.81 | 16.04 | — | (10.55) | (10.55) | 86.21 | 20.93 | 9,306 | 0.74 | 0.74 | 0.27 | 7 |
| Year ended 10/31/22 | 136.38 | 0.21 | (46.95) | (46.74) | — | (8.92) | (8.92) | 80.72 | (36.56) | 7,132 | 0.69 | 0.69 | 0.26 | 9 |
| Year ended 10/31/21 | 102.39 | (0.06) | 40.66 | 40.60 | — | (6.61) | (6.61) | 136.38 | 41.03 | 16 | 0.66 | 0.66 | (0.05) | 7 |
| Year ended 10/31/20 | 90.55 | 0.14 | 13.00 | 13.14 | (0.51) | (0.79) | (1.30) | 102.39 | 14.62 | 12 | 0.68 | 0.68 | 0.13 | 8 |
| Class R6 |
| Year ended 10/31/24 | 86.39 | 0.29 | 28.24 | 28.53 | — | (9.62) | (9.62) | 105.30 | 34.99 | 1,441,484 | 0.72 | 0.72 | 0.28 | 7 |
| Year ended 10/31/23 | 80.86 | 0.25 | 15.83 | 16.08 | — | (10.55) | (10.55) | 86.39 | 20.94 | 1,252,990 | 0.72 | 0.72 | 0.29 | 7 |
| Year ended 10/31/22 | 136.59 | 0.26 | (47.07) | (46.81) | — | (8.92) | (8.92) | 80.86 | (36.56) | 1,520,303 | 0.69 | 0.69 | 0.26 | 9 |
| Year ended 10/31/21 | 102.54 | (0.07) | 40.73 | 40.66 | — | (6.61) | (6.61) | 136.59 | 41.02 | 2,629,798 | 0.66 | 0.66 | (0.05) | 7 |
| Year ended 10/31/20 | 90.69 | 0.13 | 13.02 | 13.15 | (0.51) | (0.79) | (1.30) | 102.54 | 14.61 | 1,934,295 | 0.68 | 0.68 | 0.13 | 8 |
| (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, 2023, the portfolio turnover calculation excludes the value of securities purchased of $580,042,718 in connection with the acquisition of Invesco Global Growth Fund into the Fund. |
| (d) | The total return, ratios of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.23% for the years ended October 31, 2024, 2023, 2022 and 2021, respectively. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
Notes to Financial Statements
October 31, 2024
NOTE 1—Significant Accounting Policies
Invesco Global Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is to seek capital appreciation.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges ("CDSC"). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the "Conversion Feature"). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
Effective after the close of business on September 30, 2024, Class R5 shares are closed to new investors.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
| A. | Security Valuations — Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
| C. | Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
| F. | Foreign Withholding Taxes – The Fund is subject to foreign withholding tax imposed by certain foreign countries in which the Fund may invest. Withholding taxes are incurred on certain foreign dividends and are accrued at the time the dividend is recognized based on applicable foreign tax laws. The Fund may file withholding tax refunds in certain jurisdictions to seek to recover a portion of amounts previously withheld. The Fund will record a receivable for such tax refunds based on several factors including; an assessment of a jurisdiction’s legal obligation to pay reclaims, administrative practices and payment history. Any receivables recorded will be shown under receivables for Foreign withholding tax claims on the Statement of Assets and Liabilities. There is no guarantee that the Fund will receive refunds applied for in a timely manner or at all. |
As a result of recent court rulings in certain countries across the European Union, tax refunds for previously withheld taxes on dividends earned in those countries have been received by investment companies. Any tax refund payments are reflected as Foreign withholding tax claims in the Statement of Operations, and any related interest is included in Interest income. The Fund may incur fees paid to third party providers that assist in the recovery of the tax reclaims. These fees are reflected on the Statement of Operations as Professional services fees, if any. In the event tax refunds received by the Fund during the fiscal year exceed the foreign withholding taxes paid by the Fund for the year, and the Fund previously passed foreign tax credits on to its shareholders, the Fund intends to enter into a closing agreement with the Internal Revenue Service in order to pay the associated liability on behalf of the Funds’ shareholders. For the year ended October 31, 2024, the Fund received refunds in excess of the foreign tax paid during the year and has recorded the estimated liability as a reduction to income which is reflected as IRS closing agreement fees for foreign withholding tax claims on the Statement of Operations.
| G. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| H. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
| I. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| J. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in |
| | short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds (collectively, "affiliated money market funds") and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the year ended October 31, 2024, the Fund paid the Adviser $66,629 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliates on the Statement of Operations.
| K. | Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| L. | Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
| M. | Other Risks - Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic instability, uncertain trading markets and more governmental limitations on foreign investment than more developed markets. In addition, companies operating in emerging markets may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. As a result, information, including financial information, about such companies may be less available and reliable, which can impede the Fund’s ability to evaluate such companies. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably, and the ability to bring and enforce actions (including bankruptcy, confiscatory taxation, expropriation, nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets from the country, protectionist measures and practices such as share blocking), or to obtain information needed to pursue or enforce such actions, may be limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging market countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information. |
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 | 0.800% |
| Next $250 million | 0.770% |
| Next $500 million | 0.750% |
| Next $1 billion | 0.690% |
| Next $1.5 billion | 0.670% |
| Next $2.5 billion | 0.650% |
| Next $2.5 billion | 0.630% |
| Next $2.5 billion | 0.600% |
| Next $4 billion | 0.580% |
| Next $8 billion | 0.560% |
| Over $23 billion | 0.540% |
| * | The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser. |
For the year ended October 31, 2024, the effective advisory fee rate incurred by the Fund was 0.65%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the "Affiliated Sub-Advisers") the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has agreed, for an indefinite period, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 2.25%, 3.00%, 2.50%, 2.00%, 2.00% and 2.00%, respectively, of the Fund’s average daily net assets (the “boundary limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
Further, the Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $3,668.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2024, IDI advised the Fund that IDI retained $232,598 in front-end sales commissions from the sale of Class A shares and $2,518 and $4,032 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the year ended October 31, 2024, the Fund incurred $4,126 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3—Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when
market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| | Level 1 | Level 2 | Level 3 | Total |
| Investments in Securities | | | | |
| Argentina | $— | $— | $21,244,913 | $21,244,913 |
| Canada | 52,183,154 | — | — | 52,183,154 |
| China | 263,140,056 | 60,437,896 | — | 323,577,952 |
| Denmark | — | 257,962,203 | — | 257,962,203 |
| France | — | 614,327,940 | — | 614,327,940 |
| Germany | — | 402,939,257 | — | 402,939,257 |
| India | 152,534,583 | 480,934,887 | — | 633,469,470 |
| Israel | 90,353,876 | — | — | 90,353,876 |
| Italy | — | 112,337,368 | — | 112,337,368 |
| Japan | — | 427,444,647 | — | 427,444,647 |
| Netherlands | — | 40,660,818 | — | 40,660,818 |
| Spain | — | 124,526,815 | — | 124,526,815 |
| Sweden | — | 438,378,717 | — | 438,378,717 |
| Switzerland | — | 79,500,993 | — | 79,500,993 |
| Taiwan | — | 104,410,028 | — | 104,410,028 |
| United States | 5,518,469,708 | — | — | 5,518,469,708 |
| Money Market Funds | 4,073,132 | 111,596,669 | — | 115,669,801 |
| Total Investments | $6,080,754,509 | $3,255,458,238 | $21,244,913 | $9,357,457,660 |
NOTE 4—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $243,443.
NOTE 5—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
NOTE 6—Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 7—Distributions to Shareholders and Tax Components of Net Assets
| Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023: |
| | 2024 | 2023 |
| Long-term capital gain | $870,604,176 | $993,431,569 |
| Tax Components of Net Assets at Period-End: |
| | 2024 |
| Undistributed long-term capital gain | $985,718,995 |
| Net unrealized appreciation — investments | 5,882,582,481 |
| Net unrealized appreciation (depreciation) — foreign currencies | (440,782) |
| Temporary book/tax differences | (1,448,612) |
| Late-Year ordinary loss deferral | (206,264) |
| Capital loss carryforward | (98,475,041) |
| Shares of beneficial interest | 2,435,042,636 |
| Total net assets | $9,202,773,413 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to wash sales.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund has a capital loss carryforward as of October 31, 2024, as follows:
| Capital Loss Carryforward* |
| Expiration | Short-Term | Long-Term | Total |
| Not subject to expiration | $16,077,238 | $82,397,803 | $98,475,041 |
| * | Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
NOTE 8—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2024 was $653,056,648 and $1,865,555,202, respectively. As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $6,006,260,363 |
| Aggregate unrealized (depreciation) of investments | (123,677,882) |
| Net unrealized appreciation of investments | $5,882,582,481 |
Cost of investments for tax purposes is $3,474,875,179.
NOTE 9—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of foreign currency transactions, foreign capital gains taxes, equalization and net operating losses, on October 31, 2024, undistributed net investment income was decreased by $2,795,614, undistributed net realized gain was decreased by $5,056,549 and shares of beneficial interest was increased by $7,852,163. This reclassification had no effect on the net assets of the Fund.
NOTE 10—Share Information
| | Summary of Share Activity |
| | Year ended
October 31, 2024(a) | | Year ended
October 31, 2023 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 2,390,672 | $233,195,592 | | 2,368,224 | $202,165,910 |
| Class C | 168,882 | 13,659,078 | | 178,803 | 12,954,616 |
| Class R | 254,855 | 24,313,583 | | 244,691 | 20,588,467 |
| Class Y | 1,585,605 | 157,476,154 | | 2,065,695 | 179,124,098 |
| Class R5 | 11,098 | 1,063,229 | | 20,128 | 1,736,814 |
| Class R6 | 1,683,247 | 169,332,966 | | 2,000,432 | 175,551,005 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 6,183,134 | 540,282,065 | | 6,958,562 | 546,525,437 |
| Class C | 212,218 | 15,298,852 | | 264,391 | 17,626,964 |
| Class R | 207,490 | 17,694,688 | | 244,159 | 18,812,469 |
| Class Y | 1,277,123 | 113,319,104 | | 1,891,593 | 150,268,110 |
| Class R5 | 11,881 | 1,060,291 | | 11,125 | 887,783 |
| Class R6 | 1,520,600 | 136,017,676 | | 2,413,503 | 192,959,584 |
| | Summary of Share Activity |
| | Year ended
October 31, 2024(a) | | Year ended
October 31, 2023 |
| | Shares | Amount | | Shares | Amount |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 209,738 | $20,355,491 | | 245,439 | $20,848,439 |
| Class C | (254,345) | (20,355,491) | | (289,810) | (20,848,439) |
| Issued in connection with acquisitions:(b) | | | | | |
| Class A | - | - | | 5,602,786 | 453,714,248 |
| Class C | - | - | | 113,708 | 7,806,679 |
| Class Y | - | - | | 199,215 | 16,324,792 |
| Class R5 | - | - | | 5,997 | 493,612 |
| Class R6 | - | - | | 38,915 | 3,209,638 |
| Reacquired: | | | | | |
| Class A | (9,478,648) | (925,004,770) | | (11,899,292) | (1,009,922,747) |
| Class C | (320,141) | (25,982,049) | | (398,939) | (28,542,799) |
| Class R | (477,874) | (45,551,864) | | (440,391) | (37,010,382) |
| Class Y | (3,692,906) | (367,296,978) | | (8,003,139) | (687,739,486) |
| Class R5 | (30,151) | (2,912,296) | | (17,649) | (1,539,595) |
| Class R6 | (4,016,983) | (400,259,775) | | (8,752,110) | (756,308,506) |
| Net increase (decrease) in share activity | (2,554,505) | $(344,294,454) | | (4,933,964) | $(520,313,289) |
| (a) | There is an entity that is a record owner of more than 5% of the outstanding shares of the Fund and owns 5% of the outstanding shares of the Fund. IDI has an agreement with this entity to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to this entity, which is considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by this entity are also owned beneficially. |
| (b) | After the close of business on February 10, 2023, the Fund acquired all the net assets of Invesco Global Growth Fund (the “Target Fund”) pursuant to a plan of reorganization approved by the Board of Trustees of the Fund on September 20, 2022. The reorganization was executed in order to reduce overlap and increase efficiencies in the Adviser’s product line. The acquisition was accomplished by a tax-free exchange of 5,960,621 shares of the Fund for 35,248,894 shares outstanding of the Target Fund as of the close of business on February 10, 2023. Shares of the Target Fund were exchanged for the like class of shares of the Fund, based on the relative net asset value of the Target Fund to the net asset value of the Fund on the close of business, February 10, 2023. The Target Fund’s net assets as of the close of business on February 10, 2023 of $481,548,969, including $(101,789,047) of unrealized appreciation (depreciation), were combined with those of the Fund. The net assets of the Fund immediately before the acquisition were $8,276,255,502 and $8,757,804,471 immediately after the acquisition. |
| | The pro forma results of operations for the year ended October 31, 2023 assuming the reorganization had been completed on November 1, 2022, the beginning of the semi-annual reporting period are as follows: |
| Net investment income | $1,569,270 |
| Net realized/unrealized gains | 1,645,516,904 |
| Change in net assets resulting from operations | $1,647,086,174 |
As the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Target Fund that have been included in the Fund’s Statement of Operations since February 11, 2023.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM International Mutual Funds (Invesco International Mutual Funds) and Shareholders of Invesco Global Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Invesco Global Fund (one of the funds constituting AIM International Mutual Funds (Invesco International Mutual Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related statement of operations for the year ended October 31, 2024, the statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent and broker. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Houston, Texas
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM International Mutual Funds (Invesco International Mutual Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Global Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited and OppenheimerFunds, Inc. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees, that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an
independent written evaluation from the Senior Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy
and cybersecurity, including related testing. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
B. Fund Investment Performance
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the MSCI All Country World Growth Index (Index). The Board noted that performance of Class A shares of the Fund was in the first quintile of its performance universe for the one year period and the third quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was reasonably comparable to the performance of the Index for the one year period and below the performance of the Index for the three and five year
periods. The Board considered that the Fund was created in connection with Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the “Transaction”) and that the Fund’s performance prior to the closing of the Transaction on May 24, 2019 is that of its predecessor fund. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
C. Advisory and Sub-Advisory Fees and Fund Expenses
The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management and actual management fee rates for Class A shares of the Fund were reasonably comparable to and below, respectively, the median contractual management and actual management fee rates of funds in its expense group. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.
The Board noted that Invesco Advisers has voluntarily agreed to waive fees and/or limit expenses of the Fund for an indefinite period until further notice to the Board in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board also considered the fees charged by Invesco Advisers and its affiliates to other client accounts that are similarly managed. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to that provided by Invesco Advisers and its affiliates to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations. Invesco Advisers also advised the Board that many of the similarly managed client accounts have all-inclusive fee structures, which are not easily un-bundled.
The Board also compared the Fund’s effective advisory fee rate (defined for this purpose as the advisory fee rate before the application of advisory fee waivers/expense limitations) to the effective advisory fee rates of other similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2023.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.
D. Economies of Scale and Breakpoints
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the difficulty in calculating and measuring economies of scale at the individual fund level; noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund also shares in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
E. Profitability and Financial Resources
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
F. Collateral Benefits to Invesco Advisers and its Affiliates
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer
agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives from Invesco Advisers periodic reports that include a representation to the effect that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities Lending Governance Committee and its related responsibilities. The Board noted that to the extent the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for
those services without obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending services provided to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such securities lending activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades were executed in compliance with rules under the federal securities laws and consistent with best execution obligations.
Tax Information
Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
| Federal and State Income Tax | |
| Long-Term Capital Gain Distributions | $879,028,176 |
| Qualified Dividend Income* | 0.00% |
| Corporate Dividends Received Deduction* | 0.00% |
| U.S. Treasury Obligations* | 0.00% |
| Qualified Business Income* | 0.00% |
| Business Interest Income* | 0.00% |
| * | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Not applicable.
Proxy Disclosures for Open-End Management Investment Companies
Not applicable.
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
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| SEC file number(s): 811-06463 and 033-44611 | Invesco Distributors, Inc. | O-GLBL-NCSR |
Annual Financial Statements and Other InformationOctober 31, 2024
Invesco Global Opportunities Fund
A: OPGIX ■ C: OGICX ■ R: OGINX ■ Y: OGIYX ■ R5: GOFFX ■ R6: OGIIX
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| |
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| Notes to Financial Statements |
| Report of Independent Registered Public Accounting Firm |
| Approval of Investment Advisory and Sub-Advisory Contracts |
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| Other Information Required in Form N-CSR (Items 8-11) |
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Common Stocks & Other Equity Interests–96.76% |
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Novonesis (Novozymes) B, Class B | | |
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Gaztransport Et Technigaz S.A. | | |
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Carl Zeiss Meditec AG, BR | | |
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Brunello Cucinelli S.p.A. | | |
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Nomura Research Institute Ltd. | | |
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Fisher & Paykel Healthcare Corp. Ltd. | | |
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NICE Information Service Co. Ltd. | | |
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Partners Group Holding AG | | |
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Sonova Holding AG, Class A | | |
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Voltronic Power Technology Corp. | | |
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Bumrungrad Hospital PCL, Foreign Shares | | |
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Advanced Micro Devices, Inc.(a) | | |
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Align Technology, Inc.(a) | | |
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Builders FirstSource, Inc.(a) | | |
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Columbia Sportswear Co.(b) | | |
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Donnelley Financial Solutions, Inc.(a) | | |
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Hamilton Lane, Inc., Class A(b) | | |
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Jack Henry & Associates, Inc. | | |
Lincoln Electric Holdings, Inc.(b) | | |
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Manhattan Associates, Inc.(a) | | |
MarketAxess Holdings, Inc. | | |
New York Times Co. (The), Class A | | |
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Oxford Industries, Inc.(b) | | |
Packaging Corp. of America | | |
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RMR Group, Inc. (The), Class A | | |
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Simpson Manufacturing Co., Inc. | | |
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United Therapeutics Corp.(a) | | |
Victory Capital Holdings, Inc., Class A | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
2
Invesco Global Opportunities Fund
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United States–(continued) |
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WESCO International, Inc. | | |
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Total Common Stocks & Other Equity Interests (Cost $2,245,216,548) | |
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Invesco Government & Agency Portfolio, Institutional Class, 4.77%(c)(d) | | |
Invesco Treasury Portfolio, Institutional | | |
Total Money Market Funds (Cost $26,737,188) | |
TOTAL INVESTMENTS IN SECURITIES (excluding Investments purchased with cash collateral from securities on loan)-97.69% (Cost $2,271,953,736) | | | |
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Investments Purchased with Cash Collateral from Securities on Loan |
|
Invesco Private Government Fund, | | |
Invesco Private Prime Fund, 4.99%(c)(d)(e) | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $60,065,828) | |
TOTAL INVESTMENTS IN SECURITIES—99.77% (Cost $2,332,019,564) | |
OTHER ASSETS LESS LIABILITIES–0.23% | |
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Investment Abbreviations:
Notes to Schedule of Investments:
| Non-income producing security. |
| All or a portion of this security was out on loan at October 31, 2024. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in
Unrealized
Appreciation
(Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Invesco Liquid Assets Portfolio, Institutional Class | | | | | | | |
Invesco Treasury Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
Investments in Other Affiliates: | | | | | | | |
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| Represents the income earned on the investment of cash collateral, which is included in securities lending income on the Statement of Operations. Does not include rebates and fees paid to lending agent or premiums received from borrowers, if any. |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
3
Invesco Global Opportunities Fund
Statement of Assets and Liabilities
| |
Investments in unaffiliated securities, at value
(Cost $2,245,216,548)* | |
Investments in affiliated money market funds, at value (Cost $86,803,016) | |
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Foreign currencies, at value (Cost $54,823) | |
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Foreign withholding tax claims | |
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Investment for trustee deferred compensation and retirement plans | |
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Collateral upon return of securities loaned | |
Accrued fees to affiliates | |
Accrued trustees’ and officers’ fees and benefits | |
Accrued other operating expenses | |
Trustee deferred compensation and retirement plans | |
| |
Net assets applicable to shares outstanding | |
| |
Shares of beneficial interest | |
| |
| |
|
| |
| |
| |
| |
| |
| |
Shares outstanding, no par value, with an unlimited number of shares authorized: |
| |
| |
| |
| |
| |
| |
| |
Net asset value per share | |
Maximum offering price per share
(Net asset value of $48.99 ÷ 94.50%) | |
| |
Net asset value and offering price per share | |
| |
Net asset value and offering price per share | |
| |
Net asset value and offering price per share | |
| |
Net asset value and offering price per share | |
| |
Net asset value and offering price per share | |
| At October 31, 2024, securities with an aggregate value of $59,849,986 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
4
Invesco Global Opportunities Fund
Statement of Operations
For the year ended October 31, 2024
| |
| |
Dividends (net of foreign withholding taxes of $2,650,596) | |
Dividends from affiliates (includes net securities lending income of $18,439) | |
Foreign withholding tax claims | |
| |
| |
| |
Administrative services fees | |
| |
| |
| |
| |
| |
Transfer agent fees — A, C, R and Y | |
| |
| |
Trustees’ and officers’ fees and benefits | |
Registration and filing fees | |
| |
Professional services fees | |
| |
| |
Less: Fees waived and/or expense offset arrangement(s) | |
| |
| |
Realized and unrealized gain (loss) from: | |
Net realized gain (loss) from: | |
Unaffiliated investment securities (includes net gains (losses) from securities sold to affiliates of $(3,781,124)) | |
Affiliated investment securities | |
| |
Forward foreign currency contracts | |
| |
Change in net unrealized appreciation (depreciation) of: | |
Unaffiliated investment securities (net of foreign taxes of $427,924) | |
Affiliated investment securities | |
| |
| |
Net realized and unrealized gain | |
Net increase in net assets resulting from operations | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5
Invesco Global Opportunities Fund
Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| | |
| | |
Net investment income (loss) | | |
| | |
Change in net unrealized appreciation | | |
Net increase (decrease) in net assets resulting from operations | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Net increase (decrease) in net assets resulting from share transactions | | |
Net increase (decrease) in net assets | | |
| | |
| | |
| | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6
Invesco Global Opportunities Fund
Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| Net asset
value,
beginning
of period | | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Distributions
from net
realized
gains | Net asset
value, end
of period | | Net assets,
end of period
(000’s omitted) | Ratio of
expenses
to average
net assets
with fee waivers
and/or
expenses
absorbed | Ratio of
expenses
to average net
assets without
fee waivers
and/or
expenses
absorbed
| Ratio of net
investment
income
(loss)
to average
net assets | |
|
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
|
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
|
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
|
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
|
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
|
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Calculated using average shares outstanding. |
| Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| The total return, ratios of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.24% for the years ended October 31, 2024, 2023, 2022, 2021 and 2020, respectively. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7
Invesco Global Opportunities Fund
Notes to Financial Statements
NOTE 1—Significant Accounting Policies
Invesco Global Opportunities Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is to seek capital appreciation.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges ("CDSC"). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the "Conversion Feature"). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
Effective after the close of business on September 30, 2024, Class R5 shares are closed to new investors.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A.
Security Valuations — Securities, including restricted securities, are valued according to the following policy.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
8
Invesco Global Opportunities Fund
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B.
Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.
Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.
Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.
Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.
Foreign Withholding Taxes – The Fund is subject to foreign withholding tax imposed by certain foreign countries in which the Fund may invest. Withholding taxes are incurred on certain foreign dividends and are accrued at the time the dividend is recognized based on applicable foreign tax laws. The Fund may file withholding tax refunds in certain jurisdictions to seek to recover a portion of amounts previously withheld. The Fund will record a receivable for such tax refunds based on several factors including; an assessment of a jurisdiction’s legal obligation to pay reclaims, administrative practices and payment history. Any receivables recorded will be shown under receivables for Foreign withholding tax claims on the Statement of Assets and Liabilities. There is no guarantee that the Fund will receive refunds applied for in a timely manner or at all.
As a result of recent court rulings in certain countries across the European Union, tax refunds for previously withheld taxes on dividends earned in those countries have been received by investment companies. Any tax refund payments are reflected as Foreign withholding tax claims in the Statement of Operations, and any related interest is included in Interest income. The Fund may incur fees paid to third party providers that assist in the recovery of the tax reclaims. These fees are reflected on the Statement of Operations as Professional services fees, if any. In the event tax refunds received by the Fund during the fiscal year exceed the foreign withholding taxes paid by the Fund for the year, and the Fund previously passed foreign tax credits on to its shareholders, the Fund intends to enter into a closing agreement with the Internal Revenue Service in order to pay the associated liability on behalf of the Funds’ shareholders. For the year ended October 31, 2024, the Fund did not enter into any closing agreements.
G.
Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
H.
Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
I.
Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
J.
Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds
9
Invesco Global Opportunities Fund
(collectively, "affiliated money market funds") and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the year ended October 31, 2024, the Fund paid the Adviser $547 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
K.
Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
L.
Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
M.
Other Risks - Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic instability, uncertain trading markets and more governmental limitations on foreign investment than more developed markets. In addition, companies operating in emerging markets may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. As a result, information, including financial information, about such companies may be less available and reliable, which can impede the Fund’s ability to evaluate such companies. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably, and the ability to bring and enforce actions (including bankruptcy, confiscatory taxation, expropriation, nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets from the country, protectionist measures and practices such as share blocking), or to obtain information needed to pursue or enforce such actions, may be limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging market countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information.
10
Invesco Global Opportunities 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:
| The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser. |
For the year ended October 31, 2024, the effective advisory fee rate incurred by the Fund was 0.69%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the "Affiliated Sub-Advisers") the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has agreed, for an indefinite period, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 2.25%, 3.00%, 2.50%, 2.00%, 2.00% and 2.00%, respectively, of the Fund’s average daily net assets (the “boundary limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
Further, the Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $66,600.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2024, IDI advised the Fund that IDI retained $175,443 in front-end sales commissions from the sale of Class A shares and $23,078 and $9,114 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the year ended October 31, 2024, the Fund incurred $72,486 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.
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Invesco Global Opportunities 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. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
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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 year ended October 31, 2024
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
| Location of Gain (Loss) on
Statement of Operations |
| |
| |
Forward foreign currency contracts | |
The table below summarizes the average notional value of derivatives held during the period.
| Forward
Foreign Currency
Contracts |
| |
NOTE 5—Security Transactions with Affiliated Funds
The Fund is permitted to purchase securities from or sell securities to certain other affiliated funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund that is or could be considered an "affiliated person" by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers is made in reliance on Rule 17a-7 of the 1940 Act and, to the extent applicable, related SEC staff positions. Each such transaction is effected at the security’s "current market price", as provided for in these procedures and Rule 17a-7. Pursuant to these procedures, for the year ended October 31, 2024, the Fund engaged in securities purchases of $37,056,758 and securities sales of $8,136,864, which resulted in net realized gains (losses) of $(3,781,124).
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Invesco Global Opportunities Fund
NOTE 6—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $135,476.
NOTE 7—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 9—Distributions to Shareholders and Tax Components of Net Assets
There were no ordinary income or long-term capital gain distributions paid during the years ended October 31, 2024 and 2023.
Tax Components of Net Assets at Period-End: |
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Undistributed ordinary income | |
Net unrealized appreciation — investments | |
Net unrealized appreciation (depreciation) — foreign currencies | |
Temporary book/tax differences | |
Capital loss carryforward | |
Shares of beneficial interest | |
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The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to distributions.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund has a capital loss carryforward as of October 31, 2024, as follows:
Capital Loss Carryforward* |
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Not subject to expiration | | | |
*
Capital loss carryforward is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.
NOTE 10—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2024 was $1,989,460,347 and $2,959,480,598, respectively. As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
Aggregate unrealized appreciation of investments | |
Aggregate unrealized (depreciation) of investments | |
Net unrealized appreciation of investments | |
Cost of investments for tax purposes is $2,347,561,439.
NOTE 11—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of passive foreign investment companies and foreign currency transactions, on October 31, 2024, undistributed net investment income was increased by $2,513,330 and undistributed net realized gain (loss) was decreased by $2,513,330. This reclassification had no effect on the net assets or the distributable earnings of the Fund.
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Invesco Global Opportunities Fund
NOTE 12—Share Information
| Summary of Share Activity |
| | Year ended
October 31, 2023 |
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Automatic conversion of Class C shares to Class A shares: | | | | |
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| There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 30% 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. |
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Invesco Global Opportunities Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM International Mutual Funds (Invesco International Mutual Funds) and Shareholders of Invesco Global Opportunities Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Invesco Global Opportunities Fund (one of the funds constituting AIM International Mutual Funds (Invesco International Mutual Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related statement of operations for the year ended October 31, 2024, the statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent and broker. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
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Invesco Global Opportunities Fund
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM International Mutual Funds (Invesco International Mutual Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Global Opportunities Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited and OppenheimerFunds, Inc. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees, that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an
independent written evaluation from the Senior Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy
and cybersecurity, including related testing. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
B. Fund Investment Performance
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the MSCI All Country World Index (Index). The Board noted that performance of Class A shares of the Fund was in the third quintile of its performance universe for the one year period and the fifth quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was below the performance of the Index for the one, three and five year periods. The Board considered that the Fund was created in connection with Invesco Ltd.’s
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Invesco Global Opportunities Fund
acquisition of OppenheimerFunds, Inc. and its subsidiaries (the “Transaction”) and that the Fund’s performance prior to the closing of the Transaction on May 24, 2019 is that of its predecessor fund. The Board considered that the Fund’s stock selection in certain sectors and geographic regions detracted from Fund performance. The Board also considered that the Fund underwent a change in portfolio management and investment process in 2023. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
C. Advisory and Sub-Advisory Fees and Fund Expenses
The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management and actual management fee rates for Class A shares of the Fund were below and reasonably comparable to, respectively, the median contractual management and actual management fee rates of funds in its expense group. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.
The Board noted that Invesco Advisers has voluntarily agreed to waive fees and/or limit expenses of the Fund for an indefinite period until further notice to the Board in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board also considered the fees charged by Invesco Advisers and its affiliates to other client accounts that are similarly managed. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to that provided by Invesco Advisers and its affiliates to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations. Invesco Advisers also advised the Board that many of the similarly managed client accounts have all-inclusive fee structures, which are not easily un-bundled.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.
D. Economies of Scale and Breakpoints
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the difficulty in calculating and measuring economies of scale at the individual fund level; noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund also shares in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
E. Profitability and Financial Resources
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
F. Collateral Benefits to Invesco Advisers and its Affiliates
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the
performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives from Invesco Advisers periodic reports that include a representation to the effect that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities Lending Governance Committee and its related responsibilities. The Board noted that to the extent the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services without obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending
17
Invesco Global Opportunities Fund
services provided to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such securities lending activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades were executed in compliance with rules under the federal securities laws and consistent with best execution obligations.
18
Invesco Global Opportunities Fund
Tax Information
Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
Federal and State Income Tax | |
Qualified Dividend Income* | |
Corporate Dividends Received Deduction* | |
U.S. Treasury Obligations* | |
Qualified Business Income* | |
Business Interest Income* | |
*
The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.
19
Invesco Global Opportunities Fund
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Proxy Disclosures for Open-End Management Investment Companies
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
20
Invesco Global Opportunities Fund
SEC file number(s): 811-06463 and 033-44611
Invesco Distributors, Inc.
O-GLOPP-NCSR
| Annual Financial Statements and Other Information | October 31, 2024 |
Invesco International Small-Mid Company Fund
Nasdaq:
A: OSMAX ■ C: OSMCX ■ R: OSMNX ■ Y: OSMYX ■ R5: INSLX ■ R6: OSCIX
Schedule of Investments
October 31, 2024
| | Shares | Value |
| Common Stocks & Other Equity Interests–92.34% |
| Australia–2.15% |
| ALS Ltd. | 4,130,298 | $38,128,367 |
| Cochlear Ltd. | 188,306 | 34,862,683 |
| IPH Ltd. | 4,792,741 | 16,863,751 |
| | | | 89,854,801 |
| Austria–0.45% |
| Fabasoft AG(a) | 1,158,103 | 18,856,280 |
| Brazil–2.78% |
| Odontoprev S.A. | 21,362,340 | 40,648,643 |
| TOTVS S.A. | 5,641,837 | 29,122,181 |
| WEG S.A. | 4,938,000 | 46,220,343 |
| | | | 115,991,167 |
| Canada–3.05% |
| CCL Industries, Inc., Class B | 1,049,663 | 61,230,028 |
| Descartes Systems Group, Inc. (The)(b) | 639,298 | 66,416,099 |
| | | | 127,646,127 |
| Denmark–2.04% |
| ChemoMetec A/S(a) | 944,043 | 55,427,724 |
| Pandora A/S | 197,041 | 29,791,835 |
| | | | 85,219,559 |
| Finland–0.45% |
| Vaisala OYJ, Class A | 385,924 | 18,743,775 |
| France–4.34% |
| Alten S.A. | 280,277 | 23,708,656 |
| Interparfums S.A. | 816,885 | 37,310,166 |
| Lectra | 915,427 | 25,462,179 |
| Neurones | 921,048 | 46,728,639 |
| Thermador Groupe | 341,478 | 26,797,964 |
| Vetoquinol S.A. | 244,058 | 21,220,031 |
| | | | 181,227,635 |
| Germany–8.04% |
| Amadeus Fire AG(a) | 317,262 | 27,096,687 |
| Atoss Software SE | 293,774 | 38,641,475 |
| Carl Zeiss Meditec AG, BR | 1,393,746 | 87,739,011 |
| CTS Eventim AG & Co. KGaA | 524,938 | 55,126,436 |
| FUCHS SE, Preference Shares | 857,479 | 40,020,221 |
| Knorr-Bremse AG | 576,009 | 47,515,484 |
| Nexus AG | 168,387 | 8,807,195 |
| STRATEC SE(a) | 798,520 | 31,156,562 |
| | | | 336,103,071 |
| India–2.99% |
| AIA Engineering Ltd. | 431,253 | 19,560,274 |
| Britannia Industries Ltd. | 403,802 | 27,453,686 |
| Coforge Ltd. | 472,939 | 42,640,899 |
| Triveni Turbine Ltd. | 4,331,294 | 35,510,667 |
| | | | 125,165,526 |
| Indonesia–0.60% |
| PT Selamat Sempurna Tbk | 205,005,900 | 25,197,315 |
| | Shares | Value |
| Israel–1.62% |
| Nice Ltd., ADR(b)(c) | 389,881 | $67,722,330 |
| Italy–4.17% |
| Carel Industries S.p.A.(d) | 1,047,451 | 21,528,781 |
| DiaSorin S.p.A. | 350,543 | 38,072,696 |
| Interpump Group S.p.A. | 769,350 | 34,184,349 |
| Recordati Industria Chimica e Farmaceutica S.p.A. | 730,939 | 41,472,029 |
| Technoprobe S.p.A.(b) | 2,843,789 | 19,310,014 |
| Tinexta S.p.A. | 1,686,034 | 19,876,786 |
| | | | 174,444,655 |
| Japan–22.43% |
| As One Corp. | 1,607,552 | 30,062,606 |
| Azbil Corp. | 8,221,800 | 63,932,365 |
| Disco Corp. | 89,500 | 25,465,841 |
| Fujimi, Inc. | 288,000 | 4,430,908 |
| Fukui Computer Holdings, Inc.(a) | 1,288,700 | 22,723,421 |
| Funai Soken Holdings, Inc. | 1,428,000 | 22,729,117 |
| Japan Elevator Service Holdings Co. Ltd. | 2,861,200 | 54,784,512 |
| JCU Corp. | 794,900 | 18,322,337 |
| Katitas Co. Ltd.(c) | 2,617,300 | 33,184,862 |
| Medikit Co. Ltd. | 587,400 | 10,850,776 |
| MEITEC Group Holdings, Inc. | 2,010,458 | 38,526,928 |
| MISUMI Group, Inc. | 2,043,700 | 33,262,337 |
| MonotaRO Co. Ltd. | 2,073,720 | 31,284,843 |
| NSD Co. Ltd. | 2,075,694 | 44,830,826 |
| OBIC Business Consultants Co. Ltd. | 921,500 | 40,735,852 |
| OBIC Co. Ltd. | 2,951,200 | 96,437,596 |
| SCSK Corp. | 1,836,300 | 34,264,789 |
| Seria Co. Ltd. | 2,551,100 | 53,297,155 |
| Shimano, Inc. | 218,500 | 32,099,751 |
| SHO-BOND Holdings Co. Ltd. | 1,249,200 | 43,945,018 |
| SMS Co. Ltd. | 2,729,900 | 30,603,460 |
| Sysmex Corp. | 2,726,800 | 50,591,470 |
| TechnoPro Holdings, Inc. | 2,213,000 | 39,498,448 |
| TKC Corp. | 1,281,318 | 33,227,354 |
| USS Co. Ltd. | 3,885,796 | 32,542,652 |
| Zuken, Inc. | 673,500 | 15,959,016 |
| | | | 937,594,240 |
| Jersey–0.91% |
| JTC PLC(d) | 2,864,392 | 37,844,941 |
| Mexico–0.79% |
| Gruma S.A.B. de C.V., Class B | 1,922,700 | 33,212,326 |
| Netherlands–0.75% |
| IMCD N.V. | 197,522 | 31,404,231 |
| Norway–0.32% |
| Medistim ASA | 910,000 | 13,228,698 |
| South Africa–0.32% |
| Hudaco Industries Ltd. | 1,152,305 | 13,165,804 |
| South Korea–1.57% |
| Coway Co. Ltd. | 607,799 | 27,768,545 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 2 | Invesco International Small-Mid Company Fund |
| | Shares | Value |
| South Korea–(continued) |
| NICE Information Service Co. Ltd. | 2,163,979 | $17,371,508 |
| Park Systems Corp. | 132,137 | 20,293,340 |
| | | | 65,433,393 |
| Sweden–9.78% |
| Addtech AB, Class B | 1,216,806 | 33,877,396 |
| Biotage AB | 2,242,631 | 33,681,780 |
| Bravida Holding AB(d) | 2,905,013 | 21,566,179 |
| Epiroc AB, Class A | 1,601,585 | 31,279,426 |
| Hexpol AB | 2,919,869 | 27,765,166 |
| Karnov Group AB(a)(b) | 7,390,153 | 55,403,705 |
| Lifco AB, Class B | 1,364,360 | 40,709,647 |
| Loomis AB | 867,138 | 27,166,683 |
| MIPS AB(d) | 1,027,342 | 50,389,154 |
| Mycronic AB | 1,016,349 | 39,594,285 |
| Sdiptech AB, Class B(b) | 1,258,877 | 28,426,587 |
| SmartCraft ASA(b) | 6,944,820 | 18,818,554 |
| | | | 408,678,562 |
| Switzerland–8.19% |
| Belimo Holding AG | 63,403 | 42,000,199 |
| Bossard Holding AG, Class A | 94,083 | 22,605,334 |
| Forbo Holding AG | 15,828 | 15,560,831 |
| Interroll Holding AG, Class R | 10,098 | 26,555,512 |
| Kardex Holding AG | 109,309 | 33,345,759 |
| LEM Holding S.A. | 23,673 | 31,562,132 |
| Partners Group Holding AG | 52,273 | 71,918,687 |
| Tecan Group AG, Class R(b) | 107,703 | 27,213,558 |
| VZ Holding AG | 444,398 | 71,710,285 |
| | | | 342,472,297 |
| Taiwan–1.43% |
| Advantech Co. Ltd. | 2,983,726 | 29,240,694 |
| Nien Made Enterprise Co. Ltd. | 2,034,000 | 30,309,126 |
| | | | 59,549,820 |
| United Kingdom–12.30% |
| Bunzl PLC | 987,426 | 43,471,003 |
| Diploma PLC | 687,075 | 37,771,067 |
| Greggs PLC | 897,298 | 31,813,062 |
| Halma PLC | 1,364,078 | 43,576,416 |
| Hill & Smith PLC | 1,179,402 | 30,847,215 |
| Howden Joinery Group PLC | 3,233,472 | 35,180,517 |
| IMI PLC | 1,936,890 | 41,254,355 |
| | Shares | Value |
| United Kingdom–(continued) |
| Intertek Group PLC | 442,122 | $26,541,265 |
| Rathbones Group PLC | 1,752,781 | 37,681,774 |
| Restore PLC(a) | 8,783,843 | 28,887,925 |
| Rightmove PLC | 4,150,096 | 31,601,160 |
| Rotork PLC | 9,078,704 | 35,230,907 |
| Spirax Group PLC | 487,520 | 40,693,504 |
| Weir Group PLC (The) | 1,842,070 | 49,607,061 |
| | | | 514,157,231 |
| United States–0.87% |
| ICON PLC(b) | 164,004 | 36,426,928 |
| Total Common Stocks & Other Equity Interests (Cost $2,871,592,832) | 3,859,340,712 |
| Exchange-Traded Funds–3.71% |
| United States–3.71% |
| Vanguard Total International Stock ETF(c) (Cost $159,516,460) | 2,506,900 | 155,051,764 |
| Money Market Funds–1.03% |
| Invesco Government & Agency Portfolio, Institutional Class, 4.77%(a)(e) | 15,036,809 | 15,036,809 |
| Invesco Treasury Portfolio, Institutional Class, 4.73%(a)(e) | 27,925,503 | 27,925,503 |
| Total Money Market Funds (Cost $42,962,312) | 42,962,312 |
| TOTAL INVESTMENTS IN SECURITIES (excluding Investments purchased with cash collateral from securities on loan)-97.08% (Cost $3,074,071,604) | | | 4,057,354,788 |
| Investments Purchased with Cash Collateral from Securities on Loan |
| Money Market Funds–1.25% |
| Invesco Private Government Fund, 4.84%(a)(e)(f) | 14,492,353 | 14,492,353 |
| Invesco Private Prime Fund, 4.99%(a)(e)(f) | 37,724,878 | 37,736,196 |
| Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $52,228,751) | 52,228,549 |
| TOTAL INVESTMENTS IN SECURITIES—98.33% (Cost $3,126,300,355) | 4,109,583,337 |
| OTHER ASSETS LESS LIABILITIES–1.67% | 69,970,824 |
| NET ASSETS–100.00% | $4,179,554,161 |
Investment Abbreviations:
| ADR | – American Depositary Receipt |
| BR | – Bearer Shares |
| ETF | – Exchange-Traded Fund |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 3 | Invesco International Small-Mid Company Fund |
Notes to Schedule of Investments:
| (a) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | Value
October 31, 2023 | Purchases
at Cost | Proceeds
from Sales | Change in
Unrealized
Appreciation
(Depreciation) | Realized
Gain
(Loss) | Value
October 31, 2024 | Dividend Income |
| Investments in Affiliated Money Market Funds: | | | | | | | |
| Invesco Government & Agency Portfolio, Institutional Class | $181,470,889 | $310,383,004 | $(476,817,084) | $- | $- | $15,036,809 | $945,365 |
| Invesco Liquid Assets Portfolio, Institutional Class | 129,624,018 | 123,677,175 | (253,299,474) | (6,787) | 5,068 | - | 482,154 |
| Invesco Treasury Portfolio, Institutional Class | 207,395,301 | 456,666,466 | (636,136,264) | - | - | 27,925,503 | 1,274,749 |
| Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
| Invesco Private Government Fund | 576,736 | 234,808,631 | (220,893,014) | - | - | 14,492,353 | 485,920* |
| Invesco Private Prime Fund | 1,483,371 | 502,268,292 | (466,013,636) | (306) | (1,525) | 37,736,196 | 1,326,235* |
| Investments in Other Affiliates: | | | | | | | |
| Alpha Financial Markets Consulting PLC | 32,146,813 | - | (44,021,513) | 2,645,096 | 9,229,604 | - | 325,182 |
| Amadeus Fire AG | 33,951,718 | 2,687,762 | (74,622) | (9,439,314) | (28,857) | 27,096,687 | 1,178,437 |
| Antares Vision S.p.A. | 5,593,730 | - | (3,644,153) | 16,087,068 | (18,036,645) | - | - |
| Cashbuild Ltd. | 11,085,117 | 1,881,633 | (12,846,675) | 1,236,835 | (1,356,910) | - | 206,500 |
| ChemoMetec A/S | 41,985,675 | 17,847,003 | (27,911,456) | 30,007,528 | (6,501,026) | 55,427,724 | 467,440 |
| Fabasoft AG | 21,658,352 | - | (193,878) | (2,288,677) | (319,517) | 18,856,280 | 91,835 |
| Fukui Computer Holdings, Inc. | 27,877,335 | - | (6,233,789) | 5,772,026 | (4,692,151) | 22,723,421 | 628,668 |
| Karnov Group AB | 32,538,602 | 9,971,555 | (9,249,773) | 21,604,363 | 538,958 | 55,403,705 | - |
| New Work SE | 25,133,830 | - | (24,719,550) | 22,412,364 | (22,826,644) | - | 280,918 |
| Restore PLC | 27,015,721 | - | (9,295,299) | 15,313,326 | (4,145,823) | 28,887,925 | 744,358 |
| Sdiptech AB** | 43,769,679 | 2,155,971 | (28,632,959) | (1,541,082) | 12,674,978 | 28,426,587 | - |
| STRATEC SE | 33,432,059 | 6,640,934 | (4,134,611) | (1,201,642) | (3,580,178) | 31,156,562 | 386,462 |
| Total | $856,738,946 | $1,668,988,426 | $(2,224,117,750) | $100,600,798 | $(39,040,668) | $363,169,752 | $8,824,223 |
| * | 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. |
| ** | As of October 31, 2024, this security was no longer an affiliate of the Fund. |
| (b) | Non-income producing security. |
| (c) | All or a portion of this security was out on loan at October 31, 2024. |
| (d) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $131,329,055, which represented 3.14% of the Fund’s Net Assets. |
| (e) | The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| (f) | The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 4 | Invesco International Small-Mid Company Fund |
Statement of Assets and Liabilities
October 31, 2024
| Assets: | |
Investments in unaffiliated securities, at value
(Cost $2,788,158,260)* | $3,774,840,172 |
Investments in affiliates, at value
(Cost $338,142,095) | 334,743,165 |
| Cash | 3,000,000 |
| Foreign currencies, at value (Cost $3,429,974) | 3,438,945 |
| Receivable for: | |
| Investments sold | 101,180,184 |
| Fund shares sold | 2,690,124 |
| Dividends | 27,194,129 |
| Investment for trustee deferred compensation and retirement plans | 238,622 |
| Other assets | 74,682 |
| Total assets | 4,247,400,023 |
| Liabilities: | |
| Payable for: | |
| Fund shares reacquired | 3,881,856 |
| Accrued foreign taxes | 10,058,703 |
| Collateral upon return of securities loaned | 52,228,751 |
| Accrued fees to affiliates | 1,096,558 |
| Accrued trustees’ and officers’ fees and benefits | 58,914 |
| Accrued other operating expenses | 282,458 |
| Trustee deferred compensation and retirement plans | 238,622 |
| Total liabilities | 67,845,862 |
| Net assets applicable to shares outstanding | $4,179,554,161 |
| Net assets consist of: | |
| Shares of beneficial interest | $2,949,808,743 |
| Distributable earnings | 1,229,745,418 |
| | $4,179,554,161 |
| Net Assets: |
| Class A | $682,141,756 |
| Class C | $11,756,871 |
| Class R | $57,633,541 |
| Class Y | $1,203,546,981 |
| Class R5 | $395,820 |
| Class R6 | $2,224,079,192 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 16,224,419 |
| Class C | 328,551 |
| Class R | 1,484,598 |
| Class Y | 28,835,247 |
| Class R5 | 9,334 |
| Class R6 | 52,949,137 |
| Class A: | |
| Net asset value per share | $42.04 |
Maximum offering price per share
(Net asset value of $42.04 ÷ 94.50%) | $44.49 |
| Class C: | |
| Net asset value and offering price per share | $35.78 |
| Class R: | |
| Net asset value and offering price per share | $38.82 |
| Class Y: | |
| Net asset value and offering price per share | $41.74 |
| Class R5: | |
| Net asset value and offering price per share | $42.41 |
| Class R6: | |
| Net asset value and offering price per share | $42.00 |
| * | At October 31, 2024, securities with an aggregate value of $50,112,977 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 5 | Invesco International Small-Mid Company Fund |
Statement of Operations
For the year ended October 31, 2024
| Investment income: | |
| Interest | $387,758 |
| Dividends (net of foreign withholding taxes of $9,276,252) | 76,278,418 |
| Dividends from affiliates (includes net securities lending income of $98,091) | 7,110,159 |
| Foreign withholding tax claims | 1,980,460 |
| Total investment income | 85,756,795 |
| Expenses: | |
| Advisory fees | 44,475,171 |
| Administrative services fees | 697,893 |
| Custodian fees | 501,780 |
| Distribution fees: | |
| Class A | 1,794,254 |
| Class C | 164,193 |
| Class R | 313,629 |
| Transfer agent fees — A, C, R and Y | 3,827,995 |
| Transfer agent fees — R5 | 469 |
| Transfer agent fees — R6 | 759,541 |
| Trustees’ and officers’ fees and benefits | 73,530 |
| Registration and filing fees | 198,439 |
| Reports to shareholders | 1,006,226 |
| Professional services fees | 148,219 |
| Other | 100,860 |
| Total expenses | 54,062,199 |
| Less: Fees waived and/or expense offset arrangement(s) | (86,317) |
| Net expenses | 53,975,882 |
| Net investment income | 31,780,913 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain (loss) from: | |
| Unaffiliated investment securities (net of foreign taxes of $3,865,292) (includes net gains (losses) from securities sold to affiliates of $(2,928,545)) | 404,846,715 |
| Affiliated investment securities | (39,040,668) |
| Foreign currencies | 214,926 |
| Forward foreign currency contracts | (6,762) |
| | 366,014,211 |
| Change in net unrealized appreciation (depreciation) of: | |
| Unaffiliated investment securities (net of foreign taxes of $5,936,707) | 370,983,488 |
| Affiliated investment securities | 100,600,798 |
| Foreign currencies | (384,742) |
| | 471,199,544 |
| Net realized and unrealized gain | 837,213,755 |
| Net increase in net assets resulting from operations | $868,994,668 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 6 | Invesco International Small-Mid Company Fund |
Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| | 2024 | 2023 |
| Operations: | | |
| Net investment income | $31,780,913 | $28,627,462 |
| Net realized gain | 366,014,211 | 134,549,029 |
| Change in net unrealized appreciation (depreciation) | 471,199,544 | (61,339,914) |
| Net increase in net assets resulting from operations | 868,994,668 | 101,836,577 |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (18,392,780) | (2,304,691) |
| Class C | (412,802) | (138,622) |
| Class R | (1,534,744) | (203,404) |
| Class Y | (45,080,252) | (10,547,704) |
| Class R5 | (13,554) | (2,703) |
| Class R6 | (68,977,194) | (13,599,761) |
| Total distributions from distributable earnings | (134,411,326) | (26,796,885) |
| Share transactions–net: | | |
| Class A | (103,942,848) | (120,572,365) |
| Class C | (13,231,089) | (22,188,558) |
| Class R | (8,394,513) | (6,764,006) |
| Class Y | (604,461,152) | (419,382,995) |
| Class R5 | (139,845) | 89,342 |
| Class R6 | (300,026,316) | 286,814,004 |
| Net increase (decrease) in net assets resulting from share transactions | (1,030,195,763) | (282,004,578) |
| Net increase (decrease) in net assets | (295,612,421) | (206,964,886) |
| Net assets: | | |
| Beginning of year | 4,475,166,582 | 4,682,131,468 |
| End of year | $4,179,554,161 | $4,475,166,582 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 7 | Invesco International Small-Mid Company Fund |
Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| | Net asset
value,
beginning
of period | Net
investment
income
(loss)(a) | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Dividends
from net
investment
income | Distributions
from net
realized
gains | Total
distributions | Net asset
value, end
of period | Total
return(b) | Net assets,
end of period
(000’s omitted) | Ratio of
expenses
to average
net assets
with fee waivers
and/or
expenses
absorbed | Ratio of
expenses
to average net
assets without
fee waivers
and/or
expenses
absorbed | Ratio of net
investment
income
(loss)
to average
net assets | Portfolio
turnover (c) |
| Class A |
| Year ended 10/31/24 | $36.15 | $0.16 | $6.74 | $6.90 | $(0.36) | $(0.65) | $(1.01) | $42.04 | 19.19%(d) | $682,142 | 1.38%(d) | 1.38%(d) | 0.39%(d) | 21% |
| Year ended 10/31/23 | 36.30 | 0.15 | (0.19)(e) | (0.04) | — | (0.11) | (0.11) | 36.15 | (0.15)(d) | 676,005 | 1.35(d) | 1.35(d) | 0.37(d) | 26 |
| Year ended 10/31/22 | 63.38 | 0.04 | (21.41) | (21.37) | (0.02) | (5.69) | (5.71) | 36.30 | (36.72)(d) | 787,042 | 1.33(d) | 1.33(d) | 0.10(d) | 20 |
| Year ended 10/31/21 | 51.69 | 0.02 | 16.17 | 16.19 | — | (4.50) | (4.50) | 63.38 | 33.13(d) | 1,439,340 | 1.31(d) | 1.31(d) | 0.04(d) | 24 |
| Year ended 10/31/20 | 48.20 | (0.10) | 5.95 | 5.85 | (0.18) | (2.18) | (2.36) | 51.69 | 12.53(d) | 1,199,225 | 1.34(d) | 1.34(d) | (0.22)(d) | 73 |
| Class C |
| Year ended 10/31/24 | 30.81 | (0.13) | 5.75 | 5.62 | — | (0.65) | (0.65) | 35.78 | 18.30 | 11,757 | 2.14 | 2.14 | (0.37) | 21 |
| Year ended 10/31/23 | 31.19 | (0.13) | (0.14)(e) | (0.27) | — | (0.11) | (0.11) | 30.81 | (0.91) | 21,483 | 2.11 | 2.11 | (0.39) | 26 |
| Year ended 10/31/22 | 55.66 | (0.27) | (18.51) | (18.78) | — | (5.69) | (5.69) | 31.19 | (37.20) | 41,813 | 2.09 | 2.09 | (0.66) | 20 |
| Year ended 10/31/21 | 46.22 | (0.37) | 14.31 | 13.94 | — | (4.50) | (4.50) | 55.66 | 32.10 | 117,303 | 2.07 | 2.07 | (0.72) | 24 |
| Year ended 10/31/20 | 43.62 | (0.41) | 5.34 | 4.93 | (0.15) | (2.18) | (2.33) | 46.22 | 11.70 | 135,265 | 2.10 | 2.10 | (0.98) | 73 |
| Class R |
| Year ended 10/31/24 | 33.44 | 0.05 | 6.24 | 6.29 | (0.26) | (0.65) | (0.91) | 38.82 | 18.89 | 57,634 | 1.64 | 1.64 | 0.13 | 21 |
| Year ended 10/31/23 | 33.68 | 0.04 | (0.17)(e) | (0.13) | — | (0.11) | (0.11) | 33.44 | (0.43) | 56,784 | 1.61 | 1.61 | 0.11 | 26 |
| Year ended 10/31/22 | 59.34 | (0.07) | (19.90) | (19.97) | — | (5.69) | (5.69) | 33.68 | (36.87) | 63,205 | 1.59 | 1.59 | (0.16) | 20 |
| Year ended 10/31/21 | 48.78 | (0.12) | 15.18 | 15.06 | — | (4.50) | (4.50) | 59.34 | 32.76 | 106,435 | 1.57 | 1.57 | (0.22) | 24 |
| Year ended 10/31/20 | 45.70 | (0.21) | 5.63 | 5.42 | (0.16) | (2.18) | (2.34) | 48.78 | 12.26 | 88,420 | 1.60 | 1.60 | (0.48) | 73 |
| Class Y |
| Year ended 10/31/24 | 35.90 | 0.27 | 6.69 | 6.96 | (0.47) | (0.65) | (1.12) | 41.74 | 19.50 | 1,203,547 | 1.14 | 1.14 | 0.63 | 21 |
| Year ended 10/31/23 | 36.06 | 0.25 | (0.20)(e) | 0.05 | (0.10) | (0.11) | (0.21) | 35.90 | 0.07 | 1,554,427 | 1.11 | 1.11 | 0.61 | 26 |
| Year ended 10/31/22 | 63.00 | 0.15 | (21.23) | (21.08) | (0.17) | (5.69) | (5.86) | 36.06 | (36.55) | 1,943,233 | 1.09 | 1.09 | 0.34 | 20 |
| Year ended 10/31/21 | 51.29 | 0.16 | 16.05 | 16.21 | — | (4.50) | (4.50) | 63.00 | 33.45 | 4,039,299 | 1.07 | 1.07 | 0.28 | 24 |
| Year ended 10/31/20 | 47.75 | 0.02 | 5.90 | 5.92 | (0.20) | (2.18) | (2.38) | 51.29 | 12.81 | 3,240,701 | 1.10 | 1.10 | 0.02 | 73 |
| Class R5 |
| Year ended 10/31/24 | 36.49 | 0.30 | 6.80 | 7.10 | (0.53) | (0.65) | (1.18) | 42.41 | 19.57 | 396 | 1.07 | 1.07 | 0.70 | 21 |
| Year ended 10/31/23 | 36.64 | 0.30 | (0.19)(e) | 0.11 | (0.15) | (0.11) | (0.26) | 36.49 | 0.22 | 459 | 0.99 | 0.99 | 0.73 | 26 |
| Year ended 10/31/22 | 63.92 | 0.19 | (21.57) | (21.38) | (0.21) | (5.69) | (5.90) | 36.64 | (36.51) | 379 | 1.00 | 1.00 | 0.43 | 20 |
| Year ended 10/31/21 | 51.94 | 0.20 | 16.28 | 16.48 | — | (4.50) | (4.50) | 63.92 | 33.55 | 512 | 1.00 | 1.00 | 0.35 | 24 |
| Year ended 10/31/20 | 48.26 | 0.07 | 5.99 | 6.06 | (0.20) | (2.18) | (2.38) | 51.94 | 12.99 | 191 | 0.99 | 0.99 | 0.13 | 73 |
| Class R6 |
| Year ended 10/31/24 | 36.13 | 0.32 | 6.73 | 7.05 | (0.53) | (0.65) | (1.18) | 42.00 | 19.62 | 2,224,079 | 1.00 | 1.00 | 0.77 | 21 |
| Year ended 10/31/23 | 36.30 | 0.30 | (0.19)(e) | 0.11 | (0.17) | (0.11) | (0.28) | 36.13 | 0.21 | 2,166,008 | 0.99 | 0.99 | 0.73 | 26 |
| Year ended 10/31/22 | 63.39 | 0.21 | (21.37) | (21.16) | (0.24) | (5.69) | (5.93) | 36.30 | (36.48) | 1,846,459 | 0.97 | 0.97 | 0.46 | 20 |
| Year ended 10/31/21 | 51.52 | 0.23 | 16.14 | 16.37 | — | (4.50) | (4.50) | 63.39 | 33.62 | 3,227,212 | 0.95 | 0.95 | 0.40 | 24 |
| Year ended 10/31/20 | 47.90 | 0.08 | 5.93 | 6.01 | (0.21) | (2.18) | (2.39) | 51.52 | 12.97 | 2,532,327 | 0.95 | 0.95 | 0.17 | 73 |
| (a) | Calculated using average shares outstanding. |
| (b) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| (c) | Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| (d) | The total return, ratios of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.24% for the years ended October 31, 2024, 2023, 2022, 2021 and 2020, respectively. |
| (e) | Net realized and unrealized gain (loss) on investments per share may not correlate with the Fund’s net realized and unrealized gain (loss) due to timing of shareholder transactions in relation to the fluctuating market values of the Fund’s investments. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 8 | Invesco International Small-Mid Company Fund |
Notes to Financial Statements
October 31, 2024
NOTE 1—Significant Accounting Policies
Invesco International Small-Mid Company Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is to seek capital appreciation.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges ("CDSC"). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the "Conversion Feature"). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
Effective after the close of business on September 30, 2024, Class R5 shares are closed to new investors.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
| A. | Security Valuations — Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| 9 | Invesco International Small-Mid Company Fund |
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
| C. | Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
| F. | Foreign Withholding Taxes – The Fund is subject to foreign withholding tax imposed by certain foreign countries in which the Fund may invest. Withholding taxes are incurred on certain foreign dividends and are accrued at the time the dividend is recognized based on applicable foreign tax laws. The Fund may file withholding tax refunds in certain jurisdictions to seek to recover a portion of amounts previously withheld. The Fund will record a receivable for such tax refunds based on several factors including; an assessment of a jurisdiction’s legal obligation to pay reclaims, administrative practices and payment history. Any receivables recorded will be shown under receivables for Foreign withholding tax claims on the Statement of Assets and Liabilities. There is no guarantee that the Fund will receive refunds applied for in a timely manner or at all. |
As a result of recent court rulings in certain countries across the European Union, tax refunds for previously withheld taxes on dividends earned in those countries have been received by investment companies. Any tax refund payments are reflected as Foreign withholding tax claims in the Statement of Operations, and any related interest is included in Interest income. The Fund may incur fees paid to third party providers that assist in the recovery of the tax reclaims. These fees are reflected on the Statement of Operations as Professional services fees, if any. In the event tax refunds received by the Fund during the fiscal year exceed the foreign withholding taxes paid by the Fund for the year, and the Fund previously passed foreign tax credits on to its shareholders, the Fund intends to enter into a closing agreement with the Internal Revenue Service in order to pay the associated liability on behalf of the Funds’ shareholders. For the year ended October 31, 2024, the Fund did not enter into any closing agreements.
| G. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| H. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
| I. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| J. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds |
| 10 | Invesco International Small-Mid Company Fund |
| | (collectively, "affiliated money market funds") and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliates on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the year ended October 31, 2024, the Fund paid the Adviser $4,298 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliates on the Statement of Operations.
| K. | Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| L. | Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
| M. | Other Risks - Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic instability, uncertain trading markets and more governmental limitations on foreign investment than more developed markets. In addition, companies operating in emerging markets may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. As a result, information, including financial information, about such companies may be less available and reliable, which can impede the Fund’s ability to evaluate such companies. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably, and the ability to bring and enforce actions (including bankruptcy, confiscatory taxation, expropriation, nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets from the country, protectionist measures and practices such as share blocking), or to obtain information needed to pursue or enforce such actions, may be limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging market countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information. |
| 11 | Invesco International Small-Mid Company 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* |
| Up to $500 million | 1.000% |
| Next $500 million | 0.950% |
| Next $4 billion | 0.920% |
| Next $5 billion | 0.900% |
| Next $10 billion | 0.880% |
| Over $20 billion | 0.870% |
| * | The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser. |
For the year ended October 31, 2024, the effective advisory fee rate incurred by the Fund was 0.92%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the "Affiliated Sub-Advisers") the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has agreed, for an indefinite period, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 2.25%, 3.00%, 2.50%, 2.00%, 2.00% and 2.00%, respectively, of the Fund’s average daily net assets (the “boundary limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
Further, the Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $51,648.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2024, IDI advised the Fund that IDI retained $31,004 in front-end sales commissions from the sale of Class A shares and $751 and $552 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the year ended October 31, 2024, the Fund incurred $5,001 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.
Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.
NOTE 3—Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
| 12 | Invesco International Small-Mid Company Fund |
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| | Level 1 | Level 2 | Level 3 | Total |
| Investments in Securities | | | | |
| Australia | $— | $89,854,801 | $— | $89,854,801 |
| Austria | — | 18,856,280 | — | 18,856,280 |
| Brazil | 115,991,167 | — | — | 115,991,167 |
| Canada | 127,646,127 | — | — | 127,646,127 |
| Denmark | — | 85,219,559 | — | 85,219,559 |
| Finland | — | 18,743,775 | — | 18,743,775 |
| France | — | 181,227,635 | — | 181,227,635 |
| Germany | — | 336,103,071 | — | 336,103,071 |
| India | — | 125,165,526 | — | 125,165,526 |
| Indonesia | — | 25,197,315 | — | 25,197,315 |
| Israel | 67,722,330 | — | — | 67,722,330 |
| Italy | — | 174,444,655 | — | 174,444,655 |
| Japan | — | 937,594,240 | — | 937,594,240 |
| Jersey | — | 37,844,941 | — | 37,844,941 |
| Mexico | 33,212,326 | — | — | 33,212,326 |
| Netherlands | — | 31,404,231 | — | 31,404,231 |
| Norway | — | 13,228,698 | — | 13,228,698 |
| South Africa | — | 13,165,804 | — | 13,165,804 |
| South Korea | — | 65,433,393 | — | 65,433,393 |
| Sweden | — | 408,678,562 | — | 408,678,562 |
| Switzerland | — | 342,472,297 | — | 342,472,297 |
| Taiwan | — | 59,549,820 | — | 59,549,820 |
| United Kingdom | — | 514,157,231 | — | 514,157,231 |
| United States | 191,478,692 | — | — | 191,478,692 |
| Money Market Funds | 42,962,312 | 52,228,549 | — | 95,190,861 |
| Total Investments | $579,012,954 | $3,530,570,383 | $— | $4,109,583,337 |
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 year ended October 31, 2024
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
| | Location of Gain (Loss) on
Statement of Operations |
| | Currency
Risk |
| Realized Gain (Loss): | |
| Forward foreign currency contracts | $(6,762) |
The table below summarizes the average notional value of derivatives held during the period.
| | Forward
Foreign Currency
Contracts |
| Average notional value | $47,887 |
NOTE 5—Security Transactions with Affiliated Funds
The Fund is permitted to purchase securities from or sell securities to certain other affiliated funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund that is or could be considered an "affiliated person" by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common
| 13 | Invesco International Small-Mid Company Fund |
officers is made in reliance on Rule 17a-7 of the 1940 Act and, to the extent applicable, related SEC staff positions. Each such transaction is effected at the security’s "current market price", as provided for in these procedures and Rule 17a-7. Pursuant to these procedures, for the year ended October 31, 2024, the Fund engaged in securities sales of $37,056,758, which resulted in net realized gains (losses) of $(2,928,545).
NOTE 6—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $34,669.
NOTE 7—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees 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 8—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 9—Distributions to Shareholders and Tax Components of Net Assets
| Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023: |
| | 2024 | 2023 |
| Ordinary income* | $56,811,435 | $13,278,778 |
| Long-term capital gain | 77,599,891 | 13,518,107 |
| Total distributions | $134,411,326 | $26,796,885 |
| * | Includes short-term capital gain distributions, if any. |
| Tax Components of Net Assets at Period-End: |
| | 2024 |
| Undistributed ordinary income | $103,396,730 |
| Undistributed long-term capital gain | 254,879,686 |
| Net unrealized appreciation — investments | 871,822,717 |
| Net unrealized appreciation (depreciation) — foreign currencies | (80,354) |
| Temporary book/tax differences | (273,361) |
| Shares of beneficial interest | 2,949,808,743 |
| Total net assets | $4,179,554,161 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to wash sales and passive foreign investment companies.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund does not have a capital loss carryforward as of October 31, 2024.
NOTE 10—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2024 was $1,007,925,061 and $2,024,639,502, respectively. As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $1,029,046,478 |
| Aggregate unrealized (depreciation) of investments | (157,223,761) |
| Net unrealized appreciation of investments | $871,822,717 |
Cost of investments for tax purposes is $3,237,760,620.
| 14 | Invesco International Small-Mid Company Fund |
NOTE 11—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of passive foreign investment companies and equalization, on October 31, 2024, undistributed net investment income was increased by $9,247,796, undistributed net realized gain was decreased by $66,378,796 and shares of beneficial interest was increased by $57,131,000. This reclassification had no effect on the net assets of the Fund.
NOTE 12—Share Information
| | Summary of Share Activity |
| | Year ended
October 31, 2024(a) | | Year ended
October 31, 2023 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 1,787,753 | $75,709,318 | | 1,292,729 | $52,996,977 |
| Class C | 54,731 | 1,990,786 | | 59,476 | 2,085,847 |
| Class R | 137,042 | 5,313,928 | | 134,471 | 5,077,997 |
| Class Y | 5,144,001 | 214,115,728 | | 7,692,768 | 310,458,307 |
| Class R5 | 1,332 | 56,654 | | 2,516 | 101,108 |
| Class R6 | 11,626,535 | 490,419,995 | | 23,055,678 | 852,592,805 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 416,708 | 16,980,836 | | 50,623 | 2,064,418 |
| Class C | 11,043 | 385,504 | | 3,680 | 128,774 |
| Class R | 40,653 | 1,533,024 | | 5,355 | 202,472 |
| Class Y | 873,435 | 35,260,562 | | 191,994 | 7,758,460 |
| Class R5 | 325 | 13,303 | | 65 | 2,648 |
| Class R6 | 1,649,677 | 66,943,898 | | 315,333 | 12,808,815 |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 247,160 | 10,425,279 | | 391,204 | 15,795,698 |
| Class C | (289,174) | (10,425,279) | | (457,337) | (15,795,698) |
| Reacquired: | | | | | |
| Class A | (4,926,736) | (207,058,281) | | (4,714,793) | (191,429,458) |
| Class C | (145,248) | (5,182,100) | | (249,081) | (8,607,481) |
| Class R | (391,041) | (15,241,465) | | (318,646) | (12,044,475) |
| Class Y | (20,477,849) | (853,837,442) | | (18,484,806) | (737,599,762) |
| Class R5 | (4,915) | (209,802) | | (342) | (14,414) |
| Class R6 | (20,282,935) | (857,390,209) | | (14,284,972) | (578,587,616) |
| Net increase (decrease) in share activity | (24,527,503) | $(1,030,195,763) | | (5,314,085) | $(282,004,578) |
| (a) | There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 42% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. |
| | In addition, 12% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser. |
| 15 | Invesco International Small-Mid Company Fund |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM International Mutual Funds (Invesco International Mutual Funds) and Shareholders of Invesco International Small-Mid Company Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Invesco International Small-Mid Company Fund (one of the funds constituting AIM International Mutual Funds (Invesco International Mutual Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related statement of operations for the year ended October 31, 2024, the statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent and broker. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Houston, Texas
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
| 16 | Invesco International Small-Mid Company Fund |
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM International Mutual Funds (Invesco International Mutual Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco International Small-Mid Company Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited and OppenheimerFunds, Inc. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees, that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an
independent written evaluation from the Senior Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy
and cybersecurity, including related testing. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
B. Fund Investment Performance
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the MSCI ACWI ex USA Small Mid Cap Index (Index). The Board noted that performance of Class A shares of the Fund was in the third quintile of its performance universe for the one and three year periods, and the second quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was below the performance of the Index for the one and three year periods and reasonably comparable to the performance of the Index for the
| 17 | Invesco International Small-Mid Company Fund |
five year period. The Board considered that the Fund was created in connection with Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the “Transaction”) and that the Fund’s performance prior to the closing of the Transaction on May 24, 2019 is that of its predecessor fund. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
C. Advisory and Sub-Advisory Fees and Fund Expenses
The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management and actual management fee rates for Class A shares of the Fund were each reasonably comparable to the median contractual management and actual management fee rates of funds in its expense group. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that the Fund’s actual management fees, contractual management fees, and total expense ratio were in the fourth quintile of its expense group and discussed with management reasons for such relative actual and contractual management fees and total expenses.
The Board noted that Invesco Advisers has voluntarily agreed to waive fees and/or limit expenses of the Fund for an indefinite period until further notice to the Board in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board also considered the fees charged by Invesco Advisers and its affiliates to other client accounts that are similarly managed. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to that provided by Invesco Advisers and its affiliates to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations. Invesco Advisers also advised the Board that many of the similarly managed client accounts have all-inclusive fee structures, which are not easily un-bundled.
The Board also compared the Fund’s effective advisory fee rate (defined for this purpose as the
advisory fee rate before the application of advisory fee waivers/expense limitations) to the effective advisory fee rates of other similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2023.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.
D. Economies of Scale and Breakpoints
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the difficulty in calculating and measuring economies of scale at the individual fund level; noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund also shares in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
E. Profitability and Financial Resources
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
F. Collateral Benefits to Invesco Advisers and its Affiliates
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives from Invesco Advisers periodic reports that include a representation to the effect that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities Lending Governance Committee and its related responsibilities. The Board noted that to the extent
| 18 | Invesco International Small-Mid Company Fund |
the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services without obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending services provided to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such securities lending activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades were executed in compliance with rules under the federal securities laws and consistent with best execution obligations.
| 19 | Invesco International Small-Mid Company Fund |
Tax Information
Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
| Federal and State Income Tax | | |
| Long-Term Capital Gain Distributions | $134,734,891 | |
| Qualified Dividend Income* | 95.12% | |
| Corporate Dividends Received Deduction* | 0.00% | |
| U.S. Treasury Obligations* | 0.00% | |
| Qualified Business Income* | 0.00% | |
| Business Interest Income* | 0.00% | |
| Foreign Taxes | $0.1051 | per share |
| Foreign Source Income | $0.9048 | per share |
| * | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
| 20 | Invesco International Small-Mid Company Fund |
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Not applicable.
Proxy Disclosures for Open-End Management Investment Companies
Not applicable.
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
| 21 | Invesco International Small-Mid Company Fund |
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| SEC file number(s): 811-06463 and 033-44611 | Invesco Distributors, Inc. | O-ISMC-NCSR |
| Annual Financial Statements and Other Information | October 31, 2024 |
Invesco MSCI World SRI Index Fund
Nasdaq:
A: VSQAX ■ C: VSQCX ■ R: VSQRX ■ Y: VSQYX ■ R5: VSQFX ■ R6: VSQSX
Schedule of Investments
October 31, 2024
| | Shares | Value |
| Common Stocks & Other Equity Interests–97.17% |
| Australia–1.63% |
| Ampol Ltd. | 249 | $4,559 |
| APA Group | 1,580 | 7,235 |
| ASX Ltd. | 141 | 6,005 |
| BlueScope Steel Ltd. | 568 | 7,548 |
| Brambles Ltd. | 1,106 | 13,316 |
| Cochlear Ltd. | 63 | 11,664 |
| CSL Ltd. | 455 | 85,429 |
| Goodman Group | 1,623 | 38,756 |
| GPT Group (The) | 2,682 | 8,309 |
| James Hardie Industries PLC, CDI(a) | 421 | 13,427 |
| Northern Star Resources Ltd. | 832 | 9,655 |
| Orica Ltd. | 658 | 7,474 |
| QBE Insurance Group Ltd. | 1,449 | 16,359 |
| Suncorp Group Ltd. | 1,096 | 12,856 |
| Transurban Group | 2,817 | 23,477 |
| WiseTech Global Ltd. | 129 | 9,904 |
| | | | 275,973 |
| Austria–0.06% |
| Mondi PLC | 279 | 4,518 |
| Verbund AG | 64 | 5,271 |
| | | | 9,789 |
| Belgium–0.13% |
| Ageas S.A./N.V. | 162 | 8,454 |
| KBC Group N.V. | 189 | 13,767 |
| | | | 22,221 |
| Canada–3.58% |
| Agnico Eagle Mines Ltd. | 492 | 42,467 |
| Bank of Nova Scotia (The) | 1,140 | 58,697 |
| Canadian National Railway Co. | 525 | 56,691 |
| Canadian Tire Corp. Ltd., Class A | 82 | 8,726 |
| CGI, Inc., Class A(a) | 122 | 13,515 |
| Dollarama, Inc. | 277 | 28,825 |
| Fortis, Inc. | 514 | 22,234 |
| Gildan Activewear, Inc. | 175 | 8,564 |
| Metro, Inc. | 148 | 8,790 |
| National Bank of Canada | 333 | 31,761 |
| Nutrien Ltd. | 462 | 22,029 |
| Open Text Corp. | 177 | 5,309 |
| Parkland Corp. | 303 | 7,051 |
| Pembina Pipeline Corp. | 563 | 23,553 |
| RB Global, Inc. | 162 | 13,726 |
| Saputo, Inc. | 375 | 7,153 |
| Shopify, Inc., Class A(a) | 1,236 | 96,689 |
| Sun Life Financial, Inc. | 533 | 29,553 |
| TELUS Corp. | 493 | 7,793 |
| Toronto-Dominion Bank (The) | 1,810 | 100,058 |
| WSP Global, Inc. | 70 | 12,512 |
| | | | 605,696 |
| China–0.68% |
| NXP Semiconductors N.V. | 251 | 58,860 |
| | Shares | Value |
| China–(continued) |
| Prosus N.V. | 1,349 | $56,886 |
| | | | 115,746 |
| Denmark–2.34% |
| Novo Nordisk A/S, Class B | 2,989 | 335,261 |
| Novonesis (Novozymes) B, Class B | 326 | 20,486 |
| Orsted A/S(a)(b) | 141 | 8,299 |
| Pandora A/S | 85 | 12,852 |
| Vestas Wind Systems A/S(a) | 980 | 18,676 |
| | | | 395,574 |
| Finland–0.49% |
| Elisa OYJ | 152 | 7,243 |
| Kesko OYJ, Class B | 349 | 7,496 |
| Kone OYJ, Class B | 255 | 13,984 |
| Metso OYJ | 479 | 4,559 |
| Neste OYJ | 307 | 4,929 |
| Sampo OYJ | 318 | 14,101 |
| Stora Enso OYJ, Class R | 489 | 5,457 |
| UPM-Kymmene OYJ | 498 | 14,654 |
| Wartsila OYJ Abp | 507 | 9,710 |
| | | | 82,133 |
| France–2.30% |
| AXA S.A. | 1,784 | 66,984 |
| Cie Generale des Etablissements Michelin S.C.A. | 665 | 22,474 |
| Credit Agricole S.A. | 1,006 | 15,420 |
| Danone S.A. | 618 | 44,149 |
| Hermes International S.C.A. | 33 | 75,001 |
| Publicis Groupe S.A. | 187 | 19,875 |
| Rexel S.A. | 271 | 7,467 |
| Schneider Electric SE | 533 | 138,073 |
| | | | 389,443 |
| Germany–1.28% |
| adidas AG | 155 | 37,121 |
| Deutsche Boerse AG | 179 | 41,578 |
| GEA Group AG | 124 | 6,108 |
| Henkel AG & Co. KGaA, Preference Shares | 224 | 19,397 |
| LEG Immobilien SE | 80 | 7,557 |
| Merck KGaA | 123 | 20,335 |
| Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Class R | 134 | 68,525 |
| Puma SE | 145 | 6,612 |
| Zalando SE(a)(b) | 295 | 8,930 |
| | | | 216,163 |
| Hong Kong–0.61% |
| AIA Group Ltd. | 11,200 | 88,394 |
| Hang Seng Bank Ltd. | 600 | 7,339 |
| MTR Corp. Ltd. | 2,000 | 7,277 |
| | | | 103,010 |
| Ireland–0.07% |
| Kerry Group PLC, Class A | 110 | 10,986 |
| Italy–0.38% |
| Assicurazioni Generali S.p.A. | 958 | 26,562 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 2 | Invesco MSCI World SRI Index Fund |
| | Shares | Value |
| Italy–(continued) |
| Coca-Cola HBC AG(a) | 239 | $8,363 |
| FinecoBank Banca Fineco S.p.A. | 393 | 6,274 |
| Mediobanca Banca di Credito Finanziario S.p.A. | 460 | 7,589 |
| Moncler S.p.A. | 141 | 7,833 |
| Poste Italiane S.p.A.(b) | 601 | 8,451 |
| | | | 65,072 |
| Japan–5.88% |
| Ajinomoto Co., Inc. | 400 | 15,366 |
| Asahi Kasei Corp. | 900 | 6,209 |
| Bridgestone Corp. | 500 | 17,818 |
| Concordia Financial Group Ltd. | 1,400 | 6,935 |
| Daikin Industries Ltd. | 300 | 36,017 |
| Daiwa Securities Group, Inc. | 1,100 | 7,196 |
| FANUC Corp. | 900 | 23,878 |
| Fujitsu Ltd. | 1,800 | 34,606 |
| Hitachi Ltd. | 4,500 | 113,062 |
| Hoya Corp. | 300 | 40,138 |
| IBIDEN Co. Ltd. | 300 | 9,529 |
| JFE Holdings, Inc. | 700 | 8,428 |
| Kao Corp. | 400 | 17,630 |
| KDDI Corp. | 1,400 | 43,651 |
| Kubota Corp. | 900 | 11,499 |
| LY Corp. | 3,300 | 9,002 |
| MatsukiyoCocokara & Co. | 600 | 8,169 |
| Mitsubishi Chemical Group Corp. | 1,500 | 8,094 |
| Mitsubishi Estate Co. Ltd. | 1,100 | 16,267 |
| NEC Corp. | 200 | 17,018 |
| Nitto Denko Corp. | 1,000 | 16,454 |
| Nomura Research Institute Ltd. | 300 | 8,974 |
| Omron Corp. | 300 | 11,844 |
| Oriental Land Co. Ltd. | 1,000 | 24,167 |
| ORIX Corp. | 1,200 | 25,284 |
| Pan Pacific International Holdings Corp. | 300 | 7,442 |
| Rakuten Group, Inc.(a) | 1,700 | 10,147 |
| Renesas Electronics Corp. | 1,400 | 18,758 |
| SECOM Co. Ltd. | 400 | 14,225 |
| Seiko Epson Corp. | 500 | 9,088 |
| Sekisui House Ltd. | 400 | 9,661 |
| SG Holdings Co. Ltd. | 800 | 8,023 |
| Shiseido Co. Ltd. | 300 | 6,475 |
| SoftBank Corp. | 27,000 | 33,990 |
| Sompo Holdings, Inc. | 800 | 17,151 |
| Sony Group Corp. | 6,000 | 105,585 |
| Sumitomo Metal Mining Co. Ltd. | 300 | 8,295 |
| Sumitomo Mitsui Financial Group, Inc. | 3,600 | 76,372 |
| Sysmex Corp. | 500 | 9,277 |
| T&D Holdings, Inc. | 400 | 6,385 |
| TDK Corp. | 1,500 | 17,633 |
| Tokio Marine Holdings, Inc. | 1,900 | 68,431 |
| Toray Industries, Inc. | 1,700 | 9,245 |
| Unicharm Corp. | 400 | 12,898 |
| Yamaha Motor Co. Ltd. | 900 | 7,867 |
| | | | 994,183 |
| Netherlands–0.48% |
| Akzo Nobel N.V. | 144 | 9,189 |
| Koninklijke Ahold Delhaize N.V. | 728 | 24,023 |
| Koninklijke KPN N.V. | 2,176 | 8,507 |
| | Shares | Value |
| Netherlands–(continued) |
| Wolters Kluwer N.V. | 237 | $39,836 |
| | | | 81,555 |
| New Zealand–0.03% |
| Meridian Energy Ltd. | 1,313 | 4,663 |
| Norway–0.21% |
| DNB Bank ASA | 692 | 14,340 |
| Mowi ASA | 457 | 7,879 |
| Orkla ASA | 740 | 6,836 |
| Telenor ASA | 492 | 6,048 |
| | | | 35,103 |
| Singapore–0.14% |
| CapitaLand Ascendas REIT | 4,100 | 8,308 |
| CapitaLand Integrated Commercial Trust | 4,600 | 6,989 |
| CapitaLand Investment Ltd. | 3,800 | 8,028 |
| | | | 23,325 |
| Spain–0.31% |
| Amadeus IT Group S.A. | 431 | 31,245 |
| Cellnex Telecom S.A.(b) | 426 | 15,645 |
| Redeia Corp. S.A. | 322 | 5,962 |
| | | | 52,852 |
| Sweden–0.33% |
| Boliden AB | 242 | 7,571 |
| Essity AB, Class B | 400 | 11,303 |
| Svenska Cellulosa AB S.C.A., Class B | 423 | 5,600 |
| Svenska Handelsbanken AB, Class A | 1,460 | 15,170 |
| Tele2 AB, Class B | 579 | 6,076 |
| Telia Co. AB | 3,275 | 9,525 |
| | | | 55,245 |
| Switzerland–1.94% |
| ABB Ltd. | 1,449 | 80,522 |
| DSM-Firmenich AG | 178 | 21,108 |
| Givaudan S.A. | 9 | 42,727 |
| Julius Baer Group Ltd. | 139 | 8,475 |
| Kuehne + Nagel International AG, Class R | 37 | 9,237 |
| Lonza Group AG | 72 | 44,303 |
| SGS S.A. | 100 | 10,587 |
| SIG Group AG(a) | 382 | 8,244 |
| Sonova Holding AG, Class A | 38 | 13,906 |
| Zurich Insurance Group AG | 152 | 89,620 |
| | | | 328,729 |
| Taiwan–1.53% |
| ASML Holding N.V. | 385 | 259,155 |
| United Kingdom–2.81% |
| 3i Group PLC | 937 | 38,424 |
| Admiral Group PLC | 182 | 6,023 |
| Associated British Foods PLC | 251 | 7,214 |
| Barratt Redrow PLC | 1,232 | 7,098 |
| Berkeley Group Holdings PLC (The) | 120 | 6,848 |
| DCC PLC | 118 | 7,465 |
| Informa PLC | 982 | 10,259 |
| Intertek Group PLC | 89 | 5,343 |
| J Sainsbury PLC | 1,618 | 5,571 |
| Kingfisher PLC | 1,562 | 5,907 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 3 | Invesco MSCI World SRI Index Fund |
| | Shares | Value |
| United Kingdom–(continued) |
| Land Securities Group PLC | 957 | $7,433 |
| Legal & General Group PLC | 4,006 | 11,236 |
| M&G PLC | 3,152 | 7,897 |
| National Grid PLC | 4,458 | 55,975 |
| Pearson PLC | 540 | 7,930 |
| RELX PLC | 1,950 | 89,426 |
| Schroders PLC | 1,137 | 5,038 |
| Segro PLC | 825 | 8,359 |
| SSE PLC | 1,004 | 22,814 |
| Taylor Wimpey PLC | 4,296 | 8,122 |
| Unilever PLC | 2,458 | 149,943 |
| | | | 474,325 |
| United States–69.96% |
| Adobe, Inc.(a) | 424 | 202,706 |
| Agilent Technologies, Inc. | 288 | 37,529 |
| Allegion PLC | 65 | 9,076 |
| Ally Financial, Inc. | 283 | 9,919 |
| American Express Co. | 571 | 154,216 |
| American Tower Corp. | 441 | 94,171 |
| American Water Works Co., Inc. | 191 | 26,379 |
| Ameriprise Financial, Inc. | 102 | 52,051 |
| Amgen, Inc. | 523 | 167,444 |
| Annaly Capital Management, Inc. | 329 | 6,254 |
| Applied Materials, Inc. | 794 | 144,175 |
| Aptiv PLC(a) | 264 | 15,003 |
| Atmos Energy Corp. | 146 | 20,262 |
| Autodesk, Inc.(a) | 200 | 56,760 |
| Automatic Data Processing, Inc. | 407 | 117,721 |
| Avantor, Inc.(a) | 645 | 14,429 |
| Axon Enterprise, Inc.(a) | 70 | 29,645 |
| Baker Hughes Co., Class A | 975 | 37,128 |
| Ball Corp. | 305 | 18,071 |
| Bank of New York Mellon Corp. (The) | 741 | 55,842 |
| Best Buy Co., Inc. | 174 | 15,735 |
| Biogen, Inc.(a) | 140 | 24,360 |
| Blackrock, Inc. | 150 | 147,154 |
| Booking Holdings, Inc. | 34 | 158,992 |
| Broadridge Financial Solutions, Inc. | 114 | 24,038 |
| Bunge Global S.A. | 100 | 8,402 |
| C.H. Robinson Worldwide, Inc. | 102 | 10,510 |
| CarMax, Inc.(a) | 122 | 8,830 |
| Carrier Global Corp. | 712 | 51,777 |
| CBRE Group, Inc., Class A(a) | 295 | 38,636 |
| Centene Corp.(a) | 527 | 32,811 |
| Cheniere Energy, Inc. | 228 | 43,635 |
| Church & Dwight Co., Inc. | 244 | 24,378 |
| Cigna Group (The) | 287 | 90,350 |
| Clorox Co. (The) | 118 | 18,709 |
| CMS Energy Corp. | 283 | 19,700 |
| CNH Industrial N.V. | 790 | 8,872 |
| Coca-Cola Co. (The) | 4,002 | 261,371 |
| Conagra Brands, Inc. | 436 | 12,618 |
| Consolidated Edison, Inc. | 349 | 35,486 |
| Cooper Cos., Inc. (The)(a) | 191 | 19,994 |
| CRH PLC | 558 | 53,196 |
| Crown Castle, Inc. | 383 | 41,169 |
| Cummins, Inc. | 135 | 44,412 |
| D.R. Horton, Inc. | 265 | 44,785 |
| | Shares | Value |
| United States–(continued) |
| Danaher Corp. | 645 | $158,451 |
| DaVita, Inc.(a) | 71 | 9,927 |
| Dayforce, Inc.(a) | 96 | 6,811 |
| Deckers Outdoor Corp.(a) | 150 | 24,133 |
| Dick’s Sporting Goods, Inc. | 43 | 8,417 |
| Discover Financial Services | 219 | 32,506 |
| Dover Corp. | 134 | 25,370 |
| Ecolab, Inc. | 241 | 59,221 |
| Edwards Lifesciences Corp.(a) | 575 | 38,531 |
| Electronic Arts, Inc. | 249 | 37,562 |
| Elevance Health, Inc. | 231 | 93,731 |
| EMCOR Group, Inc. | 31 | 13,828 |
| Equinix, Inc. | 87 | 79,003 |
| Essential Utilities, Inc. | 215 | 8,299 |
| Eversource Energy | 332 | 21,862 |
| Exelon Corp. | 969 | 38,082 |
| Expeditors International of Washington, Inc. | 125 | 14,875 |
| FactSet Research Systems, Inc. | 28 | 12,714 |
| Ferguson Enterprises, Inc. | 198 | 38,955 |
| Fidelity National Information Services, Inc. | 571 | 51,236 |
| Fiserv, Inc.(a) | 610 | 120,719 |
| Fortive Corp. | 335 | 23,929 |
| Fortune Brands Innovations, Inc. | 97 | 8,083 |
| Fox Corp., Class A | 278 | 11,676 |
| GE HealthCare Technologies, Inc. | 377 | 32,931 |
| General Mills, Inc. | 552 | 37,547 |
| Gilead Sciences, Inc. | 1,289 | 114,489 |
| Graco, Inc. | 145 | 11,810 |
| Halliburton Co. | 850 | 23,579 |
| Hartford Financial Services Group, Inc. (The) | 292 | 32,248 |
| HCA Healthcare, Inc. | 193 | 69,237 |
| Henry Schein, Inc.(a) | 98 | 6,883 |
| Hologic, Inc.(a) | 235 | 19,004 |
| Home Depot, Inc. (The) | 962 | 378,787 |
| Huntington Bancshares, Inc. | 1,368 | 21,327 |
| IDEX Corp. | 55 | 11,805 |
| IDEXX Laboratories, Inc.(a) | 77 | 31,333 |
| Illinois Tool Works, Inc. | 314 | 81,995 |
| Ingersoll Rand, Inc. | 399 | 38,304 |
| Insulet Corp.(a) | 51 | 11,808 |
| Intel Corp. | 4,181 | 89,975 |
| International Flavors & Fragrances, Inc. | 246 | 24,460 |
| International Paper Co. | 309 | 17,162 |
| Interpublic Group of Cos., Inc. (The) | 296 | 8,702 |
| Intuit, Inc. | 276 | 168,443 |
| IQVIA Holdings, Inc.(a) | 143 | 29,432 |
| Iron Mountain, Inc. | 280 | 34,644 |
| J.B. Hunt Transport Services, Inc. | 76 | 13,727 |
| Johnson Controls International PLC | 653 | 49,334 |
| Kellanova | 248 | 20,001 |
| KeyCorp | 751 | 12,955 |
| Keysight Technologies, Inc.(a) | 131 | 19,520 |
| Knight-Swift Transportation Holdings, Inc. | 169 | 8,802 |
| Labcorp Holdings, Inc. | 82 | 18,718 |
| Lam Research Corp. | 1,290 | 95,911 |
| Lamb Weston Holdings, Inc. | 96 | 7,458 |
| Lennox International, Inc. | 31 | 18,680 |
| LKQ Corp. | 217 | 7,983 |
| Lowe’s Cos., Inc. | 576 | 150,814 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 4 | Invesco MSCI World SRI Index Fund |
| | Shares | Value |
| United States–(continued) |
| lululemon athletica, inc.(a) | 104 | $30,982 |
| LyondellBasell Industries N.V., Class A | 174 | 15,112 |
| MarketAxess Holdings, Inc. | 35 | 10,130 |
| Marsh & McLennan Cos., Inc. | 495 | 108,029 |
| McCormick & Co., Inc. | 174 | 13,614 |
| Mettler-Toledo International, Inc.(a) | 18 | 23,251 |
| Molina Healthcare, Inc.(a) | 57 | 18,310 |
| Moody’s Corp. | 161 | 73,100 |
| Nasdaq, Inc. | 326 | 24,098 |
| Newmont Corp. | 1,113 | 50,575 |
| Northern Trust Corp. | 147 | 14,776 |
| NVIDIA Corp. | 23,057 | 3,061,047 |
| Old Dominion Freight Line, Inc. | 189 | 38,049 |
| ONEOK, Inc. | 564 | 54,640 |
| Owens Corning | 83 | 14,674 |
| Paychex, Inc. | 254 | 35,390 |
| Pentair PLC | 122 | 12,093 |
| PepsiCo, Inc. | 1,341 | 222,713 |
| Phillips 66 | 432 | 52,626 |
| PNC Financial Services Group, Inc. (The) | 395 | 74,367 |
| Pool Corp. | 31 | 11,211 |
| PPG Industries, Inc. | 225 | 28,015 |
| Principal Financial Group, Inc. | 133 | 10,959 |
| Progressive Corp. (The) | 578 | 140,356 |
| Prudential Financial, Inc. | 360 | 44,093 |
| Quanta Services, Inc. | 141 | 42,530 |
| Quest Diagnostics, Inc. | 94 | 14,554 |
| Raymond James Financial, Inc. | 130 | 19,269 |
| Regions Financial Corp. | 721 | 17,210 |
| Rivian Automotive, Inc., Class A(a) | 496 | 5,010 |
| Rockwell Automation, Inc. | 108 | 28,805 |
| S&P Global, Inc. | 317 | 152,274 |
| SBA Communications Corp., Class A | 93 | 21,341 |
| Sempra | 585 | 48,771 |
| Solventum Corp.(a) | 145 | 10,524 |
| State Street Corp. | 266 | 24,685 |
| Steel Dynamics, Inc. | 120 | 15,660 |
| STERIS PLC | 95 | 21,076 |
| Swiss Re AG | 291 | 37,157 |
| Synchrony Financial | 374 | 20,622 |
| | Shares | Value |
| United States–(continued) |
| Take-Two Interactive Software, Inc.(a) | 166 | $26,846 |
| Targa Resources Corp. | 206 | 34,394 |
| Teleflex, Inc. | 38 | 7,640 |
| Tesla, Inc.(a) | 2,719 | 679,342 |
| Texas Instruments, Inc. | 888 | 180,406 |
| Toro Co. (The) | 103 | 8,289 |
| Tractor Supply Co. | 104 | 27,613 |
| Trane Technologies PLC | 223 | 82,546 |
| Travelers Cos., Inc. (The) | 219 | 53,861 |
| Truist Financial Corp. | 1,221 | 52,564 |
| U.S. Bancorp | 1,416 | 68,407 |
| Ulta Beauty, Inc.(a) | 38 | 14,021 |
| United Rentals, Inc. | 65 | 52,832 |
| Valero Energy Corp. | 323 | 41,912 |
| Veralto Corp. | 196 | 20,029 |
| Verizon Communications, Inc. | 4,095 | 172,522 |
| W.W. Grainger, Inc. | 44 | 48,806 |
| Walt Disney Co. (The) | 1,790 | 172,198 |
| Waters Corp.(a) | 57 | 18,417 |
| West Pharmaceutical Services, Inc. | 72 | 22,171 |
| Williams-Sonoma, Inc. | 102 | 13,681 |
| Willis Towers Watson PLC | 73 | 22,060 |
| Workday, Inc., Class A(a) | 191 | 44,665 |
| Xylem, Inc. | 240 | 29,227 |
| Zimmer Biomet Holdings, Inc. | 203 | 21,705 |
| Zoetis, Inc. | 473 | 84,563 |
| | | | 11,828,845 |
| Total Common Stocks & Other Equity Interests (Cost $13,392,770) | 16,429,786 |
| Money Market Funds–2.47% |
| Invesco Government & Agency Portfolio, Institutional Class, 4.77%(c)(d) | 145,974 | 145,974 |
| Invesco Treasury Portfolio, Institutional Class, 4.73%(c)(d) | 270,840 | 270,840 |
| Total Money Market Funds (Cost $416,814) | 416,814 |
| TOTAL INVESTMENTS IN SECURITIES—99.64% (Cost $13,809,584) | 16,846,600 |
| OTHER ASSETS LESS LIABILITIES–0.36% | 61,622 |
| NET ASSETS–100.00% | $16,908,222 |
Investment Abbreviations:
| CDI | – CREST Depository Interest |
| REIT | – Real Estate Investment Trust |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 5 | Invesco MSCI World SRI Index Fund |
Notes to Schedule of Investments:
| (a) | Non-income producing security. |
| (b) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $41,325, which represented less than 1% of the Fund’s Net Assets. |
| (c) | Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | Value
October 31, 2023 | Purchases
at Cost | Proceeds
from Sales | Change in
Unrealized
Appreciation
(Depreciation) | Realized
Gain | Value
October 31, 2024 | Dividend Income |
| Investments in Affiliated Money Market Funds: | | | | | | | |
| Invesco Government & Agency Portfolio, Institutional Class | $101,258 | $2,169,937 | $(2,125,221) | $- | $- | $145,974 | $9,134 |
| Invesco Liquid Assets Portfolio, Institutional Class | 72,065 | 1,413,753 | (1,485,825) | (15) | 22 | - | 5,158 |
| Invesco Treasury Portfolio, Institutional Class | 115,723 | 2,732,237 | (2,577,120) | - | - | 270,840 | 11,857 |
| Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
| Invesco Private Government Fund | 118,188 | 1,300,370 | (1,418,558) | - | - | - | 798* |
| Invesco Private Prime Fund | 303,993 | 3,323,908 | (3,627,894) | (26) | 19 | - | 2,262* |
| Total | $711,227 | $10,940,205 | $(11,234,618) | $(41) | $41 | $416,814 | $29,209 |
| * | 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. |
| (d) | The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| Open Futures Contracts(a) |
| Long Futures Contracts | Number of
Contracts | Expiration
Month | Notional
Value | Value | Unrealized
Appreciation |
| Equity Risk |
| MSCI World Index | 3 | December-2024 | $348,810 | $79 | $79 |
| (a) | Futures contracts collateralized by $24,094 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.
| 6 | Invesco MSCI World SRI Index Fund |
Statement of Assets and Liabilities
October 31, 2024
| Assets: | |
Investments in unaffiliated securities, at value
(Cost $13,392,770) | $16,429,786 |
| Investments in affiliated money market funds, at value (Cost $416,814) | 416,814 |
| Deposits with brokers: | |
| Cash collateral — exchange-traded futures contracts | 24,094 |
| Foreign currencies, at value (Cost $4,506) | 4,484 |
| Receivable for: | |
| Fund shares sold | 7,783 |
| Fund expenses absorbed | 8,827 |
| Dividends | 27,704 |
| Investment for trustee deferred compensation and retirement plans | 22,727 |
| Other assets | 46,229 |
| Total assets | 16,988,448 |
| Liabilities: | |
| Other investments: | |
| Variation margin payable — futures contracts | 5,370 |
| Payable for: | |
| Accrued fees to affiliates | 4,311 |
| Accrued trustees’ and officers’ fees and benefits | 1,924 |
| Accrued other operating expenses | 45,894 |
| Trustee deferred compensation and retirement plans | 22,727 |
| Total liabilities | 80,226 |
| Net assets applicable to shares outstanding | $16,908,222 |
| Net assets consist of: | |
| Shares of beneficial interest | $12,294,612 |
| Distributable earnings | 4,613,610 |
| | $16,908,222 |
| Net Assets: |
| Class A | $1,636,134 |
| Class C | $220,085 |
| Class R | $985,399 |
| Class Y | $1,200,670 |
| Class R5 | $18,215 |
| Class R6 | $12,847,719 |
| Shares outstanding, no par value, with an unlimited number of shares authorized: |
| Class A | 90,738 |
| Class C | 12,495 |
| Class R | 55,109 |
| Class Y | 65,973 |
| Class R5 | 1,001 |
| Class R6 | 706,018 |
| Class A: | |
| Net asset value per share | $18.03 |
Maximum offering price per share
(Net asset value of $18.03 ÷ 94.50%) | $19.08 |
| Class C: | |
| Net asset value and offering price per share | $17.61 |
| Class R: | |
| Net asset value and offering price per share | $17.88 |
| Class Y: | |
| Net asset value and offering price per share | $18.20 |
| Class R5: | |
| Net asset value and offering price per share | $18.20 |
| Class R6: | |
| Net asset value and offering price per share | $18.20 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 7 | Invesco MSCI World SRI Index Fund |
Statement of Operations
For the year ended October 31, 2024
| Investment income: | |
| Interest | $1,331 |
| Dividends (net of foreign withholding taxes of $17,926) | 236,991 |
| Dividends from affiliated money market funds (includes net securities lending income of $77) | 26,226 |
| Foreign withholding tax claims | 3,588 |
| Total investment income | 268,136 |
| Expenses: | |
| Advisory fees | 20,693 |
| Administrative services fees | 2,113 |
| Custodian fees | 6,685 |
| Distribution fees: | |
| Class A | 3,716 |
| Class C | 2,079 |
| Class R | 4,161 |
| Transfer agent fees — A, C, R and Y | 5,340 |
| Transfer agent fees — R5 | 5 |
| Transfer agent fees — R6 | 3,366 |
| Trustees’ and officers’ fees and benefits | 22,755 |
| Registration and filing fees | 76,179 |
| Licensing fees | 4,551 |
| Reports to shareholders | 9,583 |
| Professional services fees | 77,761 |
| Other | 15,631 |
| Total expenses | 254,618 |
| Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s) | (217,078) |
| Net expenses | 37,540 |
| Net investment income | 230,596 |
| Realized and unrealized gain (loss) from: | |
| Net realized gain from: | |
| Unaffiliated investment securities | 1,398,516 |
| Affiliated investment securities | 41 |
| Foreign currencies | 805 |
| Futures contracts | 85,006 |
| | 1,484,368 |
| Change in net unrealized appreciation (depreciation) of: | |
| Unaffiliated investment securities | 1,703,253 |
| Affiliated investment securities | (41) |
| Foreign currencies | (351) |
| Futures contracts | 18,292 |
| | 1,721,153 |
| Net realized and unrealized gain | 3,205,521 |
| Net increase in net assets resulting from operations | $3,436,117 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 8 | Invesco MSCI World SRI Index Fund |
Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
| | 2024 | 2023 |
| Operations: | | |
| Net investment income | $230,596 | $180,351 |
| Net realized gain | 1,484,368 | 576,459 |
| Change in net unrealized appreciation | 1,721,153 | 518,104 |
| Net increase in net assets resulting from operations | 3,436,117 | 1,274,914 |
| Distributions to shareholders from distributable earnings: | | |
| Class A | (36,712) | (14,447) |
| Class C | (5,445) | (1,137) |
| Class R | (19,346) | (6,202) |
| Class Y | (26,685) | (17,893) |
| Class R5 | (489) | (240) |
| Class R6 | (292,951) | (122,100) |
| Total distributions from distributable earnings | (381,628) | (162,019) |
| Share transactions–net: | | |
| Class A | 236,152 | 64,630 |
| Class C | 10,395 | 123 |
| Class R | 224,496 | 60,759 |
| Class Y | 69,198 | 1,100 |
| Class R6 | 2,840,061 | 312,101 |
| Net increase in net assets resulting from share transactions | 3,380,302 | 438,713 |
| Net increase in net assets | 6,434,791 | 1,551,608 |
| Net assets: | | |
| Beginning of year | 10,473,431 | 8,921,823 |
| End of year | $16,908,222 | $10,473,431 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 9 | Invesco MSCI World SRI Index Fund |
Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| | Net asset
value,
beginning
of period | Net
investment
income(a) | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Dividends
from net
investment
income | Distributions
from net
realized
gains | Total
distributions | Net asset
value, end
of period | Total
return(b) | Net assets,
end of period
(000’s omitted) | Ratio of
expenses
to average
net assets
with fee waivers
and/or
expenses
absorbed | Ratio of
expenses
to average net
assets without
fee waivers
and/or
expenses
absorbed | Ratio of net
investment
income
to average
net assets | Portfolio
turnover (c) |
| Class A |
| Year ended 10/31/24 | $14.39 | $0.23 | $3.90 | $4.13 | $(0.23) | $(0.26) | $(0.49) | $18.03 | 29.11%(d) | $1,636 | 0.44% | 2.00% | 1.37% | 32% |
| Year ended 10/31/23 | 12.82 | 0.23 | 1.54 | 1.77 | (0.20) | — | (0.20) | 14.39 | 13.99 | 1,088 | 0.44 | 2.45 | 1.57 | 23 |
| Year ended 10/31/22 | 16.76 | 0.19 | (3.93) | (3.74) | (0.20) | — | (0.20) | 12.82 | (22.58) | 914 | 0.44 | 2.15 | 1.28 | 13 |
| Year ended 10/31/21 | 11.78 | 0.19 | 4.98 | 5.17 | (0.19) | — | (0.19) | 16.76 | 44.35 | 1,337 | 0.44 | 3.31 | 1.28 | 19 |
| Year ended 10/31/20 | 11.86 | 0.17 | (0.06) | 0.11 | (0.19) | — | (0.19) | 11.78 | 0.89 | 922 | 0.70 | 3.03 | 1.48 | 118 |
| Class C |
| Year ended 10/31/24 | 14.15 | 0.10 | 3.83 | 3.93 | (0.21) | (0.26) | (0.47) | 17.61 | 28.15(d) | 220 | 1.19 | 2.75 | 0.62 | 32 |
| Year ended 10/31/23 | 12.60 | 0.12 | 1.53 | 1.65 | (0.10) | — | (0.10) | 14.15 | 13.14 | 166 | 1.19 | 3.20 | 0.82 | 23 |
| Year ended 10/31/22 | 16.49 | 0.08 | (3.88) | (3.80) | (0.09) | — | (0.09) | 12.60 | (23.16) | 148 | 1.19 | 2.90 | 0.53 | 13 |
| Year ended 10/31/21 | 11.67 | 0.08 | 4.92 | 5.00 | (0.18) | — | (0.18) | 16.49 | 43.21 | 207 | 1.19 | 4.06 | 0.53 | 19 |
| Year ended 10/31/20 | 11.75 | 0.08 | (0.05) | 0.03 | (0.11) | — | (0.11) | 11.67 | 0.21 | 158 | 1.45 | 3.78 | 0.73 | 118 |
| Class R |
| Year ended 10/31/24 | 14.30 | 0.19 | 3.87 | 4.06 | (0.22) | (0.26) | (0.48) | 17.88 | 28.81(d) | 985 | 0.69 | 2.25 | 1.12 | 32 |
| Year ended 10/31/23 | 12.74 | 0.19 | 1.54 | 1.73 | (0.17) | — | (0.17) | 14.30 | 13.69 | 583 | 0.69 | 2.70 | 1.32 | 23 |
| Year ended 10/31/22 | 16.66 | 0.15 | (3.90) | (3.75) | (0.17) | — | (0.17) | 12.74 | (22.76) | 464 | 0.69 | 2.40 | 1.03 | 13 |
| Year ended 10/31/21 | 11.74 | 0.15 | 4.96 | 5.11 | (0.19) | — | (0.19) | 16.66 | 43.93 | 571 | 0.69 | 3.56 | 1.03 | 19 |
| Year ended 10/31/20 | 11.81 | 0.15 | (0.06) | 0.09 | (0.16) | — | (0.16) | 11.74 | 0.74 | 325 | 0.95 | 3.28 | 1.23 | 118 |
| Class Y |
| Year ended 10/31/24 | 14.49 | 0.28 | 3.92 | 4.20 | (0.23) | (0.26) | (0.49) | 18.20 | 29.45(d) | 1,201 | 0.19 | 1.75 | 1.62 | 32 |
| Year ended 10/31/23 | 12.91 | 0.26 | 1.56 | 1.82 | (0.24) | — | (0.24) | 14.49 | 14.28 | 902 | 0.19 | 2.20 | 1.82 | 23 |
| Year ended 10/31/22 | 16.87 | 0.22 | (3.94) | (3.72) | (0.24) | — | (0.24) | 12.91 | (22.37) | 793 | 0.19 | 1.90 | 1.53 | 13 |
| Year ended 10/31/21 | 11.83 | 0.23 | 5.01 | 5.24 | (0.20) | — | (0.20) | 16.87 | 44.73 | 793 | 0.19 | 3.06 | 1.53 | 19 |
| Year ended 10/31/20 | 11.91 | 0.20 | (0.06) | 0.14 | (0.22) | — | (0.22) | 11.83 | 1.11 | 485 | 0.45 | 2.78 | 1.73 | 118 |
| Class R5 |
| Year ended 10/31/24 | 14.49 | 0.28 | 3.92 | 4.20 | (0.23) | (0.26) | (0.49) | 18.20 | 29.45(d) | 18 | 0.19 | 1.63 | 1.62 | 32 |
| Year ended 10/31/23 | 12.91 | 0.26 | 1.56 | 1.82 | (0.24) | — | (0.24) | 14.49 | 14.28 | 15 | 0.19 | 2.08 | 1.82 | 23 |
| Year ended 10/31/22 | 16.87 | 0.23 | (3.95) | (3.72) | (0.24) | — | (0.24) | 12.91 | (22.37) | 13 | 0.19 | 1.78 | 1.53 | 13 |
| Year ended 10/31/21 | 11.83 | 0.22 | 5.02 | 5.24 | (0.20) | — | (0.20) | 16.87 | 44.73 | 17 | 0.19 | 2.86 | 1.53 | 19 |
| Year ended 10/31/20 | 11.90 | 0.20 | (0.05) | 0.15 | (0.22) | — | (0.22) | 11.83 | 1.20 | 22 | 0.45 | 2.56 | 1.73 | 118 |
| Class R6 |
| Year ended 10/31/24 | 14.49 | 0.28 | 3.92 | 4.20 | (0.23) | (0.26) | (0.49) | 18.20 | 29.45(d) | 12,848 | 0.19 | 1.63 | 1.62 | 32 |
| Year ended 10/31/23 | 12.91 | 0.26 | 1.56 | 1.82 | (0.24) | — | (0.24) | 14.49 | 14.28 | 7,719 | 0.19 | 2.08 | 1.82 | 23 |
| Year ended 10/31/22 | 16.87 | 0.23 | (3.95) | (3.72) | (0.24) | — | (0.24) | 12.91 | (22.37) | 6,590 | 0.19 | 1.80 | 1.53 | 13 |
| Year ended 10/31/21 | 11.83 | 0.22 | 5.02 | 5.24 | (0.20) | — | (0.20) | 16.87 | 44.73 | 9,884 | 0.19 | 2.79 | 1.53 | 19 |
| Year ended 10/31/20 | 11.90 | 0.20 | (0.05) | 0.15 | (0.22) | — | (0.22) | 11.83 | 1.20 | 6,342 | 0.45 | 2.51 | 1.73 | 118 |
| (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) | Amount includes the effect of the Adviser pay-in for an economic loss that occurred on July 31, 2024. Had the pay-in not been made, the total return would have been 27.96%, 26.99%, 27.66%, 28.31%, 28.31% and 28.31% 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 MSCI World SRI Index Fund |
Notes to Financial Statements
October 31, 2024
NOTE 1—Significant Accounting Policies
Invesco MSCI World SRI Index Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company 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.
All share classes, except for Class R6 shares, are closed to new investors.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
| A. | Security Valuations — Securities, including restricted securities, are valued according to the following policy. |
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| 11 | Invesco MSCI World SRI Index Fund |
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
| B. | Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. |
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
| C. | Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted. |
| D. | Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes. |
| E. | Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements. |
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
| F. | Foreign Withholding Taxes – The Fund is subject to foreign withholding tax imposed by certain foreign countries in which the Fund may invest. Withholding taxes are incurred on certain foreign dividends and are accrued at the time the dividend is recognized based on applicable foreign tax laws. The Fund may file withholding tax refunds in certain jurisdictions to seek to recover a portion of amounts previously withheld. The Fund will record a receivable for such tax refunds based on several factors including; an assessment of a jurisdiction’s legal obligation to pay reclaims, administrative practices and payment history. Any receivables recorded will be shown under receivables for Foreign withholding tax claims on the Statement of Assets and Liabilities. There is no guarantee that the Fund will receive refunds applied for in a timely manner or at all. |
As a result of recent court rulings in certain countries across the European Union, tax refunds for previously withheld taxes on dividends earned in those countries have been received by investment companies. Any tax refund payments are reflected as Foreign withholding tax claims in the Statement of Operations, and any related interest is included in Interest income. The Fund may incur fees paid to third party providers that assist in the recovery of the tax reclaims. These fees are reflected on the Statement of Operations as Professional services fees, if any. In the event tax refunds received by the Fund during the fiscal year exceed the foreign withholding taxes paid by the Fund for the year, and the Fund previously passed foreign tax credits on to its shareholders, the Fund intends to enter into a closing agreement with the Internal Revenue Service in order to pay the associated liability on behalf of the Funds’ shareholders. For the year ended October 31, 2024, the Fund did not enter into any closing agreements.
| G. | Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets. |
| H. | Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. |
| I. | Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote. |
| J. | Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated, unregistered investment companies that comply with Rule 2a-7 under the 1940 Act and money market funds |
| 12 | Invesco MSCI World SRI Index Fund |
| | (collectively, "affiliated money market funds") and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the lending agent. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities. |
The Adviser serves as an affiliated securities lending agent for the Fund. The Bank of New York Mellon also serves as a securities lending agent. To the extent the Fund utilizes the Adviser as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services in a manner consistent with the federal securities laws. For the year ended October 31, 2024, the Fund paid the Adviser fees for securities lending agent services, which were less than $500. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
| K. | Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates. |
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| L. | Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk. |
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
| M. | Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between Counterparties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying instrument or asset. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities. |
| N. | Leverage Risk — Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction. |
| O. | Other Risks - The Fund intends to be diversified in approximately the same proportion as the MSCI World SRI Index (the "Underlying Index") is diversified. The |
| 13 | Invesco MSCI World SRI Index Fund |
| | Fund may be “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the Underlying Index. To the extent the Fund becomes non-diversified, the Fund may invest a greater portion of its assets in the obligations or securities of a small number of issuers or any single issuer than a diversified fund can. In such circumstances, a change in the value of one or a few issuers’ securities will therefore affect the value of the Fund more than if it was a diversified fund. |
Because MSCI Inc. (“MSCI”), the index provider of the Underlying Index, uses Environmental, Social and Governance (“ESG”) factors to exclude, select and assign weights to certain stocks of companies included in the Underlying Index for non-financial reasons, the Fund may forego some market opportunities available to funds that do not use these factors. Consequently, the Fund may underperform other funds that do not use ESG factors. Further, there is a risk that information used by MSCI to evaluate the ESG factors may not be readily available, complete or accurate, which could negatively impact MSCI’s ability to apply its ESG standards when compiling the Underlying Index, which may negatively impact the Fund’s performance. MSCI’s assessment of a company, based on the company’s level of involvement in a particular industry or other ESG factors, may differ from that of other funds, the Adviser or an investor. As a result, the companies deemed eligible by MSCI for inclusion in the Underlying Index may not reflect the beliefs and values of any particular investor and may not be deemed to exhibit positive or favorable ESG characteristics if different metrics were used to evaluate them. Not every investment or issuer held by the Fund may be evaluated for ESG considerations.
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 $2 billion | 0.140% |
| Over $2 billion | 0.120% |
For the year ended October 31, 2024, the effective advisory fee rate incurred by the Fund was 0.14%.
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).
The Adviser has contractually agreed, through at least February 28, 2025, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 0.44%, 1.19%, 0.69%, 0.19%, 0.19%, and 0.19%, 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 the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on February 28, 2025. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees.
Further, the Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $20,693, reimbursed fund level expenses of $187,445 and reimbursed class level expenses of $2,290, $320, $1,282, $1,448, $5 and $3,366 of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares, respectively.
The Adviser paid in to the Fund $150,455 for an economic loss.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares, 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
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.
| 14 | Invesco MSCI World SRI Index 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. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
| | Level 1 | Level 2 | Level 3 | Total |
| Investments in Securities | | | | |
| Australia | $— | $275,973 | $— | $275,973 |
| Austria | — | 9,789 | — | 9,789 |
| Belgium | — | 22,221 | — | 22,221 |
| Canada | 605,696 | — | — | 605,696 |
| China | 58,860 | 56,886 | — | 115,746 |
| Denmark | — | 395,574 | — | 395,574 |
| Finland | — | 82,133 | — | 82,133 |
| France | — | 389,443 | — | 389,443 |
| Germany | — | 216,163 | — | 216,163 |
| Hong Kong | — | 103,010 | — | 103,010 |
| Ireland | — | 10,986 | — | 10,986 |
| Italy | — | 65,072 | — | 65,072 |
| Japan | — | 994,183 | — | 994,183 |
| Netherlands | — | 81,555 | — | 81,555 |
| New Zealand | — | 4,663 | — | 4,663 |
| Norway | — | 35,103 | — | 35,103 |
| Singapore | — | 23,325 | — | 23,325 |
| Spain | — | 52,852 | — | 52,852 |
| Sweden | — | 55,245 | — | 55,245 |
| Switzerland | — | 328,729 | — | 328,729 |
| Taiwan | — | 259,155 | — | 259,155 |
| United Kingdom | — | 474,325 | — | 474,325 |
| United States | 11,738,492 | 90,353 | — | 11,828,845 |
| Money Market Funds | 416,814 | — | — | 416,814 |
| Total Investments in Securities | 12,819,862 | 4,026,738 | — | 16,846,600 |
| Other Investments - Assets* | | | | |
| Futures Contracts | 79 | — | — | 79 |
| Total Investments | $12,819,941 | $4,026,738 | $— | $16,846,679 |
| * | Unrealized appreciation. |
NOTE 4—Derivative Investments
The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.
Value of Derivative Investments at Period-End
The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of October 31, 2024:
| | Value |
| Derivative Assets | Equity
Risk |
| Unrealized appreciation on futures contracts —Exchange-Traded(a) | $79 |
| Derivatives not subject to master netting agreements | (79) |
| Total Derivative Assets subject to master netting agreements | $— |
| (a) | The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities. |
| 15 | Invesco MSCI World SRI Index Fund |
Effect of Derivative Investments for the year ended October 31, 2024
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
| | Location of Gain on
Statement of Operations |
| | Equity
Risk |
| Realized Gain: | |
| Futures contracts | $85,006 |
| Change in Net Unrealized Appreciation: | |
| Futures contracts | 18,292 |
| Total | $103,298 |
The table below summarizes the average notional value of derivatives held during the period.
| | Futures
Contracts |
| Average notional value | $395,746 |
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 year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $229.
NOTE 6—Trustees’ and Officers’ Fees and Benefits
Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Obligations under the deferred compensation plan represent unsecured claims against the general assets of the Fund.
NOTE 7—Cash Balances
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8—Distributions to Shareholders and Tax Components of Net Assets
| Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023: |
| | 2024 | 2023 |
| Ordinary income* | $180,528 | $162,019 |
| Long-term capital gain | 201,100 | — |
| Total distributions | $381,628 | $162,019 |
| * | Includes short-term capital gain distributions, if any. |
| Tax Components of Net Assets at Period-End: |
| | 2024 |
| Undistributed ordinary income | $266,374 |
| Undistributed long-term capital gain | 1,345,491 |
| Net unrealized appreciation — investments | 3,018,804 |
| Net unrealized appreciation (depreciation) — foreign currencies | (928) |
| Temporary book/tax differences | (16,131) |
| Shares of beneficial interest | 12,294,612 |
| Total net assets | $16,908,222 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to wash sales and passive foreign investment companies.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund does not have a capital loss carryforward as of October 31, 2024.
| 16 | Invesco MSCI World SRI Index 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 year ended October 31, 2024 was $7,861,604 and $4,548,272, respectively. As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
| Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
| Aggregate unrealized appreciation of investments | $3,498,239 |
| Aggregate unrealized (depreciation) of investments | (479,435) |
| Net unrealized appreciation of investments | $3,018,804 |
Cost of investments for tax purposes is $13,827,875.
NOTE 10—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of equalization, on October 31, 2024, undistributed net investment income was increased by $1,046, undistributed net realized gain was decreased by $110,048 and shares of beneficial interest was increased by $109,002. This reclassification had no effect on the net assets of the Fund.
NOTE 11—Share Information
| | Summary of Share Activity |
| | Year ended
October 31, 2024(a) | | Year ended
October 31, 2023 |
| | Shares | Amount | | Shares | Amount |
| Sold: | | | | | |
| Class A | 24,724 | $405,388 | | 10,979 | $159,700 |
| Class C | 1,444 | 23,395 | | 109 | 1,547 |
| Class R | 22,839 | 371,380 | | 4,216 | 59,393 |
| Class Y | 73,131 | 1,239,150 | | 13,799 | 187,795 |
| Class R6 | 241,416 | 4,025,830 | | 67,712 | 1,001,420 |
| Issued as reinvestment of dividends: | | | | | |
| Class A | 2,170 | 34,374 | | 1,076 | 14,124 |
| Class C | 320 | 4,982 | | 80 | 1,040 |
| Class R | 1,199 | 18,870 | | 462 | 6,034 |
| Class Y | 1,447 | 23,082 | | 1,170 | 15,434 |
| Class R6 | 18,345 | 292,601 | | 9,244 | 121,929 |
| Automatic conversion of Class C shares to Class A shares: | | | | | |
| Class A | 979 | 17,648 | | - | - |
| Class C | (1,001) | (17,648) | | - | - |
| Reacquired: | | | | | |
| Class A | (12,764) | (221,258) | | (7,732) | (109,194) |
| Class C | (20) | (334) | | (179) | (2,464) |
| Class R | (9,720) | (165,754) | | (319) | (4,668) |
| Class Y | (70,854) | (1,193,034) | | (14,196) | (202,129) |
| Class R6 | (86,464) | (1,478,370) | | (54,781) | (811,248) |
| Net increase in share activity | 207,191 | $3,380,302 | | 31,640 | $438,713 |
| (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. |
| 17 | Invesco MSCI World SRI Index Fund |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM International Mutual Funds (Invesco International Mutual Funds) and Shareholders of Invesco MSCI World SRI Index Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Invesco MSCI World SRI Index Fund (one of the funds constituting AIM International Mutual Funds (Invesco International Mutual Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related statement of operations for the year ended October 31, 2024, the statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent and broker. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Houston, Texas
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
| 18 | Invesco MSCI World SRI Index Fund |
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM International Mutual Funds (Invesco International Mutual Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco MSCI World SRI Index Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees, that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an independent written evaluation from the Senior
Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy and cybersecurity, including related testing. The
Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
B. Fund Investment Performance
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement as well as the sub-advisory contracts for the Fund, as Invesco Asset Management Deutschland GmbH currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the Custom Invesco MSCI World SRI Index (Index). The Board noted that performance of Class A shares of the Fund was in the first quintile of its performance universe for the one and three year periods and the third quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was reasonably comparable to the performance of the Index for the one and three year periods and below the performance of the Index for the five year period. The Board noted that the Fund seeks to track the investment results of the Index, and that the Fund’s
| 19 | Invesco MSCI World SRI Index Fund |
performance will typically lag the Index due to the fees associated with the Fund. The Board considered that the Fund is passively managed and discussed reasons for differences in the Fund’s performance versus its peers. The Board acknowledged limitations regarding the Broadridge data, in particular that differences may exist between the Fund’s investment objective, principal investment strategies and/or investment restrictions and those of the funds in its performance universe, and specifically that the Fund’s peer group includes funds that are actively managed or may track a different index than the Fund. The Board further considered that the Fund had changed its name, investment strategy and index in 2020 in connection with the Fund’s repositioning as an index-based fund, and that performance results prior to such date reflected that of the Fund’s former actively managed strategy. As a result, the Board did not consider performance of the Fund prior to such date to be particularly relevant. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
C. Advisory and Sub-Advisory Fees and Fund Expenses
The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Class A shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board also noted that the Fund’s actual management fee rate was 0.00% due to expense limits and/or waivers, which was below the median actual management fee rate of its expense group. The Board noted that the Fund’s contractual management fee schedule was reduced at certain breakpoint levels effective in 2020 in connection with its repositioning as an index-based fund. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that there were only three funds (including the Fund) in the expense group.
The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund for the term disclosed in the Fund’s registration statement in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other similarly managed mutual funds or client accounts.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to
the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that Invesco Advisers retains overall responsibility for, and provides services to, sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described herein other than day-to-day portfolio management.
D. Economies of Scale and Breakpoints
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the difficulty in calculating and measuring economies of scale at the individual fund level; noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund also shares in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
E. Profitability and Financial Resources
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
F. Collateral Benefits to Invesco Advisers and its Affiliates
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives from Invesco Advisers periodic reports that include a representation to the effect that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities Lending Governance Committee and its related responsibilities. The Board noted that to the extent
| 20 | Invesco MSCI World SRI Index Fund |
the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services without obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending services provided to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such securities lending activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades were executed in compliance with rules under the federal securities laws and consistent with best execution obligations.
| 21 | Invesco MSCI World SRI Index Fund |
Tax Information
Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
| Federal and State Income Tax | |
| Long-Term Capital Gain Distributions | $310,100 |
| Qualified Dividend Income* | 96.65% |
| Corporate Dividends Received Deduction* | 54.11% |
| U.S. Treasury Obligations* | 0.00% |
| Qualified Business Income* | 0.00% |
| Business Interest Income* | 0.00% |
| * | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
| 22 | Invesco MSCI World SRI Index Fund |
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Not applicable.
Proxy Disclosures for Open-End Management Investment Companies
Not applicable.
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
| 23 | Invesco MSCI World SRI Index Fund |
| SEC file number(s): 811-06463 and 033-44611 | Invesco Distributors, Inc. | GLRE-NCSR |
Annual Financial Statements and Other InformationOctober 31, 2024
Invesco Oppenheimer International Growth Fund
A: OIGAX ■ C: OIGCX ■ R: OIGNX ■ Y: OIGYX ■ R5: INGFX ■ R6: OIGIX
| |
| |
| |
| Notes to Financial Statements |
| Report of Independent Registered Public Accounting Firm |
| Approval of Investment Advisory and Sub-Advisory Contracts |
| |
| Other Information Required in Form N-CSR (Items 8-11) |
| | |
Common Stocks & Other Equity Interests–99.50% |
|
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James Hardie Industries PLC, CDI(a)(b) | | |
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Alimentation Couche-Tard, Inc. | | |
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| | | |
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Novo Nordisk A/S, Class B | | |
|
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Hermes International S.C.A. | | |
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LVMH Moet Hennessy Louis Vuitton SE | | |
Sartorius Stedim Biotech(b) | | |
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CTS Eventim AG & Co. KGaA(b) | | |
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Flutter Entertainment PLC(a) | | |
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Daikin Industries Ltd.(b) | | |
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OBIC Business Consultants Co. Ltd. | | |
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Universal Music Group N.V. | | |
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Atlas Copco AB, Class A(b) | | |
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Taiwan Semiconductor Manufacturing Co. Ltd. | | |
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London Stock Exchange Group PLC | | |
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Ferguson Enterprises, Inc. | | |
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Total Common Stocks & Other Equity Interests (Cost $3,359,884,059) | |
|
Invesco Government & Agency Portfolio, Institutional Class, 4.77%(d)(e) | | |
Invesco Treasury Portfolio, Institutional | | |
Total Money Market Funds (Cost $32,359,159) | |
TOTAL INVESTMENTS IN SECURITIES (excluding Investments purchased with cash collateral from securities on loan)-100.01% (Cost $3,392,243,218) | | | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
2
Invesco Oppenheimer International Growth Fund
| | |
Investments Purchased with Cash Collateral from Securities on Loan |
|
Invesco Private Government Fund, | | |
Invesco Private Prime Fund, 4.99%(d)(e)(f) | | |
Total Investments Purchased with Cash Collateral from Securities on Loan (Cost $47,037,436) | |
TOTAL INVESTMENTS IN SECURITIES—100.75% (Cost $3,439,280,654) | |
OTHER ASSETS LESS LIABILITIES–(0.75)% | |
| |
Investment Abbreviations:
| – CREST Depository Interest |
Notes to Schedule of Investments:
| Non-income producing security. |
| All or a portion of this security was out on loan at October 31, 2024. |
| Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2024 was $450,688,296, which represented 7.11% of the Fund’s Net Assets. |
| Affiliated holding. Affiliated holdings are investments in entities which are under common ownership or control of Invesco Ltd. or are investments in entities in which the Fund owns 5% or more of the outstanding voting securities. The table below shows the Fund’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended October 31, 2024. |
| | | | Change in
Unrealized
Appreciation
(Depreciation) | | | |
Investments in Affiliated Money Market Funds: | | | | | | | |
Invesco Government & Agency Portfolio, Institutional Class | | | | | | | |
Invesco Liquid Assets Portfolio, Institutional Class | | | | | | | |
Invesco Treasury Portfolio, Institutional Class | | | | | | | |
Investments Purchased with Cash Collateral from Securities on Loan: | | | | | | | |
Invesco Private Government Fund | | | | | | | |
Invesco Private Prime Fund | | | | | | | |
Investments in Other Affiliates: | | | | | | | |
| | | | | | | |
| | | | | | | |
| 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. |
| As of October 31, 2024, this security was no longer an affiliate of the Fund. |
| The rate shown is the 7-day SEC standardized yield as of October 31, 2024. |
| The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
3
Invesco Oppenheimer International Growth Fund
Statement of Assets and Liabilities
| |
Investments in unaffiliated securities, at value
(Cost $3,359,884,059)* | |
Investments in affiliated money market funds, at value (Cost $79,396,595) | |
| |
Foreign currencies, at value (Cost $4,877,772) | |
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Foreign withholding tax claims | |
Investment for trustee deferred compensation and retirement plans | |
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Collateral upon return of securities loaned | |
Accrued fees to affiliates | |
Accrued trustees’ and officers’ fees and benefits | |
Accrued other operating expenses | |
IRS closing agreement fees for foreign withholding tax claims | |
Trustee deferred compensation and retirement plans | |
| |
Net assets applicable to shares outstanding | |
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Shares of beneficial interest | |
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Shares outstanding, no par value, with an unlimited number of shares authorized: |
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Net asset value per share | |
Maximum offering price per share
(Net asset value of $36.54 ÷ 94.50%) | |
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Net asset value and offering price per share | |
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Net asset value and offering price per share | |
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Net asset value and offering price per share | |
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Net asset value and offering price per share | |
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Net asset value and offering price per share | |
| At October 31, 2024, securities with an aggregate value of $43,765,946 were on loan to brokers. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
4
Invesco Oppenheimer International Growth Fund
Statement of Operations
For the year ended October 31, 2024
| |
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Dividends (net of foreign withholding taxes of $6,441,240) | |
Dividends from affiliates (includes net securities lending income of $477,529) | |
Foreign withholding tax claims | |
Less: IRS closing agreement fees for foreign withholding tax claims | |
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Administrative services fees | |
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Transfer agent fees — A, C, R and Y | |
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Trustees’ and officers’ fees and benefits | |
Registration and filing fees | |
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Professional services fees | |
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Less: Fees waived and/or expense offset arrangement(s) | |
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Realized and unrealized gain (loss) from: | |
Net realized gain (loss) from: | |
Unaffiliated investment securities (net of foreign taxes of $2,684,262) | |
Affiliated investment securities | |
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Forward foreign currency contracts | |
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Change in net unrealized appreciation of: | |
Unaffiliated investment securities (net of foreign taxes of $24,595,487) | |
Affiliated investment securities | |
| |
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Net realized and unrealized gain | |
Net increase in net assets resulting from operations | |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
5
Invesco Oppenheimer International Growth Fund
Statement of Changes in Net Assets
For the years ended October 31, 2024 and 2023
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Change in net unrealized appreciation (depreciation) | | |
Net increase in net assets resulting from operations | | |
Distributions to shareholders from distributable earnings: | | |
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Total distributions from distributable earnings | | |
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Net increase (decrease) in net assets resulting from share transactions | | |
Net increase (decrease) in net assets | | |
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See accompanying Notes to Financial Statements which are an integral part of the financial statements.
6
Invesco Oppenheimer International Growth Fund
Financial Highlights
The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.
| Net asset
value,
beginning
of period | | Net gains
(losses)
on securities
(both
realized and
unrealized) | Total from
investment
operations | Dividends
from net
investment
income | Distributions
from net
realized
gains | | Net asset
value, end
of period | | Net assets,
end of period
(000’s omitted) | Ratio of
expenses
to average
net assets
with fee waivers
and/or
expenses
absorbed | Ratio of
expenses
to average net
assets without
fee waivers
and/or
expenses
absorbed
| Ratio of net
investment
income
(loss)
to average
net assets | |
|
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| Calculated using average shares outstanding. |
| Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable. |
| Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. |
| The total return, ratios of expenses to average net assets and ratio of net investment income (loss) to average net assets reflect actual 12b-1 fees of 0.24% for the years ended October 31, 2024 and 2023, respectively. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
7
Invesco Oppenheimer International Growth Fund
Notes to Financial Statements
NOTE 1—Significant Accounting Policies
Invesco Oppenheimer International Growth Fund (the “Fund”) is a series portfolio of AIM International Mutual Funds (Invesco International Mutual Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company authorized to issue an unlimited number of shares of beneficial interest. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class.
The Fund’s investment objective is to seek capital appreciation.
The Fund currently consists of six different classes of shares: Class A, Class C, Class R, Class Y, Class R5 and Class R6. Class Y shares are available only to certain investors. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met. Under certain circumstances, load waived shares may be subject to contingent deferred sales charges ("CDSC"). Class C shares are sold with a CDSC. Class R, Class Y, Class R5 and Class R6 shares are sold at net asset value. Class C shares held for eight years after purchase are eligible for automatic conversion into Class A shares of the same Fund (the "Conversion Feature"). The automatic conversion pursuant to the Conversion Feature will generally occur at the end of the month following the eighth anniversary after a purchase of Class C shares.
Effective after the close of business on September 30, 2024, Class R5 shares are closed to new investors.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.
A.
Security Valuations — Securities, including restricted securities, are valued according to the following policy.
A security listed or traded on an exchange is generally valued at its trade price or official closing price that day as of the close of the exchange where the security is principally traded, or lacking any trades or official closing price on a particular day, the security may be valued at the closing bid or ask price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued using prices provided by an independent pricing service they may be considered fair valued. Futures contracts are valued at the daily settlement price set by an exchange on which they are principally traded. Where a final settlement price exists, exchange-traded options are valued at the final settlement price from the exchange where the option principally trades. Where a final settlement price does not exist, exchange-traded options are valued at the mean between the last bid and ask price generally from the exchange where the option principally trades.
Securities of investment companies that are not exchange-traded (e.g., open-end mutual funds) are valued using such company’s end-of-business-day net asset value per share.
Deposits, other obligations of U.S. and non-U.S. banks and financial institutions are valued at their daily account value.
Fixed income securities (including convertible debt securities) generally are valued on the basis of prices provided by independent pricing services. Prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots, and their value may be adjusted accordingly. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Invesco Advisers, Inc. (the “Adviser” or “Invesco”) may use various pricing services to obtain market quotations as well as fair value prices. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become not representative of market value in the Adviser’s judgment (“unreliable”). If, between the time trading ends on a particular security and the close of the customary trading session on the NYSE, a significant event occurs that makes the closing price of the security unreliable, the Adviser may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith in accordance with Board- approved policies and related Adviser procedures (“Valuation Procedures”). Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Unlisted securities will be valued using prices provided by independent pricing services or by another method that the Adviser, in its judgment, believes better reflects the security’s fair value in accordance with the Valuation Procedures.
Non-traded rights and warrants shall be valued at intrinsic value if the terms of the rights and warrants are available, specifically the subscription or exercise price and the ratio. Intrinsic value is calculated as the daily market closing price of the security to be received less the subscription price, which is then adjusted by the exercise ratio. In the case of warrants, an option pricing model supplied by an independent pricing service may be used based on market data such as volatility, stock price and interest rate from the independent pricing service and strike price and exercise period from verified terms.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The mean between the last bid and ask prices may be used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available are fair valued by the Adviser in accordance with the Valuation Procedures. If a fair value price provided by a pricing service is unreliable, the Adviser will fair value the security using the Valuation Procedures. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.
The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general market conditions which are not specifically related to the particular issuer, such as real or perceived adverse economic conditions, changes in the general outlook for revenues or corporate earnings, changes in interest or currency rates, regional or global instability, natural or environmental disasters, widespread disease or other public health issues, war, acts of terrorism, significant governmental actions or adverse investor sentiment generally and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
8
Invesco Oppenheimer International Growth Fund
The price the Fund could receive upon the sale of any investment may differ from the Adviser’s valuation of the investment, particularly for securities that are valued using a fair valuation technique. When fair valuation techniques are applied, the Adviser uses available information, including both observable and unobservable inputs and assumptions, to determine a methodology that will result in a valuation that the Adviser believes approximates market value. Fund securities that are fair valued may be subject to greater fluctuation in their value from one day to the next than would be the case if market quotations were used. Because of the inherent uncertainties of valuation, and the degree of subjectivity in such decisions, the Fund could realize a greater or lesser than expected gain or loss upon the sale of the investment.
B.
Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on an accrual basis from settlement date and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Pay-in-kind interest income and non-cash dividend income received in the form of securities in lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.
The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.
The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.
C.
Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues, the country that has the primary market for the issuer’s securities and its "country of risk" as determined by a third party service provider, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.
Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid annually and recorded on the ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.
Federal Income Taxes – The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.
Foreign Withholding Taxes – The Fund is subject to foreign withholding tax imposed by certain foreign countries in which the Fund may invest. Withholding taxes are incurred on certain foreign dividends and are accrued at the time the dividend is recognized based on applicable foreign tax laws. The Fund may file withholding tax refunds in certain jurisdictions to seek to recover a portion of amounts previously withheld. The Fund will record a receivable for such tax refunds based on several factors including; an assessment of a jurisdiction’s legal obligation to pay reclaims, administrative practices and payment history. Any receivables recorded will be shown under receivables for Foreign withholding tax claims on the Statement of Assets and Liabilities. There is no guarantee that the Fund will receive refunds applied for in a timely manner or at all.
As a result of recent court rulings in certain countries across the European Union, tax refunds for previously withheld taxes on dividends earned in those countries have been received by investment companies. Any tax refund payments are reflected as Foreign withholding tax claims in the Statement of Operations, and any related interest is included in Interest income. The Fund may incur fees paid to third party providers that assist in the recovery of the tax reclaims. These fees are reflected on the Statement of Operations as Professional services fees, if any. In the event tax refunds received by the Fund during the fiscal year exceed the foreign withholding taxes paid by the Fund for the year, and the Fund previously passed foreign tax credits on to its shareholders, the Fund intends to enter into a closing agreement with the Internal Revenue Service in order to pay the associated liability on behalf of the Funds’ shareholders. For the year ended October 31, 2024, the Fund received refunds in excess of the foreign tax paid during the year and has recorded the estimated liability as a reduction to income which is reflected as IRS closing agreement fees for foreign withholding tax claims on the Statement of Operations.
G.
Expenses – Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to Class R5 and Class R6 are allocated based on relative net assets of Class R5 and Class R6. Sub-accounting fees attributable to Class R5 are charged to the operations of the class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
H.
Accounting Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
I.
Indemnifications – Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
J.
Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in
9
Invesco Oppenheimer International Growth Fund
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 year ended October 31, 2024, the Fund paid the Adviser $2,870 in fees for securities lending agent services. Fees paid to the Adviser for securities lending agent services, if any, are included in Dividends from affiliated money market funds on the Statement of Operations.
K.
Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.
The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar. Currency rates in foreign countries may fluctuate for a number of reasons, including changes in interest rates, political, economic, or social instability and development, and imposition of currency controls. Currency controls in certain foreign jurisdictions may cause the Fund to experience significant delays in its ability to repatriate its assets in U.S. dollars at quoted spot rates, and it is possible that the Fund’s ability to convert certain foreign currencies into U.S. dollars may be limited and may occur at discounts to quoted rates. As a result, the value of the Fund’s assets and liabilities denominated in such currencies that would ultimately be realized could differ from those reported on the Statement of Assets and Liabilities. Certain foreign companies may be subject to sanctions, embargoes, or other governmental actions that may limit the ability to invest in, receive, hold, or sell the securities of such companies, all of which affect the market and/or credit risk of the investments. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
L.
Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.
The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical exchange of the two currencies on the settlement date, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards).
A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts for hedging does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.
M.
Other Risks - Emerging markets (also referred to as developing markets) are generally subject to greater market volatility, political, social and economic instability, uncertain trading markets and more governmental limitations on foreign investment than more developed markets. In addition, companies operating in emerging markets may be subject to lower trading volume and greater price fluctuations than companies in more developed markets. Such countries’ economies may be more dependent on relatively few industries or investors that may be highly vulnerable to local and global changes. Companies in emerging market countries generally may be subject to less stringent regulatory, disclosure, financial reporting, accounting, auditing and recordkeeping standards than companies in more developed countries. As a result, information, including financial information, about such companies may be less available and reliable, which can impede the Fund’s ability to evaluate such companies. Securities law and the enforcement of systems of taxation in many emerging market countries may change quickly and unpredictably, and the ability to bring and enforce actions (including bankruptcy, confiscatory taxation, expropriation, nationalization of a company’s assets, restrictions on foreign ownership of local companies, restrictions on withdrawing assets from the country, protectionist measures and practices such as share blocking), or to obtain information needed to pursue or enforce such actions, may be limited. In addition, the ability of foreign entities to participate in privatization programs of certain developing or emerging market countries may be limited by local law. Investments in emerging market securities may be subject to additional transaction costs, delays in settlement procedures, unexpected market closures, and lack of timely information.
10
Invesco Oppenheimer International Growth 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:
| The advisory fee paid by the Fund shall be reduced by any amounts paid by the Fund under the administrative services agreement with the Adviser. |
For the year ended October 31, 2024, the effective advisory fee rate incurred by the Fund was 0.67%.
Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the "Affiliated Sub-Advisers") the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s). Invesco has also entered into a sub-advisory agreement with OppenheimerFunds, Inc. to provide discretionary management services to the Fund.
The Adviser has agreed, for an indefinite period, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares to 2.25%, 3.00%, 2.50%, 2.00%, 2.00% and 2.00%, respectively, of the Fund’s average daily net assets (the “boundary limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Invesco may amend and/or terminate these boundary limits at any time in its sole discretion and will inform the Board of Trustees of any such changes. The Adviser did not waive fees and/or reimburse expenses during the period under these boundary limits.
Further, the Adviser has contractually agreed, through at least August 31, 2026, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.
For the year ended October 31, 2024, the Adviser waived advisory fees of $22,808.
The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Administrative services fees. Invesco has entered into a sub-administration agreement whereby State Street Bank and Trust Company (“SSB”) serves as fund accountant and provides certain administrative services to the Fund. Pursuant to a custody agreement with the Trust on behalf of the Fund, SSB also serves as the Fund’s custodian.
The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting services are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended October 31, 2024, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.
The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class C, Class R, Class Y, Class R5 and Class R6 shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class C and Class R shares (collectively, the “Plans”). The Fund, pursuant to the Class A Plan, reimburses IDI for its allocated share of expenses incurred for the period, up to a maximum annual rate of 0.25% of the average daily net assets of Class A shares. The Fund, pursuant to the Class C and Class R Plans, pays IDI compensation at the annual rate of 1.00% of the average daily net assets of Class C shares and 0.50% of the average daily net assets of Class R shares. The fees are accrued daily and paid monthly. Of the Plans payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges, that may be paid by any class of shares of the Fund. For the year ended October 31, 2024, expenses incurred under the Plans are shown in the Statement of Operations as Distribution fees.
Front-end sales commissions and CDSC (collectively, the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended October 31, 2024, IDI advised the Fund that IDI retained $67,169 in front-end sales commissions from the sale of Class A shares and $2,628 and $965 from Class A and Class C shares, respectively, for CDSC imposed upon redemptions by shareholders.
For the year ended October 31, 2024, the Fund incurred $766 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.
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Invesco Oppenheimer International Growth 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. When significant events cause market movements to occur after the close of the relevant foreign securities markets, foreign securities may be fair valued utilizing an independent pricing service.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Adviser’s assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of October 31, 2024. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
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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 year ended October 31, 2024
The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:
| Location of Gain on
Statement of Operations |
| |
| |
Forward foreign currency contracts | |
The table below summarizes the average notional value of derivatives held during the period.
| Forward
Foreign Currency
Contracts |
| |
NOTE 5—Expense Offset Arrangement(s)
The expense offset arrangement is comprised of transfer agency credits which result from balances in demand deposit accounts used by the transfer agent for clearing shareholder transactions. For the year ended October 31, 2024, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $60,936.
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
12
Invesco Oppenheimer International Growth Fund
invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.
The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.
NOTE 8—Distributions to Shareholders and Tax Components of Net Assets
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2024 and 2023: |
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| Includes short-term capital gain distributions, if any. |
Tax Components of Net Assets at Period-End: |
| |
Undistributed ordinary income | |
Undistributed long-term capital gain | |
Net unrealized appreciation — investments | |
Net unrealized appreciation (depreciation) — foreign currencies | |
Temporary book/tax differences | |
Shares of beneficial interest | |
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The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to wash sales and corporate actions.
The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The Fund does not have a capital loss carryforward as of October 31, 2024.
NOTE 9—Investment Transactions
The aggregate amount of investment securities (other than short-term securities, U.S. Government obligations and money market funds, if any) purchased and sold by the Fund during the year ended October 31, 2024 was $669,038,840 and $2,216,579,763, respectively. As of October 31, 2024, the aggregate cost of investments, including any derivatives, on a tax basis listed below includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end:
Unrealized Appreciation (Depreciation) of Investments on a Tax Basis |
Aggregate unrealized appreciation of investments | |
Aggregate unrealized (depreciation) of investments | |
Net unrealized appreciation of investments | |
Cost of investments for tax purposes is $3,486,966,224.
NOTE 10—Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of equalization, on October 31, 2024, undistributed net investment income was decreased by $2,629,119, undistributed net realized gain was decreased by $61,529,881 and shares of beneficial interest was increased by $64,159,000. This reclassification had no effect on the net assets of the Fund.
13
Invesco Oppenheimer International Growth Fund
NOTE 11—Share Information
| Summary of Share Activity |
| | Year ended
October 31, 2023 |
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Issued as reinvestment of dividends: | | | | |
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Automatic conversion of Class C shares to Class A shares: | | | | |
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Net increase (decrease) in share activity | | | | |
| There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 45% 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, 7% of the outstanding shares of the Fund are owned by the Adviser or an affiliate of the Adviser. |
14
Invesco Oppenheimer International Growth Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of AIM International Mutual Funds (Invesco International Mutual Funds) and Shareholders of Invesco Oppenheimer International Growth Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Invesco Oppenheimer International Growth Fund (one of the funds constituting AIM International Mutual Funds (Invesco International Mutual Funds), referred to hereafter as the "Fund") as of October 31, 2024, the related statement of operations for the year ended October 31, 2024, the statement of changes in net assets for each of the two years in the period ended October 31, 2024, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2024 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2024 and the financial highlights for each of the five years in the period ended October 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
December 19, 2024
We have served as the auditor of one or more of the investment companies in the Invesco group of investment companies since at least 1995. We have not been able to determine the specific year we began serving as auditor.
15
Invesco Oppenheimer International Growth Fund
Approval of Investment Advisory and Sub-Advisory Contracts
At meetings held on June 12, 2024, the Board of Trustees (the Board or the Trustees) of AIM International Mutual Funds (Invesco International Mutual Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco Oppenheimer International Growth Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited and OppenheimerFunds, Inc. (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2024. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable thereunder by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.
The Board’s Evaluation Process
The Board has established an Investments Committee, which in turn has established Sub-Committees, that meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet regularly with portfolio managers for their assigned Invesco Funds and other members of management to review information about investment performance and portfolio attributes of these funds. The Board has established additional standing and ad hoc committees that meet regularly throughout the year to review matters within their purview, including a working group focused on opportunities to make ongoing and continuous improvements to the annual review process for the Invesco Funds’ investment advisory and sub-advisory contracts. The Board took into account evaluations and reports that it received from its committees and sub-committees, as well as the information provided to the Board and its committees and sub-committees throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.
As part of the contract renewal process, the Board reviews and considers information provided in response to requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees and the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. The Board receives comparative investment performance and fee and expense data regarding the Invesco Funds prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider, as well as information on the composition of the peer groups provided by Broadridge and its methodology for determining peer groups. The Board also receives an
independent written evaluation from the Senior Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable in accordance with certain negotiated regulatory requirements. In addition to meetings with Invesco Advisers and fund counsel throughout the year and as part of meetings convened on May 7, 2024 and June 12, 2024, the independent Trustees also discussed the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel. Also, as part of the contract renewal process, the independent Trustees reviewed and considered information provided in response to follow-up requests for information submitted by the independent Trustees to management. The independent Trustees met and discussed those follow-up responses with legal counsel to the independent Trustees and the Senior Officer.
The discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement and sub-advisory contracts, as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. The information received and considered by the Board was current as of various dates prior to the Board’s approval on June 12, 2024.
Factors and Conclusions and Summary of Independent Written Fee Evaluation
A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers
The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process and oversight, credit analysis, and research capabilities. The Board considered information regarding Invesco Advisers’ programs for and resources devoted to risk management, including management of investment, enterprise, operational, liquidity, derivatives, valuation and compliance risks, and technology used to manage such risks. The Board received information regarding Invesco’s methodology for compensating its investment professionals and the incentives and accountability it creates, as well as how it impacts Invesco’s ability to attract and retain talent. The Board received a description of, and reports related to, Invesco Advisers’ global security program and business continuity plans and of its approach to data privacy
and cybersecurity, including related testing. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds, such as various middle office and back office support functions, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board observed that Invesco Advisers’ systems preparedness and ongoing investment enabled Invesco Advisers to manage, operate and oversee the Invesco Funds with minimal impact or disruption through challenging environments. The Board reviewed and considered the benefits to shareholders of investing in a Fund that is part of the family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in running an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory.
The Board reviewed the services that may be provided to the Fund by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries and territories in which the Fund may invest, make recommendations regarding securities and assist with portfolio trading. The Board concluded that the sub-advisory contracts may benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services that may be provided to the Fund by the Affiliated Sub-Advisers are appropriate and satisfactory.
B. Fund Investment Performance
The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did not view Fund investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.
The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2023 to the performance of funds in the Broadridge performance universe and against the MSCI All Country World ex-U.S.® Index (Index). The Board noted that performance of Class A shares of the Fund was in the first quintile of its performance universe for the one year period, and the second quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Class A shares of the Fund was above the performance of the Index for the one and five year periods, and below the performance of the Index for the three year period.
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Invesco Oppenheimer International Growth Fund
The Board considered that the Fund was created in connection with Invesco Ltd.’s acquisition of OppenheimerFunds, Inc. and its subsidiaries (the “Transaction”) and that the Fund’s performance prior to the closing of the Transaction on May 24, 2019 is that of its predecessor fund. The Board recognized that the performance data reflects a snapshot in time as of a particular date and that selecting a different performance period could produce different results. The Board also reviewed more recent Fund performance as well as other performance metrics, which did not change its conclusions.
C. Advisory and Sub-Advisory Fees and Fund Expenses
The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management and actual management fee rates for Class A shares of the Fund were below and reasonably comparable to, respectively, the median contractual management and actual management fee rates of funds in its expense group. The Board noted that the term “contractual management fee” and “actual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge is not able to provide information on a fund-by-fund basis as to what is included. The Board also reviewed the methodology used by Broadridge in calculating expense group information, which includes using each fund’s contractual management fee schedule (including any applicable breakpoints) as reported in the most recent prospectus or statement of additional information for each fund in the expense group. The Board also considered comparative information regarding the Fund’s total expense ratio and its various components.
The Board noted that Invesco Advisers has voluntarily agreed to waive fees and/or limit expenses of the Fund for an indefinite period until further notice to the Board in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.
The Board also considered the fees charged by Invesco Advisers and its affiliates to other client accounts that are similarly managed. Invesco Advisers reviewed with the Board differences in the scope of services it provides to the Invesco Funds relative to that provided by Invesco Advisers and its affiliates to certain other types of client accounts, including, among others: management of cash flows as a result of redemptions and purchases; necessary infrastructure such as officers, office space, technology, legal and distribution; oversight of service providers; costs and business risks associated with launching new funds and sponsoring and maintaining the product line; and compliance with federal and state laws and regulations. Invesco Advisers also advised the Board that many of the similarly managed client accounts have all-inclusive fee structures, which are not easily un-bundled.
The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.
D. Economies of Scale and Breakpoints
The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund and the Invesco Funds, and the
extent to which such economies of scale are shared with the Fund and the Invesco Funds. The Board acknowledged the difficulty in calculating and measuring economies of scale at the individual fund level; noting that only indicative and estimated measures are available at the individual fund level and that such measures are subject to uncertainty. The Board considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund also shares in economies of scale through Invesco Advisers’ ability to negotiate lower fee arrangements with third party service providers. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements, as well as Invesco Advisers’ investment in its business, including investments in business infrastructure, technology and cybersecurity.
E.
Profitability and Financial Resources
The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the Invesco Funds and the profitability of Invesco Advisers and its affiliates in providing these services in the aggregate and on an individual fund-by-fund basis. The Board considered the methodology used for calculating profitability and the periodic review and enhancement of such methodology. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its affiliates provide to the Invesco Funds in the aggregate and to most Invesco Funds individually. The Board considered that profits to Invesco Advisers can vary significantly depending on the particular Invesco Fund, with some Invesco Funds showing indicative losses to Invesco Advisers and others showing indicative profits at healthy levels, and that Invesco Advisers’ support for and commitment to an Invesco Fund are not, however, solely dependent on the profits attributed to such Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing such services to be excessive, given the nature, extent and quality of the services provided. The Board noted that Invesco Advisers provided information demonstrating that Invesco Advisers is financially sound and has the resources necessary to perform its obligations under the investment advisory agreement, and provided representations indicating that the Affiliated Sub-Advisers are financially sound and have the resources necessary to perform their obligations under the sub-advisory contracts. The Board noted the cyclical and competitive nature of the global asset management industry.
F. Collateral Benefits to Invesco Advisers and its Affiliates
The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for providing administrative, transfer agency and distribution services to the Fund. The Board received comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board reviewed the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board noted that these services are provided to the
Fund pursuant to written contracts that are reviewed and subject to approval on an annual basis by the Board based on its determination that the services are required for the operation of the Fund.
The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements may result in the Fund bearing costs to purchase research that may be used by Invesco Advisers or the Affiliated Sub-Advisers with other clients and may reduce Invesco Advisers’ or the Affiliated Sub-Advisers’ expenses. The Board also considered that it receives from Invesco Advisers periodic reports that include a representation to the effect that these arrangements are consistent with regulatory requirements. The Board did not deem the soft dollar arrangements to be inappropriate.
The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in registered money market funds or, with regard to securities lending cash collateral, unregistered funds that comply with Rule 2a-7 under the Investment Company Act of 1940 (collectively referred to as “affiliated money market funds”) advised by Invesco Advisers. The Board considered information regarding the returns of the affiliated money market funds relative to comparable overnight investments, as well as the fees paid by the affiliated money market funds to Invesco Advisers and its affiliates. In this regard, the Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to the Fund’s investments. The Board also noted that Invesco Advisers has contractually agreed to waive through varying periods an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the advisory fees payable to Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds are for services that are not duplicative of services provided by Invesco Advisers to the Fund.
The Board considered that Invesco Advisers may serve as the Fund’s affiliated securities lending agent and evaluated the benefits realized by Invesco Advisers when serving in such role, including the compensation received. The Board considered Invesco Advisers’ securities lending platform and corporate governance structure for securities lending, including Invesco Advisers’ Securities Lending Governance Committee and its related responsibilities. The Board noted that to the extent the Fund utilizes Invesco Advisers as an affiliated securities lending agent, the Fund conducts its securities lending in accordance with, and in reliance upon, no-action letters issued by the SEC staff that provide guidance on how an affiliate may act as a direct agent lender and receive compensation for those services without obtaining exemptive relief. The Board considered information provided by Invesco Advisers related to the performance of Invesco Advisers as securities lending agent, including a summary of the securities lending services provided to the Fund by Invesco Advisers and the compensation paid to Invesco Advisers for such services, as well as any revenues generated for the Fund in connection with such securities lending
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Invesco Oppenheimer International Growth Fund
activity and the allocation of such revenue between the Fund and Invesco Advisers.
The Board also received information about commissions that an affiliated broker may receive for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers advised the Board of the benefits to the Fund of executing trades through the affiliated broker and that such trades were executed in compliance with rules under the federal securities laws and consistent with best execution obligations.
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Invesco Oppenheimer International Growth Fund
Tax Information
Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended October 31, 2024:
Federal and State Income Tax | |
Long-Term Capital Gain Distributions | |
Qualified Dividend Income* | |
Corporate Dividends Received Deduction* | |
U.S. Treasury Obligations* | |
Qualified Business Income* | |
Business Interest Income* | |
*
The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.
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Invesco Oppenheimer International Growth Fund
Other Information Required in Form N-CSR (Items 8-11)
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Proxy Disclosures for Open-End Management Investment Companies
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The aggregate remuneration paid to directors, officers and others is disclosed within the financial statements.
Statement Regarding Basis for Approval of Investment Advisory Contracts
The statement regarding basis for approval of investment advisory contracts can be found in the Approval of Investment Advisory and Sub-Advisory Contracts section of this report.
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Invesco Oppenheimer International Growth Fund
SEC file number(s): 811-06463 and 033-44611
Invesco Distributors, Inc.
O-IGR-NCSR
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
Item 9. Proxy Disclosures for Open-End Management Investment Companies.
Item 10. Remuneration Paid to Directors, Officers, and Others for Open-End Management Investment Companies.
This information is filed under Item 7 of this Form N-CSR.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
This information is filed under Item 7 of this Form N-CSR.
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Item 15. Submission of Matters to a Vote of Security Holders.
Item 16. Controls and Procedures.
(a) As of a date within 90 days of the filing date of this report, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the PEO and PFO, to assess the effectiveness of the Registrant's disclosure controls and procedures, as that term is defined in Rule 30a-3(c) under the Act. Based on that evaluation, the Registrant's officers, including the PEO and PFO, concluded that the Registrant's disclosure controls and procedures were reasonably designed to ensure: (1) that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission; and (2) that material information relating to the Registrant is made known to the PEO and PFO as appropriate to allow timely decisions regarding required disclosure.
(b) There have been no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
Item 17. Disclosure of Securities Lending Activity for Closed-End Management Investment Companies.
Item 18. Recovery of Erroneously Awarded Compensation.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) AIM International Mutual Funds (Invesco International Mutual Funds)
By: /s/ Glenn Brightman .
Name: Glenn Brightman
Title:Principal Executive Officer
Date: January 3, 2025
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: /s/ Glenn Brightman ..
Name:Glenn Brightman
Title:Principal Executive Officer
Date: January 3, 2025
By: /s/ Adrien Deberghes ____
Name:Adrien Deberghes
Title:Principal Financial Officer
Date:January 3, 2025
