Aim Variable Insurance Funds N-CSRS Certified semi-annual shareholder report (management investment company)

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-07452

AIM Variable Insurance Funds

(Invesco Variable Insurance Funds)

(Exact name of registrant as specified in charter)

11 Greenway Plaza, Suite 1000 Houston, Texas 77046

(Address of principal executive offices) (Zip code)

Sheri Morris 11 Greenway Plaza, Suite 1000 Houston, Texas 77046

(Name and address of agent for service)

Registrant’s telephone number, including area code: (713) 626-1919

Date of fiscal year end: 12/31

Date of reporting period: 06/30/17

Item 1. Report to Stockholders.

	Semiannual Report to Shareholders	June 30, 2017
	Invesco V.I. American Franchise Fund
	The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.     A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.     Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/ proxysearch. The information is also available on the SEC website, sec.gov.     Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
	This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.
	NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc.                                               VK-VIAMFR-SAR-1         07172017    1228

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/16 to 6/30/17, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	17.99%
Series II Shares	17.82
S&P 500 Index▼ (Broad Market Index)	9.34
Russell 1000 Growth Index▼ (Style-Specific Index)	13.99
Lipper VUF Large-Cap Growth Funds Index⬛ (Peer Group Index)	17.57
Source(s): ▼FactSet Research Systems Inc.; ⬛Lipper Inc.
The S&P 500® Index is an unmanaged index considered representative of the US stock market. The Russell 1000® Growth Index is an unmanaged index considered representative of large-cap growth stocks. The Russell 1000 Growth Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co. The Lipper VUF Large-Cap Growth Funds Index is an unmanaged index considered representative of large-cap growth variable insurance underlying funds tracked by Lipper. The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/17
Series I Shares
Inception (7/3/95)	9.32	%
10 Years	8.48
5 Years	15.07
1 Year	25.55
Series II Shares
Inception (9/18/00)	1.44	%
10 Years	8.20
5 Years	14.78
1 Year	25.24

Effective June 1, 2010, Class I and Class II shares of the predecessor fund, Van Kampen Life Investment Trust Capital Growth Portfolio, advised by Van Kampen Asset Management were reorganized into Series I and Series II shares, respectively, of Invesco Van Kampen V.I. Capital Growth Fund (renamed Invesco V.I. American Franchise Fund on April 29, 2013). Returns shown above, prior to June 1, 2010, for Series I and Series II shares are blended returns of the predecessor fund and Invesco V.I. American Franchise Fund. Share class returns will differ from the predecessor fund because of different expenses.

    The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that

you may have a gain or loss when you sell shares.

    The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.89% and 1.14%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

    Invesco V.I. American Franchise Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

    The most recent month-end performance at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

     Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

Invesco V.I. American Franchise Fund

Schedule of Investments^(a)

June 30, 2017

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–99.67%
Aerospace & Defense–1.45%
Raytheon Co.		57,357	$	9,262,008
Airlines–0.52%
Southwest Airlines Co.		53,137		3,301,933
Application Software–2.21%
salesforce.com, inc.(b)		162,856		14,103,330
Biotechnology–5.70%
Alexion Pharmaceuticals, Inc.(b)		69,739		8,485,144
BioMarin Pharmaceutical Inc.(b)		60,940		5,534,571
Celgene Corp.(b)		129,108		16,767,256
Incyte Corp.(b)		43,905		5,528,078
			��	36,315,049
Cable & Satellite–3.80%
Charter Communications, Inc.–Class A(b)		9,999		3,368,163
Comcast Corp.–Class A		112,492		4,378,189
DISH Network Corp.–Class A(b)		262,397		16,468,036
				24,214,388
Commodity Chemicals–0.84%
LyondellBasell Industries N.V.–Class A		63,468		5,356,065
Communications Equipment–0.35%
Palo Alto Networks, Inc.(b)		16,534		2,212,415
Consumer Electronics–3.49%
Sony Corp. (Japan)		584,100		22,258,848
Data Processing & Outsourced Services–5.90%
First Data Corp.–Class A(b)		519,226		9,449,913
Mastercard Inc.–Class A		112,009		13,603,493
Visa Inc.–Class A		155,481		14,581,008
				37,634,414
Environmental & Facilities Services–1.24%
Republic Services, Inc.		123,504		7,870,910
Fertilizers & Agricultural Chemicals–0.43%
Monsanto Co.		23,320		2,760,155
Financial Exchanges & Data–1.54%
London Stock Exchange Group PLC (United Kingdom)		157,182		7,470,513
S&P Global Inc.		16,257		2,373,359
				9,843,872
Health Care Equipment–1.31%
Intuitive Surgical, Inc.(b)		2,845		2,661,127
Stryker Corp.		40,919		5,678,739
				8,339,866

	Shares		Value
Home Entertainment Software–7.20%
Activision Blizzard, Inc.		263,463	$	15,167,565
Electronic Arts Inc.(b)		147,802		15,625,627
Nintendo Co., Ltd. (Japan)		45,100		15,109,523
				45,902,715
Home Improvement Retail–3.60%
Lowe’s Cos., Inc.		296,115		22,957,796
Hotels, Resorts & Cruise Lines–2.38%
Royal Caribbean Cruises Ltd.		139,132		15,197,388
Housewares & Specialties–0.71%
Newell Brands, Inc.		84,309		4,520,649
Industrial Gases–0.77%
Air Products and Chemicals, Inc.		34,490		4,934,139
Industrial Machinery–0.78%
Stanley Black & Decker Inc.		35,213		4,955,525
Internet & Direct Marketing Retail–9.06%
Amazon.com, Inc.(b)		46,938		45,435,984
Priceline Group Inc. (The)(b)		6,580		12,308,022
				57,744,006
Internet Software & Services–16.12%
Alibaba Group Holding Ltd.–ADR (China)(b)		159,273		22,441,566
Alphabet Inc.–Class A(b)		48,697		45,272,627
Facebook, Inc.–Class A(b)		232,168		35,052,724
				102,766,917
Investment Banking & Brokerage–1.34%
Charles Schwab Corp. (The)		123,684		5,313,465
Goldman Sachs Group, Inc. (The)		14,647		3,250,169
				8,563,634
Life Sciences Tools & Services–0.63%
Thermo Fisher Scientific, Inc.		23,127		4,034,968
Managed Health Care–2.62%
UnitedHealth Group Inc.		89,925		16,673,894
Oil & Gas Equipment & Services–0.99%
Halliburton Co.		148,087		6,324,796
Oil & Gas Exploration & Production–1.35%
Anadarko Petroleum Corp.		76,422		3,464,974
Parsley Energy, Inc.–Class A(b)		90,784		2,519,256
Pioneer Natural Resources Co.		16,437		2,623,016
				8,607,246
Packaged Foods & Meats–0.76%
Tyson Foods, Inc.–Class A		77,447		4,850,506

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. American Franchise Fund

	Shares		Value
Pharmaceuticals–4.17%
Allergan PLC		54,657	$	13,286,570
Eli Lilly and Co.		31,274		2,573,850
Merck & Co., Inc.		82,515		5,288,386
Zoetis Inc.		87,339		5,448,207
				26,597,013
Semiconductors–3.61%
Broadcom Ltd.		75,702		17,642,351
NVIDIA Corp.		36,994		5,347,853
				22,990,204
Soft Drinks–0.90%
Monster Beverage Corp.(b)		115,437		5,734,910
Specialized REIT’s–0.39%
American Tower Corp.–Class A		18,857		2,495,158
Specialty Chemicals–1.63%
Ecolab Inc.		22,753		3,020,461
Sherwin-Williams Co. (The)		21,022		7,377,881
				10,398,342
Systems Software–2.07%
Microsoft Corp.		158,080		10,896,454
ServiceNow, Inc.(b)		21,781		2,308,786
				13,205,240

	Shares		Value
Technology Hardware, Storage & Peripherals–4.63%
Apple Inc.		205,077	$	29,535,190
Tobacco–2.98%
Philip Morris International Inc.		161,663		18,987,319
Wireless Telecommunication Services–2.20%
Altice USA, Inc.–Class-A(b)		87,009		2,810,391
Sprint Corp.(b)		1,366,298		11,217,306
				14,027,697
Total Common Stocks & Other Equity Interests (Cost $373,287,926)				635,478,505
Money Market Funds–0.37%
Government & Agency Portfolio–Institutional Class, 0.89%(c)		1,408,287		1,408,287
Treasury Portfolio–Institutional Class, 0.85%(c)		938,858		938,858
Total Money Market Funds (Cost $2,347,145)				2,347,145
TOTAL INVESTMENTS–100.04% (Cost $375,635,071)				637,825,650
OTHER ASSETS LESS LIABILITIES–(0.04)%				(270,141	)
NET ASSETS–100.00%			$	637,555,509

Investment Abbreviations:

ADR	– American Depositary Receipt
REIT	– Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of June 30, 2017.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2017

Information Technology	42.1	%
Consumer Discretionary	23.0
Health Care	14.4
Consumer Staples	4.6
Industrials	4.0
Materials	3.7
Financials	2.9
Energy	2.4
Telecommunication Services	2.2
Real Estate	0.4
Money Market Funds Plus Other Assets Less Liabilities	0.3

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. American Franchise Fund

Statement of Assets and Liabilities

June 30, 2017

(Unaudited)

Statement of Operations

For the six months ended June 30, 2017

(Unaudited)

Assets:
Investments, at value (Cost $373,287,926)	$	635,478,505
Investments in affiliated money market funds, at value and cost		2,347,145
Total investments, at value (Cost $375,635,071)		637,825,650
Foreign currencies, at value (Cost $168,685)		168,243
Receivable for:
Investments sold		622,180
Fund shares sold		8,907
Dividends		472,494
Investment for trustee deferred compensation and retirement plans		370,997
Other assets		387
Total assets		639,468,858
Liabilities:
Payable for:
Fund shares reacquired		1,085,592
Accrued fees to affiliates		349,495
Accrued trustees’ and officers’ fees and benefits		5,351
Accrued other operating expenses		71,643
Trustee deferred compensation and retirement plans		401,268
Total liabilities		1,913,349
Net assets applicable to shares outstanding	$	637,555,509
Net assets consist of:
Shares of beneficial interest	$	310,750,919
Undistributed net investment income (loss)		(36,791	)
Undistributed net realized gain		64,651,592
Net unrealized appreciation		262,189,789
	$	637,555,509
Net Assets:
Series I	$	469,025,166
Series II	$	168,530,343
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		7,419,389
Series II		2,752,784
Series I:
Net asset value per share	$	63.22
Series II:
Net asset value per share	$	61.22

Investment income:
Dividends (net of foreign withholding taxes of $18,108)	$	2,920,314
Dividends from affiliated money market funds (includes securities lending income of $11)		7,834
Total investment income		2,928,148
Expenses:
Advisory fees		2,081,208
Administrative services fees		532,264
Custodian fees		16,194
Distribution fees — Series II		204,300
Transfer agent fees		55,901
Trustees’ and officers’ fees and benefits		13,925
Reports to shareholders		58,854
Professional services fees		29,401
Other		8,395
Total expenses		3,000,442
Less: Fees waived		(1,581	)
Net expenses		2,998,861
Net investment income (loss)		(70,713	)
Realized and unrealized gain (loss) from:
Net realized gain from:
Investment securities		18,674,704
Foreign currencies		1,138
		18,675,842
Change in net unrealized appreciation (depreciation) of:
Investment securities		82,135,781
Foreign currencies		(139	)
		82,135,642
Net realized and unrealized gain		100,811,484
Net increase in net assets resulting from operations	$	100,740,771

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. American Franchise Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2017 and the year ended December 31, 2016

(Unaudited)

	June 30, 2017			December 31, 2016
Operations:
Net investment income (loss)	$	(70,713	)	$	350,872
Net realized gain		18,675,842			49,357,647
Change in net unrealized appreciation (depreciation)		82,135,642			(39,458,443	)
Net increase in net assets resulting from operations		100,740,771			10,250,076
Distributions to shareholders from net realized gains:
Series l		—			(38,558,239	)
Series ll		—			(14,444,619	)
Total distributions from net realized gains		—			(53,002,858	)
Share transactions–net:
Series l		(25,964,894	)		(27,715,041	)
Series ll		(9,643,547	)		(12,325,839	)
Net increase (decrease) in net assets resulting from share transactions		(35,608,441	)		(40,040,880	)
Net increase (decrease) in net assets		65,132,330			(82,793,662	)
Net assets:
Beginning of period		572,423,179			655,216,841
End of period (includes undistributed net investment income (loss) of $(36,791) and $33,922, respectively)	$	637,555,509		$	572,423,179

Notes to Financial Statements

June 30, 2017

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. American Franchise Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance 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 consisting of twenty-four separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

The Fund’s investment objective is to seek capital growth.

The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services — Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for

Invesco V.I. American Franchise Fund

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. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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.

Invesco V.I. American Franchise Fund

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 and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the 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.

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 date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

K. Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations.

The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

Invesco V.I. American Franchise Fund

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays 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	.695%
Next $250 million		0	.67%
Next $500 million		0	.645%
Next $550 million		0	.62%
Next $3.45 billion		0	.60%
Next $250 million		0	.595%
Next $2.25 billion		0	.57%
Next $2.5 billion		0	.545%
Over $10 billion		0	.52%

For the six months ended June 30, 2017, the effective advisory fees incurred by the Fund was 0.68%.

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 PowerShares Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2018, 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 Series I shares to 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2018. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2019, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

For the six months ended June 30, 2017, the Adviser waived advisory fees of $1,581.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2017, Invesco was paid $73,377 for accounting and fund administrative services and was reimbursed $458,887 for fees paid to insurance companies.

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. For the six months ended June 30, 2017, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2017, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2017, the Fund incurred $782 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.

Invesco V.I. American Franchise Fund

NOTE 3—Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of June 30, 2017. 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.

During the six months ended June 30, 2017, there were transfers from Level 2 to Level 1 of $37,368,371, due to foreign fair value adjustments.

	Level 1		Level 2		Level 3		Total
Common Stocks & Other Equity Interests	$	628,007,992	$	7,470,513	$	—	$	635,478,505
Money Market Funds		2,347,145		—		—		2,347,145
Total Investments	$	630,355,137	$	7,470,513	$	—	$	637,825,650

NOTE 4—Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 5—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 6—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of December 31, 2016.

Invesco V.I. American Franchise Fund

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2017 was $131,131,569 and $166,763,804, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	259,580,073
Aggregate unrealized (depreciation) of investment securities		(1,911,948	)
Net unrealized appreciation of investment securities	$	257,668,125

Cost of investments for tax purposes is $380,157,525.

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended June 30, 2017(a)						Year ended December 31, 2016
	Shares			Amount			Shares			Amount
Sold:
Series I		246,832		$	14,684,003			222,257		$	12,031,047
Series II		100,767			5,849,470			131,825			6,897,330
Issued as reinvestment of dividends:
Series I		—			—			705,807			38,558,239
Series II		—			—			272,488			14,444,619
Reacquired:
Series I		(681,565	)		(40,648,897	)		(1,438,141	)		(78,304,327	)
Series II		(265,941	)		(15,493,017	)		(636,218	)		(33,667,788	)
Net increase (decrease) in share activity		(599,907	)	$	(35,608,441	)		(741,982	)	$	(40,040,880	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 28% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or advisor, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. 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 9—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 gain 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)
Series I
Six months ended 06/30/17	$	53.58	$	0.01		$	9.63	$	9.64	$	—		$	—		$	—		$	63.22		17.99	%	$	469,025		0.91	%(d)		0.91	%(d)		0.04	%(d)		21	%
Year ended 12/31/16		57.30		0.07			1.33		1.40		—			(5.12	)		(5.12	)		53.58		2.27			420,824		0.93			0.93			0.12			59
Year ended 12/31/15		54.88		(0.03	)		2.76		2.73		—			(0.31	)		(0.31	)		57.30		5.01			479,298		0.96			0.96			(0.05	)		68
Year ended 12/31/14		50.63		(0.09	)		4.36		4.27		(0.02	)		—			(0.02	)		54.88		8.44			541,929		0.92			0.95			(0.17	)		64
Year ended 12/31/13		36.28		0.04			14.50		14.54		(0.19	)		—			(0.19	)		50.63		40.13			580,620		0.90			0.96			0.08			75
Year ended 12/31/12		31.90		0.19			4.19		4.38		—			—			—			36.28		13.73			496,341		0.88			0.98			0.52			190
Series II
Six months ended 06/30/17		51.95		(0.06	)		9.33		9.27		—			—			—			61.22		17.84			168,530		1.16	(d)		1.16	(d)		(0.21	)(d)		21
Year ended 12/31/16		55.85		(0.06	)		1.28		1.22		—			(5.12	)		(5.12	)		51.95		2.00			151,599		1.18			1.18			(0.13	)		59
Year ended 12/31/15		53.63		(0.16	)		2.69		2.53		—			(0.31	)		(0.31	)		55.85		4.75			175,919		1.21			1.21			(0.30	)		68
Year ended 12/31/14		49.58		(0.22	)		4.27		4.05		—			—			—			53.63		8.17			199,141		1.17			1.20			(0.42	)		64
Year ended 12/31/13		35.55		(0.07	)		14.20		14.13		(0.10	)		—			(0.10	)		49.58		39.79			257,788		1.15			1.21			(0.17	)		75
Year ended 12/31/12		31.35		0.10			4.10		4.20		—			—			—			35.55		13.40			224,334		1.13			1.23			0.27			190

^(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. Total returns are not annualized for periods less than one year, if applicable, and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.

^(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 December 31, 2012, the portfolio turnover calculation excludes the value of securities purchased of $14,357,093 and sold of $15,173,740 in the effort to realign the Fund’s portfolio holdings after the reorganization of Invesco V.I. Capital Appreciation Fund and Invesco V.I. Leisure Fund into the Fund.

^(d) Ratios are annualized and based on average daily net assets (000’s omitted) of $456,820 and $164,794 for Series I and Series II shares, respectively.

Invesco V.I. American Franchise Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2017 through June 30, 2017.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

Class	Beginning Account Value (01/01/17)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/17)1		Expenses Paid During Period2		Ending Account Value (06/30/17)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,179.90	$	4.92	$	1,020.28	$	4.56		0.91	%
Series II		1,000.00		1,178.20		6.26		1,019.04		5.81		1.16

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2017 through June 30, 2017, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

²  Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. American Franchise Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco V.I. American Franchise Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the 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 PowerShares 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, 2017.

In evaluating the fairness and reasonableness of compensation under the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board determined that continuation of the Fund’s investment advisory agreement and the sub-advisory contracts is in the best interest of the Fund and its shareholders and that the compensation payable to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Board had the benefit of reports from the Sub-Committees and Investments Committee throughout the year in considering approval of the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Board receives comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The

Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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 addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The Trustees recognized that the advisory fee rates for the Invesco Funds are, in most cases, the result of years of review and negotiation. The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these arrangements throughout the year and in prior years. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them 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 discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement 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. This information is current as of June 13, 2017, and does not reflect consideration of factors that became known to the Board after that date.

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 advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers. The Board’s review included consideration of Invesco Advisers’ investment process oversight, credit analysis and investment risk management. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, trading operations, internal audit, valuation and legal and compliance.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the greater uncertainty that may be associated with entering into a new relationship. 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 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 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 in which the Fund may invest, make recommendations regarding securities and assist with security trades. 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 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 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, 2016 to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Fund Large-Cap Growth Funds Index. The Board noted that performance of Series I shares of the Fund was in the third quintile of its performance universe for the one year period and the fourth 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 Series I shares of the Fund was below the performance of the Index for the one, three and five year periods. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees

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 at a common asset

Invesco V.I. American Franchise Fund

level. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing 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 compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/waivers) to the effective advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, based on asset balances as of December 31, 2016. The Board noted that the Fund’s rate was above the rate of one such mutual fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other client accounts with investment strategies comparable to those of the Fund.

The Board noted that Invesco Advisers or the Affiliated Sub-Advisers may charge lower fees to large institutional clients. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to certain other types of client accounts. These additional services include provision of administrative services, officers and office space, oversight of service providers, preparation of annual registration statement updates and financial information and regulatory compliance under the Investment Company Act of 1940, as amended.

Invesco Advisers also reviewed generally the higher frequency of shareholder purchases and redemptions in the Invesco Funds relative to the flow of assets for other client accounts. Invesco Advisers advised the Board that advance notice of redemptions is often provided to Invesco Advisers by institutional clients. The Board did note that sub-advisory fee rates charged by the Affiliated Sub-Advisers to manage the Invesco Funds and to manage other client accounts tended to be more comparable, reflecting a similar scope of services.

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 also noted

that the sub-advisory fees are not paid directly by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds advised by Invesco Advisers.

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. 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 and the Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund to be excessive given the nature, quality and extent of the services provided. The Board received and accepted information from Invesco Advisers demonstrating that Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; and 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 Adviser’s or the Affiliated Sub-Adviser’s expenses. The Board also considered that it receives periodic reports from the Chief Compliance Officer of the

Invesco Funds demonstrating 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 money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds with respect to certain investments in the affiliated money market funds. The waiver is in 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that the Fund may use an affiliated broker to execute certain trades for the Fund to, among other things, control information leakage, and was advised that such trades would be executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. American Franchise Fund

Proxy Results

A Special Joint Meeting (“Meeting”) of Shareholders of Invesco V.I. American Franchise Fund, an investment portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), a Delaware statutory trust (“Trust”), was held on March 9, 2017. The Meeting was held for the following purposes:

(1) Elect 15 trustees to the Board, each of whom will serve until his or her successor is elected and qualified.

(2) Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.

(3) Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities.

(4)(a) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC.

(4)(b) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited.

The results of the voting on the above matters were as follows:

	Matters					Votes For		Votes Withheld
(1)*	David C. Arch						1,256,086,249		71,094,301
	James T. Bunch						1,254,410,156		72,770,397
	Bruce L. Crockett						1,258,363,948		68,816,603
	Jack M. Fields						1,255,101,592		72,078,961
	Martin L. Flanagan						1,257,885,397		69,295,160
	Cynthia Hostetler						1,261,335,247		65,845,303
	Dr. Eli Jones						1,257,497,296		69,683,257
	Dr. Prema Mathai-Davis						1,254,728,756		72,451,795
	Teresa M. Ressel						1,261,829,473		65,351,074
	Dr. Larry Soll						1,254,261,019		72,919,533
	Ann Barnett Stern						1,260,861,373		66,319,176
	Raymond Stickel, Jr.						1,254,379,471		72,801,083
	Philip A. Taylor						1,256,589,912		70,590,639
	Robert C. Troccoli						1,260,867,549		66,313,003
	Christopher L. Wilson						1,260,186,985		66,993,567
		Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(2)*	Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.		1,054,920,918		171,591,974		100,667,642		18
	Matters	Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(3)	Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities		7,585,055		856,386		884,602		4
(4)(a)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC		8,110,711		382,907		832,427		2
(4)(b)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited		7,896,322		563,555		866,168		2

* Each of proposal 1 and 2 required approval by a combined vote of all of the portfolios of AIM Variable Insurance Funds (Invesco Variable Insurance Funds).

Invesco V.I. American Franchise Fund

	Semiannual Report to Shareholders	June 30, 2017
	Invesco V.I. American Value Fund
	The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.     A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.     Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/ proxysearch. The information is also available on the SEC website, sec.gov.     Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
	This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.
	NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc.                                               VK-VIAMVA-SAR-1         07132017    0814

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/16 to 6/30/17, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	1.93%
Series II Shares	1.78
S&P 500 Index▼ (Broad Market Index)	9.34
Russell Midcap Value Index▼ (Style-Specific Index)	5.18
Lipper VUF Mid-Cap Value Funds Index⬛ (Peer Group Index)	5.16
Source(s): ▼FactSet Research Systems Inc.; ⬛Lipper Inc.
The S&P 500® Index is an unmanaged index considered representative of the US stock market. The Russell Midcap® Value Index is an unmanaged index considered representative of mid-cap value stocks. The Russell Midcap Value Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co. The Lipper VUF Mid-Cap Value Funds Index is an unmanaged index considered representative of mid-cap value variable insurance underlying funds tracked by Lipper. The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/17
Series I Shares
Inception (1/2/97)	9.72	%
10 Years	6.08
5 Years	11.04
1 Year	15.16
Series II Shares
Inception (5/5/03)	10.39	%
10 Years	5.90
5 Years	10.75
1 Year	14.83

Effective June 1, 2010, Class I and Class II shares of the predecessor fund, Universal Institutional Funds Mid Cap Value Portfolio, advised by Morgan Stanley Investment Management Inc. were reorganized into Series I and Series II shares, respectively, of Invesco Van Kampen V.I. Mid Cap Value Fund (renamed Invesco V.I. American Value Fund on April 29, 2013). Returns shown above, prior to June 1, 2010, for Series I and Series II shares are blended returns of the predecessor fund and Invesco V.I. American Value Fund. Share class returns will differ from the predecessor fund because of different expenses.

    The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 1.00% and 1.25%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

    Invesco V.I. American Value Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

    The most recent month-end performance at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above,

for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

Invesco V.I. American Value Fund

Schedule of Investments^(a)

June 30, 2017

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–96.46%
Aerospace & Defense–3.71%
Textron Inc.		303,014	$	14,271,959
Application Software–0.46%
Citrix Systems, Inc.(b)		22,408		1,783,229
Automotive Retail–1.79%
Advance Auto Parts, Inc.		59,198		6,901,895
Broadcasting–2.56%
Scripps Networks Interactive Inc.–Class A		144,251		9,853,786
Building Products–2.36%
Johnson Controls International PLC		209,594		9,087,996
Communications Equipment–4.67%
ARRIS International PLC (b)		191,575		5,367,932
Ciena Corp.(b)		503,266		12,591,715
				17,959,647
Construction & Engineering–2.28%
Fluor Corp.		191,803		8,780,741
Diversified Chemicals–3.38%
Eastman Chemical Co.		154,701		12,993,337
Diversified REIT’s–4.50%
Forest City Realty Trust, Inc.–Class A		392,118		9,477,492
Liberty Property Trust		192,149		7,822,386
				17,299,878
Electric Utilities–4.05%
Edison International		97,814		7,648,077
FirstEnergy Corp.		271,597		7,919,768
				15,567,845
Electronic Equipment & Instruments–5.20%
Keysight Technologies, Inc.(b)		315,446		12,280,313
Zebra Technologies Corp.–Class A(b)		76,787		7,718,629
				19,998,942
Environmental & Facilities Services–0.83%
Clean Harbors, Inc.(b)		56,993		3,181,919
Health Care Distributors–2.45%
AmerisourceBergen Corp.		99,882		9,441,845
Health Care Facilities–2.63%
HealthSouth Corp.		208,800		10,105,920
Heavy Electrical Equipment–0.41%
Babcock & Wilcox Enterprises, Inc. (b)		135,019		1,587,823
Hotels, Resorts & Cruise Lines–3.77%
Royal Caribbean Cruises Ltd.		132,853		14,511,533

	Shares		Value
Industrial Machinery–2.06%
Ingersoll-Rand PLC		86,558	$	7,910,536
Insurance Brokers–5.90%
Arthur J. Gallagher & Co.		181,073		10,366,429
Willis Towers Watson PLC		84,647		12,312,753
				22,679,182
Investment Banking & Brokerage–2.55%
Stifel Financial Corp.(b)		213,118		9,799,166
IT Consulting & Other Services–1.98%
Teradata Corp.(b)		257,775		7,601,785
Marine–1.99%
Kirby Corp.(b)		114,223		7,635,808
Movies & Entertainment–1.75%
Regal Entertainment Group–Class A		328,065		6,712,210
Oil & Gas Equipment & Services–1.96%
TechnipFMC PLC (United Kingdom)(b)		276,914		7,532,061
Oil & Gas Exploration & Production–4.36%
Devon Energy Corp.		328,469		10,501,154
Marathon Oil Corp.		528,623		6,264,183
				16,765,337
Other Diversified Financial Services–2.62%
Voya Financial, Inc.		273,597		10,092,993
Packaged Foods & Meats–2.31%
Conagra Brands, Inc.		248,111		8,872,449
Pharmaceuticals–2.54%
Mylan N.V.(b)		251,964		9,781,242
Regional Banks–14.10%
Comerica Inc.		202,494		14,830,660
KeyCorp		784,805		14,707,246
Wintrust Financial Corp.		156,431		11,957,586
Zions Bancorp.		289,562		12,714,667
				54,210,159
Specialized REIT’s–2.06%
Life Storage, Inc.		107,020		7,930,182
Specialty Chemicals–1.95%
W.R. Grace & Co.		104,397		7,517,628
Technology Hardware, Storage & Peripherals–2.17%
Diebold Nixdorf, Inc.		297,526		8,330,728
Trucking–1.11%
Ryder System, Inc.		59,390		4,274,892
Total Common Stocks & Other Equity Interests (Cost $312,033,470)				370,974,653

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. American Value Fund

	Shares		Value
Money Market Funds–2.87%
Government & Agency Portfolio–Institutional Class, 0.89%(c)		6,612,140	$	6,612,140
Treasury Portfolio–Institutional Class, 0.85%(c)		4,408,093		4,408,093
Total Money Market Funds (Cost $11,020,233)				11,020,233
TOTAL INVESTMENTS–99.33% (Cost $323,053,703)				381,994,886
OTHER ASSETS LESS LIABILITIES–0.67%				2,592,044
NET ASSETS–100.00%			$	384,586,930

Investment Abbreviations:

REIT – Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of June 30, 2017.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2017

Financials	25.2	%
Industrials	14.8
Information Technology	14.5
Consumer Discretionary	9.9
Health Care	7.6
Real Estate	6.6
Energy	6.3
Materials	5.3
Utilities	4.0
Consumer Staples	2.3
Money Market Funds Plus Other Assets Less Liabilities	3.5

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. American Value Fund

Statement of Assets and Liabilities

June 30, 2017

(Unaudited)

Statement of Operations

For the six months ended June 30, 2017

(Unaudited)

Assets:
Investments, at value (Cost $312,033,470)	$	370,974,653
Investments in affiliated money market funds, at value and cost		11,020,233
Total investments, at value (Cost $323,053,703)		381,994,886
Cash		40,184
Receivable for:
Investments sold		2,441,033
Fund shares sold		330,394
Dividends		529,825
Investment for trustee deferred compensation and retirement plans		54,106
Total assets		385,390,428
Liabilities:
Payable for:
Investments purchased		213,771
Fund shares reacquired		154,902
Accrued fees to affiliates		320,408
Accrued trustees’ and officers’ fees and benefits		5,549
Accrued other operating expenses		46,547
Trustee deferred compensation and retirement plans		62,321
Total liabilities		803,498
Net assets applicable to shares outstanding	$	384,586,930
Net assets consist of:
Shares of beneficial interest	$	300,668,814
Undistributed net investment income		2,679,008
Undistributed net realized gain		22,297,924
Net unrealized appreciation		58,941,184
	$	384,586,930
Net Assets:
Series I	$	105,675,764
Series II	$	278,911,166
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		6,076,983
Series II		16,212,835
Series I:
Net asset value per share	$	17.39
Series II:
Net asset value per share	$	17.20

Investment income:
Dividends	$	2,481,680
Dividends from affiliated money market funds		40,039
Total investment income		2,521,719
Expenses:
Advisory fees		1,411,285
Administrative services fees		341,331
Custodian fees		9,662
Distribution fees — Series II		352,315
Transfer agent fees		13,928
Trustees’ and officers’ fees and benefits		13,821
Reports to shareholders		38,378
Professional services fees		18,150
Other		2,821
Total expenses		2,201,691
Less: Fees waived		(8,057	)
Net expenses		2,193,634
Net investment income		328,085
Realized and unrealized gain (loss) from:
Net realized gain from:
Investment securities		20,242,882
Foreign currencies		3,424
		20,246,306
Change in net unrealized appreciation (depreciation) of:
Investment securities		(13,264,355	)
Foreign currencies		588
		(13,263,767	)
Net realized and unrealized gain		6,982,539
Net increase in net assets resulting from operations	$	7,310,624

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. American Value Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2017 and the year ended December 31, 2016

(Unaudited)

	June 30, 2017			December 31, 2016
Operations:
Net investment income	$	328,085		$	2,431,847
Net realized gain		20,246,306			4,201,151
Change in net unrealized appreciation (depreciation)		(13,263,767	)		46,182,088
Net increase in net assets resulting from operations		7,310,624			52,815,086
Distributions to shareholders from net investment income:
Series I		—			(412,019	)
Series ll		—			(301,616	)
Total distributions from net investment income		—			(713,635	)
Distributions to shareholders from net realized gains:
Series l		—			(6,365,699	)
Series ll		—			(14,638,628	)
Total distributions from net realized gains		—			(21,004,327	)
Share transactions–net:
Series l		(13,301,445	)		(19,286,477	)
Series ll		(10,226,614	)		52,953,285
Net increase (decrease) in net assets resulting from share transactions		(23,528,059	)		33,666,808
Net increase (decrease) in net assets		(16,217,435	)		64,763,932
Net assets:
Beginning of period		400,804,365			336,040,433
End of period (includes undistributed net investment income of $2,679,008 and $2,350,923, respectively)	$	384,586,930		$	400,804,365

Notes to Financial Statements

June 30, 2017

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. American Value Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance 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 consisting of twenty-four separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

The Fund’s investment objective is to provide above-average total return over a market cycle of three to five years by investing in common stocks and other equity securities.

The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Invesco V.I. American Value Fund

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

D. 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.

Invesco V.I. American Value Fund

E. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

F. Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. 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 date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

J. Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays 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		0.72%
Over $1 billion		0.65%

For the six months ended June 30, 2017, the effective advisory fees incurred by the Fund was 0.72%.

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 PowerShares Capital Management LLC and Invesco Asset Management (India)

Invesco V.I. American Value Fund

Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2018, 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 Series I shares to 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2018. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2019, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended June 30, 2017, the Adviser waived advisory fees of $8,057.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2017, Invesco was paid $47,562 for accounting and fund administrative services and was reimbursed $293,769 for fees paid to insurance companies.

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. For the six months ended June 30, 2017, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2017, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2017, the Fund incurred $5,096 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

As of June 30, 2017, all of the securities in this Fund were valued based on Level 1 inputs (see the Schedule of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

NOTE 4—Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. 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

Invesco V.I. American Value Fund

for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 5—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 6—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of December 31, 2016.

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2017 was $92,528,511 and $117,040,037, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	70,329,234
Aggregate unrealized (depreciation) of investment securities		(13,422,263	)
Net unrealized appreciation of investment securities	$	56,906,971

Cost of investments for tax purposes is $325,087,915.

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended June 30, 2017(a)						Year ended December 31, 2016
	Shares			Amount			Shares			Amount
Sold:
Series I		202,801		$	3,530,613			465,190		$	7,060,652
Series II		883,986			15,202,580			5,595,826			89,247,325
Issued as reinvestment of dividends:
Series I		—			—			427,077			6,777,718
Series II		—			—			949,793			14,940,244
Reacquired:
Series I		(969,788	)		(16,832,058	)		(2,060,028	)		(33,124,847	)
Series II		(1,479,842	)		(25,429,194	)		(3,266,703	)		(51,234,284	)
Net increase (decrease) in share activity		(1,362,843	)	$	(23,528,059	)		2,111,155		$	33,666,808

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 59% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. 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, third party record keeping and account servicing and administrative services. 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.

Invesco V.I. American Value Fund

NOTE 9—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)
Series I
Six months ended 06/30/17	$	17.06	$	0.03	$	0.30		$	0.33		$	—		$	—		$	—		$	17.39		1.93	%	$	105,676		0.94	%(d)		0.94	%(d)		0.35	%(d)		24	%
Year ended 12/31/16		15.69		0.13		2.23			2.36			(0.06	)		(0.93	)		(0.99	)		17.06		15.49			116,762		0.97			0.97			0.84			50
Year ended 12/31/15		19.92		0.06		(1.82	)		(1.76	)		(0.06	)		(2.41	)		(2.47	)		15.69		(9.13	)		125,686		0.99			0.99			0.33			26
Year ended 12/31/14		19.89		0.07		1.78			1.85			(0.10	)		(1.72	)		(1.82	)		19.92		9.75			152,938		0.99			1.00			0.32			48
Year ended 12/31/13		14.91		0.07		5.03			5.10			(0.12	)		—			(0.12	)		19.89		34.27			156,824		0.99			1.00			0.39			42
Year ended 12/31/12		12.81		0.12		2.08			2.20			(0.10	)		—			(0.10	)		14.91		17.21			131,233		0.99			1.00			0.86			26
Series II
Six months ended 06/30/17		16.90		0.01		0.29			0.30			—			—			—			17.20		1.78			278,911		1.19	(d)		1.19	(d)		0.10	(d)		24
Year ended 12/31/16		15.55		0.09		2.21			2.30			(0.02	)		(0.93	)		(0.95	)		16.90		15.22			284,043		1.22			1.22			0.59			50
Year ended 12/31/15		19.75		0.02		(1.80	)		(1.78	)		(0.01	)		(2.41	)		(2.42	)		15.55		(9.36	)		210,354		1.24			1.24			0.08			26
Year ended 12/31/14		19.73		0.01		1.77			1.78			(0.04	)		(1.72	)		(1.76	)		19.75		9.48			270,908		1.24			1.25			0.07			48
Year ended 12/31/13		14.81		0.03		4.99			5.02			(0.10	)		—			(0.10	)		19.73		33.93			320,754		1.24			1.25			0.14			42
Year ended 12/31/12		12.74		0.10		2.06			2.16			(0.09	)		—			(0.09	)		14.81		16.98			220,711		1.17			1.25			0.68			26

^(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. Total returns are not annualized for periods less than one year, if applicable, and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.

^(c) Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(d) Ratios are annualized and based on average daily net assets (000’s omitted) of $111,084 and $284,188 for Series I and Series II shares, respectively.

Invesco V.I. American Value Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2017 through June 30, 2017.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

Class	Beginning Account Value (01/01/17)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/17)1		Expenses Paid During Period2		Ending Account Value (06/30/17)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,019.30	$	4.71	$	1,020.13	$	4.71		0.94	%
Series II		1,000.00		1,017.80		5.95		1,018.89		5.96		1.19

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2017 through June 30, 2017, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

²  Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. American Value Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco V.I. American Value Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the 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 PowerShares 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, 2017.

In evaluating the fairness and reasonableness of compensation under the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board determined that continuation of the Fund’s investment advisory agreement and the sub-advisory contracts is in the best interest of the Fund and its shareholders and that the compensation payable to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Board had the benefit of reports from the Sub-Committees and Investments Committee throughout the year in considering approval of the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Board receives comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The

Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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 addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The Trustees recognized that the advisory fee rates for the Invesco Funds are, in most cases, the result of years of review and negotiation. The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these arrangements throughout the year and in prior years. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them 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 discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement 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. This information is current as of June 13, 2017, and does not reflect consideration of factors that became known to the Board after that date.

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 advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers. The Board’s review included consideration of Invesco Advisers’ investment process oversight, credit analysis and investment risk management. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, trading operations, internal audit, valuation and legal and compliance.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the greater uncertainty that may be associated with entering into a new relationship. 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 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 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 in which the Fund may invest, make recommendations regarding securities and assist with security trades. 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 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 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 during the past one, three and five calendar years to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds Mid-Cap Value Funds Index. The Board noted that performance of Series I 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 Series I shares of the Fund was below the performance of the Index for the one, three and five year periods. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees

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 at a common asset level. The Board noted that the contractual

Invesco V.I. American Value Fund

management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing 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 compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/waivers) to the effective advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, based on asset balances as of December 31, 2016. The Board noted that the Fund’s rate was above the effective advisory fee rate of one mutual fund advised by Invesco Advisers. The Board also noted how the Fund’s rate compared to the effective sub-adviser fee rate of four mutual funds sub-advised by Invesco Advisers. The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other client accounts using an investment process substantially similar to the investment process used for the Fund.

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 also noted that the sub-advisory fees are not paid directly by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds advised by Invesco Advisers.

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. 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 and the Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund to be excessive given the nature, quality and extent of the services provided. The Board received and accepted information from Invesco Advisers demonstrating that Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; and 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 periodic reports from the Chief Compliance Officer of the Invesco Funds demonstrating 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 money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds with respect to certain investments in the affiliated money market funds. The waiver is in 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that the Fund may use an affiliated broker to execute certain trades for the Fund to, among other things, control information leakage, and was advised that such trades would be executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. American Value Fund

Proxy Results

A Special Joint Meeting (“Meeting”) of Shareholders of Invesco V.I. American Value Fund, an investment portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), a Delaware statutory trust (“Trust”), was held on March 9, 2017. The Meeting was held for the following purposes:

(1) Elect 15 trustees to the Board, each of whom will serve until his or her successor is elected and qualified.

(2) Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.

(3) Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities.

(4)(a) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC.

(4)(b) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited.

The results of the voting on the above matters were as follows:

	Matters					Votes For		Votes Withheld
(1)*	David C. Arch						1,256,086,249		71,094,301
	James T. Bunch						1,254,410,156		72,770,397
	Bruce L. Crockett						1,258,363,948		68,816,603
	Jack M. Fields						1,255,101,592		72,078,961
	Martin L. Flanagan						1,257,885,397		69,295,160
	Cynthia Hostetler						1,261,335,247		65,845,303
	Dr. Eli Jones						1,257,497,296		69,683,257
	Dr. Prema Mathai-Davis						1,254,728,756		72,451,795
	Teresa M. Ressel						1,261,829,473		65,351,074
	Dr. Larry Soll						1,254,261,019		72,919,533
	Ann Barnett Stern						1,260,861,373		66,319,176
	Raymond Stickel, Jr.						1,254,379,471		72,801,083
	Philip A. Taylor						1,256,589,912		70,590,639
	Robert C. Troccoli						1,260,867,549		66,313,003
	Christopher L. Wilson						1,260,186,985		66,993,567
		Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(2)*	Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.		1,054,920,918		171,591,974		100,667,642		18

	Matters	Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(3)	Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities		14,925,262		1,950,237		1,947,904		0
(4)(a)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC		16,043,246		952,903		1,827,254		0
(4)(b)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited		15,459,181		1,848,327		1,515,895		0

* Each of proposal 1 and 2 required approval by a combined vote of all of the portfolios of AIM Variable Insurance Funds (Invesco Variable Insurance Funds).

Invesco V.I. American Value Fund

	Semiannual Report to Shareholders	June 30, 2017
	Invesco V.I. Balanced-Risk Allocation Fund

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

 Invesco Distributors, Inc. VIIBRA-SAR-1     07182017 1235

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/16 to 6/30/17, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	2.20%
Series II Shares	1.96
MSCI World Index▼ (Broad Market Index)	10.66
Custom Invesco V.I. Balanced-Risk Allocation Index⬛ (Style-Specific Index)	7.27
Lipper VUF Absolute Return Funds Classification Average◆ (Peer Group)	3.23
Source(s): ▼FactSet Research Systems Inc.; ⬛Invesco, FactSet Research Systems Inc.; ◆Lipper Inc.

The MSCI World Index^SM is an unmanaged index considered representative of stocks of developed countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors.

The Custom Invesco V.I. Balanced-Risk Allocation Index, created by Invesco to serve as a benchmark for Invesco V.I. Balanced-Risk Allocation Fund, is comprised of the MSCI World Index (60%) and the Bloomberg Barclays U.S. Aggregate Index (40%). Prior to May 2, 2011, the index was comprised of the MSCI World Index (65%), the J.P. Morgan GBI Global Index (30%) and the Citi US Three-Month Treasury Bill Index (5%).

The Lipper VUF Absolute Return Funds Classification Average represents an average of all variable insurance underlying funds in the Lipper Absolute Return Funds classification.

The Bloomberg Barclays U.S. Aggregate Index is an unmanaged index considered representative of the US investment-grade, fixed-rate bond market.

The J.P. Morgan GBI Global Index is a total return, market cap-weighted index that is rebalanced monthly and includes the following countries: Australia, Belgium, Canada, Denmark, Germany, Italy, Japan, the Netherlands, Spain, Sweden, the UK and the US.

The Citi US Three-Month Treasury Bill Index is an unmanaged index representative of three-month Treasury bills.

The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

The returns shown above include the returns of Invesco Van Kampen V.I. Global Tactical Asset Allocation Fund (the first predecessor fund) for the period June 1, 2010, to May 2, 2011, the date the first predecessor fund was reorganized into the Fund, and the returns of Van Kampen Life Investment Trust Global Tactical Asset Allocation Portfolio (the second predecessor fund) for the period prior to June 1, 2010, the date the second predecessor fund was reorganized into the first predecessor fund. The second predecessor fund was advised by Van Kampen Asset Management. Returns shown above for Series I and Series II shares are blended returns of the predecessor funds and Invesco V.I. Balanced-Risk Allocation Fund. Share class returns will differ from the predecessor funds because of different expenses.

    The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.80% and 1.05%, respectively.^1,2,3 The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and

Average Annual Total Returns
As of 6/30/17
Series I Shares
Inception (1/23/09)	8.81	%
5 Years	4.43
1 Year	3.45
Series II Shares
Inception (1/23/09)	8.52	%
5 Years	4.17
1 Year	3.25

Series II shares was 1.25% and 1.50%, respectively.¹ The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

    Invesco V.I. Balanced-Risk Allocation Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

    The most recent month-end performance at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

1 The expense ratio includes acquired fund fees and expenses of the underlying funds in which the Fund invests of 0.13% for Invesco V.I. Balanced-Risk Allocation Fund.

2 Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least April 30, 2018. See current prospectus for more information.

3 Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2019. See current prospectus for more information.

Invesco V.I. Balanced-Risk Allocation Fund

Consolidated Schedule of Investments

June 30, 2017

(Unaudited)

	Interest Rate			Maturity Date		Principal Amount		Value
U.S. Treasury Securities–16.10%
U.S. Treasury Bills–12.47%(a)
U.S. Treasury Bills(b)		0.62	%		07/06/2017	$	13,500,000	$	13,499,156
U.S. Treasury Bills(b)		0.78	%		07/06/2017		9,350,000		9,349,416
U.S. Treasury Bills		0.79	%		07/06/2017		8,700,000		8,699,456
U.S. Treasury Bills(b)		0.60	%		07/27/2017		15,860,000		15,851,382
U.S. Treasury Bills(b)		0.57	%		08/17/2017		3,980,000		3,975,497
U.S. Treasury Bills(b)		0.90	%		10/05/2017		32,000,000		31,915,183
U.S. Treasury Bills		1.07	%		12/07/2017		16,540,000		16,463,531
U.S. Treasury Bills		1.10	%		12/14/2017		5,370,000		5,343,944
U.S. Treasury Bills		1.07	%		12/21/2017		12,000,000		11,939,288
U.S. Treasury Bills		1.10	%		12/21/2017		30,000,000		29,848,221
									146,885,074
U.S. Treasury Notes–3.63%(c)
U.S. Treasury Floating Rate Notes		1.09	%		01/31/2018		19,970,000		20,005,287
U.S. Treasury Floating Rate Notes		1.01	%		04/30/2018		17,534,000		17,564,825
U.S. Treasury Floating Rate Notes		0.49	%		07/31/2018		5,100,000		5,109,451
									42,679,563
Total U.S. Treasury Securities (Cost $189,488,328)									189,564,637
				Expiration Date
Commodity-Linked Securities–1.70%
Canadian Imperial Bank of Commerce EMTN, U.S. Federal Funds Effective Rate minus 0.02% (linked to the Canadian Imperial Bank of Commerce Custom 5 Agriculture Commodity Index, multiplied by 2)(d)					08/22/2017		10,470,000		7,481,739
Cargill, Inc., Commodity-Linked Notes, one month USD LIBOR minus 0.10% (linked to the Monthly Rebalance Commodity Excess Return Index, multiplied by 2)(d)					08/07/2017		16,680,000		12,560,803
Total Commodity-Linked Securities (Cost $27,150,000)									20,042,542
						Shares
Money Market Funds–80.54%
Government & Agency Portfolio–Institutional Class, 0.89%(e)							225,629,173		225,629,173
Invesco Government Money Market Fund–Cash Reserve Shares, 0.35%(e)							11,050,213		11,050,213
Invesco V.I. Government Money Market Fund–Series I, 0.61%(e)							16,640,310		16,640,310
Premier U.S. Government Money Portfolio–Institutional Class, 0.86%(e)							125,439,345		125,439,345
STIC (Global Series) PLC — U.S. Dollar Liquidity Portfolio–Institutional Class (Ireland), 1.17%(e)							155,651,587		155,651,587
Treasury Obligations Portfolio–Institutional Class, 0.73%(e)							186,819,610		186,819,610
Treasury Portfolio–Institutional Class, 0.85%(e)							227,172,484		227,172,484
Total Money Market Funds (Cost $948,402,722)							948,402,722
TOTAL INVESTMENTS–98.34% (Cost $1,165,041,050)									1,158,009,901
OTHER ASSETS LESS LIABILITIES–1.66%									19,600,392
NET ASSETS–100.00%								$	1,177,610,293

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco V.I. Balanced-Risk Allocation Fund

Open Futures Contracts(f)
Futures Contracts	Type of Contract							Number of Contracts		Expiration Month		Notional Value		Unrealized Appreciation (Depreciation)
Brent Crude		Long							297		January-2018	$	14,805,450	$	(585,499	)
Gasoline Reformulated Blendstock Oxygenate Blending		Long							400		August-2017		25,430,160		1,610,840
Heating Oil		Long							134		August-2017		8,346,887		(120,397	)
Silver		Long							390		September-2017		32,422,650		133,526
WTI Crude		Long							236		December-2017		11,103,800		(515,834	)
Subtotal — Commodity Risk															522,636
Dow Jones EURO STOXX 50 Index		Long							2,430		September-2017		95,224,815		(3,384,939	)
E-Mini S&P 500 Index		Long							670		September-2017		81,100,150		(315,523	)
FTSE 100 Index		Long							988		September-2017		93,197,982		(2,575,960	)
Hang Seng Index		Long							443		July-2017		72,585,046		(145,907	)
Russell 2000 Index Mini		Long							940		September-2017		66,472,100		(500,686	)
Tokyo Stock Price Index		Long							734		September-2017		105,169,467		1,078,348
Subtotal — Equity Risk															(5,844,667	)
Australia 10 Year Bonds		Long							1,790		September-2017		177,846,357		(2,557,787	)
Canada 10 Year Bonds		Long							2,142		September-2017		232,145,661		(6,349,418	)
Euro Bonds		Long							657		September-2017		121,466,042		(2,042,584	)
Japan 10 Year Bonds		Long							9		September-2017		12,012,003		(42,922	)
Long Gilt		Long							1,554		September-2017		254,154,597		(4,157,474	)
U.S. Treasury Long Bonds		Long							749		September-2017		115,111,938		624,770
Subtotal — Interest Rate Risk															(14,525,415	)
Total Futures Contracts														$	(19,847,446	)
Open Over-The-Counter Total Return Swap Agreements
Counterparty	Pay/Receive		Reference Entity		Fixed Rate			Number of Contracts		Termination Date		Notional Value(g)		Unrealized Appreciation (Depreciation)
Barclays Bank PLC		Receive		Barclays Commodity Strategy 1452 Excess Return Index		0.33	%		45,700		October-2017	$	21,109,566	$	1,014,837
Barclays Bank PLC		Receive		Barclays Commodity Strategy 1719 Excess Return Index		0.45			39,200		July-2017		9,981,233		83,794
Canadian Imperial Bank of Commerce		Receive		Canadian Imperial Bank of Commerce Dynamic Roll LME Copper Excess Return Index 2		0.30			329,500		April-2018		24,104,309		670,368
Cargill, Inc.		Receive		Monthly Rebalance Commodity Excess Return Index		0.47			34,500		July-2017		28,251,591		0
Cargill, Inc.		Receive		Single Commodity Index Excess Return		0.12			18,900		January-2018		16,422,106		0
Goldman Sachs International		Receive		Goldman Sachs Alpha Basket B823 Excess Return Strategy		0.40			347,500		July-2017		28,465,247		(239,549	)
J.P. Morgan Chase Bank, N.A.		Receive		J.P. Morgan Contag Beta Gas Oil Excess Return Index		0.25			54,000		April-2018		9,430,252		460,285
J.P. Morgan Chase Bank, N.A.		Receive		S&P GSCI Gold Index Excess Return		0.09			162,500		October-2017		16,629,356		(94,510	)
Macquarie Bank Ltd.		Receive		Macquarie Aluminum Dynamic Selection Index		0.30			217,000		December-2017		10,948,041		335,091
Merrill Lynch International		Receive		Merrill Lynch Gold Excess Return Index		0.14			129,500		June-2018		20,651,106		0
Merrill Lynch International		Receive		MLCX Aluminum Annual Excess Return Index		0.28			31,500		September-2017		3,383,343		0

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco V.I. Balanced-Risk Allocation Fund

Open Over-The-Counter Total Return Swap Agreements–(continued)
Counterparty	Pay/Receive		Reference Entity		Fixed Rate			Number of Contracts		Termination Date		Notional Value(g)		Unrealized Appreciation (Depreciation)
Merrill Lynch International		Receive		MLCX Natural Gas Annual Excess Return Index		0.25	%		251,000		August-2017	$	11,926,928	$	0
Morgan Stanley Capital Services LLC		Receive		S&P GSCI Aluminum Dynamic Roll Index Excess Return		0.38			161,500		October-2017		16,482,334		459,112
Subtotal — Commodity Risk															2,689,428
Goldman Sachs International		Receive		Hang Seng Index Futures		—			154		July-2017		25,232,725		(70,689	)
Subtotal — Equity Risk															(70,689	)
Macquarie Bank Ltd.		Receive		Macquarie CGB 10 Year Index		0.34			203,000		June-2018	CAD	37,815,348		(806,931	)
Subtotal — Interest Rate Risk															(806,931	)
Total Swap Agreements														$	1,811,808

Investments Abbreviations:

CAD	– Canadian Dollar
CGB	– Canadian Government Bonds
EMTN	– European Medium Term Notes
LIBOR	– London Interbank Offered Rate
USD	– U.S. Dollar

Index Information:

Canadian Imperial Bank of Commerce Custom 5 Agriculture Commodity Index	– a basket of indices that provide exposure to various components of the agriculture markets. The underlying commodities comprising the indices are: Cocoa, Coffee, Corn, Cotton, Lean Hogs, Live Cattle, Soybean Meal, Soybean Oil, Soybeans, Sugar and Wheat.
Monthly Rebalance Commodity Excess Return Index	– a commodity index composed of futures contracts on Cocoa, Coffee ‘C’, Corn, Cotton No.2, Lean Hogs, Live Cattle, Soybean Meal, Soybeal Oil, Soybeans, Sugar No.11 and Wheat.
Barclays Commodity Strategy 1452 Excess Return Index	– a commodity index that provides exposure to futures contracts on Copper.
Barclays Commodity Strategy 1719 Excess Return Index	– a commodity index that provides exposure to futures contracts on Cocoa, Coffee, Corn, Cotton, Lean Hogs, Live Cattle, Soybean Meal, Soybean Oil, Soybeans, Sugar and Wheat.
Single Commodity Index Excess Return	– a commodity index composed of futures contracts on Gold.
Goldman Sachs Alpha Basket B823 Excess Return Strategy	– a basket of indices that provide exposure to various components of the agriculture markets. The underlying commodities comprising the indices are: Cocoa, Coffee ‘C’, Corn, Cotton, Lean Hogs, Live Cattle, Soybean Meal, Soybean Oil, Soybeans, Sugar and Wheat.

Notes to Consolidated Schedule of Investments:

^(a)  Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund.

^(b)  All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1L and Note 4.

^(c)  Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2017.

^(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 June 30, 2017 was $20,042,542, which represented 1.70% of the Fund’s Net Assets.

^(e)  The money market fund and the Fund are affiliated by having the same investment adviser.

^(f)  Futures contracts collateralized by $9,191,000 cash held with Goldman Sachs & Co., the futures commission merchant.

^(g)  Notional Value is denominated in U.S. Dollars unless otherwise noted.

Target Risk Allocation and Notional Asset Weights

By asset class

Asset Class	Risk Allocation*			% of Net Assets as of 06/30/2017**
Equities		43.25	%		44.66	%
Fixed Income		32.82			77.00
Commodities		23.93			30.15

* Reflects the risk that each asset class is expected to contribute to the overall risk of the Fund as measured by standard deviation and estimates of risk based on historical data. Standard deviation measures the annualized fluctuations (volatility) of monthly returns

** Proprietary models determine the Notional Asset Weights necessary to achieve the Target Risk Allocations. Total Notional Asset Weight greater than 100% is achieved through derivatives and other instruments that create leverage.

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco V.I. Balanced-Risk Allocation Fund

Consolidated Statement of Assets and Liabilities

June 30, 2017

(Unaudited)

Assets:
Investments, at value (Cost $216,638,328)	$	209,607,179
Investments in affiliated money market funds, at value and cost		948,402,722
Total investments, at value (Cost $1,165,041,050)		1,158,009,901
Cash		876,000
Receivable for:
Deposits with brokers		22,530,300
Fund shares sold		1,381,088
Dividends and interest		865,884
Swaps receivable — OTC		9,842
Investment for trustee deferred compensation and retirement plans		98,572
Unrealized appreciation on swap agreements — OTC		3,023,487
Total assets		1,186,795,074
Liabilities:
Payable for:
Fund shares reacquired		426,509
Swaps payable — OTC		991,581
Variation margin — futures		5,133,832
Accrued fees to affiliates		1,191,877
Accrued trustees’ and officers’ fees and benefits		8,332
Accrued other operating expenses		108,887
Trustee deferred compensation and retirement plans		112,084
Unrealized depreciation on swap agreements — OTC		1,211,679
Total liabilities		9,184,781
Net assets applicable to shares outstanding	$	1,177,610,293
Net assets consist of:
Shares of beneficial interest	$	1,045,816,577
Undistributed net investment income		45,137,381
Undistributed net realized gain		111,723,443
Net unrealized appreciation (depreciation)		(25,067,108	)
	$	1,177,610,293
Net Assets:
Series I	$	35,486,411
Series II	$	1,142,123,882
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		3,062,199
Series II		99,798,820
Series I:
Net asset value per share	$	11.59
Series II:
Net asset value per share	$	11.44

Consolidated Statement of Operations

For the six months ended June 30, 2017

(Unaudited)

Investment income:
Dividends from affiliated money market funds	$	2,938,471
Interest		692,366
Total investment income		3,630,837
Expenses:
Advisory fees		5,384,981
Administrative services fees		1,024,273
Custodian fees		8,095
Distribution fees — Series II		1,432,392
Transfer agent fees		13,061
Trustees’ and officers’ fees and benefits		19,341
Reports to shareholders		105,394
Professional services fees		25,704
Other		9,083
Total expenses		8,022,324
Less: Fees waived		(2,581,414	)
Net expenses		5,440,910
Net investment income (loss)		(1,810,073	)
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		1,309
Foreign currencies		140,252
Futures contracts		61,261,377
Swap agreements		(6,086,236	)
		55,316,702
Change in net unrealized appreciation (depreciation) of:
Investment securities		(3,775,546	)
Foreign currencies		105
Futures contracts		(29,846,034	)
Swap agreements		3,390,983
		(30,230,492	)
Net realized and unrealized gain		25,086,210
Net increase in net assets resulting from operations	$	23,276,137

See accompanying Notes to Consolidated Financial Statements which are an integral part of the financial statements.

Invesco V.I. Balanced-Risk Allocation Fund

Consolidated Statement of Changes in Net Assets

For the six months ended June 30, 2017 and the year ended December 31, 2016

(Unaudited)

	June 30, 2017			December 31, 2016
Operations:
Net investment income (loss)	$	(1,810,073	)	$	(5,966,345	)
Net realized gain		55,316,702			110,140,284
Change in net unrealized appreciation (depreciation)		(30,230,492	)		5,010,818
Net increase in net assets resulting from operations		23,276,137			109,184,757
Distributions to shareholders from net investment income:
Series I		—			(141,115	)
Series ll		—			(1,965,605	)
Total distributions from net investment income		—			(2,106,720	)
Share transactions–net:
Series l		33,653			4,731,130
Series ll		6,047,852			70,235,119
Net increase in net assets resulting from share transactions		6,081,505			74,966,249
Net increase in net assets		29,357,642			182,044,286
Net assets:
Beginning of period		1,148,252,651			966,208,365
End of period (includes undistributed net investment income of $45,137,381 and $46,947,454, respectively)	$	1,177,610,293		$	1,148,252,651

Consolidated Notes to Financial Statements

June 30, 2017

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Balanced-Risk Allocation Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance 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 consisting of twenty-four separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these consolidated financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

The Fund will seek to gain exposure to the commodity markets primarily through investments in the Invesco Cayman Commodity Fund IV Ltd. (the “Subsidiary”), a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands. The Subsidiary was organized by the Fund to invest in commodity-linked derivatives and other securities that may provide leveraged and non-leveraged exposure to commodities. The Fund may invest up to 25% of its total assets in the Subsidiary.

The Fund’s investment objective is total return with a low to moderate correlation to traditional financial market indices.

The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services — Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its consolidated financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded.

Invesco V.I. Balanced-Risk Allocation Fund

Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Consolidated Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Consolidated Statement of Operations and the Consolidated Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Consolidated Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

Invesco V.I. Balanced-Risk Allocation Fund

E. Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable earnings to shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the consolidated financial statements.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

The Subsidiary is classified as a controlled foreign corporation under Subchapter N of the Internal Revenue Code. Therefore, the Fund is required to increase its taxable income by its share of the Subsidiary’s income. Net investment losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income in future periods.

The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

F. Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates — The financial statements are prepared on a consolidated basis in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. The accompanying financial statements reflect the financial position of the Fund and its Subsidiary and the results of operations on a consolidated basis. All inter-company accounts and transactions have been eliminated in consolidation.

In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the consolidated financial statements are released to print.

H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust, and under the Subsidiary’s organizational documents, the directors and officers of the Subsidiary, are indemnified against certain liabilities that may arise out of the performance of their duties to the Fund and/or the Subsidiary, respectively. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. Foreign Currency Translations — Foreign currency is valued at the close of the NYSE based on quotations posted by banks and major currency dealers. Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Consolidated Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Consolidated Statement of Operations.

J. Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Consolidated Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Consolidated Statement of Assets and Liabilities.

K. Structured Securities — The Fund may invest in structured securities. Structured securities are a type of derivative security whose value is determined by reference to changes in the value of underlying securities, currencies, interest rates, commodities, indices or other financial indicators (“reference instruments”). Most structured securities are fixed-income securities that have maturities of three years or less. Structured

Invesco V.I. Balanced-Risk Allocation Fund

securities may be positively or negatively indexed (i.e., their principal value or interest rates may increase or decrease if the underlying reference instrument appreciates) and may have return characteristics similar to direct investments in the underlying reference instrument.

Structured securities may entail a greater degree of market risk than other types of debt securities because the investor bears the risk of the reference instruments. In addition to the credit risk of structured securities and the normal risks of price changes in response to changes in interest rates, the principal amount of structured notes or indexed securities may decrease as a result of changes in the value of the underlying reference instruments. Changes in the daily value of structured securities are recorded as unrealized gains (losses) in the Consolidated Statement of Operations. When the structured securities mature or are sold, the Fund recognizes a realized gain (loss) on the Consolidated Statement of Operations.

L. Futures Contracts — The Fund may enter into futures contracts to equitize the Fund’s cash holdings or to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between Counterparties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Consolidated Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Consolidated Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Consolidated Statement of Assets and Liabilities.

M. 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. These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s NAV over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any.

Interest rate, total return, index, and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index. At the maturity date, a net cash flow is exchanged where the total return is equivalent to the return of the underlying reference less a financing rate, if any. As a receiver, the Fund would receive payments based on any positive total return and would owe payments in the event of a negative total return. As the payer, the Fund would owe payments on any net positive total return, and would receive payment in the event of a negative total return.

Changes in the value of swap agreements are recognized as unrealized gains (losses) in the Consolidated Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Consolidated Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Consolidated Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Consolidated Statement of Operations. The Fund segregates cash or liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. Cash held as collateral is recorded as deposits with brokers on the Consolidated Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.

N. Leverage Risk — Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction.

O. Other Risks — The Fund will seek to gain exposure to commodity markets primarily through an investment in the Subsidiary and through investments in exchange-traded funds and commodity-linked derivatives. The Subsidiary, unlike the Fund, may invest without limitation in commodities, commodity-linked derivatives and other securities, such as exchange-traded notes, that may provide leveraged and non-leveraged exposure to commodity markets. The Fund is indirectly exposed to the risks associated with the Subsidiary’s investments.

P. Collateral — To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

Invesco V.I. Balanced-Risk Allocation Fund

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays an advisory fee to the Adviser less the amount paid by the Subsidiary to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets	Rate
First $250 million		0	.95%
Next $250 million		0	.925%
Next $500 million		0	.90%
Next $1.5 billion		0	.875%
Next $2.5 billion		0	.85%
Next $2.5 billion		0	.825%
Next $2.5 billion		0	.80%
Over $10 billion		0	.775%

For the six months ended June 30, 2017, the effective advisory fees incurred by the Fund was 0.91%.

The Subsidiary has entered into a separate contract with the Adviser whereby the Adviser provides investment advisory and other services to the Subsidiary. In consideration of these services, the Subsidiary pays an advisory fee to the Adviser based on the annual rate of the Subsidiary’s average daily net assets as set forth in the table above.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco PowerShares Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”), the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least April 30, 2018, to waive advisory fees and/or reimburse expenses of shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (including prior fiscal year-end Acquired Fund Fees and Expenses of 0.13% and excluding certain items discussed below) of Series I shares to 0.80% and Series II shares to 1.05% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred, but did not actually pay because of an expense offset arrangement. Acquired Fund Fees and Expenses are not operating expenses of the Fund directly, but are fees and expenses, including management fees, of the investment companies in which the Fund invests. As a result, the total annual fund operating expenses after expense reimbursement may exceed the expense limits above. Unless Invesco continues the fee waiver agreement, it will terminate on April 30, 2018. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.

Further, the Adviser has contractually agreed, through at least June 30, 2019, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended June 30, 2017, the Adviser waived advisory fees of $2,581,414.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2017, Invesco was paid $138,325 for accounting and fund administrative services and was reimbursed $885,948 for fees paid to insurance companies.

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. For the six months ended June 30, 2017, expenses incurred under the agreement are shown in the Consolidated Statement of Operations as Transfer agent fees.

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2017, expenses incurred under the Plan are detailed in the Consolidated Statement of Operations as Distribution fees.

Certain officers and trustees of the Trust are officers and directors of the Adviser, IIS and/or IDI.

Invesco V.I. Balanced-Risk Allocation Fund

NOTE 3—Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of June 30, 2017. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the consolidated financial statements may materially differ from the value received upon actual sale of those investments.

	Level 1			Level 2		Level 3		Total
U.S. Treasury Securities	$	—		$	189,564,637	$	—	$	189,564,637
Commodity-Linked Securities		—			20,042,542		—		20,042,542
Money Market Funds		948,402,722			—		—		948,402,722
		948,402,722			209,607,179		—		1,158,009,901
Futures Contracts*		(19,847,446	)		—		—		(19,847,446	)
Swap Agreements*		—			1,811,808		—		1,811,808
Total Investments	$	928,555,276		$	211,418,987	$	—	$	1,139,974,263

* Unrealized appreciation (depreciation).

NOTE 4—Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a Fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of June 30, 2017:

Derivative Assets	Value
	Commodity Risk			Equity Risk			Interest Rate Risk			Total
Unrealized appreciation on futures contracts — Exchange-Traded(a)	$	1,744,366		$	1,078,348		$	624,770		$	3,447,484
Unrealized appreciation on swap agreements — OTC		3,023,487			—			—			3,023,487
Total Derivative Assets		4,767,853			1,078,348			624,770			6,470,971
Derivatives not subject to master netting agreements		(1,744,366	)		(1,078,348	)		(624,770	)		(3,447,484	)
Total Derivative Assets subject to master netting agreements	$	3,023,487		$	—		$	—		$	3,023,487
Derivative Liabilities	Value
	Commodity Risk			Equity Risk			Interest Rate Risk			Total
Unrealized depreciation on futures contracts — Exchange-Traded(a)	$	(1,221,730	)	$	(6,923,015	)	$	(15,150,185	)	$	(23,294,930	)
Unrealized depreciation on swap agreements — OTC		(334,059	)		(70,689	)		(806,931	)		(1,211,679	)
Total Derivative Liabilities		(1,555,789	)		(6,993,704	)		(15,957,116	)		(24,506,609	)
Derivatives not subject to master netting agreements		1,221,730			6,923,015	��		15,150,185			23,294,930
Total Derivative Liabilities subject to master netting agreements	$	(334,059	)	$	(70,689	)	$	(806,931	)	$	(1,211,679	)

^(a)  Only current day’s variation margin receivable (payable) is reported within the Consolidated Statement of Assets and Liabilities.

Invesco V.I. Balanced-Risk Allocation Fund

Offsetting Assets and Liabilities

The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of June 30, 2017.

	Financial Derivative Assets		Financial Derivative Liabilities						Collateral (Received)/ Pledged
Counterparty	Swap Agreements		Swap Agreements			Net Value of Derivatives			Non-Cash		Cash			Net Amount(a)
Fund
Goldman Sachs International	$	—	$	(71,716	)	$	(71,716	)	$	—	$	—		$	(71,716	)
Macquarie Bank Ltd.		—		(808,271	)		(808,271	)		—		370,000			(438,271	)
Subtotal — Fund		—		(879,987	)		(879,987	)		—		370,000			(509,987	)
Subsidiary
Barclays Bank PLC		1,098,631		(8,067	)		1,090,564			—		—			1,090,564
Canadian Imperial Bank of Commerce		679,927		(14,807	)		665,120			—		—			665,120
Cargill, Inc.		—		(668,355	)		(668,355	)		—		668,355			—
Goldman Sachs International		283		(248,205	)		(247,922	)		—		247,922			—
J.P. Morgan Chase Bank, N.A.		460,285		(95,461	)		364,824			—		—			364,824
Macquarie Bank Ltd.		335,091		(450	)		334,641			—		—			334,641
Merrill Lynch International		—		(285,354	)		(285,354	)		—		285,354			—
Morgan Stanley Capital Services LLC		459,112		(2,574	)		456,538			—		(260,000	)		196,538
Subtotal — Subsidiary		3,033,329		(1,323,273	)		1,710,056			—		941,631			2,651,687
Total	$	3,033,329	$	(2,203,260	)	$	830,069		$	—	$	1,311,631		$	2,141,700

^(a)  The Fund and the Subsidiary are recognized as separate legal entities and as such are subject to separate netting arrangements with the Counterparty.

Effect of Derivative Investments for the six months ended June 30, 2017

The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:

	Location of Gain (Loss) on Consolidated Statement of Operations
	Commodity Risk			Equity Risk			Interest Rate Risk			Total
Realized Gain (Loss):
Futures contracts	$	(12,607,160	)	$	49,266,316	��	$	24,602,221		$	61,261,377
Swap agreements		(9,977,304	)		3,513,373			377,695			(6,086,236	)
Change in Net Unrealized Appreciation (Depreciation):
Futures contracts		(2,249,797	)		(12,501,668	)		(15,094,569	)		(29,846,034	)
Swap agreements		4,546,648			(348,734	)		(806,931	)		3,390,983
Total	$	(20,287,613	)	$	39,929,287		$	9,078,416		$	28,720,090

The table below summarizes the average notional value of futures contracts and swap agreements outstanding during the period.

	Futures Contracts		Swap Agreements
Average notional value	$	1,407,007,700	$	274,789,621

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.

Invesco V.I. Balanced-Risk Allocation Fund

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. Such balances, if any at period-end, are shown in the Consolidated Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of December 31, 2016.

NOTE 8—Investment Securities

There were no securities purchased or sold by the Fund during the six months ended June 30, 2017. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	87,571
Aggregate unrealized (depreciation) of investment securities		(7,118,720	)
Net unrealized appreciation (depreciation) of investment securities	$	(7,031,149	)

Cost of investments is the same for financial reporting and tax purposes.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended June 30, 2017(a)						Year ended December 31, 2016
	Shares			Amount			Shares			Amount
Sold:
Series I		107,635		$	1,250,327			2,079,260		$	23,038,972
Series II		8,005,187			91,768,555			20,137,979			220,328,126
Issued as reinvestment of dividends:
Series I		—			—			12,271			141,114
Series II		—			—			172,876			1,965,605
Reacquired:
Series I		(104,655	)		(1,216,674	)		(1,664,871	)		(18,448,956	)
Series II		(7,453,229	)		(85,720,703	)		(14,209,711	)		(152,058,612	)
Net increase in share activity		554,938		$	6,081,505			6,527,804		$	74,966,249

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 84% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. 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, third party record keeping and account servicing and administrative services. 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.

Invesco V.I. Balanced-Risk Allocation Fund

NOTE 10—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)
Series I
Six Months ended 06/30/17	$	11.35	$	(0.00	)	$	0.24		$	0.24		$	—		$	—		$	—		$	11.59		2.11	%	$	35,486		0.68	%(d)(e)		1.12	%(d)		(0.07	)%(d)		0	%
Year ended 12/31/16		10.20		(0.04	)		1.24			1.20			(0.05	)		—			(0.05	)		11.35		11.74			34,714		0.67	(e)		1.12			(0.33	)		120
Year ended 12/31/15		12.30		(0.07	)		(0.44	)		(0.51	)		(0.52	)		(1.07	)		(1.59	)		10.20		(4.10	)		26,854		0.69			1.15			(0.61	)		44
Year ended 12/31/14		12.30		(0.08	)		0.80			0.72			—			(0.72	)		(0.72	)		12.30		5.91			11,397		0.69	(e)		1.11			(0.65	)		60
Year ended 12/31/13		12.65		(0.08	)		0.30			0.22			(0.21	)		(0.36	)		(0.57	)		12.30		1.70			8,821		0.70			1.11			(0.65	)		76
Year ended 12/31/12		11.53		(0.07	)		1.34			1.27			(0.11	)		(0.04	)		(0.15	)		12.65		10.98			10,354		0.70	(e)		1.15			(0.59	)		188
Series II
Six Months ended 06/30/17		11.22		(0.02	)		0.24			0.22			—			—			—			11.44		1.96			1,142,124		0.93	(d)(e)		1.37	(d)		(0.32	)(d)		0
Year ended 12/31/16		10.08		(0.06	)		1.22			1.16			(0.02	)		—			(0.02	)		11.22		11.51			1,113,539		0.92	(e)		1.37			(0.58	)		120
Year ended 12/31/15		12.17		(0.10	)		(0.44	)		(0.54	)		(0.48	)		(1.07	)		(1.55	)		10.08		(4.40	)		939,354		0.94			1.40			(0.86	)		44
Year ended 12/31/14		12.21		(0.12	)		0.80			0.68			—			(0.72	)		(0.72	)		12.17		5.62			1,002,835		0.94	(e)		1.36			(0.90	)		60
Year ended 12/31/13		12.57		(0.11	)		0.30			0.19			(0.19	)		(0.36	)		(0.55	)		12.21		1.50			1,369,485		0.95			1.36			(0.90	)		76
Year ended 12/31/12		11.49		(0.10	)		1.32			1.22			(0.10	)		(0.04	)		(0.14	)		12.57		10.64			1,343,806		0.95	(e)		1.40			(0.84	)		188

^(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. Total returns are not annualized for periods less than one year, if applicable and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.

^(c)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(d)  Ratios are annualized and based on average daily net assets (000’s omitted) of $35,643 and $1,155,410 for Series I and Series II shares, respectively.

^(e)  In addition to the fees and expenses which the Fund bears directly; the Fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which the Fund invests. Because the underlying funds have varied expenses and fee levels and the Fund may own different proportions at different times, the amount of fees and expenses incurred indirectly by the Fund will vary. Estimated underlying fund expenses are not expenses that are incurred directly by your Fund. They are expenses that are incurred directly by the underlying funds and are deducted from the value of the funds your Fund invests in. The effect of the estimated underlying fund expenses that you bear indirectly is included in your Fund’s total return. Estimated acquired fund fees from underlying funds were 0.13%, 0.12%, 0.09% and 0.02% for the six months ended June 30, 2017 and the years ended December 31, 2016, 2014 and 2012, respectively.

Invesco V.I. Balanced-Risk Allocation Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2017 through June 30, 2017.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

Class	Beginning Account Value (01/01/17)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/17)1		Expenses Paid During Period2		Ending Account Value (06/30/17)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,022.00	$	3.41	$	1,021.42	$	3.41		0.68	%
Series II		1,000.00		1,019.60		4.66		1,020.18		4.66		0.93

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2017 through June 30, 2017, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

²  Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Balanced-Risk Allocation Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco V.I. Balanced-Risk Allocation Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the 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 PowerShares 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, 2017.

In evaluating the fairness and reasonableness of compensation under the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board determined that continuation of the Fund’s investment advisory agreement and the sub-advisory contracts is in the best interest of the Fund and its shareholders and that the compensation payable to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Board had the benefit of reports from the Sub-Committees and Investments Committee throughout the year in considering approval of the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Board receives comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The

Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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 addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The Trustees recognized that the advisory fee rates for the Invesco Funds are, in most cases, the result of years of review and negotiation. The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these arrangements throughout the year and in prior years. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them 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 discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement 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. This information is current as of June 13, 2017, and does not reflect consideration of factors that became known to the Board after that date.

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 advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers. The Board’s review included consideration of Invesco Advisers’ investment process oversight, credit analysis and investment risk management. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, trading operations, internal audit, valuation and legal and compliance.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the greater uncertainty that may be associated with entering into a new relationship. 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 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 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 in which the Fund may invest, make recommendations regarding securities and assist with security trades. 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 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 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 during the past one, three and five calendar years to the performance of funds in the Broadridge performance universe. The Board noted that performance of Series I shares of the Fund was in the first quintile of its performance universe for the one year period and that no comparative quintile information was available 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 also noted that there was no comparative Index. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees

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 at a common asset level. The Board noted that the contractual management fee rate for Series I shares of the

Invesco V.I. Balanced-Risk Allocation Fund

Fund was at the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing 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 noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2018 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 its affiliates do not manage other funds or client accounts with investment strategies comparable to those of the Fund.

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 also noted that the sub-advisory fees are not paid directly by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds advised by Invesco Advisers.

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. 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 and the Fund. The Board received and accepted information from Invesco Advisers demonstrating that Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; and that the services are required for the operation of the Fund.

Invesco V.I. Balanced-Risk Allocation Fund

Proxy Results

A Special Joint Meeting (“Meeting”) of Shareholders of Invesco V.I. Balanced-Risk Allocation Fund, an investment portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), a Delaware statutory trust (“Trust”), was held on March 9, 2017. The Meeting was held for the following purposes:

(1) Elect 15 trustees to the Board, each of whom will serve until his or her successor is elected and qualified.

(2) Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.

(3) Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities.

(4)(a) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC.

(4)(b) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited.

The results of the voting on the above matters were as follows:

	Matters					Votes For		Votes Withheld
(1)*	David C. Arch						1,256,086,249		71,094,301
	James T. Bunch						1,254,410,156		72,770,397
	Bruce L. Crockett						1,258,363,948		68,816,603
	Jack M. Fields						1,255,101,592		72,078,961
	Martin L. Flanagan						1,257,885,397		69,295,160
	Cynthia Hostetler						1,261,335,247		65,845,303
	Dr. Eli Jones						1,257,497,296		69,683,257
	Dr. Prema Mathai-Davis						1,254,728,756		72,451,795
	Teresa M. Ressel						1,261,829,473		65,351,074
	Dr. Larry Soll						1,254,261,019		72,919,533
	Ann Barnett Stern						1,260,861,373		66,319,176
	Raymond Stickel, Jr.						1,254,379,471		72,801,083
	Philip A. Taylor						1,256,589,912		70,590,639
	Robert C. Troccoli						1,260,867,549		66,313,003
	Christopher L. Wilson						1,260,186,985		66,993,567
		Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(2)*	Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.		1,054,920,918		171,591,974		100,667,642		18
	Matters	Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(3)	Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities		76,813,634		9,687,407		11,953,609		1
(4)(a)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC		81,262,167		6,294,845		10,897,638		1
(4)(b)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited		78,582,528		8,693,577		11,178,546		0

* Each of proposal 1 and 2 required approval by a combined vote of all of the portfolios of AIM Variable Insurance Funds (Invesco Variable Insurance Funds).

Invesco V.I. Balanced Risk Allocation Fund

	Semiannual Report to Shareholders	June 30, 2017
	Invesco V.I. Comstock Fund
	The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.     A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.      Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.      Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
	This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.
	NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc.                                               VK-VICOM-SAR-1         07132017    0815

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/16 to 6/30/17, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	3.43%
Series II Shares	3.28
S&P 500 Index▼ (Broad Market Index)	9.34
Russell 1000 Value Index▼ (Style-Specific Index)	4.66
Lipper VUF Large-Cap Value Funds Index⬛ (Peer Group Index)	5.66
Source(s): ▼FactSet Research Systems Inc.; ⬛Lipper Inc.
The S&P 500® Index is an unmanaged index considered representative of the US stock market. The Russell 1000® Value Index is an unmanaged index considered representative of large-cap value stocks. The Russell 1000 Value Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co. The Lipper VUF Large-Cap Value Funds Index is an unmanaged index considered representative of large-cap value variable insurance underlying funds tracked by Lipper. The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/17
Series I Shares
Inception (4/30/99)	6.93	%
10 Years	5.81
5 Years	13.22
1 Year	21.45
Series II Shares
Inception (9/18/00)	6.96	%
10 Years	5.55
5 Years	12.93
1 Year	21.17

Effective June 1, 2010, Class I and Class II shares of the predecessor fund, Van Kampen Life Investment Trust Comstock Portfolio, advised by Van Kampen Asset Management were reorganized into Series I and Series II shares, respectively, of Invesco Van Kampen V.I. Comstock Fund (renamed Invesco V.I. Comstock Fund on April 29, 2013). Returns shown above, prior to June 1, 2010, for Series I and Series II shares are blended returns of the predecessor fund and Invesco V.I. Comstock Fund. Share class returns will differ from the predecessor fund because of different expenses.

    The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.78% and 1.03%, respectively.¹ The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.79% and 1.04%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

    Invesco V.I. Comstock Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are

determined by the variable product issuers, will vary and will lower the total return.

    The most recent month-end performance at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

     Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

1 Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least April 30, 2018. See current prospectus for more information.

Invesco V.I. Comstock Fund

Schedule of Investments^(a)

June 30, 2017

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–98.04%
Aerospace & Defense–1.95%
Arconic Inc.		501,935	$	11,368,820
Textron Inc.		516,399		24,322,393
				35,691,213
Aluminum–0.32%
Alcoa Corp.		181,527		5,926,857
Asset Management & Custody Banks–3.37%
Bank of New York Mellon Corp. (The)		610,796		31,162,812
State Street Corp.		337,916		30,321,203
				61,484,015
Automobile Manufacturers–1.99%
General Motors Co.		1,038,591		36,277,984
Automotive Retail–0.98%
Advance Auto Parts, Inc.		154,149		17,972,232
Biotechnology–2.44%
AbbVie Inc.		192,905		13,987,542
Biogen Inc.(b)		60,918		16,530,708
Gilead Sciences, Inc.		198,825		14,072,834
				44,591,084
Broadcasting–0.59%
CBS Corp.–Class B		168,950		10,775,631
Building Products–1.42%
Johnson Controls International PLC		596,403		25,860,034
Cable & Satellite–1.16%
Charter Communications, Inc.–Class A(b)		25,918		8,730,478
Comcast Corp.–Class A		322,238		12,541,503
				21,271,981
Communications Equipment–2.53%
Cisco Systems, Inc.		1,477,724		46,252,761
Construction Machinery & Heavy Trucks–1.84%
Caterpillar Inc.		313,051		33,640,460
Consumer Finance–1.40%
Ally Financial Inc.		1,219,737		25,492,503
Data Processing & Outsourced Services–1.16%
PayPal Holdings, Inc.(b)		393,318		21,109,377
Diversified Banks–16.95%
Bank of America Corp.		3,432,313		83,267,913
Citigroup Inc.		1,657,707		110,867,444
JPMorgan Chase & Co.		790,044		72,210,022
U.S. Bancorp		140,205		7,279,444
Wells Fargo & Co.		647,772		35,893,046
				309,517,869

	Shares		Value
Drug Retail–0.89%
CVS Health Corp.		201,835	$	16,239,644
Electric Utilities–0.59%
FirstEnergy Corp.		371,860		10,843,438
Electrical Components & Equipment–2.39%
Eaton Corp. PLC		396,304		30,844,340
Emerson Electric Co.		214,283		12,775,553
				43,619,893
Fertilizers & Agricultural Chemicals–0.66%
CF Industries Holdings, Inc.		429,469		12,007,953
Health Care Distributors–1.10%
Cardinal Health, Inc.		102,012		7,948,775
McKesson Corp.		74,242		12,215,779
				20,164,554
Health Care Equipment–0.82%
Medtronic PLC		169,607		15,052,621
Hotels, Resorts & Cruise Lines–3.31%
Carnival Corp.		922,585		60,493,898
Hypermarkets & Super Centers–1.06%
Wal-Mart Stores, Inc.		256,891		19,441,511
Industrial Conglomerates–1.11%
General Electric Co.		747,321		20,185,140
Industrial Machinery–0.67%
Ingersoll-Rand PLC		133,661		12,215,279
Integrated Oil & Gas–8.26%
BP PLC–ADR (United Kingdom)		873,530		30,267,815
Chevron Corp.		295,592		30,839,113
Occidental Petroleum Corp.		243,628		14,586,008
Royal Dutch Shell PLC–Class A–ADR (United Kingdom)		664,760		35,358,584
Suncor Energy, Inc. (Canada)		1,363,682		39,819,515
				150,871,035
Internet Software & Services–2.01%
Altaba Inc.(b)		135,380		7,375,503
eBay Inc.(b)		837,636		29,250,249
				36,625,752
Investment Banking & Brokerage–3.13%
Goldman Sachs Group, Inc. (The)		89,113		19,774,175
Morgan Stanley		838,321		37,355,584
				57,129,759
IT Consulting & Other Services–0.68%
Cognizant Technology Solutions Corp.–Class A		185,856		12,340,838

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Comstock Fund

	Shares		Value
Life & Health Insurance–2.65%
Aflac, Inc.		128,421	$	9,975,743
MetLife, Inc.		699,489		38,429,926
				48,405,669
Managed Health Care–1.36%
Anthem, Inc.		132,334		24,895,995
Movies & Entertainment–1.06%
Twenty-First Century Fox, Inc.–Class B		691,909		19,283,504
Multi-Line Insurance–1.51%
American International Group, Inc.		441,023		27,572,758
Oil & Gas Equipment & Services–0.90%
Halliburton Co.		384,276		16,412,428
Oil & Gas Exploration & Production–4.59%
Canadian Natural Resources Ltd. (Canada)		525,822		15,172,348
Devon Energy Corp.		672,329		21,494,358
Hess Corp.		468,561		20,555,771
Marathon Oil Corp.		1,473,753		17,463,973
QEP Resources Inc.(b)		912,482		9,216,068
				83,902,518
Packaged Foods & Meats–1.05%
Danone S.A. (France)		189,422		14,237,884
Mondelez International, Inc.–Class A		114,221		4,933,205
				19,171,089
Paper Packaging–0.96%
International Paper Co.		309,383		17,514,172
Personal Products–0.67%
Unilever N.V.–New York Shares (United Kingdom)		220,427		12,183,000
Pharmaceuticals–6.68%
Merck & Co., Inc.		343,140		21,991,843
Mylan N.V.(b)		459,792		17,849,125
Novartis AG (Switzerland)		204,158		17,048,134

	Shares		Value
Pharmaceuticals–(continued)
Pfizer Inc.		1,031,981	$	34,664,242
Sanofi -ADR (France)		636,237		30,482,115
				122,035,459
Property & Casualty Insurance–1.44%
Allstate Corp. (The)		298,378		26,388,550
Regional Banks–5.49%
Citizens Financial Group, Inc.		589,375		21,028,900
Fifth Third Bancorp		1,252,798		32,522,636
KeyCorp		414,783		7,773,033
PNC Financial Services Group, Inc. (The)		312,666		39,042,604
				100,367,173
Semiconductors–1.47%
Intel Corp.		606,090		20,449,476
QUALCOMM Inc.		115,853		6,397,403
				26,846,879
Systems Software–1.58%
Microsoft Corp.		419,134		28,890,907
Technology Hardware, Storage & Peripherals–1.12%
NetApp, Inc.		510,658		20,451,853
Wireless Telecommunication Services–0.73%
Vodafone Group PLC (United Kingdom)		4,712,406		13,364,783
Total Common Stocks & Other Equity Interests (Cost $1,514,390,514)				1,790,782,053
Money Market Funds–2.05%
Government & Agency Portfolio–Institutional Class, 0.89%(c)		22,441,256		22,441,256
Treasury Portfolio–Institutional Class, 0.85%(c)		14,960,838		14,960,838
Total Money Market Funds (Cost $37,402,094)				37,402,094
TOTAL INVESTMENTS–100.09% (Cost $1,551,792,608)				1,828,184,147
OTHER ASSETS LESS LIABILITIES–(0.09)%				(1,606,195	)
NET ASSETS–100.00%			$	1,826,577,952

Investment Abbreviations:

ADR – American Depositary Receipt

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of June 30, 2017.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Comstock Fund

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2017

Financials	35.9	%
Energy	13.8
Health Care	12.4
Information Technology	10.5
Industrials	9.4
Consumer Discretionary	9.1
Consumer Staples	3.7
Materials	1.9
Telecommunication Services	0.7
Utilities	0.6
Money Market Funds Plus Other Assets Less Liabilities	2.0

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Comstock Fund

Statement of Assets and Liabilities

June 30, 2017

(Unaudited)

Statement of Operations

For the six months ended June 30, 2017

(Unaudited)

Assets:
Investments, at value (Cost $1,514,390,514)	$	1,790,782,053
Investments in affiliated money market funds, at value and cost		37,402,094
Total investments, at value (Cost $1,551,792,608)		1,828,184,147
Cash		853,367
Foreign currencies, at value (Cost $1,221)		176
Receivable for:
Fund shares sold		6,283,037
Dividends		2,234,252
Investment for trustee deferred compensation and retirement plans		199,043
Total assets		1,837,754,022
Liabilities:
Payable for:
Investments purchased		4,145,955
Fund shares reacquired		640,600
Accrued fees to affiliates		1,642,095
Accrued trustees’ and officers’ fees and benefits		9,883
Accrued other operating expenses		83,590
Trustee deferred compensation and retirement plans		226,119
Unrealized depreciation on forward foreign currency contracts outstanding		4,427,828
Total liabilities		11,176,070
Net assets applicable to shares outstanding	$	1,826,577,952
Net assets consist of:
Shares of beneficial interest	$	1,387,662,074
Undistributed net investment income		49,315,880
Undistributed net realized gain		117,625,992
Net unrealized appreciation		271,974,006
	$	1,826,577,952
Net Assets:
Series I	$	250,499,871
Series II	$	1,576,078,081
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		12,960,887
Series II		81,957,802
Series I:
Net asset value per share	$	19.33
Series II:
Net asset value per share	$	19.23

Investment income:
Dividends (net of foreign withholding taxes of $593,797)	$	21,761,472
Dividends from affiliated money market funds		150,906
Total investment income		21,912,378
Expenses:
Advisory fees		5,264,307
Administrative services fees		1,571,558
Custodian fees		7,993
Distribution fees — Series II		2,023,906
Transfer agent fees		5,030
Trustees’ and officers’ fees and benefits		23,463
Reports to shareholders		171,295
Professional services fees		6,142
Other		3,580
Total expenses		9,077,274
Less: Fees waived		(26,791	)
Net expenses		9,050,483
Net investment income		12,861,895
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		44,584,650
Foreign currencies		33,636
Forward foreign currency contracts		(2,152,167	)
		42,466,119
Change in net unrealized appreciation (depreciation) of:
Investment securities		12,569,290
Foreign currencies		16,070
Forward foreign currency contracts		(7,415,186	)
		5,170,174
Net realized and unrealized gain		47,636,293
Net increase in net assets resulting from operations	$	60,498,188

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Comstock Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2017 and the year ended December 31, 2016

(Unaudited)

	June 30, 2017			December 31, 2016
Operations:
Net investment income	$	12,861,895		$	36,500,553
Net realized gain		42,466,119			78,523,600
Change in net unrealized appreciation		5,170,174			178,667,857
Net increase in net assets resulting from operations		60,498,188			293,692,010
Distributions to shareholders from net investment income:
Series I		—			(3,755,275	)
Series ll		—			(21,043,734	)
Total distributions from net investment income		—			(24,799,009	)
Distributions to shareholders from net realized gains:
Series l		—			(18,737,448	)
Series ll		—			(126,507,707	)
Total distributions from net realized gains		—			(145,245,155	)
Share transactions-net:
Series l		(14,115,839	)		(92,188,106	)
Series ll		(155,652,735	)		22,299,020
Net increase (decrease) in net assets resulting from share transactions		(169,768,574	)		(69,889,086	)
Net increase (decrease) in net assets		(109,270,386	)		53,758,760
Net assets:
Beginning of period		1,935,848,338			1,882,089,578
End of period (includes undistributed net investment income of $49,315,880 and $36,453,985, respectively)	$	1,826,577,952		$	1,935,848,338

Notes to Financial Statements

June 30, 2017

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Comstock Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance 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 consisting of twenty-four separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

The Fund’s investment objective is to seek capital growth and income through investments in equity securities, including common stocks, preferred stocks and securities convertible into common and preferred stocks.

The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services — Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Invesco V.I. Comstock Fund

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

Invesco V.I. Comstock Fund

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 and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. 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 date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

J. Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays 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		0.60%
Over $500 million		0.55%

Invesco V.I. Comstock Fund

For the six months ended June 30, 2017, the effective advisory fees incurred by the Fund was 0.56%.

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 PowerShares Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least April 30, 2018, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Series I shares to 0.78% and Series II shares to 1.03% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause total annual 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 April 30, 2018. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2019, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended June 30, 2017, the Adviser waived advisory fees of $26,791.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2017, Invesco was paid $198,362 for accounting and fund administrative services and was reimbursed $1,373,196 for fees paid to insurance companies.

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. For the six months ended June 30, 2017, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2017, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2017, the Fund incurred $29,099 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

Invesco V.I. Comstock Fund

The following is a summary of the tiered valuation input levels, as of June 30, 2017. 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
Common Stocks & Other Equity Interests	$	1,773,733,919	$	17,048,134		$	—	$	1,790,782,053
Money Market Securities		37,402,094		—			—		37,402,094
		1,811,136,013		17,048,134			—		1,828,184,147
Forward Foreign Currency Contracts*		—		(4,427,828	)		—		(4,427,828	)
Total Investments	$	1,811,136,013	$	12,620,306		$	—	$	1,823,756,319

* Unrealized appreciation (depreciation).

NOTE 4—Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a Fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Open Forward Foreign Currency Contracts
Settlement Date	Counterparty	Contract to						Notional Value		Unrealized Appreciation (Depreciation)
		Deliver			Receive
08/04/17	Barclays Bank PLC		CAD	15,504,276		USD	11,693,107	$	11,963,530	$	(270,423	)
08/04/17	Barclays Bank PLC		CHF	3,435,358		USD	3,533,355		3,590,876		(57,521	)
08/04/17	Barclays Bank PLC		EUR	16,816,490		USD	18,777,797		19,244,121		(466,324	)
08/04/17	Barclays Bank PLC		GBP	7,481,124		USD	9,454,345		9,755,253		(300,908	)
08/04/17	CIBC World Markets Corp.		CAD	15,504,114		USD	11,688,824		11,963,405		(274,581	)
08/04/17	CIBC World Markets Corp.		CHF	3,435,358		USD	3,533,991		3,590,876		(56,885	)
08/04/17	CIBC World Markets Corp.		EUR	16,816,490		USD	18,777,292		19,244,121		(466,829	)
08/04/17	CIBC World Markets Corp.		GBP	7,479,826		USD	9,464,037		9,753,561		(289,524	)
08/04/17	Goldman Sachs International		CAD	15,504,276		USD	11,688,197		11,963,530		(275,333	)
08/04/17	Goldman Sachs International		CHF	3,435,358		USD	3,535,410		3,590,876		(55,466	)
08/04/17	Goldman Sachs International		EUR	19,149,172		USD	21,375,171		21,913,549		(538,378	)
08/04/17	Goldman Sachs International		GBP	7,479,826		USD	9,464,523		9,753,561		(289,038	)
08/04/17	RBC Capital Markets Corp.		CAD	15,504,276		USD	11,693,045		11,963,530		(270,485	)
08/04/17	RBC Capital Markets Corp.		CHF	3,437,843		USD	3,536,981		3,593,474		(56,493	)
08/04/17	RBC Capital Markets Corp.		EUR	18,444,512		USD	20,639,517		21,107,165		(467,648	)
08/04/17	RBC Capital Markets Corp.		GBP	7,479,826		USD	9,461,569		9,753,561		(291,992	)
Total Open Forward Foreign Currency Contracts — Currency Risk										$	(4,427,828	)

Currency Abbreviations:

CAD	– Canadian Dollar
CHF	– Swiss Franc
EUR	– Euro
GBP	– British Pound Sterling
USD	– U.S. Dollar

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 June 30, 2017:

	Value
Derivative Liabilities	Currency Risk
Unrealized depreciation on forward foreign currency contracts outstanding	$	(4,427,828	)
Derivatives not subject to master netting agreements		—
Total derivative liabilities subject to master netting agreements	$	(4,427,828	)

Invesco V.I. Comstock Fund

Offsetting Assets and Liabilities

The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of June 30, 2017.

	Financial Derivative Assets		Financial Derivative Liabilities			Net Value of Derivatives			Collateral (Received)/Pledged				Net Amount
Counterparty	Forward Foreign Currency Contracts		Forward Foreign Currency Contracts						Non-Cash		Cash
Barclays Bank PLC	$	—	$	(1,095,176	)	$	(1,095,176	)	$	—	$	—	$	(1,095,176	)
CIBC World Markets Corp.		—		(1,087,819	)		(1,087,819	)		—		—		(1,087,819	)
Goldman Sachs International		—		(1,158,215	)		(1,158,215	)		—		—		(1,158,215	)
RBC Capital Markets Corp.		—		(1,086,618	)		(1,086,618	)		—		—		(1,086,618	)
Total	$	—	$	(4,427,828	)	$	(4,427,828	)	$	—	$	—	$	(4,427,828	)

Effect of Derivative Investments for the six months ended June 30, 2017

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	$	(2,152,167	)
Change in Net Unrealized Appreciation (Depreciation):
Forward foreign currency contracts		(7,415,186	)
Total	$	(9,567,353	)

The table below summarizes the average notional value of forward foreign currency contracts outstanding during the period.

	Forward Foreign Currency Contracts
Average notional value	$	171,299,520

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 State Street Bank and Trust Company, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date

Invesco V.I. Comstock Fund

will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of December 31, 2016.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2017 was $139,037,164 and $339,993,571, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	391,228,782
Aggregate unrealized (depreciation) of investment securities		(115,424,367	)
Net unrealized appreciation of investment securities	$	275,804,415

Cost of investments for tax purposes is $1,552,379,732.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended June 30, 2017(a)						Year ended December 31, 2016
	Shares			Amount			Shares			Amount
Sold:
Series I		348,662		$	6,676,823			1,383,440		$	23,426,576
Series II		2,157,232			41,006,960			9,559,621			166,299,943
Issued as reinvestment of dividends:
Series I		—			—			1,332,508			22,492,723
Series II		—			—			8,772,380			147,551,441
Reacquired:
Series I		(1,092,084	)		(20,792,662	)		(7,929,844	)		(138,107,405	)
Series II		(10,434,974	)		(196,659,695	)		(16,614,390	)		(291,552,364	)
Net increase (decrease) in share activity		(9,021,164	)	$	(169,768,574	)		(3,496,285	)	$	(69,889,086	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 53% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. 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, third party record keeping and account servicing and administrative services. 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.

Invesco V.I. Comstock Fund

NOTE 10—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)
Series I
Six months ended 06/30/17	$	18.69	$	0.15	$	0.49		$	0.64		$	—		$	—		$	—		$	19.33		3.43	%	$	250,500		0.75	%(d)		0.75	%(d)		1.59	%(d)		8	%
Year ended 12/31/16		17.57		0.38		2.47			2.85			(0.29	)		(1.44	)		(1.73	)		18.69		17.30			256,080		0.77			0.78			2.20			21
Year ended 12/31/15		19.16		0.28		(1.45	)		(1.17	)		(0.37	)		(0.05	)		(0.42	)		17.57		(5.98	)		332,411		0.78			0.83			1.52			16
Year ended 12/31/14		17.75		0.32		1.34			1.66			(0.25	)		—			(0.25	)		19.16		9.39			338,159		0.78			0.83			1.73			19
Year ended 12/31/13		13.27		0.22		4.53			4.75			(0.27	)		—			(0.27	)		17.75		35.97			311,837		0.76			0.84			1.36			11
Year ended 12/31/12		11.32		0.23		1.94			2.17			(0.22	)		—			(0.22	)		13.27		19.23			250,995		0.67			0.85			1.81			14
Series II
Six months ended 06/30/17		18.62		0.13		0.48			0.61			—			—			—			19.23		3.28			1,576,078		1.00	(d)		1.00	(d)		1.34	(d)		8
Year ended 12/31/16		17.51		0.34		2.45			2.79			(0.24	)		(1.44	)		(1.68	)		18.62		16.99			1,679,769		1.02			1.03			1.95			21
Year ended 12/31/15		19.08		0.24		(1.44	)		(1.20	)		(0.32	)		(0.05	)		(0.37	)		17.51		(6.19	)		1,549,679		1.03			1.08			1.27			16
Year ended 12/31/14		17.68		0.27		1.33			1.60			(0.20	)		—			(0.20	)		19.08		9.10			1,840,794		1.03			1.08			1.48			19
Year ended 12/31/13		13.22		0.17		4.52			4.69			(0.23	)		—			(0.23	)		17.68		35.65			1,916,026		1.01			1.09			1.11			11
Year ended 12/31/12		11.28		0.19		1.94			2.13			(0.19	)		—			(0.19	)		13.22		18.92			1,640,627		0.92			1.10			1.56			14

^(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. Total returns are not annualized for periods less than one year, if applicable, and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.

^(c)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(d)  Ratios are annualized and based on average daily net assets (000’s omitted) of $252,161 and $1,632,543 for Series I and Series II shares, respectively.

Invesco V.I. Comstock Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2017 through June 30, 2017.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

Class	Beginning Account Value (01/01/17)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/17)1		Expenses Paid During Period2		Ending Account Value (06/30/17)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,034.30	$	3.78	$	1,021.08	$	3.76		0.75	%
Series II		1,000.00		1,032.80		5.04		1,019.84		5.01		1.00

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2017 through June 30, 2017, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

²  Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Comstock Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco V.I. Comstock Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the 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 PowerShares 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, 2017.

In evaluating the fairness and reasonableness of compensation under the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board determined that continuation of the Fund’s investment advisory agreement and the sub-advisory contracts is in the best interest of the Fund and its shareholders and that the compensation payable to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Board had the benefit of reports from the Sub-Committees and Investments Committee throughout the year in considering approval of the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Board receives comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The Board also receives an independent written

evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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 addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The Trustees recognized that the advisory fee rates for the Invesco Funds are, in most cases, the result of years of review and negotiation. The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these arrangements throughout the year and in prior years. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them 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 discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement 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. This information is current as of June 13, 2017, and does not reflect consideration of factors that became known to the Board after that date.

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 advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers. The Board’s review included consideration of Invesco Advisers’ investment process oversight, credit analysis and investment risk management. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, trading operations, internal audit, valuation and legal and compliance.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the greater uncertainty that may be associated with entering into a new relationship. 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 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 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 in which the Fund may invest, make recommendations regarding securities and assist with security trades. 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 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 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, 2016 to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds Large-Cap Value Funds Index. The Board noted that performance of Series I shares of the Fund was in the second quintile of its performance universe for the one and five year periods and the fourth quintile for the three year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series I 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 Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees

The Board compared the Fund’s contractual management fee rate to the contractual

Invesco V.I. Comstock Fund

management fee rates of funds in the Fund’s Broadridge expense group at a common asset level. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing 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 noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least June 30, 2018 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 compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/waivers) to the effective advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, based on asset balances as of December 31, 2016. The Board noted that the Fund’s rate was above the rate of one such mutual fund and below the rate of an offshore fund advised by Invesco Advisers using a similar investment process. The Board also noted how the Fund’s rate compared to the effective sub-adviser fee rate of seven mutual funds sub-advised by Invesco Advisers.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other client accounts with investment strategies comparable to those of the Fund. The Board noted that Invesco Advisers or the Affiliated Sub-Advisers may charge lower fees to large institutional clients. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to certain other types of client accounts. These additional services include provision of administrative services, officers and office space, oversight of service providers, preparation of annual registration statement updates and financial information and regulatory compliance under the Investment Company Act of 1940, as amended.

Invesco Advisers also reviewed generally the higher frequency of shareholder purchases and redemptions in the Invesco Funds relative to the flow of assets for other client accounts. Invesco

Advisers advised the Board that advance notice of redemptions is often provided to Invesco Advisers by institutional clients. The Board did note that sub-advisory fee rates charged by the Affiliated Sub-Advisers to manage the Invesco Funds and to manage other client accounts tended to be more comparable, reflecting a similar scope of services.

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 also noted that the sub-advisory fees are not paid directly by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds advised by Invesco Advisers.

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. 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 and the Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund to be excessive given the nature, quality and extent of the services provided. The Board received and accepted information from Invesco Advisers demonstrating that Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board;

and 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 periodic reports from the Chief Compliance Officer of the Invesco Funds demonstrating 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 money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds with respect to certain investments in the affiliated money market funds. The waiver is in 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that the Fund may use an affiliated broker to execute certain trades for the Fund to, among other things, control information leakage, and was advised that such trades would be executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Comstock Fund

Proxy Results

A Special Joint Meeting (“Meeting”) of Shareholders of Invesco V.I. Comstock Fund, an investment portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), a Delaware statutory trust (“Trust”), was held on March 9, 2017. The Meeting was held for the following purposes:

(1) Elect 15 trustees to the Board, each of whom will serve until his or her successor is elected and qualified.

(2) Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.

(3) Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities.

(4)(a) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC.

(4)(b) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited.

The results of the voting on the above matters were as follows:

	Matters					Votes For		Votes Withheld
(1)*	David C. Arch						1,256,086,249		71,094,301
	James T. Bunch						1,254,410,156		72,770,397
	Bruce L. Crockett						1,258,363,948		68,816,603
	Jack M. Fields						1,255,101,592		72,078,961
	Martin L. Flanagan						1,257,885,397		69,295,160
	Cynthia Hostetler						1,261,335,247		65,845,303
	Dr. Eli Jones						1,257,497,296		69,683,257
	Dr. Prema Mathai-Davis						1,254,728,756		72,451,795
	Teresa M. Ressel						1,261,829,473		65,351,074
	Dr. Larry Soll						1,254,261,019		72,919,533
	Ann Barnett Stern						1,260,861,373		66,319,176
	Raymond Stickel, Jr.						1,254,379,471		72,801,083
	Philip A. Taylor						1,256,589,912		70,590,639
	Robert C. Troccoli						1,260,867,549		66,313,003
	Christopher L. Wilson						1,260,186,985		66,993,567
		Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(2)*	Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.		1,054,920,918		171,591,974		100,667,642		18
	Matters	Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(3)	Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities		85,993,885		9,431,945		8,863,256		1
(4)(a)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC		90,343,080		5,331,419		8,614,588		0
(4)(b)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited		88,656,942		6,717,199		8,914,944		2

* Each of proposal 1 and 2 required approval by a combined vote of all of the portfolios of AIM Variable Insurance Funds (Invesco Variable Insurance Funds).

Invesco V.I. Comstock Fund

	Semiannual Report to Shareholders	June 30, 2017
	Invesco V.I. Core Equity Fund
	The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.     A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.     Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/ proxysearch. The information is also available on the SEC website, sec.gov.     Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
	This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.
	NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc.                                               VICEQ-SAR-1         07182017    1221

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/16 to 6/30/17, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	7.78%
Series II Shares	7.62
S&P 500 Index▼ (Broad Market Index)	9.34
Russell 1000 Index▼ (Style-Specific Index)	9.27
Lipper VUF Large-Cap Core Funds Index⬛ (Peer Group Index)	9.87
Source(s):▼ FactSet Research Systems Inc.;⬛Lipper Inc.

The S&P 500^® Index is an unmanaged index considered representative of the US stock market.

The Russell 1000^® Index is an unmanaged index considered representative of large-cap stocks. The Russell 1000 Index is a trademark/service mark of the Frank Russell Co. Russell^® is a trademark of the Frank Russell Co.

The Lipper VUF Large-Cap Core Funds Index is an unmanaged index considered representative of large-cap core variable insurance underlying funds tracked by Lipper.

The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

 Average Annual Total Returns

 As of 6/30/17

 Series I Shares

Inception (5/2/94)	8.10	%
10 Years	5.66
5 Years	11.05
1 Year	13.77
Series II Shares
Inception (10/24/01)	6.61	%
10 Years	5.39
5 Years	10.77
1 Year	13.47

The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

    The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.82% and 1.07%, respectively.¹ The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.83% and 1.08%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

    Invesco V.I. Core Equity Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

    The most recent month-end performance at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

1 Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2019. See current prospectus for more information.

Invesco V.I. Core Equity Fund

Schedule of Investments^(a)

June 30, 2017

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–89.58%
Advertising–1.97%
Publicis Groupe S.A. (France)		327,580	$	24,541,834
Aerospace & Defense–2.62%
General Dynamics Corp.		84,413		16,722,216
United Technologies Corp.		130,157		15,893,471
				32,615,687
Air Freight & Logistics–1.03%
United Parcel Service, Inc.–Class B		115,608		12,785,089
Apparel, Accessories & Luxury Goods–3.14%
Hanesbrands, Inc.		745,549		17,266,915
LVMH Moet Hennessy Louis Vuitton S.E. (France)		87,325		21,906,523
				39,173,438
Asset Management & Custody Banks–1.07%
Northern Trust Corp.		137,798		13,395,344
Auto Parts & Equipment–2.31%
Delphi Automotive PLC		328,442		28,787,941
Biotechnology–5.01%
Biogen Inc.(b)		65,159		17,681,546
Celgene Corp.(b)		202,851		26,344,259
Shire PLC–ADR		111,687		18,458,511
				62,484,316
Building Products–1.57%
Johnson Controls International PLC		451,103		19,559,826
Cable & Satellite–2.59%
Comcast Corp.–Class A		830,414		32,319,713
Communications Equipment–0.08%
F5 Networks, Inc.(b)		8,158		1,036,556
Consumer Finance–2.11%
American Express Co.		311,605		26,249,605
Data Processing & Outsourced Services–1.01%
Mastercard Inc.–Class A		103,525		12,573,111
Distillers & Vintners–2.08%
Diageo PLC (United Kingdom)		876,005		25,882,512
Diversified Banks–2.66%
Svenska Handelsbanken AB– Class A (Sweden)		1,083,043		15,549,433
U.S. Bancorp		339,779		17,641,326
				33,190,759
Drug Retail–1.67%
Walgreens Boots Alliance, Inc.		266,207		20,846,670

	Shares		Value
Electric Utilities–1.03%
Duke Energy Corp.		153,434	$	12,825,548
Electronic Manufacturing Services–1.33%
TE Connectivity Ltd.		210,172		16,536,333
Health Care Facilities–1.63%
HCA Healthcare, Inc.(b)		232,957		20,313,850
Health Care Supplies–1.03%
DENTSPLY SIRONA Inc.		198,220		12,852,585
Home Improvement Retail–1.44%
Home Depot, Inc. (The)		116,693		17,900,706
Household Appliances–1.07%
Whirlpool Corp.		69,531		13,323,530
Housewares & Specialties–2.00%
Newell Brands, Inc.		464,687		24,916,517
Industrial Conglomerates–0.96%
General Electric Co.		440,892		11,908,493
Industrial Gases–1.10%
Air Liquide S.A. (France)		110,803		13,769,786
Industrial Machinery–3.06%
Illinois Tool Works Inc.		92,249		13,214,669
Stanley Black & Decker Inc.		176,879		24,892,182
				38,106,851
Insurance Brokers–1.59%
Marsh & McLennan Cos., Inc.		254,504		19,841,132
Integrated Oil & Gas–1.31%
Suncor Energy, Inc. (Canada)		560,524		16,367,301
Internet & Direct Marketing Retail–1.14%
Priceline Group Inc. (The)(b)		7,621		14,255,233
Internet Software & Services–4.24%
Alphabet Inc.–Class C(b)		37,523		34,098,276
eBay Inc.(b)		536,396		18,730,948
				52,829,224
IT Consulting & Other Services–3.88%
Cognizant Technology Solutions Corp.–Class A		450,556		29,916,918
International Business Machines Corp.		120,207		18,491,443
				48,408,361
Life & Health Insurance–2.51%
AIA Group Ltd. (Hong Kong)		4,279,400		31,269,903
Life Sciences Tools & Services–1.75%
Thermo Fisher Scientific, Inc.		124,769		21,768,447

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Core Equity Fund

	Shares		Value
Movies & Entertainment–1.55%
Time Warner Inc.		192,540	$	19,332,941
Multi-Sector Holdings–1.76%
Berkshire Hathaway Inc.–Class A(b)		86		21,904,200
Oil & Gas Equipment & Services–3.15%
Halliburton Co.		349,347		14,920,610
Schlumberger Ltd.		115,295		7,591,023
Tenaris S.A.–ADR (Luxembourg)		536,075		16,693,376
				39,205,009
Oil & Gas Exploration & Production–2.42%
Concho Resources Inc.(b)		142,421		17,308,424
Range Resources Corp.		554,622		12,850,592
				30,159,016
Pharmaceuticals–3.68%
Allergan PLC		113,648		27,626,692
Merck & Co., Inc.		284,226		18,216,045
				45,842,737
Property & Casualty Insurance–2.72%
Progressive Corp. (The)		769,202		33,914,116
Regional Banks–1.35%
First Republic Bank		168,732		16,890,073
Retail REITs–0.93%
GGP Inc.		490,468		11,555,426

	Shares		Value
Semiconductors–4.56%
Analog Devices, Inc.		225,796	$	17,566,929
QUALCOMM Inc.		272,493		15,047,064
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)		3,559,823		24,284,835
				56,898,828
Systems Software–4.23%
Microsoft Corp.		289,636		19,964,610
Oracle Corp.		653,501		32,766,540
				52,731,150
Wireless Telecommunication Services–1.24%
Vodafone Group PLC–ADR (United Kingdom)		540,167		15,518,998
Total Common Stocks & Other Equity Interests (Cost $865,041,562)				1,116,588,695
Money Market Funds–8.84%
Government & Agency Portfolio– Institutional Class, 0.89%(c)		66,127,167		66,127,167
Treasury Portfolio–Institutional Class, 0.85%(c)		44,084,778		44,084,778
Total Money Market Funds (Cost $110,211,945)				110,211,945
TOTAL INVESTMENTS–98.42% (Cost $975,253,507)				1,226,800,640
OTHER ASSETS LESS LIABILITIES–1.58%				19,655,261
NET ASSETS–100.00%			$	1,246,455,901

Investment Abbreviations:

ADR	– American Depositary Receipt
REIT	– Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of June 30, 2017.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2017

Information Technology	19.3	%
Consumer Discretionary	17.2
Financials	15.8
Health Care	13.1
Industrials	9.2
Energy	6.9
Consumer Staples	3.8
Telecommunication Services	1.3
Materials	1.1
Utilities	1.0
Real Estate	0.9
Money Market Funds Plus Other Assets Less Liabilities	10.4

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Core Equity Fund

Statement of Assets and Liabilities

June 30, 2017

(Unaudited)

Statement of Operations

For the six months ended June 30, 2017

(Unaudited)

Assets:
Investments, at value (Cost $865,041,562)	$	1,116,588,695
Investments in affiliated money market funds, at value and cost		110,211,945
Total investments, at value (Cost $975,253,507)		1,226,800,640
Foreign currencies, at value (Cost $18,329,706)		18,749,171
Receivable for:
Fund shares sold		30,397
Dividends		2,665,994
Investment for trustee deferred compensation and retirement plans		443,191
Other assets		191
Total assets		1,248,689,584
Liabilities:
Payable for:
Fund shares reacquired		1,037,086
Accrued fees to affiliates		559,439
Accrued trustees’ and officers’ fees and benefits		7,047
Accrued other operating expenses		135,985
Trustee deferred compensation and retirement plans		494,126
Total liabilities		2,233,683
Net assets applicable to shares outstanding	$	1,246,455,901
Net assets consist of:
Shares of beneficial interest	$	857,451,927
Undistributed net investment income		18,275,735
Undistributed net realized gain		118,763,942
Net unrealized appreciation		251,964,297
	$	1,246,455,901
Net Assets:
Series I	$	1,061,467,423
Series II	$	184,988,478
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		28,482,207
Series II		5,039,510
Series I:
Net asset value per share	$	37.27
Series II:
Net asset value per share	$	36.71

Investment income:
Dividends (net of foreign withholding taxes of $664,707)	$	11,204,213
Dividends from affiliated money market funds		424,847
Total investment income		11,629,060
Expenses:
Advisory fees		3,748,592
Administrative services fees		994,503
Custodian fees		65,351
Distribution fees — Series II		228,683
Transfer agent fees		45,218
Trustees’ and officers’ fees and benefits		18,218
Reports to shareholders		117,775
Professional services fees		32,043
Other		12,638
Total expenses		5,263,021
Less: Fees waived		(84,165	)
Net expenses		5,178,856
Net investment income		6,450,204
Realized and unrealized gain from:
Net realized gain from:
Investment securities		58,354,720
Foreign currencies		161,869
		58,516,589
Change in net unrealized appreciation of:
Investment securities		26,937,316
Foreign currencies		478,036
		27,415,352
Net realized and unrealized gain		85,931,941
Net increase in net assets resulting from operations	$	92,382,145

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Core Equity Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2017 and the year ended December 31, 2016

(Unaudited)

	June 30, 2017			December 31, 2016
Operations:
Net investment income	$	6,450,204		$	12,378,633
Net realized gain		58,516,589			63,806,796
Change in net unrealized appreciation		27,415,352			35,541,249
Net increase in net assets resulting from operations		92,382,145			111,726,678
Distributions to shareholders from net investment income:
Series I		—			(7,743,417	)
Series ll		—			(879,585	)
Total distributions from net investment income		—			(8,623,002	)
Distributions to shareholders from net realized gains:
Series l		—			(69,406,591	)
Series ll		—			(12,096,765	)
Total distributions from net realized gains		—			(81,503,356	)
Share transactions–net:
Series l		(51,094,528	)		94,841,524
Series ll		(8,127,642	)		(2,788,171	)
Net increase (decrease) in net assets resulting from share transactions		(59,222,170	)		92,053,353
Net increase in net assets		33,159,975			113,653,673
Net assets:
Beginning of period		1,213,295,926			1,099,642,253
End of period (includes undistributed net investment income of $18,275,735 and $11,825,531, respectively)	$	1,246,455,901		$	1,213,295,926

Notes to Financial Statements

June 30, 2017

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Core Equity Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance 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 consisting of twenty-four separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

The Fund’s investment objective is long-term growth of capital.

The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services — Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Invesco V.I. Core Equity Fund

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

Invesco V.I. Core Equity Fund

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 and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. 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 date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

J. Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets	Rate
First $250 million		0.65%
Over $250 million		0.60%

For the six months ended June 30, 2017, the effective advisory fees incurred by the Fund was 0.61%.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and

Invesco V.I. Core Equity Fund

Invesco Canada Ltd. and separate sub-advisory agreements with Invesco PowerShares Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2018, 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 Series I shares to 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2018. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2019, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended June 30, 2017, the Adviser waived advisory fees of $84,165.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2017, Invesco was paid $143,799 for accounting and fund administrative services and was reimbursed $850,704 for fees paid to insurance companies.

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. For the six months ended June 30, 2017, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2017, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2017, the Fund incurred $429 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of June 30, 2017. 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.

Invesco V.I. Core Equity Fund

During the six months ended June 30, 2017, there were transfers from Level 1 to Level 2 of $40,091,268 and from Level 2 to Level 1 of $57,152,415, due to foreign fair value adjustments.

	Level 1		Level 2		Level 3		Total
Common Stocks & Other Equity Interests	$	1,016,536,284	$	100,052,411	$	—	$	1,116,588,695
Money Market Funds		110,211,945		—		—		110,211,945
Total Investments	$	1,126,748,229	$	100,052,411	$	—	$	1,226,800,640

NOTE 4—Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 5—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 6—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of December 31, 2016.

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2017 was $179,728,097 and $261,392,479, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	275,919,458
Aggregate unrealized (depreciation) of investment securities		(27,710,817	)
Net unrealized appreciation of investment securities	$	248,208,641

Cost of investments for tax purposes is $978,591,999.

Invesco V.I. Core Equity Fund

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended June 30, 2017(a)						Year ended December 31, 2016
	Shares			Amount			Shares			Amount
Sold:
Series I		731,315		$	26,200,563			4,633,218		$	163,930,451
Series II		82,599			2,907,155			229,629			7,596,362
Issued as reinvestment of dividends:
Series I		—			—			2,245,997			77,150,008
Series II		—			—			382,783			12,976,350
Reacquired:
Series I		(2,139,254	)		(77,295,091	)		(4,224,160	)		(146,238,935	)
Series II		(308,944	)		(11,034,797	)		(680,023	)		(23,360,883	)
Net increase (decrease) in share activity		(1,634,284	)	$	(59,222,170	)		2,587,444		$	92,053,353

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 57% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. 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, third party record keeping and account servicing and administrative services. 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 9—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)
Series I
Six months ended 06/30/17	$	34.58	$	0.19	$	2.50		$	2.69		$	—		$	—		$	—		$	37.27		7.78	%	$	1,061,467		0.81	%(d)		0.82	%(d)		1.08	%(d)		17	%
Year ended 12/31/16		33.84		0.39		3.07			3.46			(0.28	)		(2.44	)		(2.72	)		34.58		10.26			1,033,700		0.84			0.85			1.11			38
Year ended 12/31/15		41.00		0.32		(2.79	)		(2.47	)		(0.46	)		(4.23	)		(4.69	)		33.84		(5.75	)		921,516		0.89			0.90			0.81			45
Year ended 12/31/14		38.43		0.40		2.72			3.12			(0.35	)		(0.20	)		(0.55	)		41.00		8.12			1,096,219		0.88			0.90			1.01			35
Year ended 12/31/13		30.14		0.31		8.47			8.78			(0.49	)		—			(0.49	)		38.43		29.25			1,167,023		0.88			0.90			0.89			25
Year ended 12/31/12		26.72		0.37		3.34			3.71			(0.29	)		—			(0.29	)		30.14		13.88			1,033,655		0.88			0.90			1.29			44
Series II
Six months ended 06/30/17		34.11		0.15		2.45			2.60			—			—			—			36.71		7.62			184,988		1.06	(d)		1.07	(d)		0.83	(d)		17
Year ended 12/31/16		33.40		0.30		3.03			3.33			(0.18	)		(2.44	)		(2.62	)		34.11		10.02			179,596		1.09			1.10			0.86			38
Year ended 12/31/15		40.53		0.22		(2.75	)		(2.53	)		(0.37	)		(4.23	)		(4.60	)		33.40		(5.98	)		178,126		1.14			1.15			0.56			45
Year ended 12/31/14		38.03		0.30		2.67			2.97			(0.27	)		(0.20	)		(0.47	)		40.53		7.82			185,406		1.13			1.15			0.76			35
Year ended 12/31/13		29.86		0.22		8.39			8.61			(0.44	)		—			(0.44	)		38.03		28.94			158,700		1.13			1.15			0.64			25
Year ended 12/31/12		26.51		0.30		3.31			3.61			(0.26	)		—			(0.26	)		29.86		13.61			109,213		1.13			1.15			1.04			44

^(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. Total returns are not annualized for periods less than one year, if applicable, and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.

^(c)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(d)  Ratios are annualized and based on average daily net assets (000’s omitted) of $1,054,590 and $184,462 for Series I and Series II shares, respectively.

Invesco V.I. Core Equity Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2017 through June 30, 2017.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

Class	Beginning Account Value (01/01/17)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/17)1		Expenses Paid During Period2		Ending Account Value (06/30/17)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,077.80	$	4.17	$	1,020.78	$	4.06		0.81	%
Series II		1,000.00		1,076.20		5.46		1,019.54		5.31		1.06

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2017 through June 30, 2017, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

²  Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Core Equity Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco V.I. Core Equity Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the 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 PowerShares 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, 2017.

In evaluating the fairness and reasonableness of compensation under the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board determined that continuation of the Fund’s investment advisory agreement and the sub-advisory contracts is in the best interest of the Fund and its shareholders and that the compensation payable to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Board had the benefit of reports from the Sub-Committees and Investments Committee throughout the year in considering approval of the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Board receives comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data.

The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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 addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The Trustees recognized that the advisory fee rates for the Invesco Funds are, in most cases, the result of years of review and negotiation. The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these arrangements throughout the year and in prior years. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them 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 discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement 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. This information is current as of June 13, 2017, and does not reflect consideration of factors that became known to the Board after that date.

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 advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers. The Board’s review included consideration of Invesco Advisers’ investment process oversight, credit analysis and investment risk management. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, trading operations, internal audit, valuation and legal and compliance.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the greater uncertainty that may be associated with entering into a new relationship. 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 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 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 in which the Fund may invest, make recommendations regarding securities and assist with security trades. 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 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 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, 2016 to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds Large-Cap Core Funds Index. The Board noted that performance of Series I 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 Series I shares of the Fund was below the performance of the Index for the one, three and five year periods. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees

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 at a common asset

Invesco V.I. Core Equity Fund

level. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing 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 compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/waivers) to the effective advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, based on asset balances as of December 31, 2016. The Board noted that the Fund’s rate was the below the rate of one mutual fund advised by Invesco Advisers.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other client accounts with investment strategies comparable to those of the Fund. The Board noted that Invesco Advisers or the Affiliated Sub-Advisers may charge lower fees to large institutional clients. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to certain other types of client accounts. These additional services include provision of administrative services, officers and office space, oversight of service providers, preparation of annual registration statement updates and financial information and regulatory compliance under the Investment Company Act of 1940, as amended.

Invesco Advisers also reviewed generally the higher frequency of shareholder purchases and redemptions in the Invesco Funds relative to the flow of assets for other client accounts. Invesco Advisers advised the Board that advance notice of redemptions is often provided to Invesco Advisers by institutional clients. The Board did note that sub-advisory fee rates charged by the Affiliated Sub-Advisers to manage the Invesco Funds and to manage other client accounts tended to be more comparable, reflecting a similar scope of services.

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 also noted

that the sub-advisory fees are not paid directly by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds advised by Invesco Advisers.

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. 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 and the Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund to be excessive given the nature, quality and extent of the services provided. The Board received and accepted information from Invesco Advisers demonstrating that Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; and 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 also noted how the Fund’s rate compared to the effective sub-adviser fee rate of one fund sub-advised by Invesco Advisers. The Board also considered that it receives periodic reports from the Chief Compliance Officer of the Invesco Funds demonstrating 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 money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds with respect to certain investments in the affiliated money market funds. The waiver is in 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that the Fund may use an affiliated broker to execute certain trades for the Fund to, among other things, control information leakage, and was advised that such trades would be executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Core Equity Fund

Proxy Results

A Special Joint Meeting (“Meeting”) of Shareholders of Invesco V.I. Core Equity Fund, an investment portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), a Delaware statutory trust (“Trust”), was held on March 9, 2017. The Meeting was held for the following purposes:

(1) Elect 15 trustees to the Board, each of whom will serve until his or her successor is elected and qualified.

(2) Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.

(3) Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities.

(4)(a) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC.

(4)(b) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited.

The results of the voting on the above matters were as follows:

	Matters					Votes For		Votes Withheld
(1)*	David C. Arch						1,256,086,249		71,094,301
	James T. Bunch						1,254,410,156		72,770,397
	Bruce L. Crockett						1,258,363,948		68,816,603
	Jack M. Fields						1,255,101,592		72,078,961
	Martin L. Flanagan						1,257,885,397		69,295,160
	Cynthia Hostetler						1,261,335,247		65,845,303
	Dr. Eli Jones						1,257,497,296		69,683,257
	Dr. Prema Mathai-Davis						1,254,728,756		72,451,795
	Teresa M. Ressel						1,261,829,473		65,351,074
	Dr. Larry Soll						1,254,261,019		72,919,533
	Ann Barnett Stern						1,260,861,373		66,319,176
	Raymond Stickel, Jr.						1,254,379,471		72,801,083
	Philip A. Taylor						1,256,589,912		70,590,639
	Robert C. Troccoli						1,260,867,549		66,313,003
	Christopher L. Wilson						1,260,186,985		66,993,567
		Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(2)*	Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.		1,054,920,918		171,591,974		100,667,642		18
	Matters	Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(3)	Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities		28,060,509		3,406,515		2,702,519		0
(4)(a)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC		29,841,021		1,836,653		2,491,868		1
(4)(b)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited		29,190,552		2,415,000		2,563,991		0

* Each of proposal 1 and 2 required approval by a combined vote of all of the portfolios of AIM Variable Insurance Funds (Invesco Variable Insurance Funds).

Invesco V.I. Core Equity Fund

	Semiannual Report to Shareholders	June 30, 2017
	Invesco V.I. Core Plus Bond Fund
	The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.     A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.     Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/ proxysearch. The information is also available on the SEC website, sec.gov.     Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
	This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.
	NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc.                                               VICPB-SAR-1         07132017    1559

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/16 to 6/30/17, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	4.51%
Series II Shares	4.53
Bloomberg Barclays U.S. Aggregate Index▼ (Broad Market/Style-Specific Index)	2.27
Lipper VUF Core Plus Bond Funds Index⬛ (Peer Group Index)	3.26
Source(s): ▼FactSet Research Systems Inc.; ⬛Lipper Inc.
The Bloomberg Barclays U.S. Aggregate Index is an unmanaged index considered representative of the US investment-grade, fixed-rate bond market.     The Lipper VUF Core Plus Bond Funds Index is an unmanaged index considered representative of core plus bond variable insurance underlying funds tracked by Lipper.     The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).     A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/17
Series I Shares
Inception (5/5/93)	4.47	%
10 Years	3.93
5 Years	4.73
1 Year	4.90
Series II Shares
Inception (3/14/02)	4.08	%
10 Years	3.68
5 Years	4.48
1 Year	4.75

The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

    The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.61% and 0.86%, respectively.^1,2 The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 1.74% and 1.99%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

    Invesco V.I. Core Plus Bond Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

    The most recent month-end performance at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

1 Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least April 30, 2018. See current prospectus for more information.

2 Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2019. See current prospectus for more information.

Invesco V.I. Core Plus Bond Fund

Schedule of Investments^(a)

June 30, 2017

(Unaudited)

	Principal Amount		Value
Bonds & Notes–66.85%
Aerospace & Defense–0.08%
Bombardier Inc. (Canada), Sr. Unsec. Notes, 6.00%, 10/15/2022(b)	$	2,000	$	2,005
Moog Inc., Sr. Unsec. Gtd. Notes, 5.25%, 12/01/2022(b)		2,000		2,090
TransDigm Inc., Sr. Unsec. Gtd. Sub. Global Notes, 6.50%, 07/15/2024		2,000		2,065
6.50%, 05/15/2025		7,000		7,184
				13,344
Agricultural & Farm Machinery–0.04%
Titan International Inc., Sr. Sec. Gtd. First Lien Global Notes, 6.88%, 10/01/2020		7,000		7,280
Air Freight & Logistics–0.01%
XPO Logistics, Inc., Sr. Unsec. Gtd. Notes, 6.50%, 06/15/2022(b)		2,000		2,113
Airlines–3.11%
American Airlines Pass Through Trust, Series 2015-2, Class B, Sec. Third Lien Pass Through Ctfs., 4.40%, 03/22/2025		31,050		31,671
Series 2016-1, Class AA, Sr. Sec. First Lien Pass Through Ctfs., 3.58%, 01/15/2028		31,191		31,970
Series 2016-3, Class AA, Sr. Sec. First Lien Pass Through Ctfs., 3.00%, 04/15/2030		52,000		51,317
Series 2017-1, Class A, Sec. Second Lien Pass Through Ctfs., 4.00%, 08/15/2030		34,000		35,339
Series 2017-1, Class B, Sec. Third Lien Pass Through Ctfs., 4.95%, 08/15/2026		36,000		37,395
Series 2017-1, Class AA, Sr. Sec. First Lien Pass Through Ctfs., 3.65%, 08/15/2030		42,000		43,360
Delta Air Lines Pass Through Trust, Series 2010-2, Class A, Sr. Sec. First Lien Pass Through Ctfs., 4.95%, 11/23/2020		24,456		25,410
Delta Air Lines, Inc., Sr. Unsec. Global Notes, 2.88%, 03/13/2020		27,000		27,371
3.63%, 03/15/2022		45,000		46,322
LATAM Airlines Group S.A. Pass Through Trust (Chile), Series 2015-1, Class A, Sec. Global Pass Through Ctfs., 4.20%, 08/15/2029		108,405		107,863
United Airlines Pass Through Trust, Series 2014-2, Class B, Sec. Second Lien Pass Through Ctfs., 4.63%, 09/03/2022		42,881		44,262
US Airways Pass Through Trust, Series 2012-1, Class B, Sec. Second Lien Pass Through Ctfs., 8.00%, 04/01/2021		717		781

	Principal Amount		Value
Airlines–(continued)
WestJet Airlines Ltd. (Canada), Sr. Unsec. Gtd. Notes, 3.50%, 06/16/2021(b)	$	42,000	$	42,582
				525,643
Alternative Carriers–0.03%
Level 3 Financing, Inc., Sr. Unsec. Gtd. Global Notes, 5.38%, 05/01/2025		5,000		5,287
Aluminum–0.01%
Novelis Corp., Sr. Unsec. Gtd. Notes, 6.25%, 08/15/2024(b)		2,000		2,103
Apparel Retail–0.27%
Gap, Inc. (The), Sr. Unsec. Global Bonds, 5.95%, 04/12/2021		2,000		2,169
L Brands, Inc., Sr. Unsec. Gtd. Global Notes, 5.63%, 02/15/2022		39,000		41,925
6.88%, 11/01/2035		2,000		1,940
				46,034
Apparel, Accessories & Luxury Goods–0.12%
Hanesbrands Inc., Sr. Unsec. Gtd. Notes, 4.63%, 05/15/2024(b)		9,000		9,158
4.88%, 05/15/2026(b)		11,000		11,206
				20,364
Asset Management & Custody Banks–1.70%
Blackstone Holdings Finance Co. LLC, Sr. Unsec. Gtd. Notes, 5.00%, 06/15/2044(b)		90,000		98,814
Carlyle Holdings II Finance LLC, Sr. Unsec. Gtd. Notes, 5.63%, 03/30/2043(b)		75,000		85,393
Legg Mason, Inc., Sr. Unsec. Global Notes, 4.75%, 03/15/2026		90,000		95,384
Prime Security Services Borrower, LLC/Prime Finance, Inc., Sec. Gtd. Second Lien Notes, 9.25%, 05/15/2023(b)		6,000		6,540
				286,131
Auto Parts & Equipment–0.03%
Dana Inc., Sr. Unsec. Notes, 5.50%, 12/15/2024		5,000		5,212
Automobile Manufacturers–0.23%
General Motors Financial Co., Inc., Sr. Unsec. Gtd. Notes, 3.15%, 01/15/2020		39,000		39,641
Automotive Retail–0.14%
Advance Auto Parts, Inc., Sr. Unsec. Gtd. Notes, 5.75%, 05/01/2020		12,000		13,002
Hertz Corp. (The), Sec. Gtd. Second Lien Notes, 7.63%, 06/01/2022(b)		6,000		6,023
Sr. Unsec. Gtd. Global Notes, 6.75%, 04/15/2019		2,000		2,000
Murphy Oil USA, Inc., Sr. Unsec. Gtd. Global Notes, 5.63%, 05/01/2027		2,000		2,090
				23,115

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Core Plus Bond Fund

	Principal Amount		Value
Brewers–0.61%
Anheuser-Busch InBev Finance, Inc. (Belgium), Sr. Unsec. Gtd. Global Notes, 3.65%, 02/01/2026	$	55,000	$	56,778
Heineken NV (Netherlands), Sr. Unsec. Notes, 4.35%, 03/29/2047(b)		44,000		46,138
				102,916
Broadcasting–0.11%
Clear Channel Worldwide Holdings, Inc., Series B, Sr. Unsec. Gtd. Sub. Global Notes, 7.63%, 03/15/2020		6,000		5,992
iHeartCommunications, Inc., Sr. Sec. Gtd. First Lien Global Notes, 9.00%, 12/15/2019		2,000		1,580
Netflix, Inc., Sr. Unsec. Global Notes, 5.75%, 03/01/2024		3,000		3,292
Nexstar Broadcasting, Inc., Sr. Unsec. Gtd. Notes, 5.63%, 08/01/2024(b)		4,000		4,055
Tribune Media Co., Sr. Unsec. Gtd. Global Notes, 5.88%, 07/15/2022		3,000		3,158
				18,077
Building Products–0.25%
Allegion PLC, Sr. Unsec. Gtd. Notes, 5.88%, 09/15/2023		2,000		2,152
Builders FirstSource, Inc., Sr. Unsec. Gtd. Notes, 10.75%, 08/15/2023(b)		2,000		2,317
Gibraltar Industries Inc., Sr. Unsec. Gtd. Sub. Global Notes, 6.25%, 02/01/2021		2,000		2,068
Owens Corning, Sr. Unsec. Gtd. Global Notes, 4.30%, 07/15/2047		33,000		31,985
Standard Industries Inc., Sr. Unsec. Notes, 5.00%, 02/15/2027(b)		3,000		3,052
				41,574
Cable & Satellite–1.77%
CCO Holdings LLC/CCO Holdings Capital Corp., Sr. Unsec. Global Notes, 5.75%, 09/01/2023		2,000		2,095
Sr. Unsec. Notes, 5.75%, 02/15/2026(b)		6,000		6,450
Charter Communications Operating, LLC/Charter Communications Operating Capital Corp., Sr. Sec. Gtd. First Lien Global Notes, 6.83%, 10/23/2055		27,000		33,198
Comcast Corp., Sr. Unsec. Gtd. Global Notes, 3.40%, 07/15/2046		30,000		27,420
Cox Communications, Inc., Sr. Unsec. Notes, 3.35%, 09/15/2026(b)		50,000		49,162
9.38%, 01/15/2019(b)		140,000		154,333
CSC Holdings LLC, Sr. Unsec. Global Notes, 6.75%, 11/15/2021		7,000		7,770
DISH DBS Corp., Sr. Unsec. Gtd. Global Notes, 5.88%, 11/15/2024		6,000		6,420
Intelsat Jackson Holdings S.A. (Luxembourg), Sr. Unsec. Gtd. Global Notes, 7.25%, 04/01/2019		2,000		2,005
7.25%, 10/15/2020		2,000		1,900

	Principal Amount		Value
Cable & Satellite–(continued)
Sirius XM Radio Inc., Sr. Unsec. Gtd. Notes, 5.38%, 07/15/2026(b)	$	5,000	$	5,200
6.00%, 07/15/2024(b)		2,000		2,135
				298,088
Casinos & Gaming–0.17%
Boyd Gaming Corp., Sr. Unsec. Gtd. Global Notes, 6.88%, 05/15/2023		4,000		4,295
MGM Resorts International, Sr. Unsec. Gtd. Notes, 6.00%, 03/15/2023		3,000		3,322
7.75%, 03/15/2022		5,000		5,862
Pinnacle Entertainment, Inc., Sr. Unsec. Notes, 5.63%, 05/01/2024(b)		6,000		6,255
Scientific Games International Inc., Sr. Unsec. Gtd. Global Notes, 10.00%, 12/01/2022		2,000		2,198
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., Sr. Unsec. Gtd. Notes, 5.25%, 05/15/2027(b)		2,000		2,053
5.50%, 03/01/2025(b)		5,000		5,275
				29,260
Commercial Printing–0.04%
Multi-Color Corp., Sr. Unsec. Gtd. Notes, 6.13%, 12/01/2022(b)		6,000		6,300
Commodity Chemicals–0.03%
Valvoline Inc., Sr. Unsec. Gtd. Notes, 5.50%, 07/15/2024(b)		4,000		4,250
Communications Equipment–0.08%
CommScope Technologies LLC, Sr. Unsec. Gtd. Notes, 6.00%, 06/15/2025(b)		6,000		6,450
Hughes Satellite Systems Corp., Sr. Sec. Gtd. First Lien Global Notes, 5.25%, 08/01/2026		2,000		2,097
Sr. Unsec. Gtd. Global Notes, 7.63%, 06/15/2021		5,000		5,700
				14,247
Construction & Engineering–0.55%
AECOM, Sr. Unsec. Gtd. Notes, 5.13%, 03/15/2027(b)		20,000		20,150
Valmont Industries, Inc., Sr. Unsec. Gtd. Global Notes, 5.25%, 10/01/2054		75,000		72,528
				92,678
Construction Machinery & Heavy Trucks–0.09%
Meritor Inc., Sr. Unsec. Gtd. Notes, 6.25%, 02/15/2024		3,000		3,135
6.75%, 06/15/2021		5,000		5,200
Oshkosh Corp., Sr. Unsec. Gtd. Global Notes, 5.38%, 03/01/2025		3,000		3,154
Terex Corp., Sr. Unsec. Gtd. Notes, 5.63%, 02/01/2025(b)		4,000		4,130
				15,619

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Core Plus Bond Fund

	Principal Amount		Value
Construction Materials–0.23%
Vulcan Materials Co., Sr. Unsec. Global Notes, 4.50%, 06/15/2047	$	38,000	$	38,773
Consumer Finance–1.33%
Ally Financial Inc., Sr. Unsec. Global Notes, 4.63%, 03/30/2025		2,000		2,058
5.13%, 09/30/2024		3,000		3,180
Sr. Unsec. Gtd. Global Notes, 8.00%, 03/15/2020		2,000		2,285
Capital One Financial Corp., Sr. Unsec. Global Notes, 3.05%, 03/09/2022		35,000		35,270
3.75%, 03/09/2027		85,000		84,893
Synchrony Financial, Sr. Unsec. Global Notes, 4.50%, 07/23/2025		95,000		97,384
				225,070
Copper–0.36%
First Quantum Minerals Ltd. (Zambia), Sr. Unsec. Gtd. Notes, 7.00%, 02/15/2021(b)		2,000		2,060
Freeport-McMoRan Inc., Sr. Unsec. Gtd. Global Notes, 5.40%, 11/14/2034		4,000		3,590
Lundin Mining Corp. (Canada), Sr. Sec. Gtd. First Lien Notes, 7.88%, 11/01/2022(b)		33,000		36,176
Southern Copper Corp. (Peru), Sr. Unsec. Global Notes, 5.88%, 04/23/2045		18,000		19,340
				61,166
Data Processing & Outsourced Services–0.24%
Fidelity National Information Services, Inc., Sr. Unsec. Global Notes, 4.50%, 08/15/2046		33,000		34,104
First Data Corp., Sr. Unsec. Gtd. Notes, 7.00%, 12/01/2023(b)		6,000		6,435
				40,539
Diversified Banks–8.41%
Bank of America Corp., Series Z, Jr. Unsec. Sub. Notes, 6.50%(c)		85,000		95,306
Series DD, Jr. Unsec. Sub. Notes, 6.30%(c)		30,000		33,675
BBVA Bancomer S.A. (Mexico), Unsec. Sub. Notes, 6.75%, 09/30/2022(b)		150,000		169,721
Citigroup Inc., Series Q, Jr. Unsec. Sub. Global Notes, 5.95%(c)		40,000		42,900
Series R, Jr. Unsec. Sub. Global Notes, 6.13%(c)		65,000		69,875
Series T, Jr. Unsec. Sub. Global Notes, 6.25%(c)		34,000		37,740
Corp. Andina de Fomento (Supranational), Sr. Unsec. Global Notes, 4.38%, 06/15/2022		50,000		54,023
Crédit Agricole S.A. (France), Unsec. Sub. Notes, 4.38%, 03/17/2025(b)		200,000		207,264

	Principal Amount		Value
Diversified Banks–(continued)
HSBC Holdings PLC (United Kingdom), Jr. Unsec. Sub. Global Bonds, 6.00%(c)	$	200,000	$	207,141
Sr. Unsec. Global Notes, 4.00%, 03/30/2022		45,000		47,544
JPMorgan Chase & Co., Sr. Unsec. Medium-Term Global Bonds, 2.30%, 08/15/2021		65,000		64,678
Unsec. Sub. Global Notes, 3.63%, 12/01/2027		35,000		34,729
Series 1, Jr. Unsec. Sub. Global Notes, 7.90%(c)		30,000		31,238
Series V, Jr. Unsec. Sub. Global Notes, 5.00%(c)		40,000		40,900
Royal Bank of Scotland Group PLC (United Kingdom), Unsec. Sub. Global Notes, 6.00%, 12/19/2023		5,000		5,531
Standard Chartered PLC (United Kingdom), Unsec. Sub. Notes, 4.30%, 02/19/2027(b)		200,000		201,166
Wells Fargo & Co., Unsec. Sub. Medium-Term Notes, 4.75%, 12/07/2046		25,000		26,748
Series U, Jr. Unsec. Sub. Global Notes, 5.88%(c)		45,000		50,119
				1,420,298
Diversified Chemicals–0.26%
Chemours Co. (The), Sr. Unsec. Gtd. Global Notes, 5.38%, 05/15/2027		13,000		13,413
6.63%, 05/15/2023		26,000		27,755
7.00%, 05/15/2025		2,000		2,185
				43,353
Diversified Metals & Mining–0.42%
FMG Resources (August 2006) Pty. Ltd. (Australia), Sr. Unsec. Gtd. Notes,
4.75%, 05/15/2022(b)		17,000		17,030
5.13%, 05/15/2024(b)		22,000		22,080
Glencore Finance Canada Ltd. (Switzerland), Sr. Unsec. Gtd. Notes, 2.70%, 10/25/2017(b)		25,000		25,063
HudBay Minerals, Inc. (Canada), Sr. Unsec. Gtd. Notes, 7.63%, 01/15/2025(b)		4,000		4,200
Teck Resources Ltd. (Canada), Sr. Unsec. Notes, 6.13%, 10/01/2035		2,000		2,095
				70,468
Diversified REIT’s–1.23%
Trust F/1401 (Mexico), Sr. Unsec. Notes, 5.25%, 01/30/2026(b)		200,000		207,890
Diversified Support Services–0.02%
Alpine Finance Merger Sub LLC, Sr. Unsec. Notes, 6.88%, 08/01/2025(b)		2,000		2,045

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Core Plus Bond Fund

	Principal Amount		Value
Diversified Support Services–(continued)
Jaguar Holding Co. II/Pharmaceutical Product Development, LLC, Sr. Unsec. Gtd. Notes, 6.38%, 08/01/2023(b)	$	2,000	$	2,118
				4,163
Drug Retail–0.97%
CVS Pass Through Trust, Sr. Sec. First Lien Mortgage Pass Through Ctfs., 5.77%, 01/10/2033(b)		144,097		164,045
Electric Utilities–1.28%
Exelon Corp., Jr. Unsec. Sub. Notes, 3.50%, 06/01/2022		32,000		32,849
FirstEnergy Corp., Series B, Sr. Unsec. Global Notes, 3.90%, 07/15/2027		29,000		29,058
Series C, Sr. Unsec. Global Notes, 4.85%, 07/15/2047		24,000		24,468
Georgia Power Co., Sr. Unsec. Notes, 2.85%, 05/15/2022		58,000		58,572
Southern Co. (The), Series B, Jr. Unsec. Sub. Global Notes, 5.50%, 03/15/2057		66,000		70,373
				215,320
Electrical Components & Equipment–0.04%
Sensata Technologies B.V., Sr. Unsec. Gtd. Notes, 4.88%, 10/15/2023(b)		7,000		7,140
Environmental & Facilities Services–0.01%
Advanced Disposal Services, Inc., Sr. Unsec. Gtd. Notes, 5.63%, 11/15/2024(b)		2,000		2,070
Financial Exchanges & Data–2.24%
Moody’s Corp., Sr. Unsec. Global Bonds, 5.50%, 09/01/2020		110,000		120,785
Sr. Unsec. Global Notes, 2.75%, 07/15/2019		45,000		45,630
4.88%, 02/15/2024		138,000		152,140
5.25%, 07/15/2044		35,000		40,671
MSCI Inc., Sr. Unsec. Gtd. Notes, 5.75%, 08/15/2025(b)		3,000		3,251
Nasdaq, Inc., Sr. Unsec. Notes, 3.85%, 06/30/2026		15,000		15,257
				377,734
Food Distributors–0.02%
US Foods, Inc., Sr. Unsec. Gtd. Notes, 5.88%, 06/15/2024(b)		4,000		4,190
Food Retail–0.02%
Ingles Markets, Inc., Sr. Unsec. Global Notes, 5.75%, 06/15/2023		4,000		3,940
Gas Utilities–0.05%
AmeriGas Partners, L.P./AmeriGas Finance Corp., Sr. Unsec. Global Notes, 5.63%, 05/20/2024		4,000		4,140
5.88%, 08/20/2026		2,000		2,060

	Principal Amount		Value
Gas Utilities–(continued)
Suburban Propane Partners, L.P./Suburban Energy Finance Corp., Sr. Unsec. Global Notes, 5.50%, 06/01/2024	$	2,000	$	2,000
				8,200
General Merchandise Stores–0.32%
Dollar Tree, Inc., Sr. Unsec. Gtd. Global Notes, 5.75%, 03/01/2023		51,000		53,996
Health Care Equipment–0.92%
Becton, Dickinson and Co., Sr. Unsec. Notes, 2.89%, 06/06/2022		33,000		32,942
3.36%, 06/06/2024		29,000		28,942
3.70%, 06/06/2027		39,000		38,919
4.67%, 06/06/2047		51,000		52,773
Hill-Rom Holdings, Inc., Sr. Unsec. Gtd. Notes, 5.00%, 02/15/2025(b)		2,000		2,053
				155,629
Health Care Facilities–0.61%
Acadia Healthcare Co., Inc., Sr. Unsec. Gtd. Global Notes, 6.50%, 03/01/2024		2,000		2,155
Community Health Systems, Inc., Sr. Sec. Gtd. First Lien Notes, 6.25%, 03/31/2023		6,000		6,240
Sr. Unsec. Gtd. Global Notes, 6.88%, 02/01/2022		2,917		2,556
8.00%, 11/15/2019		2,000		2,018
HCA, Inc., Sr. Sec. Gtd. First Lien Global Notes, 6.50%, 02/15/2020		19,000		20,757
Sr. Sec. Gtd. First Lien Notes, 5.25%, 04/15/2025		4,000		4,320
5.50%, 06/15/2047		44,000		45,760
Sr. Unsec. Gtd. Notes, 5.88%, 02/15/2026		8,000		8,660
HealthSouth Corp., Sr. Unsec. Gtd. Global Notes, 5.75%, 09/15/2025		2,000		2,115
LifePoint Health, Inc., Sr. Unsec. Gtd. Global Notes, 5.38%, 05/01/2024		2,000		2,080
Tenet Healthcare Corp., Sec. Gtd. Second Lien Notes, 7.50%, 01/01/2022(b)		2,000		2,175
Sr. Unsec. Global Notes, 6.75%, 06/15/2023		2,000		2,005
8.13%, 04/01/2022		2,000		2,135
				102,976
Health Care REIT’s–0.82%
HCP, Inc., Sr. Unsec. Global Notes, 4.00%, 12/01/2022		71,000		74,251
Physicians Realty L.P., Sr. Unsec. Gtd. Global Notes, 4.30%, 03/15/2027		20,000		20,372
Senior Housing Properties Trust, Sr. Unsec. Notes, 6.75%, 12/15/2021		40,000		44,532
				139,155

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Core Plus Bond Fund

	Principal Amount		Value
Health Care Services–0.25%
AMN Healthcare, Inc., Sr. Unsec. Gtd. Notes, 5.13%, 10/01/2024(b)	$	2,000	$	2,035
DaVita Inc., Sr. Unsec. Gtd. Global Notes, 5.00%, 05/01/2025		3,000		3,022
Eagle Holding Co. II, LLC, Sr. Unsec. PIK Notes, 8.38%, 05/15/2022(b)(d)		2,000		2,070
MEDNAX, Inc., Sr. Unsec. Gtd. Notes, 5.25%, 12/01/2023(b)		3,000		3,105
MPH Acquisition Holdings LLC, Sr. Unsec. Gtd. Notes, 7.13%, 06/01/2024(b)		4,000		4,280
Orlando Lutheran Towers Inc., Unsec. Bonds, 8.00%, 07/01/2017		25,000		25,000
Surgery Center Holdings, Inc., Sr. Unsec. Notes, 6.75%, 07/01/2025(b)		2,000		2,038
				41,550
Home Entertainment Software–0.25%
Electronic Arts Inc., Sr. Unsec. Global Notes, 3.70%, 03/01/2021		40,000		41,391
Homebuilding–1.31%
Ashton Woods USA LLC/Ashton Woods Finance Co., Sr. Unsec. Notes, 6.88%, 02/15/2021(b)		3,000		3,071
Beazer Homes USA, Inc., Sr. Unsec. Gtd. Global Notes, 6.75%, 03/15/2025		3,000		3,142
8.75%, 03/15/2022		3,000		3,345
CalAtlantic Group, Inc., Sr. Unsec. Gtd. Global Notes, 8.38%, 01/15/2021		2,000		2,375
KB Home, Sr. Unsec. Gtd. Notes, 7.50%, 09/15/2022		3,000		3,416
Lennar Corp., Sr. Unsec. Gtd. Global Bonds, 4.13%, 01/15/2022		22,000		22,825
Sr. Unsec. Gtd. Notes, 4.50%, 04/30/2024		20,000		20,775
MDC Holdings, Inc., Sr. Unsec. Gtd. Notes, 6.00%, 01/15/2043		165,000		154,275
Meritage Homes Corp., Sr. Unsec. Gtd. Global Notes, 6.00%, 06/01/2025		3,000		3,233
7.15%, 04/15/2020		2,000		2,218
Taylor Morrison Communities Inc./ Taylor Morrison Holdings II, Inc., Sr. Unsec. Gtd. Notes, 5.88%, 04/15/2023(b)		3,000		3,221
				221,896
Hotel and Resort REIT’s–0.22%
Host Hotels & Resorts L.P., Series F, Sr. Unsec. Global Notes, 4.50%, 02/01/2026		35,000		36,737
Hotels, Resorts & Cruise Lines–0.03%
Choice Hotels International, Inc., Sr. Unsec. Gtd. Notes, 5.75%, 07/01/2022		4,000		4,458

	Principal Amount		Value
Household Products–0.25%
Reynolds Group Issuer Inc./LLC (New Zealand), Sr. Sec. Gtd. First Lien Global Notes, 5.75%, 10/15/2020	$	37,000	$	37,832
Sr. Unsec. Gtd. Notes, 7.00%, 07/15/2024(b)		2,000		2,145
Spectrum Brands, Inc., Sr. Unsec. Gtd. Global Notes, 5.75%, 07/15/2025		2,000		2,155
				42,132
Hypermarkets & Super Centers–0.78%
Costco Wholesale Corp., Sr. Unsec. Global Notes, 2.75%, 05/18/2024		76,000		75,880
3.00%, 05/18/2027		56,000		55,880
				131,760
Independent Power Producers & Energy Traders–0.09%
AES Corp. (The), Sr. Unsec. Notes, 5.50%, 04/15/2025		7,000		7,367
Dynegy Inc., Sr. Unsec. Gtd. Global Notes, 7.38%, 11/01/2022		2,000		1,985
NRG Energy, Inc., Sr. Unsec. Gtd. Global Notes, 6.63%, 03/15/2023		2,000		2,065
6.25%, 05/01/2024		2,000		2,035
6.63%, 01/15/2027		2,000		2,015
				15,467
Integrated Oil & Gas–0.63%
Cenovus Energy Inc. (Canada), Sr. Unsec. Notes, 4.25%, 04/15/2027(b)		87,000		83,237
Petróleos Mexicanos (Mexico), Sr. Unsec. Gtd. Global Bonds, 6.63%, 06/15/2035		23,000		23,905
				107,142
Integrated Telecommunication Services–1.70%
AT&T Inc., Sr. Unsec. Global Notes, 5.25%, 03/01/2037		35,000		37,415
5.70%, 03/01/2057		35,000		38,766
Sr. Unsec. Notes, 4.45%, 04/01/2024		30,000		31,631
CenturyLink, Inc., Series S, Sr. Unsec. Notes, 6.45%, 06/15/2021		2,000		2,170
Series Y, Sr. Unsec. Global Notes, 7.50%, 04/01/2024		1,000		1,097
Cincinnati Bell Inc., Sr. Unsec. Gtd. Notes, 7.00%, 07/15/2024(b)		2,000		2,100
Frontier Communications Corp., Sr. Unsec. Global Notes, 11.00%, 09/15/2025		2,000		1,852
T-Mobile USA, Inc., Sr. Unsec. Gtd. Global Notes, 6.38%, 03/01/2025		6,000		6,495
Telecom Italia Capital S.A. (Italy), Sr. Unsec. Gtd. Global Notes, 7.20%, 07/18/2036		4,000		4,650

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Core Plus Bond Fund

	Principal Amount		Value
Integrated Telecommunication Services–(continued)
Verizon Communications Inc., Sr. Unsec. Global Notes, 2.63%, 08/15/2026	$	60,000	$	55,423
4.13%, 08/15/2046		22,000		19,692
5.01%, 08/21/2054		58,000		57,463
Sr. Unsec. Notes, 4.81%, 03/15/2039(b)		27,000		27,415
				286,169
Investment Banking & Brokerage–0.70%
Cantor Fitzgerald, L.P., Unsec. Notes, 6.50%, 06/17/2022(b)		34,000		38,182
Goldman Sachs Group, Inc. (The), Series L, Jr. Unsec. Sub. Notes, 5.70%(c)		55,000		57,406
Jefferies Group LLC, Sr. Unsec. Global Notes, 4.85%, 01/15/2027		21,000		21,970
				117,558
Leisure Facilities–0.01%
Six Flags Entertainment Corp., Sr. Unsec. Gtd. Notes, 4.88%, 07/31/2024(b)		2,000		2,018
Life & Health Insurance–3.72%
American Equity Investment Life Holding Co., Sr. Unsec. Global Notes, 5.00%, 06/15/2027		40,000		41,300
Dai-ichi Life Insurance Co., Ltd. (The) (Japan), Jr. Unsec. Sub. Notes, 4.00%(b)(c)		200,000		199,250
MetLife, Inc., Series C, Jr. Unsec. Sub. Global Notes, 5.25%(c)		65,000		67,925
Nationwide Financial Services, Inc., Sr. Unsec. Notes, 5.38%, 03/25/2021(b)		165,000		181,106
Prudential Financial, Inc., Jr. Unsec. Sub. Global Notes, 8.88%, 06/15/2068		130,000		138,450
				628,031
Managed Health Care–0.55%
Centene Corp., Sr. Unsec. Notes, 4.75%, 01/15/2025		2,000		2,075
Cigna Corp., Sr. Unsec. Notes, 4.50%, 03/15/2021		45,000		48,115
Molina Healthcare, Inc., Sr. Unsec. Gtd. Notes, 4.88%, 06/15/2025(b)		1,000		1,013
UnitedHealth Group Inc., Sr. Unsec. Global Notes, 3.75%, 07/15/2025		35,000		36,872
WellCare Health Plans Inc., Sr. Unsec. Notes, 5.25%, 04/01/2025		5,000		5,275
				93,350
Metal & Glass Containers–0.03%
Ball Corp., Sr. Unsec. Gtd. Global Notes, 5.25%, 07/01/2025		3,000		3,315
Berry Global, Inc., Sec. Gtd. Second Lien Global Notes, 6.00%, 10/15/2022		2,000		2,140
				5,455

	Principal Amount		Value
Movies & Entertainment–0.73%
AMC Entertainment Holdings, Inc., Sr. Unsec. Gtd. Sub. Global Notes, 5.75%, 06/15/2025	$	5,000	$	5,225
Lions Gate Entertainment Corp., Sr. Unsec. Gtd. Notes, 5.88%, 11/01/2024(b)		2,000		2,105
Time Warner Cable, Inc., Sr. Sec. Gtd. First Lien Global Deb., 6.75%, 07/01/2018		55,000		57,587
Viacom Inc., Jr. Unsec. Sub. Global Notes, 5.88%, 02/28/2057		30,000		31,350
6.25%, 02/28/2057		13,000		13,585
Sr. Unsec. Global Notes, 3.45%, 10/04/2026		13,000		12,554
				122,406
Multi-Line Insurance–2.70%
AIG Global Funding, Sr. Sec. First Lien Notes, 2.70%, 12/15/2021(b)		42,000		42,345
American Financial Group, Inc., Sr. Unsec. Notes, 3.50%, 08/15/2026		20,000		19,868
9.88%, 06/15/2019		180,000		205,740
American International Group, Inc., Sr. Unsec. Global Notes, 3.90%, 04/01/2026		45,000		46,261
Massachusetts Mutual Life Insurance Co., Unsec. Sub. Notes, 4.90%, 04/01/2077(b)		30,000		32,330
Nationwide Mutual Insurance Co., Unsec. Sub. Notes, 4.95%, 04/22/2044(b)		100,000		109,322
				455,866
Office REIT’s–0.52%
Alexandria Real Estate Equities, Inc., Sr. Unsec. Gtd. Global Notes, 3.95%, 01/15/2027		40,000		40,780
Piedmont Operating Partnership L.P., Sr. Unsec. Gtd. Global Notes, 4.45%, 03/15/2024		45,000		46,216
				86,996
Office Services & Supplies–0.54%
Pitney Bowes Inc., Sr. Unsec. Global Notes, 3.38%, 10/01/2021		55,000		54,658
4.63%, 03/15/2024		35,000		35,807
				90,465
Oil & Gas Drilling–0.04%
Ensco PLC, Sr. Unsec. Global Notes, 4.50%, 10/01/2024		2,000		1,550
Precision Drilling Corp. (Canada), Sr. Unsec. Gtd. Global Notes, 5.25%, 11/15/2024		2,000		1,770
6.50%, 12/15/2021		2,000		1,967
Transocean Inc., Sr. Unsec. Gtd. Global Notes, 7.50%, 04/15/2031		2,000		1,610
				6,897

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Core Plus Bond Fund

	Principal Amount		Value
Oil & Gas Equipment & Services–0.06%
Archrock Partners, L.P./Archrock Partners Finance Corp., Sr. Unsec. Gtd. Global Notes, 6.00%, 10/01/2022	$	2,000	$	1,950
SESI, L.L.C., Sr. Unsec. Gtd. Global Notes, 6.38%, 05/01/2019		2,000		1,985
7.13%, 12/15/2021		2,000		1,915
Weatherford International Ltd., Sr. Unsec. Gtd. Notes, 6.50%, 08/01/2036		2,000		1,705
8.25%, 06/15/2023		2,000		2,007
				9,562
Oil & Gas Exploration & Production–0.59%
Antero Resources Corp., Sr. Unsec. Gtd. Global Notes, 5.63%, 06/01/2023		2,000		2,040
Callon Petroleum Co., Sr. Unsec. Gtd. Global Notes, 6.13%, 10/01/2024		2,000		2,040
Concho Resources Inc., Sr. Unsec. Gtd. Global Notes, 4.38%, 01/15/2025		2,000		2,060
5.50%, 04/01/2023		35,000		36,225
Continental Resources Inc., Sr. Unsec. Gtd. Global Notes, 3.80%, 06/01/2024		3,000		2,764
EP Energy LLC/Everest Acquisition Finance Inc., Sr. Sec. Gtd. First Lien Notes, 8.00%, 11/29/2024(b)		2,000		2,005
Gulfport Energy Corp., Sr. Unsec. Gtd. Notes, 6.00%, 10/15/2024(b)		4,000		3,900
Hess Corp., Sr. Unsec. Global Notes, 5.80%, 04/01/2047		17,000		17,198
Newfield Exploration Co., Sr. Unsec. Global Notes, 5.63%, 07/01/2024		3,000		3,142
Oasis Petroleum Inc., Sr. Unsec. Gtd. Global Notes, 6.88%, 01/15/2023		2,000		1,945
Parsley Energy LLC/Parsley Finance Corp., Sr. Unsec. Gtd. Notes, 6.25%, 06/01/2024(b)		2,000		2,105
QEP Resources, Inc., Sr. Unsec. Global Notes, 5.25%, 05/01/2023		2,000		1,910
Sr. Unsec. Notes, 6.88%, 03/01/2021		2,000		2,085
Range Resources Corp., Sr. Unsec. Gtd. Global Notes, 4.88%, 05/15/2025		2,000		1,910
Sr. Unsec. Gtd. Notes, 5.88%, 07/01/2022(b)		2,000		2,040
Rice Energy Inc., Sr. Unsec. Gtd. Global Notes, 7.25%, 05/01/2023		2,000		2,165
RSP Permian, Inc., Sr. Unsec. Gtd. Notes, 5.25%, 01/15/2025(b)		2,000		2,013
SM Energy Co., Sr. Unsec. Global Notes, 6.13%, 11/15/2022		2,000		1,910
Southwestern Energy Co., Sr. Unsec. Global Notes, 4.10%, 03/15/2022		2,000		1,870
Whiting Petroleum Corp., Sr. Unsec. Gtd. Global Notes, 6.25%, 04/01/2023		4,000		3,710

	Principal Amount		Value
Oil & Gas Exploration & Production–(continued)
WildHorse Resource Development Corp., Sr. Unsec. Gtd. Notes, 6.88%, 02/01/2025(b)	$	3,000	$	2,827
WPX Energy Inc., Sr. Unsec. Notes, 5.25%, 09/15/2024		2,000		1,915
				99,779
Oil & Gas Storage & Transportation–5.48%
Antero Midstream Partners LP/Antero Midstream Finance Corp., Sr. Unsec. Gtd. Notes, 5.38%, 09/15/2024(b)		2,000		2,055
Enbridge Inc. (Canada), Sr. Unsec. Global Notes, 2.90%, 07/15/2022		22,000		22,043
3.70%, 07/15/2027		21,000		21,065
Energy Transfer Equity, L.P., Sr. Sec. First Lien Notes, 5.88%, 01/15/2024		4,000		4,250
Energy Transfer, LP, Sr. Unsec. Global Notes, 4.65%, 06/01/2021		26,000		27,729
Sr. Unsec. Notes, 4.20%, 04/15/2027		22,000		21,987
4.75%, 01/15/2026		61,000		63,712
5.30%, 04/15/2047		47,000		46,866
EQT Midstream Partners L.P., Sr. Unsec. Notes, 4.00%, 08/01/2024		65,000		66,060
Holly Energy Partners L.P./Holly Energy Finance Corp., Sr. Unsec. Gtd. Notes, 6.00%, 08/01/2024(b)		2,000		2,095
Kinder Morgan Energy Partners, L.P., Sr. Unsec. Gtd. Notes, 5.40%, 09/01/2044		74,000		75,837
MPLX LP, Sr. Unsec. Global Bonds, 4.50%, 07/15/2023		141,000		150,121
Sr. Unsec. Global Notes, 4.88%, 06/01/2025		3,000		3,203
5.50%, 02/15/2023		76,000		78,517
Plains All American Pipeline L.P./ PAA Finance Corp., Sr. Unsec. Bonds, 4.50%, 12/15/2026		11,000		11,165
Sabine Pass Liquefaction, LLC, Sr. Sec. First Lien Global Notes, 5.00%, 03/15/2027		27,000		28,890
5.63%, 03/01/2025		9,000		9,968
Sr. Sec. First Lien Notes, 4.20%, 03/15/2028(b)		86,000		87,182
Targa Resources Partners L.P./Targa Resources Partners Finance Corp.,
Sr. Unsec. Gtd. Global Bonds, 5.25%, 05/01/2023		2,000		2,060
Sr. Unsec. Gtd. Notes, 5.13%, 02/01/2025(b)		2,000		2,060
Tesoro Logistics L.P./Tesoro Logistics Finance Corp., Sr. Unsec. Gtd. Global Notes, 6.38%, 05/01/2024		2,000		2,170

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Core Plus Bond Fund

	Principal Amount		Value
Oil & Gas Storage & Transportation–(continued)
Williams Cos., Inc. (The), Sr. Unsec. Global Notes, 4.55%, 06/24/2024	$	4,000	$	4,118
Sr. Unsec. Notes, 7.88%, 09/01/2021		4,000		4,665
Williams Partners L.P., Sr. Unsec. Global Notes, 3.60%, 03/15/2022		84,000		85,769
Sr. Unsec. Notes, 4.13%, 11/15/2020		32,000		33,471
Williams Partners L.P./ACMP Finance Corp., Sr. Unsec. Global Notes, 4.88%, 05/15/2023		65,000		67,446
				924,504
Other Diversified Financial Services–0.82%
Football Trust V, Sec. Pass Through Ctfs., 5.35%, 10/05/2020(b)		100,000		107,676
Orchestra Borrower LLC/Orchestra Co-Issuer, Inc., Sec. Second Lien Notes, 6.75%, 06/15/2022(b)		29,000		30,015
				137,691
Packaged Foods & Meats–0.45%
B&G Foods, Inc., Sr. Unsec. Gtd. Notes, 5.25%, 04/01/2025		2,000		2,045
JBS USA Lux S.A./JBS USA Finance Inc. (Brazil), Sr. Unsec. Gtd. Notes, 5.75%, 06/15/2025(b)		2,000		1,888
Kraft Heinz Foods Co. (The), Sr. Unsec. Gtd. Global Notes, 4.38%, 06/01/2046		20,000		19,542
Lamb Weston Holdings, Inc., Sr. Unsec. Gtd. Notes, 4.63%, 11/01/2024(b)		4,000		4,140
Tyson Foods, Inc., Sr. Unsec. Global Notes, 3.55%, 06/02/2027		24,000		24,330
4.55%, 06/02/2047		22,000		23,275
				75,220
Paper Packaging–0.01%
Graphic Packaging International Inc., Sr. Unsec. Gtd. Notes, 4.88%, 11/15/2022		2,000		2,130
Paper Products–0.09%
Clearwater Paper Corp., Sr. Unsec. Gtd. Global Notes, 4.50%, 02/01/2023		14,000		13,860
Mercer International Inc. (Canada), Sr. Unsec. Notes, 6.50%, 02/01/2024(b)		2,000		2,090
				15,950
Pharmaceuticals–0.49%
Eli Lilly and Co., Sr. Unsec. Global Notes, 2.35%, 05/15/2022		24,000		24,051
Teva Pharmaceutical Finance Netherlands III B.V. (Israel), Sr. Unsec. Gtd. Global Notes, 2.20%, 07/21/2021		50,000		49,061

	Principal Amount		Value
Pharmaceuticals–(continued)
Valeant Pharmaceuticals International, Inc., Sr. Unsec. Gtd. Notes, 5.63%, 12/01/2021(b)	$	9,000	$	8,167
7.00%, 10/01/2020(b)		2,000		1,975
				83,254
Property & Casualty Insurance–0.87%
Allstate Corp. (The), Sr. Unsec. Notes, 4.20%, 12/15/2046		20,000		21,054
Arch Capital Finance LLC, Sr. Unsec. Gtd. Notes, 5.03%, 12/15/2046		22,000		24,642
Liberty Mutual Group Inc., Jr. Unsec. Gtd. Sub. Bonds, 7.80%, 03/07/2087(b)		45,000		56,588
W.R. Berkley Corp., Sr. Unsec. Notes, 7.38%, 09/15/2019		40,000		44,140
				146,424
Railroads–0.01%
Kenan Advantage Group Inc. (The), Sr. Unsec. Notes, 7.88%, 07/31/2023(b)		2,000		2,110
Regional Banks–0.81%
CIT Group Inc., Sr. Unsec. Global Notes, 5.00%, 08/15/2022		3,000		3,240
5.00%, 08/01/2023		2,000		2,160
Fifth Third Bancorp, Unsec. Sub. Notes, 4.30%, 01/16/2024		55,000		58,106
First Niagara Financial Group Inc., Unsec. Sub. Notes, 7.25%, 12/15/2021		35,000		41,163
M&T Bank Corp., Series F, Jr. Unsec. Sub. Global Notes, 5.13%(c)		31,000		32,240
				136,909
Reinsurance–0.39%
Reinsurance Group of America, Inc., Sr. Unsec. Medium-Term Notes, 4.70%, 09/15/2023		60,000		65,198
Renewable Electricity–0.21%
Oglethorpe Power Corp., Sr. Sec. First Mortgage Bonds, 4.55%, 06/01/2044		36,000		35,903
Residential REIT’s–0.70%
Essex Portfolio L.P., Sr. Unsec. Gtd. Global Notes, 3.63%, 08/15/2022		115,000		118,580
Restaurants–0.99%
1011778 BC ULC/ New Red Finance, Inc. (Canada), Sec. Gtd. Second Lien Notes, 6.00%, 04/01/2022(b)		94,000		97,877
Sr. Sec. Gtd. First Lien Notes, 4.63%, 01/15/2022(b)		47,000		48,234
Aramark Services, Inc., Sr. Unsec. Gtd. Notes, 5.00%, 04/01/2025(b)		2,000		2,123
Brinker International Inc., Sr. Unsec. Gtd. Notes, 5.00%, 10/01/2024(b)		14,000		13,877

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Core Plus Bond Fund

	Principal Amount		Value
Restaurants–(continued)
Carrols Restaurant Group, Inc., Sec. Gtd. Second Lien Notes, 8.00%, 05/01/2022(b)	$	2,000	$	2,140
KFC Holding Co. (The)/Pizza Hut Holdings LLC/Taco Bell of America LLC, Sr. Unsec. Gtd. Notes, 4.75%, 06/01/2027(b)		2,000		2,050
				166,301
Retail REIT’s–0.22%
Brixmor Operating Partnership LP, Sr. Unsec. Global Notes, 3.25%, 09/15/2023		38,000		37,218
Semiconductors–0.25%
Analog Devices, Inc., Sr. Unsec. Global Notes, 3.13%, 12/05/2023		30,000		30,439
4.50%, 12/05/2036		10,000		10,331
Micron Technology, Inc., Sr. Unsec. Global Notes, 5.50%, 02/01/2025		2,000		2,115
				42,885
Sovereign Debt–1.87%
Argentine Republic Government International Bond (Argentina), Sr. Unsec. Global Bonds, 5.63%, 01/26/2022		36,000		36,952
Sr. Unsec. Notes, 7.13%, 06/28/2117(b)		1,000		913
Chile Government International Bond (Chile), Sr. Unsec. Global Notes, 3.86%, 06/21/2047		200,000		201,145
Hungary Government International Bond (Hungary), Sr. Unsec. Global Notes, 5.38%, 03/25/2024		28,000		31,568
Mexico Government International Bond (Mexico), Sr. Unsec. Global Notes, 4.00%, 10/02/2023		14,000		14,678
Peruvian Government International Bond (Peru), Sr. Unsec. Global Bonds, 4.13%, 08/25/2027		8,000		8,712
Uruguay Government International Bond (Uruguay), Sr. Unsec. Global Notes, 4.38%, 10/27/2027		20,000		21,350
				315,318
Specialized Consumer Services–0.03%
ServiceMaster Co., LLC (The), Sr. Unsec. Gtd. Notes, 5.13%, 11/15/2024(b)		2,000		2,077
Sr. Unsec. Notes, 7.45%, 08/15/2027		3,000		3,240
				5,317
Specialized Finance–2.78%
AerCap Global Aviation Trust (Ireland), Jr. Unsec. Gtd. Sub. Notes, 6.50%, 06/15/2045(b)		235,000		250,862

	Principal Amount		Value
Specialized Finance–(continued)
Air Lease Corp., Sr. Unsec. Global Notes, 3.00%, 09/15/2023	$	64,000	$	63,700
3.38%, 06/01/2021		60,000		61,684
3.88%, 04/01/2021		85,000		88,729
Aircastle Ltd., Sr. Unsec. Notes, 5.00%, 04/01/2023		2,000		2,150
5.50%, 02/15/2022		2,000		2,183
				469,308
Specialized REIT’s–2.97%
Crown Castle Towers LLC, Sr. Sec. Gtd. First Lien Notes, 4.88%, 08/15/2020(b)		120,000		128,060
EPR Properties, Sr. Unsec. Gtd. Global Notes, 4.50%, 04/01/2025		43,000		43,459
7.75%, 07/15/2020		253,000		287,113
Sr. Unsec. Gtd. Notes, 5.75%, 08/15/2022		20,000		22,124
Equinix Inc., Sr. Unsec. Notes, 5.88%, 01/15/2026		5,000		5,475
GLP Capital LP/GLP Financing II Inc., Sr. Unsec. Gtd. Notes, 5.38%, 04/15/2026		5,000		5,456
Iron Mountain US Holdings, Inc., Sr. Unsec. Gtd. Notes, 5.38%, 06/01/2026(b)		2,000		2,108
Lamar Media Corp., Sr. Unsec. Gtd. Global Notes, 5.75%, 02/01/2026		4,000		4,340
Rayonier A.M. Products Inc., Sr. Unsec. Gtd. Notes, 5.50%, 06/01/2024(b)		2,000		1,948
SBA Communications Corp., Sr. Unsec. Notes, 4.88%, 09/01/2024(b)		2,000		2,040
				502,123
Specialty Chemicals–0.34%
Ashland LLC, Sr. Unsec. Gtd. Global Notes, 4.75%, 08/15/2022		2,000		2,090
Kraton Polymers LLC/Kraton Polymers Capital Corp., Sr. Unsec. Gtd. Notes, 10.50%, 04/15/2023(b)		2,000		2,328
PolyOne Corp., Sr. Unsec. Global Notes, 5.25%, 03/15/2023		2,000		2,105
PQ Corp., Sr. Sec. Gtd. First Lien Notes, 6.75%, 11/15/2022(b)		4,000		4,320
Sherwin-Williams Co. (The), Sr. Unsec. Global Notes, 3.13%, 06/01/2024		21,000		21,142
3.45%, 06/01/2027		23,000		23,201
Venator Finance S.a.r.l./Venator Materials Corp. (Luxembourg), Sr. Unsec. Gtd. Notes, 5.75%, 07/15/2025(b)		2,000		2,030
				57,216
Steel–0.12%
ArcelorMittal (Luxembourg), Sr. Unsec. Global Notes, 7.50%, 10/15/2039		2,000		2,264

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Core Plus Bond Fund

	Principal Amount		Value
Steel–(continued)
Steel Dynamics, Inc., Sr. Unsec. Gtd. Global Notes, 5.13%, 10/01/2021	$	15,000	$	15,506
United States Steel Corp., Sr. Unsec. Global Notes, 7.50%, 03/15/2022		2,000		2,058
				19,828
Systems Software–0.17%
j2 Cloud Services, LLC/ j2 Cloud Co-Obligor, Inc., Sr. Unsec. Gtd. Notes, 6.00%, 07/15/2025(b)		2,000		2,070
Microsoft Corp., Sr. Unsec. Global Notes, 4.25%, 02/06/2047		24,000		26,100
				28,170
Technology Distributors–0.36%
Avnet, Inc., Sr. Unsec. Global Notes, 4.63%, 04/15/2026		35,000		36,406
CDW LLC/CDW Finance Corp., Sr. Unsec. Gtd. Notes, 5.00%, 09/01/2025		2,000		2,085
Tech Data Corp., Sr. Unsec. Notes, 4.95%, 02/15/2027		21,000		22,310
				60,801
Technology Hardware, Storage & Peripherals–1.23%
Apple Inc., Sr. Unsec. Global Notes, 4.25%, 02/09/2047		20,000		21,213
Dell International LLC/ EMC Corp., Sr. Sec. Gtd. First Lien Notes, 6.02%, 06/15/2026(b)		92,000		101,876
8.35%, 07/15/2046(b)		24,000		31,158
Sr. Unsec. Gtd. Notes, 7.13%, 06/15/2024(b)		6,000		6,630
Diebold Nixdorf, Inc., Sr. Unsec. Gtd. Global Notes, 8.50%, 04/15/2024		4,000		4,480
Seagate HDD Cayman, Sr. Unsec. Gtd. Global Bonds, 5.75%, 12/01/2034		38,000		38,238
Western Digital Corp., Sr. Unsec. Gtd. Global Notes, 10.50%, 04/01/2024		4,000		4,740
				208,335
Trading Companies & Distributors–0.08%
BMC East, LLC, Sr. Sec. Gtd. First Lien Notes, 5.50%, 10/01/2024(b)		4,000		4,190
Herc Rentals Inc., Sec. Gtd. Second Lien Notes, 7.75%, 06/01/2024(b)		2,000		2,115
United Rentals North America, Inc., Sr. Unsec. Gtd. Notes, 5.50%, 05/15/2027		2,000		2,070
6.13%, 06/15/2023		5,000		5,231
				13,606
Trucking–0.01%
Avis Budget Car Rental LLC/Avis Budget Finance Inc., Sr. Unsec. Gtd. Notes, 5.25%, 03/15/2025(b)		2,000		1,898
Wireless Telecommunication Services–0.13%
Sprint Communications Inc., Sr. Unsec. Gtd. Notes, 7.00%, 03/01/2020(b)		8,000		8,800

	Principal Amount		Value
Wireless Telecommunication Services–(continued)
Sprint Corp., Sr. Unsec. Gtd. Global Notes, 7.25%, 09/15/2021	$	7,000	$	7,787
7.88%, 09/15/2023		4,000		4,610
				21,197
Total Bonds & Notes (Cost $10,796,864)				11,285,870
U.S. Government Sponsored Agency Mortgage-Backed Securities–17.44%
Collateralized Mortgage Obligations–0.15%
Ginnie Mae REMICs, IO, 1.59%, 09/20/2064(e)		285,735		24,535
Federal Home Loan Mortgage Corp. (FHLMC)–4.03%
Pass Through Ctfs., 5.50%, 09/01/2017		47		48
6.50%, 07/01/2031 to 08/01/2032		1,540		1,705
Pass Through Ctfs., TBA, 3.50%, 08/01/2047(f)		518,000		531,132
4.00%, 08/01/2047(f)		140,000		146,956
				679,841
Federal National Mortgage Association (FNMA)–9.83%
Pass Through Ctfs., 5.00%, 11/01/2018		1,982		2,031
7.50%, 04/01/2029		2,037		2,230
3.50%, 12/01/2030		60,891		63,590
6.50%, 09/01/2031		972		1,111
7.00%, 09/01/2032		5,487		5,868
Pass Through Ctfs., TBA, 2.50%, 08/01/2032(f)		291,000		292,143
3.00%, 08/01/2032 to 08/01/2047(f)		444,000		447,992
3.50%, 08/01/2047(f)		497,000		509,449
4.00%, 08/01/2047(f)		320,000		335,769
				1,660,183
Government National Mortgage Association (GNMA)–3.43%
Pass Through Ctfs., 7.50%, 06/15/2023		2,012		2,155
8.50%, 11/15/2024		1,040		1,044
7.00%, 07/15/2031 to 08/15/2031		1,125		1,283
6.50%, 11/15/2031 to 03/15/2032		2,563		2,813
6.00%, 11/15/2032		1,234		1,425
Pass Through Ctfs., TBA, 3.00%, 08/01/2047(f)		345,000		347,999
4.00%, 08/01/2047(f)		212,000		222,766
				579,485
Total U.S. Government Sponsored Agency Mortgage-Backed Securities (Cost $2,967,170)				2,944,044
Asset-Backed Securities–10.29%
Adjustable Rate Mortgage Trust, Series 2004-2, Class 6A1, Variable Rate Pass Through Ctfs., 3.40%, 02/25/2035(e)		24,311		24,323

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Core Plus Bond Fund

	Principal Amount		Value
Banc of America Commercial Mortgage Trust, Series 2015-UBS7, Class AS, Pass Through Ctfs., 3.99%, 09/15/2048	$	70,000	$	73,630
Barclays Bank Commercial Mortgage Securities Trust, Series 2015-RRI, Class D, Floating Rate Pass Through Ctfs., 4.16%, 05/15/2032(b)(e)		230,000		230,370
Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-2, Class A1, Floating Rate Pass Through Ctfs., 3.26%, 03/25/2035(e)		90,348		91,399
Series 2005-2, Class A2, Floating Rate Pass Through Ctfs., 3.64%, 03/25/2035(e)		11,267		11,413
Series 2005-5, Class A1, Floating Rate Pass Through Ctfs., 2.58%, 08/25/2035(e)		18,227		18,556
Chase Mortgage Trust, Series 2016-1, Class M3, Variable Rate Pass Through Ctfs., 3.75%, 04/25/2045(b)(e)		78,832		79,069
Series 2016-2, Class M3, Variable Rate Pass Through Ctfs., 3.75%, 12/25/2045(b)(e)		85,857		85,873
Commercial Mortgage Trust, Series 2015-CR23, Class CMB, Variable Rate Pass Through Ctfs., 3.81%, 05/10/2048(b)(e)		150,000		149,674
Series 2015-CR25, Class B, Variable Rate Pass Through Ctfs., 4.70%, 08/10/2048(e)		72,000		76,141
Series 2016-GCT, Class B, Pass Through Ctfs., 3.09%, 08/10/2029(b)		100,000		100,843
Credit Suisse First Boston Mortgage Securities Corp., Series 2004-AR5, Class 3A1, Variable Rate Pass Through Ctfs., 3.30%, 06/25/2034(e)		32,445		32,249
GMACM Mortgage Loan Trust, Series 2006-AR1, Class 1A1, Variable Rate Pass Through Ctfs., 3.81%, 04/19/2036(e)		99,990		93,298
HMH Trust, Series 2017-NSS, Class A, Pass Through Ctfs., 3.06%, 07/05/2031(b)		100,000		100,804
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-LC11, Class C, Pass Through Ctfs., 3.96%, 04/15/2046		50,000		49,184
Merrill Lynch Mortgage Investors Trust, Series 2005-3, Class 3A, Variable Rate Pass Through Ctfs., 3.18%, 11/25/2035(e)		25,111		25,218
Morgan Stanley Capital I Trust, Series 2006-HQ10, Class AJ, Pass Through Ctfs., 5.39%, 11/12/2041		22,572		22,628
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-12, Class 3A2, Variable Rate Pass Through Ctfs., 3.37%, 09/25/2034(e)		27,853		27,618
Series 2004-16, Class 2A, Variable Rate Pass Through Ctfs., 3.57%, 11/25/2034(e)		38,499		38,488
Series 2004-16, Class 5A3, Variable Rate Pass Through Ctfs., 3.27%, 11/25/2034(e)		10,784		10,849

	Principal Amount		Value
Thornburg Mortgage Securities Trust, Series 2005-1, Class A3, Variable Rate Pass Through Ctfs., 3.11%, 04/25/2045(e)	$	91,531	$	91,996
Series 2005-2, Class A1, Variable Rate Pass Through Ctfs., 3.04%, 07/25/2045(e)		41,515		40,494
Towd Point Mortgage Trust, Series 2017-2, Class A1, Pass Through Ctfs., 2.75%, 04/25/2057(b)		98,400		99,458
Wachovia Bank Commercial Mortgage Trust, Series 2006-C27, Class AJ, Pass Through Ctfs., 5.83%, 07/15/2045		34,164		34,612
Wells Fargo Mortgage Backed Securities Trust, Series 2004-Z, Class 2A1, Variable Rate Pass Through Ctfs., 3.00%, 12/25/2034(e)		42,324		43,038
WFRBS Commercial Mortgage Trust, Series 2012-C6, Class B, Pass Through Ctfs., 4.70%, 04/15/2045		80,000		85,735
Total Asset-Backed Securities (Cost $1,726,109)				1,736,960
U.S. Treasury Securities–5.94%
U.S. Treasury Bills–0.15%
0.89%, 08/10/2017(g)(h)		25,000		24,977
U.S. Treasury Notes–4.89%
1.75%, 05/31/2022		244,700		243,266
2.00%, 05/31/2024		136,600		135,482
2.38%, 05/15/2027		443,800		446,730
				825,478
U.S. Treasury Bonds–0.90%
3.00%, 02/15/2047		147,300		152,243
Total U.S. Treasury Securities (Cost $1,009,988)				1,002,698
	Shares
Preferred Stocks–1.38%
Investment Banking & Brokerage–0.87%
Morgan Stanley, Series F, 6.88% Pfd.		5,000		146,450
Regional Banks–0.16%
SunTrust Banks, Inc., Series G, 5.05% Jr. Unsec. Sub. Global Pfd.		27,000		27,405
Reinsurance–0.35%
Reinsurance Group of America, Inc., 6.20% Unsec. Sub. Pfd.		2,000		59,620
Total Preferred Stocks (Cost $202,000)				233,475
	Principal Amount
Municipal Obligations–0.36%
Georgia (State of) Municipal Electric Authority (Plant Vogtle Units 3 & 4 Project J); Series 2010 A, Taxable Build America RB, 6.64%, 04/01/2057 (Cost $50,000)	$	50,000		61,555

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Core Plus Bond Fund

	Shares		Value
Common Stocks & Other Equity Interests–0.00%
Broadcasting–0.00%
Adelphia Recovery Trust–Series ACC-1(i)		87,412	$	18
Diversified Support Services–0.00%
ACC Claims Holdings, LLC(j)		73,980		277
Total Common Stocks & Other Equity Interests (Cost $22,181)				295

	Shares		Value
Money Market Funds–11.84%
Government & Agency Portfolio–Institutional Class, 0.89%(k)		1,198,838	$	1,198,838
Treasury Portfolio–Institutional Class, 0.85%(k)		799,226		799,226
Total Money Market Funds (Cost $1,998,064)				1,998,064
TOTAL INVESTMENTS–114.10% (Cost $18,772,376)				19,262,961
OTHER ASSETS LESS LIABILITIES–(14.10)%				(2,380,119	)
NET ASSETS–100.00%			$	16,882,842

Investment Abbreviations:

Ctfs.	– Certificates
Deb.	– Debentures
Gtd.	– Guaranteed
IO	– Interest Only
Jr.	– Junior
Pfd.	– Preferred
PIK	– Payment in Kind
RB	– Revenue Bonds

REIT	– Real Estate Investment Trust
REMICs	– Real Estate Mortgage Investment Conduits
Sec.	– Secured
Sr.	– Senior
Sub.	– Subordinated
TBA	– To Be Announced
Unsec.	– Unsecured

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2017 was $4,317,038, which represented 25.57% of the Fund’s Net Assets.

^(c)  Perpetual bond with no specified maturity date.

^(d)  All or a portion of this security is Payment-in-Kind.

Issuer	Cash Rate			PIK Rate
Eagle Holding Co. II, LLC, Sr. Unsec. PIK Notes		7.63	%		8.38	%

^(e)  Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2017.

^(f)  Security purchased on a forward commitment basis. This security is subject to dollar roll transactions. See Note 1K.

^(g)  Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund.

^(h)  All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1J and Note 4.

⁽ⁱ⁾  Non-income producing security acquired as part of the Adelphia Communications bankruptcy reorganization.

^(j)  Non-income producing security.

^(k)  The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of June 30, 2017.

Portfolio Composition

By security type, based on Total Investments

as of June 30, 2017

Bonds & Notes	58.6	%
U.S. Government Sponsored Agency Mortgage-Backed Securities	15.3
Asset-Backed Securities	9.0
U.S. Treasury Securities	5.2
Preferred Stocks	1.2
Security Types Each Less Than 1% of Portfolio	0.3
Money Market Funds	10.4

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Core Plus Bond Fund

Statement of Assets and Liabilities

June 30, 2017

(Unaudited)

Statement of Operations

For the six months ended June 30, 2017

(Unaudited)

Assets:
Investments, at value (Cost $16,774,312)	$	17,264,897
Investments in affiliated money market funds, at value and cost		1,998,064
Total investments, at value (Cost $18,772,376)		19,262,961
Receivable for:
Investments sold		3,769,009
Variation margin — futures		430
Fund shares sold		77,261
Dividends and interest		158,618
Investment for trustee deferred compensation and retirement plans		62,072
Other assets		372
Total assets		23,330,723
Liabilities:
Payable for:
Investments purchased		6,334,124
Fund shares reacquired		1,456
Swaps payable — OTC		639
Accrued fees to affiliates		4,779
Accrued trustees’ and officers’ fees and benefits		4,773
Accrued other operating expenses		37,925
Trustee deferred compensation and retirement plans		64,185
Total liabilities		6,447,881
Net assets applicable to shares outstanding	$	16,882,842
Net assets consist of:
Shares of beneficial interest	$	22,780,905
Undistributed net investment income		862,781
Undistributed net realized gain (loss)		(7,236,948	)
Net unrealized appreciation		476,104
	$	16,882,842
Net Assets:
Series I	$	16,758,739
Series II	$	124,103
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		2,580,678
Series II		19,220
Series I:
Net asset value per share	$	6.49
Series II:
Net asset value per share	$	6.46

Investment income:
Interest	$	345,358
Dividends		5,847
Dividends from affiliated money market funds		5,078
Total investment income		356,283
Expenses:
Advisory fees		36,316
Administrative services fees		35,794
Custodian fees		7,598
Distribution fees — Series II		155
Transfer agent fees		4,305
Trustees’ and officers’ fees and benefits		11,096
Reports to shareholders		5,533
Professional services fees		26,110
Other		9,400
Total expenses		136,307
Less: Fees waived and expenses reimbursed		(87,745	)
Net expenses		48,562
Net investment income		307,721
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		153,041
Futures contracts		(14,278	)
Swap agreements		(3,107	)
		135,656
Change in net unrealized appreciation (depreciation) of:
Investment securities		300,637
Futures contracts		(23,633	)
Swap agreements		2,859
		279,863
Net realized and unrealized gain		415,519
Net increase in net assets resulting from operations	$	723,240

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Core Plus Bond Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2017 and the year ended December 31, 2016

(Unaudited)

	June 30, 2017			December 31, 2016
Operations:
Net investment income	$	307,721		$	582,105
Net realized gain		135,656			97,505
Change in net unrealized appreciation		279,863			338,816
Net increase in net assets resulting from operations		723,240			1,018,426
Distributions to shareholders from net investment income:
Series I		—			(646,158	)
Series ll		—			(4,899	)
Total distributions from net investment income		—			(651,057	)
Share transactions-net:
Series l		555,365			(463,972	)
Series ll		(6,846	)		(35,515	)
Net increase (decrease) in net assets resulting from share transactions		548,519			(499,487	)
Net increase (decrease) in net assets		1,271,759			(132,118	)
Net assets:
Beginning of period		15,611,083			15,743,201
End of period (includes undistributed net investment income of $862,781 and $555,060, respectively)	$	16,882,842		$	15,611,083

Notes to Financial Statements

June 30, 2017

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Core Plus Bond Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance 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 consisting of twenty-four separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

The Fund’s investment objective is total return, comprised of current income and capital appreciation.

The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services — Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Invesco V.I. Core Plus Bond Fund

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D. Distributions— Distributions from net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

Invesco V.I. Core Plus Bond Fund

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 and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates— The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. Lower-Rated Securities— The Fund may invest in lower-quality debt securities, i.e., “junk bonds”. Investments in lower-rated securities or unrated securities of comparable quality tend to be more sensitive to economic conditions than higher rated securities. Junk bonds involve a greater risk of default by the issuer because such securities are generally unsecured and are often subordinated to other creditors’ claims.

J. Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between Counterparties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.

K. Dollar Rolls and Forward Commitment Transactions — The Fund may enter into dollar roll transactions to enhance the Fund’s performance. The Fund executes its dollar roll transactions in the to be announced (“TBA”) market whereby the Fund makes a forward commitment to purchase a security and, instead of accepting delivery, the position is offset by the sale of the security with a simultaneous agreement to repurchase at a future date.

The Fund accounts for dollar roll transactions as purchases and sales and realizes gains and losses on these transactions. These transactions increase the Fund’s portfolio turnover rate. The Fund will segregate liquid assets in an amount equal to its dollar roll commitments. Dollar roll transactions may be considered borrowings under the 1940 Act.

Dollar roll transactions involve the risk that a Counterparty to the transaction may fail to complete the transaction. If this occurs, the Fund may lose the opportunity to purchase or sell the security at the agreed upon price. Dollar roll transactions also involve the risk that the value of the securities retained by the Fund may decline below the price of the securities that the Fund has sold but is obligated to purchase under the agreement.

L. Swap Agreements— The Fund may enter into various swap transactions, including interest rate, total return, index, currency and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency or credit risk. Such transactions are agreements between Counterparties. A swap agreement may be negotiated bilaterally and traded over-the-counter (“OTC”) between two parties (“uncleared/OTC”) or, in some instances, must be transacted through a future commission merchant (“FCM”) and cleared through a clearinghouse that serves as a central Counterparty (“centrally cleared swap”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s NAV over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any.

Interest rate, total return, index, and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar

Invesco V.I. Core Plus Bond Fund

amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.

In a centrally cleared swap, the Fund’s ultimate Counterparty is a central clearinghouse. The Fund initially will enter into centrally cleared swaps through an executing broker. When a fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required upon entering into centrally cleared swaps are satisfied by cash or securities as collateral at the FCM. Securities deposited as initial margin are designated on the Schedule of Investments and cash deposited is recorded on the Statement of Assets and Liabilities. During the term of a cleared swap agreement, a “variation margin” amount may be required to be paid by the Fund or may be received by the Fund, based on the daily change in price of the underlying reference instrument subject to the swap agreement and is recorded as a receivable or payable for variation margin in the Statement of Assets and Liabilities until the centrally cleared swap is terminated at which time a realized gain or loss is recorded.

A CDS is an agreement between Counterparties to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer “par value” or the full notional value of the referenced obligation, and the Fund would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its Counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement. If a Counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund’s maximum risk of loss from Counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the Counterparty and by the designation of collateral by the Counterparty to cover the Fund’s exposure to the Counterparty.

Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.

An interest rate swap is an agreement between Counterparties pursuant to which the parties exchange a floating rate payment for a fixed rate payment based on a specified notional amount.

Changes in the value of centrally cleared and OTC swap agreements are recognized as unrealized gains (losses) in the Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statement of Operations. The Fund segregates cash or liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. Cash held as collateral is recorded as deposits with brokers on the Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.

M. Leverage Risk— Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction.

N. Collateral — To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

Invesco V.I. Core Plus Bond Fund

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays 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	.45%
Next $500 million		0	.425%
Next $1.5 billion		0	.40%
Next $2.5 billion		0	.375%
Over $5 billion		0	.35%

For the six months ended June 30, 2017, the effective advisory fees incurred by the Fund was 0.45%.

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 PowerShares Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least April 30, 2018, 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 Series I shares to 0.61% and Series II shares to 0.86% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, 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 April 30, 2018. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. To the extent that the annualized expense ratio does not exceed the expense limits, the Adviser will retain its ability to be reimbursed for such fee waivers or reimbursements prior to the end of each fiscal year.

Further, the Adviser has contractually agreed, through at least June 30, 2019, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended June 30, 2017, the Adviser waived advisory fees of $36,316 and reimbursed Fund expenses of $51,429.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2017, Invesco was paid $24,794 for accounting and fund administrative services and was reimbursed $11,000 for fees paid to insurance companies.

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. For the six months ended June 30, 2017, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2017, expenses incurred under the Plan are detailed 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Invesco V.I. Core Plus Bond 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 Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of June 30, 2017. 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
Bonds & Notes	$	—		$	11,285,870	$	—	$	11,285,870
U.S. Government Sponsored Agency Mortgage-Backed Securities		—			2,944,044		—		2,944,044
Asset-Backed Securities		—			1,736,960		—		1,736,960
U.S. Treasury Securities		—			1,002,698		—		1,002,698
Preferred Stocks		206,070			27,405		—		233,475
Municipal Obligations		—			61,555		—		61,555
Common Stocks & Other Equity Interests		—			18		277		295
Money Market Funds		1,998,064			—		—		1,998,064
		2,204,134			17,058,550		277		19,262,961
Futures Contracts*		(14,481	)		—		—		(14,481	)
Total Investments	$	2,189,653		$	17,058,550	$	277	$	19,248,480

* Unrealized appreciation (depreciation).

NOTE 4—Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a Fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

Open Futures Contracts
Futures Contracts	Type of Contract		Number of Contracts		Expiration Month		Notional Value			Unrealized Appreciation (Depreciation)
U.S. Treasury 2 Year Notes		Long		3		September-2017	$	648,328		$	(522	)
U.S. Treasury 5 Year Notes		Long		13		September-2017		1,531,867			(2,062	)
U.S. Treasury 10 Year Notes		Short		1		September-2017		(125,531	)		326
U.S. Treasury 10 Year Ultra Bonds		Long		2		September-2017		269,625			433
U.S. Treasury Long Bonds		Long		1		September-2017		153,688			1,223
U.S. Treasury Ultra Bonds		Short		5		September-2017		(829,375	)		(13,879	)
Total Futures Contracts — Interest Rate Risk										$	(14,481	)

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 June 30, 2017:

	Value
Derivative Assets	Interest Rate Risk
Unrealized appreciation on futures contracts — Exchange-Traded(a)	$	1,982
Derivatives not subject to master netting agreements		(1,982	)
Total Derivative Assets subject to master netting agreements	$	—

	Value
Derivative Liabilities	Interest Rate Risk
Unrealized depreciation on futures contracts — Exchange-Traded(a)	$	(16,463	)
Derivatives not subject to master netting agreements		16,463
Total Derivative Liabilities subject to master netting agreements	$	—

^(a)  Only current day’s variation margin receivable is reported within the Statement of Assets and Liabilities.

Invesco V.I. Core Plus Bond Fund

Effect of Derivative Investments for the six months ended June 30, 2017

The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:

	Location of Gain (Loss) on Statement of Operations
	Credit Risk			Interest Rate Risk			Total
Realized Gain (Loss):
Futures contracts	$	—		$	(14,278	)	$	(14,278	)
Swap agreements		(3,107	)		—			(3,107	)
Change in Net Unrealized Appreciation (Depreciation):
Futures contracts		—			(23,633	)		(23,633	)
Swap agreements		2,859			—			2,859
Total	$	(248	)	$	(37,911	)	$	(38,159	)

The table below summarizes the six month average notional value of futures contracts and the five month average notional value of swap agreements outstanding during the period.

	Futures Contracts		Swap Agreements
Average notional value	$	3,906,223	$	250,000

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 may borrow for leveraging in an amount up to 5% of the Fund’s total assets (excluding the amount borrowed) at the time the borrowing is made. In doing so, the Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. Such balances, if any at period end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks exceed 5% of the Fund’s total assets.

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund had a capital loss carryforward as of December 31, 2016, which expires as follows:

Capital Loss Carryforward*
Expiration	Short-Term		Long-Term		Total
December 31, 2017	$	7,359,092	$	—	$	7,359,092

* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

Invesco V.I. Core Plus Bond Fund

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2017 was $31,934,144 and $32,753,087, respectively. During the same period, purchases and sales of U.S. Treasury obligations were $6,955,161 and $7,222,572, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	579,986
Aggregate unrealized (depreciation) of investment securities		(93,763	)
Net unrealized appreciation of investment securities	$	486,223

Cost of investments for tax purposes is $18,776,738.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended June 30, 2017(a)						Year ended December 31, 2016
	Shares			Amount			Shares			Amount
Sold:
Series I		354,931		$	2,253,958			234,703		$	1,481,864
Series II		2			11			2			14
Issued as reinvestment of dividends:
Series I		—			—			102,079			646,158
Series II		—			—			716			4,517
Reacquired:
Series I		(266,573	)		(1,698,593	)		(412,191	)		(2,591,994	)
Series II		(1,085	)		(6,857	)		(6,221	)		(40,046	)
Net increase (decrease) in share activity		87,275		$	548,519			(80,912	)	$	(499,487	)

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 80% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. 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, third party record keeping and account servicing and administrative services. 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 10—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

	Net asset value, beginning of period		Net investment income(a)		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends from net investment income			Net asset value, end of period		Total return(b)			Net assets, end of period (000’s omitted)		Ratio of expenses to average net assets with fee waivers and/or expenses absorbed			Ratio of expenses to average net assets without fee waivers and/or expenses absorbed			Ratio of net investment income to average net assets			Portfolio turnover(c)
Series I
Six months ended 06/30/17	$	6.21	$	0.12	$	0.16		$	0.28		$	—		$	6.49		4.51	%	$	16,759		0.60	%(d)		1.69	%(d)		3.81	%(d)		222	%
Year ended 12/31/16		6.07		0.23		0.18			0.41			(0.27	)		6.21		6.66			15,485		0.55			1.68			3.71			474
Year ended 12/31/15		6.39		0.24		(0.26	)		(0.02	)		(0.30	)		6.07		(0.37	)		15,587		0.65			1.73			3.81			416
Year ended 12/31/14		6.23		0.26		0.24			0.50			(0.34	)		6.39		8.03			17,821		0.75			1.77			4.04			255
Year ended 12/31/13		6.54		0.27		(0.27	)		0.00			(0.31	)		6.23		0.05			19,671		0.75			1.76			4.18			150
Year ended 12/31/12		6.19		0.27		0.39			0.66			(0.31	)		6.54		10.71			22,741		0.75			1.49			4.19			66
Series II
Six months ended 06/30/17		6.19		0.11		0.16			0.27			—			6.46		4.36			124		0.85	(d)		1.94	(d)		3.56	(d)		222
Year ended 12/31/16		6.04		0.22		0.18			0.40			(0.25	)		6.19		6.52			126		0.80			1.93			3.46			474
Year ended 12/31/15		6.36		0.22		(0.26	)		(0.04	)		(0.28	)		6.04		(0.64	)		156		0.90			1.98			3.56			416
Year ended 12/31/14		6.19		0.24		0.24			0.48			(0.31	)		6.36		7.85			161		1.00			2.02			3.79			255
Year ended 12/31/13		6.50		0.25		(0.27	)		(0.02	)		(0.29	)		6.19		(0.26	)		172		1.00			2.01			3.93			150
Year ended 12/31/12		6.16		0.25		0.38			0.63			(0.29	)		6.50		10.38			277		1.00			1.74			3.94			66

^(a)  Calculated using average shares outstanding.

^(b)  Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year, if applicable, and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.

^(c)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(d) Ratios are annualized and based on average daily net assets (000’s omitted) of $16,149 and $125 for Series I and Series II shares, respectively.

Invesco V.I. Core Plus Bond Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2017 through June 30, 2017.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

Class	Beginning Account Value (01/01/17)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/17)1		Expenses Paid During Period2		Ending Account Value (06/30/17)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,045.10	$	3.04	$	1,021.82	$	3.01		0.60	%
Series II		1,000.00		1,045.30		4.31		1,020.58		4.26		0.85

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2017 through June 30, 2017, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

²  Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Core Plus Bond Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco V.I. Core Plus Bond Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the 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 PowerShares 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, 2017.

In evaluating the fairness and reasonableness of compensation under the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board determined that continuation of the Fund’s investment advisory agreement and the sub-advisory contracts is in the best interest of the Fund and its shareholders and that the compensation payable to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Board had the benefit of reports from the Sub-Committees and Investments Committee throughout the year in considering approval of the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Board receives comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The

Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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 addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The Trustees recognized that the advisory fee rates for the Invesco Funds are, in most cases, the result of years of review and negotiation. The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these arrangements throughout the year and in prior years. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them 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 discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement 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. This information is current as of June 13, 2017, and does not reflect consideration of factors that became known to the Board after that date.

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 advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers. The Board’s review included consideration of Invesco Advisers’ investment process oversight, credit analysis and investment risk management. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, trading operations, internal audit, valuation and legal and compliance.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the greater uncertainty that may be associated with entering into a new relationship. 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 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 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 in which the Fund may invest, make recommendations regarding securities and assist with security trades. 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 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 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, 2016 to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Fund Core Plus Bond Funds Index. The Board noted that performance of Series I shares of the Fund was in the first 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 Series I shares of the Fund was above the performance of the Index for the one, three and five year periods. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees

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 at a common asset level. The Board noted that the contractual

Invesco V.I. Core Plus Bond Fund

management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing 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 noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2018 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 compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/waivers) to the effective advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, based on asset balances as of December 31, 2016. The Board noted that the Fund’s rate was above the rate of one mutual fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other client accounts with investment strategies comparable to those of the Fund. The Board noted that Invesco Advisers or the Affiliated Sub-Advisers may charge lower fees to large institutional clients. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to certain other types of client accounts. These additional services include provision of administrative services, officers and office space, oversight of service providers, preparation of annual registration statement updates and financial information and regulatory compliance under the Investment Company Act of 1940, as amended.

Invesco Advisers also reviewed generally the higher frequency of shareholder purchases and redemptions in the Invesco Funds relative to the flow of assets for other client accounts. Invesco Advisers advised the Board that advance notice of redemptions is often provided to Invesco Advisers by institutional clients. The Board did note that sub-advisory fee rates charged by the Affiliated Sub-Advisers to manage the Invesco Funds and to manage other client accounts tended to be more comparable, reflecting a similar scope of services.

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 also noted that the sub-advisory fees are not paid directly by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds advised by Invesco Advisers.

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. 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. The Board noted that although Invesco Advisers received a minimal amount of revenues from advising the Fund, Invesco Advisers and its subsidiaries did not make a profit from managing the Fund. The Board received and accepted information from Invesco Advisers demonstrating that Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. Invesco Advisers noted that the Fund does not

execute brokerage transactions through “soft dollar” arrangements to any significant degree.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds with respect to certain investments in the affiliated money market funds. The waiver is in 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

Invesco V.I. Core Plus Bond Fund

Proxy Results

A Special Joint Meeting (“Meeting”) of Shareholders of Invesco V.I. Core Plus Bond Fund, an investment portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), a Delaware statutory trust (“Trust”), was held on March 9, 2017. The Meeting was held for the following purposes:

(1) Elect 15 trustees to the Board, each of whom will serve until his or her successor is elected and qualified.

(2) Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.

(3) Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities.

(4)(a) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC.

(4)(b) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited.

The results of the voting on the above matters were as follows:

	Matters					Votes For		Votes Withheld
(1)*	David C. Arch						1,256,086,249		71,094,301
	James T. Bunch						1,254,410,156		72,770,397
	Bruce L. Crockett						1,258,363,948		68,816,603
	Jack M. Fields						1,255,101,592		72,078,961
	Martin L. Flanagan						1,257,885,397		69,295,160
	Cynthia Hostetler						1,261,335,247		65,845,303
	Dr. Eli Jones						1,257,497,296		69,683,257
	Dr. Prema Mathai-Davis						1,254,728,756		72,451,795
	Teresa M. Ressel						1,261,829,473		65,351,074
	Dr. Larry Soll						1,254,261,019		72,919,533
	Ann Barnett Stern						1,260,861,373		66,319,176
	Raymond Stickel, Jr.						1,254,379,471		72,801,083
	Philip A. Taylor						1,256,589,912		70,590,639
	Robert C. Troccoli						1,260,867,549		66,313,003
	Christopher L. Wilson						1,260,186,985		66,993,567
		Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(2)*	Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions		1,054,920,918		171,591,974		100,667,642		18

	Matters	Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(3)	Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities		2,094,333		143,010		251,389		0
(4)(a)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC		2,123,851		94,526		270,355		0
(4)(b)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited		2,027,588		170,619		290,525		0

* Each of proposal 1 and 2 required approval by a combined vote of all of the portfolios of AIM Variable Insurance Funds (Invesco Variable Insurance Funds).

Invesco V.I. Core Plus Bond Fund

	Semiannual Report to Shareholders	June 30, 2017
	Invesco V.I. Diversified Dividend Fund

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/ proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

  Invesco Distributors, Inc. VIDDI-SAR-1     07182017 0931

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/16 to 6/30/17, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	3.41	%
Series II Shares	3.28
S&P 500 Index▼ (Broad Market Index)	9.34
Russell 1000 Value Index▼ (Style-Specific Index)	4.66
Lipper VUF Large-Cap Value Funds Index∎ (Peer Group Index)	5.66
Source(s): ▼FactSet Research Systems Inc.; ∎Lipper Inc.

The S&P 500^® Index is an unmanaged index considered representative of the US stock market.

The Russell 1000^® Value Index is an unmanaged index considered representative of large-cap value stocks. The Russell 1000 Value Index is a trademark/service mark of the Frank Russell Co. Russell^® is a trademark of the Frank Russell Co.

The Lipper VUF Large-Cap Value Funds Index is an unmanaged index considered representative of large-cap value variable insurance underlying funds tracked by Lipper.

The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns As of 6/30/17
Series I Shares
Inception (3/1/90)	8.21	%
10 Years	6.18
5 Years	14.27
1 Year	8.90
Series II Shares
Inception (6/5/00)	5.60	%
10 Years	5.92
5 Years	13.99
1 Year	8.63

Effective June 1, 2010, Class X and Class Y shares of the predecessor fund, Morgan Stanley Variable Investment Dividend Growth Portfolio, advised by Morgan Stanley Investment Advisors Inc. were reorganized into Series I and Series II shares, respectively, of Invesco V.I. Dividend Growth Fund (renamed Invesco V.I. Diversified Dividend Fund on April 30, 2012). Returns shown above, prior to June 1, 2010, for Series I and Series II shares are blended returns of the predecessor fund and Invesco V.I. Diversified Dividend Fund. Share class returns will differ from the predecessor fund because of different expenses.

The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.68% and 0.93%, respectively.¹ The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.70% and 0.95%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Invesco V.I. Diversified Dividend Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

The most recent month-end performance at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

1 Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2019. See current prospectus for more information.

Invesco V.I. Diversified Dividend Fund

Schedule of Investments^(a)

June 30, 2017

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–87.22%
Aerospace & Defense–1.81%
General Dynamics Corp.		38,605	$	7,647,650
Raytheon Co.		27,833		4,494,473
				12,142,123
Air Freight & Logistics–1.01%
United Parcel Service, Inc.–Class B		61,206		6,768,772
Apparel Retail–0.49%
TJX Cos., Inc. (The)		45,375		3,274,714
Apparel, Accessories & Luxury Goods–1.05%
Coach, Inc.		80,831		3,826,539
Columbia Sportswear Co.		55,248		3,207,699
				7,034,238
Asset Management & Custody Banks–1.17%
Federated Investors, Inc.–Class B		147,243		4,159,615
Legg Mason, Inc.		96,986		3,700,986
				7,860,601
Brewers–1.58%
Heineken N.V. (Netherlands)		108,848		10,603,840
Consumer Finance–1.76%
American Express Co.		140,305		11,819,293
Data Processing & Outsourced Services–0.82%
Automatic Data Processing, Inc.		53,576		5,489,397
Drug Retail–1.02%
Walgreens Boots Alliance, Inc.		88,026		6,893,316
Electric Utilities–11.16%
American Electric Power Co., Inc.		143,802		9,989,925
Duke Energy Corp.		126,877		10,605,648
Entergy Corp.		156,092		11,983,183
Exelon Corp.		475,635		17,156,155
PPL Corp.		524,176		20,264,644
SSE PLC (United Kingdom)		264,597		5,007,392
				75,006,947
Electrical Components & Equipment–2.59%
ABB Ltd. (Switzerland)		340,588		8,425,769
Emerson Electric Co.		151,331		9,022,354
				17,448,123
Food Distributors–1.19%
Sysco Corp.		159,126		8,008,812
General Merchandise Stores–1.43%
Target Corp.		184,460		9,645,413
Health Care Equipment–0.78%
Stryker Corp.		37,711		5,233,533

	Shares		Value
Hotels, Resorts & Cruise Lines–0.55%
Accor S.A. (France)		78,739	$	3,710,436
Household Products–3.15%
Kimberly-Clark Corp.		54,195		6,997,116
Procter & Gamble Co. (The)		162,838		14,191,332
				21,188,448
Housewares & Specialties–0.76%
Newell Brands, Inc.		95,173		5,103,176
Human Resource & Employment Services–0.52%
Robert Half International, Inc.		72,304		3,465,531
Industrial Machinery–2.16%
Flowserve Corp.		210,472		9,772,215
Pentair PLC (United Kingdom)		71,041		4,727,068
				14,499,283
Integrated Oil & Gas–4.52%
Royal Dutch Shell PLC–Class B (United Kingdom)		172,471		4,633,094
Suncor Energy, Inc. (Canada)		466,540		13,630,875
TOTAL S.A. (France)		244,810		12,129,486
				30,393,455
Integrated Telecommunication Services–5.36%
AT&T Inc.		514,948		19,428,988
BT Group PLC (United Kingdom)		2,285,169		8,772,698
Deutsche Telekom AG (Germany)		434,465		7,808,079
				36,009,765
Motorcycle Manufacturers–1.23%
Harley-Davidson, Inc.		153,510		8,292,610
Movies & Entertainment–0.92%
Time Warner Inc.		61,617		6,186,963
Multi-Line Insurance–2.87%
Hartford Financial Services Group, Inc. (The)		366,605		19,272,425
Multi-Utilities–4.68%
Consolidated Edison, Inc.		132,805		10,733,300
Dominion Energy, Inc.		167,392		12,827,249
Sempra Energy		70,342		7,931,061
				31,491,610
Oil & Gas Drilling–0.33%
Nabors Industries Ltd.		276,931		2,254,218
Oil & Gas Equipment & Services–0.27%
Baker Hughes Inc.		33,689		1,836,387
Oil & Gas Exploration & Production–1.25%
ConocoPhillips		192,011		8,440,804

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Diversified Dividend Fund

	Shares		Value
Packaged Foods & Meats–7.39%
Campbell Soup Co.		195,923	$	10,217,384
General Mills, Inc.		354,481		19,638,247
Kraft Heinz Co. (The)		133,059		11,395,173
Mondelez International, Inc.–Class A		194,646		8,406,761
				49,657,565
Paper Packaging–2.45%
Avery Dennison Corp.		37,459		3,310,252
International Paper Co.		163,525		9,257,150
Sonoco Products Co.		75,988		3,907,303
				16,474,705
Personal Products–0.62%
L’Oreal S.A. (France)		19,860		4,137,397
Pharmaceuticals–4.45%
Bayer AG (Germany)		24,866		3,217,265
Bristol-Myers Squibb Co.		196,120		10,927,806
Eli Lilly and Co.		121,719		10,017,474
Johnson & Johnson		43,676		5,777,898
				29,940,443
Property & Casualty Insurance–0.86%
Travelers Cos., Inc. (The)		45,914		5,809,498
Regional Banks–7.31%
Cullen/Frost Bankers, Inc.		48,743		4,577,455
Fifth Third Bancorp		284,933		7,396,861
KeyCorp		383,854		7,193,424
M&T Bank Corp.		69,344		11,230,261
PNC Financial Services Group, Inc. (The)		68,794		8,590,307

	Shares		Value
Regional Banks–(continued)
Zions Bancorp.		231,526	$	10,166,306
				49,154,614
Restaurants–0.80%
Darden Restaurants, Inc.		59,313		5,364,268
Semiconductors–0.03%
Analog Devices, Inc.		2,558		199,012
Soft Drinks–2.81%
Coca-Cola Co. (The)		421,705		18,913,469
Specialized REIT’s–1.54%
Weyerhaeuser Co.		309,281		10,360,914
Tobacco–2.53%
Altria Group, Inc.		90,788		6,760,982
Philip Morris International Inc.		87,433		10,269,006
				17,029,988
Total Common Stocks & Other Equity Interests (Cost $449,152,135)				586,416,106
Money Market Funds–13.24%
Government & Agency Portfolio–Institutional Class, 0.89%(b)		53,419,868		53,419,868
Treasury Portfolio–Institutional Class, 0.85%(b)		35,613,245		35,613,245
Total Money Market Funds (Cost $89,033,113)				89,033,113
TOTAL INVESTMENTS–100.46% (Cost $538,185,248)				675,449,219
OTHER ASSETS LESS LIABILITIES–(0.46)%				(3,094,041	)
NET ASSETS–100.00%			$	672,355,178

Investment Abbreviations:

REIT – Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of June 30, 2017.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2017

Consumer Staples	20.3	%
Utilities	15.8
Financials	14.0
Industrials	8.1
Consumer Discretionary	7.2
Energy	6.4
Telecommunication Services	5.4
Health Care	5.2
Materials	2.5
Real Estate	1.5
Information Technology	0.8
Money Market Funds Plus Other Assets Less Liabilities	12.8

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Diversified Dividend Fund

Statement of Assets and Liabilities

June 30, 2017

(Unaudited)

Statement of Operations

For the six months ended June 30, 2017

(Unaudited)

Assets:
Investments, at value (Cost $449,152,135)	$	586,416,106
Investments in affiliated money market funds, at value and cost		89,033,113
Total investments, at value (Cost $538,185,248)		675,449,219
Foreign currencies, at value (Cost $700,638)		707,613
Receivable for:
Investments sold		1,068,702
Fund shares sold		165,042
Dividends		1,023,558
Investment for trustee deferred compensation and retirement plans		84,143
Unrealized appreciation on forward foreign currency contracts outstanding		11,874
Total assets		678,510,151
Liabilities:
Payable for:
Investments purchased		4,738,873
Fund shares reacquired		207,011
Accrued fees to affiliates		360,869
Accrued trustees’ and officers’ fees and benefits		6,560
Accrued other operating expenses		67,353
Trustee deferred compensation and retirement plans		124,650
Unrealized depreciation on forward foreign currency contracts outstanding		649,657
Total liabilities		6,154,973
Net assets applicable to shares outstanding	$	672,355,178
Net assets consist of:
Shares of beneficial interest	$	486,053,283
Undistributed net investment income		16,488,585
Undistributed net realized gain		33,179,159
Net unrealized appreciation		136,634,151
	$	672,355,178
Net Assets:
Series I	$	439,116,911
Series II	$	233,238,267
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		16,098,759
Series II		8,610,001
Series I:
Net asset value per share	$	27.28
Series II:
Net asset value per share	$	27.09

Investment income:
Dividends (net of foreign withholding taxes of $162,921)	$	8,161,795
Dividends from affiliated money market funds		278,600
Total investment income		8,440,395
Expenses:
Advisory fees		1,555,826
Administrative services fees		499,109
Custodian fees		16,094
Distribution fees — Series II		281,292
Transfer agent fees		12,035
Trustees’ and officers’ fees and benefits		20,700
Reports to shareholders		58,605
Professional services fees		17,135
Other		4,099
Total expenses		2,464,895
Less: Fees waived		(54,381	)
Net expenses		2,410,514
Net investment income		6,029,881
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		14,772,893
Foreign currencies		13,280
Forward foreign currency contracts		(703,961	)
		14,082,212
Change in net unrealized appreciation (depreciation) of:
Investment securities		2,859,884
Foreign currencies		6,043
Forward foreign currency contracts		(920,384	)
		1,945,543
Net realized and unrealized gain		16,027,755
Net increase in net assets resulting from operations	$	22,057,636

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Diversified Dividend Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2017 and the year ended December 31, 2016

(Unaudited)

	June 30, 2017			December 31, 2016
Operations:
Net investment income	$	6,029,881		$	10,874,801
Net realized gain		14,082,212			25,956,331
Change in net unrealized appreciation		1,945,543			40,354,776
Net increase in net assets resulting from operations		22,057,636			77,185,908
Distributions to shareholders from net investment income:
Series I		—			(5,214,115	)
Series ll		—			(2,189,930	)
Total distributions from net investment income		—			(7,404,045	)
Share transactions–net:
Series l		(15,633,616	)		57,813,882
Series ll		10,460,308			61,825,573
Net increase (decrease) in net assets resulting from share transactions		(5,173,308	)		119,639,455
Net increase in net assets		16,884,328			189,421,318
Net assets:
Beginning of period		655,470,850			466,049,532
End of period (includes undistributed net investment income of $16,488,585 and $10,458,704, respectively)	$	672,355,178		$	655,470,850

Notes to Financial Statements

June 30, 2017

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Diversified Dividend Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance 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 consisting of twenty-four separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

The Fund’s investment objective is to provide reasonable current income and long-term growth of income and capital.

The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services — Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for

Invesco V.I. Diversified Dividend Fund

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. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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.

Invesco V.I. Diversified Dividend Fund

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 and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. 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 date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

J. Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays 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	.545%
Next $750 million		0	.42%
Next $1 billion		0	.395%
Over $2 billion		0	.37%

For the six months ended June 30, 2017, the effective advisory fees incurred by the Fund was 0.47%.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco PowerShares Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

Invesco V.I. Diversified Dividend Fund

The Adviser has contractually agreed, through at least June 30, 2018, 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 Series I shares to 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2018. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2019, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended June 30, 2017, the Adviser waived advisory fees of $54,381.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2017, Invesco was paid $79,193 for accounting and fund administrative services and was reimbursed $419,916 for fees paid to insurance companies.

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. For the six months ended June 30, 2017, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2017, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2017, the Fund incurred $30 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of June 30, 2017. 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
Common Stocks & Other Equity Interests	$	540,521,232	$	45,894,874		$	—	$	586,416,106
Money Market Funds		89,033,113		—			—		89,033,113
		629,554,345		45,894,874			—		675,449,219
Forward Foreign Currency Contracts*		—		(637,783	)		—		(637,783	)
Total Investments	$	629,554,345	$	45,257,091		$	—	$	674,811,436

* Unrealized appreciation (depreciation).

Invesco V.I. Diversified Dividend Fund

NOTE 4—Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a Fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Open Forward Foreign Currency Contracts
Settlement Date			Contract to						Notional Value		Unrealized Appreciation (Depreciation)
	Counterparty		Deliver			Receive
07/21/17	Citigroup Global Markets Inc.			CAD	3,482,202		USD	2,579,858	$	2,686,283	$	(106,425	)
07/21/17	Citigroup Global Markets Inc.			EUR	6,571,857		USD	7,404,201		7,514,897		(110,696	)
07/21/17	Goldman Sachs International			CAD	3,489,972		USD	2,585,721		2,692,277		(106,556	)
07/21/17	Goldman Sachs International			EUR	6,070,319		USD	6,839,026		6,941,390		(102,364	)
07/21/17	Goldman Sachs International			USD	219,152		CAD	292,649		225,759		6,607
07/21/17	Merrill Lynch International			CAD	3,482,202		USD	2,579,867		2,686,283		(106,416	)
07/21/17	Merrill Lynch International			EUR	6,902,014		USD	7,775,536		7,892,431		(116,895	)
07/21/17	Merrill Lynch International			USD	32,472		CAD	43,512		33,567		1,095
07/21/17	Merrill Lynch International			USD	40,072		EUR	35,384		40,461		389
07/21/17	State Street Bank and Trust Co.			EUR	88,572		USD	100,977		101,282		(305	)
07/21/17	State Street Bank and Trust Co.	��		USD	194,534		EUR	173,430		198,317		3,783
Total Forward Foreign Currency Contracts — Currency Risk											$	(637,783	)

Currency Abbreviations:

CAD	– Canadian Dollar
EUR	– Euro
USD	– U.S. Dollar

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 June 30, 2017:

Derivative Assets	Value
	Currency Risk
Unrealized appreciation on forward foreign currency contracts outstanding	$	11,874
Derivatives not subject to master netting agreements		—
Total Derivative Assets subject to master netting agreements	$	11,874
Derivative Liabilities	Value
	Currency Risk
Unrealized depreciation on forward foreign currency contracts outstanding	$	(649,657	)
Derivatives not subject to master netting agreements		—
Total Derivative Liabilities subject to master netting agreements	$	(649,657	)

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 June 30, 2017.

	Financial Derivative Assets		Financial Derivative Liabilities						Collateral (Received)/Pledged
Counterparty	Forward Foreign Currency Contracts		Forward Foreign Currency Contracts			Net Value of Derivatives			Non-Cash		Cash		Net Amount
Citigroup Global Markets Inc.	$	—	$	(217,121	)	$	(217,121	)	$	—	$	—	$	(217,121	)
Goldman Sachs International		6,607		(208,920	)		(202,313	)						(202,313	)
Merrill Lynch International		1,484		(223,311	)		(221,827	)						(221,827	)
State Street Bank and Trust Co.		3,783		(305	)		3,478			—		—		3,478
Total	$	11,874	$	(649,657	)	$	(637,783	)	$	—	$	—	$	(637,783	)

Invesco V.I. Diversified Dividend Fund

Effect of Derivative Investments for the six months ended June 30, 2017

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	$	(703,961	)
Change in Net Unrealized Appreciation (Depreciation):
Forward foreign currency contracts		(920,384	)
Total	$	(1,624,345	)

The table below summarizes the average notional value of forward foreign currency contracts outstanding during the period.

	Forward Foreign Currency Contracts
Average notional value	$	27,097,420

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 State Street Bank and Trust Company, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund had a capital loss carryforward as of December 31, 2016, which expires as follows:

Capital Loss Carryforward*
Expiration	Short-Term		Long-Term		Total
December 31, 2017	$	3,085,823	$	—	$	3,085,823

* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

Invesco V.I. Diversified Dividend Fund

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2017 was $63,513,731 and $52,110,981, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	144,451,285
Aggregate unrealized (depreciation) of investment securities		(7,756,747	)
Net unrealized appreciation of investment securities	$	136,694,538

Cost of investments for tax purposes is $538,754,681.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended June 30, 2017(a)						Year ended December 31, 2016
	Shares			Amount			Shares			Amount
Sold:
Series I		995,110		$	26,783,019			4,800,783		$	118,506,697
Series II		809,863			21,728,982			3,129,929			77,280,863
Issued as reinvestment of dividends:
Series I		—			—			206,092			5,214,115
Series II		—			—			86,971			2,189,930
Reacquired:
Series I		(1,568,847	)		(42,416,635	)		(2,670,659	)		(65,906,930	)
Series II		(418,858	)		(11,268,674	)		(717,830	)		(17,645,220	)
Net increase (decrease) in share activity		(182,732	)	$	(5,173,308	)		4,835,286		$	119,639,455

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 64% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. 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, third party record keeping and account servicing and administrative services. 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 10—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 on securities (both realized and unrealized)		Total from investment  operations		Dividends from net investment  income			Net asset  value, end of period		Total return(b)			Net assets, end of period (000’s omitted)		Ratio of expenses  to average net assets with fee waivers and/or expenses absorbed			Ratio of expenses to average net assets without  fee waivers and/or expenses absorbed			Ratio of net investment income to average net assets			Portfolio turnover(c)
Series I
Six months ended 06/30/17	$	26.38	$	0.25	$	0.65	$	0.90	$	—		$	27.28		3.41	%	$	439,117		0.63	%(d)		0.65	%(d)		1.90	%(d)		9	%
Year ended 12/31/16		23.27		0.50		2.93		3.43		(0.32	)		26.38		14.81			439,857		0.66			0.68			2.02			14
Year ended 12/31/15		23.21		0.43		0.04		0.47		(0.41	)		23.27		2.07			333,573		0.70			0.71			1.84			15
Year ended 12/31/14		20.93		0.40		2.26		2.66		(0.38	)		23.21		12.83			330,370		0.72			0.73			1.80			6
Year ended 12/31/13		16.34		0.33		4.70		5.03		(0.44	)		20.93		31.04			321,581		0.71			0.72			1.76			20
Year ended 12/31/12		14.04		0.35		2.27		2.62		(0.32	)		16.34		18.72			271,407		0.67			0.68			2.29			11
Series II
Six months ended 06/30/17		26.23		0.22		0.64		0.86		—			27.09		3.28			233,238		0.88	(d)		0.90	(d)		1.65	(d)		9
Year ended 12/31/16		23.16		0.43		2.92		3.35		(0.28	)		26.23		14.54			215,614		0.91			0.93			1.77			14
Year ended 12/31/15		23.11		0.37		0.04		0.41		(0.36	)		23.16		1.82			132,477		0.95			0.96			1.59			15
Year ended 12/31/14		20.85		0.34		2.25		2.59		(0.33	)		23.11		12.54			105,813		0.97			0.98			1.55			6
Year ended 12/31/13		16.28		0.29		4.69		4.98		(0.41	)		20.85		30.76			97,628		0.96			0.97			1.51			20
Year ended 12/31/12		14.00		0.31		2.26		2.57		(0.29	)		16.28		18.37			72,641		0.92			0.93			2.04			11

^(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. Total returns are not annualized for periods less than one year, if applicable and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.

^(c)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(d)  Ratios are annualized and based on average daily net assets (000’s omitted) of $445,706 and $226,898 for Series I and Series II shares, respectively.

Invesco V.I. Diversified Dividend Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2017 through June 30, 2017.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

Class	Beginning Account Value (01/01/2017)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/2017)1		Expenses Paid During Period2		Ending Account Value (06/30/2017)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,034.10	$	3.18	$	1,021.67	$	3.16		0.63	%
Series II		1,000.00		1,032.80		4.44		1,020.43		4.41		0.88

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2017 through June 30, 2017, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

²  Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Diversified Dividend Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco V.I. Diversified Dividend Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the 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 PowerShares 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, 2017.

In evaluating the fairness and reasonableness of compensation under the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board determined that continuation of the Fund’s investment advisory agreement and the sub-advisory contracts is in the best interest of the Fund and its shareholders and that the compensation payable to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Board had the benefit of reports from the Sub-Committees and Investments Committee throughout the year in considering approval of the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Board receives comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The

Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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 addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The Trustees recognized that the advisory fee rates for the Invesco Funds are, in most cases, the result of years of review and negotiation. The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these arrangements throughout the year and in prior years. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them 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 discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement 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. This information is current as of June 13, 2017, and does not reflect consideration of factors that became known to the Board after that date.

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 advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers. The Board’s review included consideration of Invesco Advisers’ investment process oversight, credit analysis and investment risk management. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, trading operations, internal audit, valuation and legal and compliance.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the greater uncertainty that may be associated with entering into a new relationship. 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 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 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 in which the Fund may invest, make recommendations regarding securities and assist with security trades. 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 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 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 periods ending December 31, 2016 to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds Large-Cap Value Funds Index. The Board noted that performance of Series I shares of the Fund was in the fourth quintile of its performance universe for the one year period and the first 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 Series I shares of the Fund was below the performance of the Index for the one year period and above the performance of the Index for the three and five year periods. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees

The Board compared the Fund’s contractual management fee rate to the contractual

Invesco V.I. Diversified Dividend Fund

management fee rates of funds in the Fund’s Broadridge expense group at a common asset level. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing 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 compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/waivers) to the effective advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, based on asset balances as of December 31, 2016. The Board noted that the Fund’s rate was above the rate of one mutual fund and below the rate of an offshore fund advised by Invesco Advisers using a similar investment process.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other client accounts with investment strategies comparable to those of the Fund. The Board noted that Invesco Advisers or the Affiliated Sub-Advisers may charge lower fees to large institutional clients. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to certain other types of client accounts. These additional services include provision of administrative services, officers and office space, oversight of service providers, preparation of annual registration statement updates and financial information and regulatory compliance under the Investment Company Act of 1940, as amended.

Invesco Advisers also reviewed generally the higher frequency of shareholder purchases and redemptions in the Invesco Funds relative to the flow of assets for other client accounts. Invesco Advisers advised the Board that advance notice of redemptions is often provided to Invesco Advisers by institutional clients. The Board did note that sub-advisory fee rates charged by the Affiliated Sub-Advisers to manage the Invesco Funds and to manage other client accounts tended to be more comparable, reflecting a similar scope of services.

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 also noted that the sub-advisory fees are not paid directly by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds advised by Invesco Advisers.

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. 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 and the Fund. The Board received and accepted information from Invesco Advisers demonstrating that Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; and 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 periodic reports from the Chief Compliance Officer of the

Invesco Funds demonstrating 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 money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds with respect to certain investments in the affiliated money market funds. The waiver is in 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that the Fund may use an affiliated broker to execute certain trades for the Fund to, among other things, control information leakage, and was advised that such trades would be executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Diversified Dividend Fund

Proxy Results

A Special Joint Meeting (“Meeting”) of Shareholders of Invesco V.I. Diversified Dividend Fund, an investment portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), a Delaware statutory trust (“Trust”), was held on March 9, 2017. The Meeting was held for the following purposes:

(1) Elect 15 trustees to the Board, each of whom will serve until his or her successor is elected and qualified.

(2) Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.

(3) Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities.

(4)(a) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC.

(4)(b) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited.

The results of the voting on the above matters were as follows:

	Matters					Votes For		Votes Withheld
(1)*	David C. Arch						1,256,086,249		71,094,301
	James T. Bunch						1,254,410,156		72,770,397
	Bruce L. Crockett						1,258,363,948		68,816,603
	Jack M. Fields						1,255,101,592		72,078,961
	Martin L. Flanagan						1,257,885,397		69,295,160
	Cynthia Hostetler						1,261,335,247		65,845,303
	Dr. Eli Jones						1,257,497,296		69,683,257
	Dr. Prema Mathai-Davis						1,254,728,756		72,451,795
	Teresa M. Ressel						1,261,829,473		65,351,074
	Dr. Larry Soll						1,254,261,019		72,919,533
	Ann Barnett Stern						1,260,861,373		66,319,176
	Raymond Stickel, Jr.						1,254,379,471		72,801,083
	Philip A. Taylor						1,256,589,912		70,590,639
	Robert C. Troccoli						1,260,867,549		66,313,003
	Christopher L. Wilson						1,260,186,985		66,993,567
		Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(2)*	Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.		1,054,920,918		171,591,974		100,667,642		18
	Matters	Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(3)	Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities		17,446,867		1,846,249		2,065,826		0
(4)(a)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC		18,277,787		1,207,860	��	1,873,295		0
(4)(b)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited		17,927,741		1,481,138		1,950,063		0

* Each of proposal 1 and 2 required approval by a combined vote of all of the portfolios of AIM Variable Insurance Funds (Invesco Variable Insurance Funds).

Invesco V.I. Diversified Dividend Fund

	Semiannual Report to Shareholders	June 30, 2017
	Invesco V.I. Equally-Weighted S&P 500 Fund

    

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

 Invesco Distributors, Inc. MS-VIEWSP-SAR-1     08072017 0956

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/16 to 6/30/17, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	7.95	%
Series II Shares	7.79
S&P 500 Index▼ (Broad Market Index)	9.34
S&P 500 Equal Weight Index▼ (Style-Specific Index)	8.05
Lipper VUF Multi-Cap Core Funds Index∎ (Peer Group Index)	8.13
Source(s): ▼FactSet Research Systems Inc.; ∎Lipper Inc.

The S&P 500^® Index is an unmanaged index considered representative of the US stock market.

The S&P 500^® Equal Weight Index is the equally weighted version of the S&P 500 Index.

The Lipper VUF Multi-Cap Core Funds Index is an unmanaged index considered representative of multi-cap core variable insurance underlying funds tracked by Lipper.

A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns As of 6/30/17
Series I Shares
Inception (11/9/94)	10.74	%
10 Years	7.86
5 Years	14.96
1 Year	16.96
Series II Shares
Inception (7/24/00)	8.60	%
10 Years	7.59
5 Years	14.68
1 Year	16.63

Effective June 1, 2010, Class X and Class Y shares of the predecessor fund, Morgan Stanley V.I. Select Dimensions Equally-Weighted S&P 500 Fund, advised by Morgan Stanley Investment Advisors Inc. were reorganized into Series I and Series II shares, respectively, of Invesco V.I. Select Dimensions Equally-Weighted S&P 500 Fund (renamed Invesco V.I. Equally-Weighted S&P 500 Fund on April 30, 2012). Returns shown above, prior to June 1, 2010, for Series I and Series II shares are blended returns of the predecessor fund and Invesco V.I. Equally-Weighted S&P 500 Fund. Share class returns will differ from the predecessor fund because of different expenses.

The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.39% and 0.64%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Invesco V.I. Equally-Weighted S&P 500 Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

The most recent month-end performance at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

Invesco V.I. Equally-Weighted S&P 500 Fund

Schedule of Investments^(a)

June 30, 2017

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–98.17%
Advertising–0.40%
Interpublic Group of Cos., Inc. (The)		16,204	$	398,618
Omnicom Group Inc.		4,784		396,594
				795,212
Aerospace & Defense–2.14%
Arconic Inc.		14,255		322,876
Boeing Co. (The)		2,049		405,190
General Dynamics Corp.		1,965		389,266
L3 Technologies, Inc.		2,345		391,803
Lockheed Martin Corp.		1,407		390,597
Northrop Grumman Corp.		1,519		389,942
Raytheon Co.		2,430		392,396
Rockwell Collins, Inc.		3,714		390,267
Textron Inc.		8,247		388,434
TransDigm Group, Inc.		1,444		388,248
United Technologies Corp.		3,232		394,660
				4,243,679
Agricultural & Farm Machinery–0.19%
Deere & Co.		3,096		382,635
Agricultural Products–0.19%
Archer-Daniels-Midland Co.		9,281		384,048
Air Freight & Logistics–0.81%
C.H. Robinson Worldwide, Inc.		5,747		394,704
Expeditors International of Washington, Inc.		7,115		401,855
FedEx Corp.		1,889		410,537
United Parcel Service, Inc.–Class B		3,643		402,879
				1,609,975
Airlines–0.98%
Alaska Air Group, Inc.		4,336		389,199
American Airlines Group Inc.		7,758		390,383
Delta Air Lines, Inc.		7,357		395,365
Southwest Airlines Co.		6,559		407,576
United Continental Holdings Inc.(b)		4,947		372,262
				1,954,785
Alternative Carriers–0.19%
Level 3 Communications, Inc.(b)		6,254		370,862
Apparel Retail–0.94%
Foot Locker, Inc.		7,119		350,824
Gap, Inc. (The)		17,084		375,677
L Brands, Inc.		7,460		402,019
Ross Stores, Inc.		6,294		363,353
TJX Cos., Inc. (The)		5,293		381,996
				1,873,869

	Shares		Value
Apparel, Accessories & Luxury Goods–1.42%
Coach, Inc.		8,347	$	395,147
Hanesbrands, Inc.		17,672		409,284
Michael Kors Holdings Ltd.(b)		10,925		396,031
PVH Corp.		3,693		422,848
Ralph Lauren Corp.		5,560		410,328
Under Armour, Inc.–Class A(b)		9,251		201,302
Under Armour, Inc.–Class C(b)		9,281		187,105
VF Corp.		7,049		406,022
				2,828,067
Application Software–1.35%
Adobe Systems Inc.(b)		2,824		399,426
ANSYS, Inc.(b)		3,131		380,980
Autodesk, Inc.(b)		3,680		371,018
Citrix Systems, Inc.(b)		4,980		396,308
Intuit Inc.		2,781		369,345
salesforce.com, inc.(b)		4,468		386,929
Synopsys, Inc.(b)		5,205		379,601
				2,683,607
Asset Management & Custody Banks–1.81%
Affiliated Managers Group, Inc.		2,399		397,898
Ameriprise Financial, Inc.		3,082		392,308
Bank of New York Mellon Corp. (The)		7,895		402,803
BlackRock, Inc.		931		393,264
Franklin Resources, Inc.		8,928		399,885
Invesco Ltd.(c)		11,364		399,899
Northern Trust Corp.		4,250		413,142
State Street Corp.		4,464		400,555
T. Rowe Price Group Inc.		5,323		395,020
				3,594,774
Auto Parts & Equipment–0.39%
BorgWarner, Inc.		9,081		384,671
Delphi Automotive PLC		4,550		398,808
				783,479
Automobile Manufacturers–0.40%
Ford Motor Co.		35,044		392,142
General Motors Co.		11,358		396,735
				788,877
Automotive Retail–0.96%
Advance Auto Parts, Inc.		3,038		354,200
AutoNation, Inc.(b)		9,594		404,483
AutoZone, Inc.(b)		643		366,806
CarMax, Inc.(b)		6,542		412,539
O’Reilly Automotive, Inc.(b)		1,674		366,171
				1,904,199

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Equally-Weighted S&P 500 Fund

	Shares		Value
Biotechnology–1.89%
AbbVie Inc.		5,598	$	405,911
Alexion Pharmaceuticals, Inc.(b)		3,700		450,179
Amgen Inc.		2,376		409,218
Biogen Inc.(b)		1,500		407,040
Celgene Corp.(b)		3,299		428,441
Gilead Sciences, Inc.		6,028		426,662
Incyte Corp.(b)		3,275		412,355
Regeneron Pharmaceuticals, Inc.(b)		819		402,244
Vertex Pharmaceuticals Inc.(b)		3,179		409,678
				3,751,728
Brewers–0.19%
Molson Coors Brewing Co.–Class B		4,461		385,163
Broadcasting–0.60%
CBS Corp.–Class B		6,424		409,723
Discovery Communications, Inc.–Class A(b)		6,309		162,961
Discovery Communications, Inc.–Class C(b)		8,917		224,798
Scripps Networks Interactive Inc.–Class A		5,804		396,471
				1,193,953
Building Products–0.81%
Allegion PLC		5,038		408,683
Fortune Brands Home & Security, Inc.		6,147		401,030
Johnson Controls International PLC		9,270		401,947
Masco Corp.		10,479		400,403
				1,612,063
Cable & Satellite–0.58%
Charter Communications, Inc.–Class A(b)		1,171		394,451
Comcast Corp.–Class A		9,584		373,009
DISH Network Corp.–Class A(b)		5,998		376,435
				1,143,895
Casinos & Gaming–0.20%
Wynn Resorts Ltd.		3,009		403,567
Commodity Chemicals–0.20%
LyondellBasell Industries N.V.–Class A		4,762		401,865
Communications Equipment–0.97%
Cisco Systems, Inc.		12,433		389,153
F5 Networks, Inc.(b)		3,015		383,086
Harris Corp.		3,575		389,961
Juniper Networks, Inc.		13,632		380,060
Motorola Solutions, Inc.		4,525		392,498
				1,934,758
Computer & Electronics Retail–0.19%
Best Buy Co., Inc.		6,709		384,627
Construction & Engineering–0.59%
Fluor Corp.		8,414		385,193
Jacobs Engineering Group, Inc.		7,097		386,006

	Shares		Value
Construction & Engineering–(continued)
Quanta Services, Inc.(b)		11,923	$	392,505
				1,163,704
Construction Machinery & Heavy Trucks–0.60%
Caterpillar Inc.		3,681		395,560
Cummins Inc.		2,439		395,655
PACCAR Inc.		6,093		402,382
				1,193,597
Construction Materials–0.38%
Martin Marietta Materials, Inc.		1,660		369,483
Vulcan Materials Co.		2,992		379,026
				748,509
Consumer Electronics–0.19%
Garmin Ltd.		7,516		383,541
Consumer Finance–1.03%
American Express Co.		4,855		408,985
Capital One Financial Corp.		4,870		402,359
Discover Financial Services		6,439		400,442
Navient Corp.		25,559		425,557
Synchrony Financial		13,589		405,224
				2,042,567
Copper–0.19%
Freeport-McMoRan Inc.(b)		31,556		378,988
Data Processing & Outsourced Services–2.17%
Alliance Data Systems Corp.		1,615		414,554
Automatic Data Processing, Inc.		3,895		399,082
Fidelity National Information Services, Inc.		4,609		393,609
Fiserv, Inc.(b)		3,174		388,307
Global Payments Inc.		4,376		395,240
Mastercard Inc.–Class A		3,169		384,875
Paychex, Inc.		6,660		379,220
PayPal Holdings, Inc.(b)		7,303		391,952
Total System Services, Inc.		6,558		382,004
Visa Inc.–Class A		4,124		386,749
Western Union Co. (The)		20,517		390,849
				4,306,441
Department Stores–0.60%
Kohl’s Corp.		10,299		398,262
Macy’s, Inc.		17,182		399,310
Nordstrom, Inc.		8,270		395,554
				1,193,126
Distillers & Vintners–0.40%
Brown-Forman Corp.–Class B		7,933		385,544
Constellation Brands, Inc.–Class A		2,154		417,294
				802,838
Distributors–0.40%
Genuine Parts Co.		4,256		394,787

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Equally-Weighted S&P 500 Fund

	Shares		Value
Distributors–(continued)
LKQ Corp.(b)		12,199	$	401,957
				796,744
Diversified Banks–1.01%
Bank of America Corp.		16,478		399,756
Citigroup Inc.		6,051		404,691
JPMorgan Chase & Co.		4,484		409,838
U.S. Bancorp		7,374		382,858
Wells Fargo & Co.		7,249		401,667
				1,998,810
Diversified Chemicals–0.58%
Dow Chemical Co. (The)		6,024		379,933
E. I. du Pont de Nemours and Co.		4,704		379,660
Eastman Chemical Co.		4,723		396,685
				1,156,278
Diversified Support Services–0.20%
Cintas Corp.		3,152		397,278
Drug Retail–0.39%
CVS Health Corp.		4,892		393,610
Walgreens Boots Alliance, Inc.		4,815		377,063
				770,673
Electric Utilities–2.68%
Alliant Energy Corp.		9,452		379,687
American Electric Power Co., Inc.		5,427		377,014
Duke Energy Corp.		4,549		380,251
Edison International		4,797		375,077
Entergy Corp.		4,918		377,555
Eversource Energy		6,260		380,044
Exelon Corp.		10,651		384,181
FirstEnergy Corp.		13,398		390,686
NextEra Energy, Inc.		2,780		389,561
PG&E Corp.		5,724		379,902
Pinnacle West Capital Corp.		4,431		377,344
PPL Corp.		9,950		384,667
Southern Co. (The)		7,695		368,437
Xcel Energy, Inc.		8,236		377,868
				5,322,274
Electrical Components & Equipment–1.01%
Acuity Brands, Inc.		2,200		447,216
AMETEK, Inc.		6,252		378,683
Eaton Corp. PLC		5,149		400,747
Emerson Electric Co.		6,424		382,999
Rockwell Automation, Inc.		2,405		389,514
				1,999,159
Electronic Components–0.40%
Amphenol Corp.–Class A		5,148		380,025
Corning Inc.		13,472		404,834
				784,859

	Shares		Value
Electronic Equipment & Instruments–0.18%
FLIR Systems, Inc.		10,584	$	366,841
Electronic Manufacturing Services–0.19%
TE Connectivity Ltd.		4,899		385,453
Environmental & Facilities Services–0.58%
Republic Services, Inc.		6,099		388,689
Stericycle, Inc.(b)		4,936		376,716
Waste Management, Inc.		5,368		393,743
				1,159,148
Fertilizers & Agricultural Chemicals–0.78%
CF Industries Holdings, Inc.		14,312		400,164
FMC Corp.		5,090		371,824
Monsanto Co.		3,318		392,718
Mosaic Co. (The)		16,590		378,750
				1,543,456
Financial Exchanges & Data–1.20%
CBOE Holdings Inc.		4,345		397,133
CME Group Inc.–Class A		3,135		392,628
Intercontinental Exchange, Inc.		6,097		401,914
Moody’s Corp.		3,352		407,871
Nasdaq, Inc.		5,529		395,268
S&P Global Inc.		2,656		387,750
				2,382,564
Food Distributors–0.18%
Sysco Corp.		7,066		355,632
Food Retail–0.38%
Kroger Co. (The)		12,671		295,487
Whole Foods Market, Inc.		10,916		459,673
				755,160
Footwear–0.22%
NIKE, Inc.–Class B		7,295		430,405
General Merchandise Stores–0.55%
Dollar General Corp.		5,170		372,705
Dollar Tree, Inc.(b)		5,174		361,766
Target Corp.		6,879		359,703
				1,094,174
Gold–0.19%
Newmont Mining Corp.		11,393		369,019
Health Care Distributors–1.00%
AmerisourceBergen Corp.		4,249		401,658
Cardinal Health, Inc.		5,186		404,093
Henry Schein, Inc.(b)		2,099		384,159
McKesson Corp.		2,386		392,593
Patterson Cos. Inc.		8,419		395,272
				1,977,775

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Equally-Weighted S&P 500 Fund

	Shares		Value
Health Care Equipment–2.78%
Abbott Laboratories		8,208	$	398,991
Baxter International Inc.		6,620		400,775
Becton, Dickinson and Co.		2,024		394,903
Boston Scientific Corp.(b)		14,019		388,607
C.R. Bard, Inc.		1,240		391,976
Danaher Corp.		4,615		389,460
Edwards Lifesciences Corp.(b)		3,358		397,050
Hologic, Inc.(b)		8,730		396,167
IDEXX Laboratories, Inc.(b)		2,369		382,404
Intuitive Surgical, Inc.(b)		425		397,532
Medtronic PLC		4,518		400,973
Stryker Corp.		2,748		381,367
Varian Medical Systems, Inc.(b)		3,813		393,463
Zimmer Biomet Holdings, Inc.		3,124		401,122
				5,514,790
Health Care Facilities–0.42%
HCA Healthcare, Inc.(b)		4,666		406,875
Universal Health Services, Inc.–Class B		3,437		419,589
				826,464
Health Care REIT’s–0.61%
HCP, Inc.		12,509		399,788
Ventas, Inc.		5,832		405,207
Welltower Inc.		5,310		397,453
				1,202,448
Health Care Services–1.04%
DaVita Inc.(b)		6,049		391,733
Envision Healthcare Corp.(b)		6,946		435,306
Express Scripts Holding Co.(b)		6,351		405,448
Laboratory Corp. of America Holdings(b)		2,773		427,430
Quest Diagnostics Inc.		3,597		399,843
				2,059,760
Health Care Supplies–0.60%
Align Technology, Inc.(b)		2,619		393,164
Cooper Cos., Inc. (The)		1,642		393,128
DENTSPLY SIRONA Inc.		6,157		399,220
				1,185,512
Health Care Technology–0.20%
Cerner Corp.(b)		5,884		391,109
Home Entertainment Software–0.38%
Activision Blizzard, Inc.		6,721		386,928
Electronic Arts Inc.(b)		3,530		373,192
				760,120
Home Furnishings–0.40%
Leggett & Platt, Inc.		7,475		392,662
Mohawk Industries, Inc.(b)		1,628		393,471
				786,133

	Shares		Value
Home Improvement Retail–0.39%
Home Depot, Inc. (The)		2,549	$	391,017
Lowe’s Cos., Inc.		4,959		384,471
				775,488
Homebuilding–0.61%
D.R. Horton, Inc.		11,601		401,046
Lennar Corp.–Class A		7,500		399,900
PulteGroup Inc.		16,639		408,155
				1,209,101
Homefurnishing Retail–0.17%
Bed Bath & Beyond Inc.		10,943		332,667
Hotel and Resort REIT’s–0.20%
Host Hotels & Resorts Inc.		21,220		387,689
Hotels, Resorts & Cruise Lines–0.98%
Carnival Corp.		6,157		403,714
Hilton Worldwide Holdings Inc.		6,023		372,523
Marriott International Inc.–Class A		3,807		381,880
Royal Caribbean Cruises Ltd.		3,550		387,766
Wyndham Worldwide Corp.		3,943		395,917
				1,941,800
Household Appliances–0.20%
Whirlpool Corp.		2,041		391,096
Household Products–0.97%
Church & Dwight Co., Inc.		7,358		381,733
Clorox Co. (The)		2,843		378,801
Colgate-Palmolive Co.		5,154		382,066
Kimberly-Clark Corp.		3,028		390,945
Procter & Gamble Co. (The)		4,423		385,465
				1,919,010
Housewares & Specialties–0.20%
Newell Brands, Inc.		7,325		392,766
Human Resource & Employment Services–0.20%
Robert Half International, Inc.		8,254		395,614
Hypermarkets & Super Centers–0.36%
Costco Wholesale Corp.		2,161		345,609
Wal-Mart Stores, Inc.		4,910		371,589
				717,198
Independent Power Producers & Energy Traders–0.39%
AES Corp. (The)		33,279		369,730
NRG Energy, Inc.		23,369		402,414
				772,144
Industrial Conglomerates–0.78%
3M Co.		1,884		392,230
General Electric Co.		13,959		377,033
Honeywell International Inc.		2,914		388,407
Roper Technologies, Inc.		1,704		394,527
				1,552,197

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Equally-Weighted S&P 500 Fund

	Shares		Value
Industrial Gases–0.38%
Air Products and Chemicals, Inc.		2,673	$	382,399
Praxair, Inc.		2,863		379,491
				761,890
Industrial Machinery–1.97%
Dover Corp.		4,697		376,793
Flowserve Corp.		8,259		383,465
Fortive Corp.		6,182		391,630
Illinois Tool Works Inc.		2,693		385,772
Ingersoll-Rand PLC		4,425		404,401
Parker-Hannifin Corp.		2,483		396,833
Pentair PLC (United Kingdom)		5,886		391,655
Snap-on Inc.		2,475		391,050
Stanley Black & Decker Inc.		2,785		391,933
Xylem, Inc.		7,226		400,537
				3,914,069
Industrial REIT’s–0.20%
Prologis, Inc.		6,826		400,277
Insurance Brokers–0.78%
Aon PLC		2,940		390,873
Arthur J. Gallagher & Co.		6,738		385,751
Marsh & McLennan Cos., Inc.		4,985		388,631
Willis Towers Watson PLC		2,677		389,396
				1,554,651
Integrated Oil & Gas–0.58%
Chevron Corp.		3,665		382,370
Exxon Mobil Corp.		4,748		383,306
Occidental Petroleum Corp.		6,392		382,689
				1,148,365
Integrated Telecommunication Services–0.56%
AT&T Inc.		10,055		379,375
CenturyLink Inc.		14,938		356,720
Verizon Communications Inc.		8,347		372,777
				1,108,872
Internet & Direct Marketing Retail–0.98%
Amazon.com, Inc.(b)(d)		398		385,264
Expedia, Inc.		2,715		404,399
Netflix Inc.(b)		2,467		368,595
Priceline Group Inc. (The)(b)		211		394,680
TripAdvisor Inc.(b)		10,406		397,509
				1,950,447
Internet Software & Services–0.98%
Akamai Technologies, Inc.(b)		8,103		403,610
Alphabet Inc.–Class A(b)		203		188,725
Alphabet Inc.–Class C(b)		202		183,564
eBay Inc.(b)		11,163		389,812
Facebook, Inc.–Class A(b)		2,603		393,001

	Shares		Value
Internet Software & Services–(continued)
VeriSign, Inc.(b)		4,223	$	392,570
				1,951,282
Investment Banking & Brokerage–1.00%
Charles Schwab Corp. (The)		9,445		405,757
E*TRADE Financial Corp.(b)		10,558		401,521
Goldman Sachs Group, Inc. (The)		1,753		388,991
Morgan Stanley		8,684		386,959
Raymond James Financial, Inc.		4,982		399,656
				1,982,884
IT Consulting & Other Services–1.19%
Accenture PLC–Class A		3,099		383,284
Cognizant Technology Solutions Corp.–Class A		5,881		390,499
CSRA Inc.		12,401		393,732
DXC Technology Co.		5,193		398,407
Gartner, Inc.(b)		3,285		405,730
International Business Machines Corp.		2,530		389,190
				2,360,842
Leisure Products–0.39%
Hasbro, Inc.		3,614		402,997
Mattel, Inc.		17,513		377,055
				780,052
Life & Health Insurance–1.38%
Aflac, Inc.		5,000		388,400
Lincoln National Corp.		5,714		386,152
MetLife, Inc.		7,381		405,512
Principal Financial Group, Inc.		6,010		385,061
Prudential Financial, Inc.		3,619		391,359
Torchmark Corp.		5,081		388,696
Unum Group		8,389		391,179
				2,736,359
Life Sciences Tools & Services–1.19%
Agilent Technologies, Inc.		6,587		390,675
Illumina, Inc.(b)		2,243		389,205
Mettler-Toledo International Inc.(b)		656		386,082
PerkinElmer, Inc.		6,102		415,790
Thermo Fisher Scientific, Inc.		2,229		388,894
Waters Corp.(b)		2,108		387,535
				2,358,181
Managed Health Care–1.20%
Aetna Inc.		2,603		395,213
Anthem, Inc.		2,086		392,439
Centene Corp.(b)		5,032		401,956
Cigna Corp.		2,338		391,358
Humana Inc.		1,697		408,332
UnitedHealth Group Inc.		2,149		398,468
				2,387,766

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Equally-Weighted S&P 500 Fund

	Shares		Value
Metal & Glass Containers–0.21%
Ball Corp.		9,682	$	408,677
Motorcycle Manufacturers–0.20%
Harley-Davidson, Inc.		7,320		395,426
Movies & Entertainment–0.78%
Time Warner Inc.		3,931		394,712
Twenty-First Century Fox, Inc.–Class A		9,516		269,683
Twenty-First Century Fox, Inc.–Class B		4,404		122,740
Viacom Inc.–Class B		11,018		369,874
Walt Disney Co. (The)		3,692		392,275
				1,549,284
Multi-Line Insurance–0.78%
American International Group, Inc.		6,077		379,934
Assurant, Inc.		3,835		397,651
Hartford Financial Services Group, Inc. (The)		7,547		396,746
Loews Corp.		8,216		384,591
				1,558,922
Multi-Sector Holdings–0.40%
Berkshire Hathaway Inc.–Class B(b)		2,293		388,365
Leucadia National Corp.		15,428		403,597
				791,962
Multi-Utilities–2.11%
Ameren Corp.		6,963		380,667
CenterPoint Energy, Inc.		13,811		378,145
CMS Energy Corp.		8,301		383,921
Consolidated Edison, Inc.		4,684		378,561
Dominion Energy, Inc.		4,918		376,866
DTE Energy Co.		3,578		378,517
NiSource Inc.		15,135		383,824
Public Service Enterprise Group Inc.		8,797		378,359
SCANA Corp.		5,731		384,034
Sempra Energy		3,391		382,335
WEC Energy Group, Inc.		6,178		379,206
				4,184,435
Office REIT’s–0.78%
Alexandria Real Estate Equities, Inc.		3,287		395,985
Boston Properties, Inc.		3,113		382,961
SL Green Realty Corp.		3,672		388,498
Vornado Realty Trust		4,164		390,999
				1,558,443
Oil & Gas Drilling–0.38%
Helmerich & Payne, Inc.		7,321		397,823
Transocean Ltd.(b)		44,272		364,359
				762,182
Oil & Gas Equipment & Services–0.94%
Baker Hughes Inc.		7,023		382,824
Halliburton Co.		8,695		371,363
National Oilwell Varco Inc.		11,401		375,549

	Shares		Value
Oil & Gas Equipment & Services–(continued)
Schlumberger Ltd.		5,597	$	368,507
TechnipFMC PLC (United Kingdom)(b)		13,665		371,688
				1,869,931
Oil & Gas Exploration & Production–3.29%
Anadarko Petroleum Corp.		8,128		368,523
Apache Corp.		8,068		386,699
Cabot Oil & Gas Corp.		17,047		427,539
Chesapeake Energy Corp.(b)		78,479		390,041
Cimarex Energy Co.		3,903		366,921
Concho Resources Inc.(b)		3,147		382,455
ConocoPhillips		8,701		382,496
Devon Energy Corp.		11,971		382,713
EOG Resources, Inc.		4,329		391,861
EQT Corp.		6,904		404,505
Hess Corp.		8,573		376,097
Marathon Oil Corp.		31,103		368,571
Murphy Oil Corp.		15,471		396,522
Newfield Exploration Co.(b)		12,975		369,268
Noble Energy, Inc.		13,393		379,022
Pioneer Natural Resources Co.		2,301		367,194
Range Resources Corp.		16,833		390,021
				6,530,448
Oil & Gas Refining & Marketing–0.80%
Marathon Petroleum Corp.		7,128		373,008
Phillips 66		4,900		405,181
Tesoro Corp.		4,248		397,613
Valero Energy Corp.		5,976		403,141
				1,578,943
Oil & Gas Storage & Transportation–0.61%
Kinder Morgan, Inc.		20,442		391,669
ONEOK, Inc.		7,887		411,386
Williams Cos., Inc. (The)		13,270		401,815
				1,204,870
Packaged Foods & Meats–2.06%
Campbell Soup Co.		6,898		359,731
Conagra Brands, Inc.		10,063		359,853
General Mills, Inc.		6,831		378,437
Hershey Co. (The)		3,420		367,205
Hormel Foods Corp.		11,217		382,612
JM Smucker Co. (The)		3,066		362,800
Kellogg Co.		5,368		372,861
Kraft Heinz Co. (The)		4,293		367,653
McCormick & Co., Inc.		3,740		364,687
Mondelez International, Inc.–Class A		8,558		369,620
Tyson Foods, Inc.–Class A		6,420		402,085
				4,087,544
Paper Packaging–0.80%
Avery Dennison Corp.		4,637		409,772

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Equally-Weighted S&P 500 Fund

	Shares		Value
Paper Packaging–(continued)
International Paper Co.		7,105	$	402,214
Sealed Air Corp.		8,835		395,454
WestRock Co.		6,806		385,628
				1,593,068
Personal Products–0.39%
Coty, Inc.–Class A		20,813		390,452
Estee Lauder Cos. Inc. (The)–Class A		4,047		388,431
				778,883
Pharmaceuticals–2.01%
Allergan PLC		1,678		407,905
Bristol-Myers Squibb Co.		7,256		404,304
Eli Lilly and Co.		4,812		396,028
Johnson & Johnson		2,972		393,166
Mallinckrodt PLC(b)		9,680		433,761
Merck & Co., Inc.		6,057		388,193
Mylan N.V.(b)		9,728		377,641
Perrigo Co. PLC		5,453		411,810
Pfizer Inc.		11,902		399,788
Zoetis Inc.		6,231		388,690
				4,001,286
Property & Casualty Insurance–1.19%
Allstate Corp. (The)(d)		4,463		394,708
Chubb Ltd.		2,660		386,711
Cincinnati Financial Corp.		5,433		393,621
Progressive Corp. (The)		8,969		395,443
Travelers Cos., Inc. (The)		3,114		394,014
XL Group Ltd. (Bermuda)		9,161		401,252
				2,365,749
Publishing–0.20%
News Corp.–Class A		21,579		295,632
News Corp.–Class B		6,771		95,810
				391,442
Railroads–0.80%
CSX Corp.		7,351		401,071
Kansas City Southern		3,915		409,705
Norfolk Southern Corp.		3,279		399,054
Union Pacific Corp.		3,553		386,957
				1,596,787
Real Estate Services–0.20%
CBRE Group, Inc.–Class A(b)		11,163		406,333
Regional Banks–2.39%
BB&T Corp.		8,841		401,470
Citizens Financial Group, Inc.		10,733		382,953
Comerica Inc.		5,367		393,079
Fifth Third Bancorp		15,564		404,042
Huntington Bancshares Inc.		29,347		396,771
KeyCorp		20,947		392,547
M&T Bank Corp.		2,387		386,575

	Shares		Value
Regional Bank–(continued)
People’s United Financial Inc.		22,073	$	389,809
PNC Financial Services Group, Inc. (The)		3,166		395,338
Regions Financial Corp.		27,086		396,539
SunTrust Banks, Inc.		6,896		391,141
Zions Bancorp.		9,211		404,455
				4,734,719
Reinsurance–0.20%
Everest Re Group, Ltd.		1,525		388,250
Research & Consulting Services–0.79%
Equifax Inc.		2,877		395,357
IHS Markit Ltd.(b)		8,420		370,817
Nielsen Holdings PLC		10,354		400,286
Verisk Analytics, Inc.–Class A(b)		4,870		410,882
				1,577,342
Residential REIT’s–1.15%
Apartment Investment & Management Co.–Class A		8,791		377,749
AvalonBay Communities, Inc.		1,999		384,148
Equity Residential		5,767		379,642
Essex Property Trust, Inc.		1,464		376,643
Mid-America Apartment Communities, Inc.		3,637		383,267
UDR, Inc.		9,696		377,853
				2,279,302
Restaurants–0.95%
Chipotle Mexican Grill, Inc.(b)		846		352,021
Darden Restaurants, Inc.		4,233		382,832
McDonald’s Corp.		2,574		394,234
Starbucks Corp.		6,271		365,662
Yum! Brands, Inc.		5,335		393,510
				1,888,259
Retail REIT’s–1.38%
Federal Realty Investment Trust		3,127		395,221
GGP Inc.		16,725		394,041
Kimco Realty Corp.		21,026		385,827
Macerich Co. (The)		6,684		388,073
Realty Income Corp.		7,051		389,074
Regency Centers Corp.		6,253		391,688
Simon Property Group, Inc.		2,506		405,371
				2,749,295
Semiconductor Equipment–0.53%
Applied Materials, Inc.		8,717		360,099
KLA-Tencor Corp.		3,823		349,843
Lam Research Corp.		2,471		349,474
				1,059,416
Semiconductors–2.25%
Advanced Micro Devices, Inc.(b)		31,762		396,390
Analog Devices, Inc.		4,962		386,044
Broadcom Ltd.		1,602		373,346

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Equally-Weighted S&P 500 Fund

	Shares		Value
Semiconductor–(continued)
Intel Corp.		10,922	$	368,508
Microchip Technology Inc.		4,671		360,508
Micron Technology, Inc.(b)		12,746		380,595
NVIDIA Corp.		2,606		376,723
Qorvo, Inc.(b)		5,181		328,061
QUALCOMM, Inc.		6,836		377,484
Skyworks Solutions, Inc.		3,644		349,642
Texas Instruments Inc.		4,820		370,803
Xilinx, Inc.		5,963		383,540
				4,451,644
Soft Drinks–0.78%
Coca-Cola Co. (The)		8,605		385,934
Dr Pepper Snapple Group, Inc.		4,266		388,675
Monster Beverage Corp.(b)		7,792		387,107
PepsiCo, Inc.		3,363		388,393
				1,550,109
Specialized Consumer Services–0.23%
H&R Block, Inc.		14,892		460,312
Specialized REIT’s–1.58%
American Tower Corp.–Class A		2,993		396,034
Crown Castle International Corp.		3,820		382,688
Digital Realty Trust, Inc.		3,441		388,661
Equinix, Inc.		887		380,665
Extra Space Storage Inc.		5,234		408,252
Iron Mountain Inc.		11,709		402,321
Public Storage		1,878		391,619
Weyerhaeuser Co.		11,737		393,189
				3,143,429
Specialty Chemicals–0.96%
Albemarle Corp.		3,379		356,620
Ecolab Inc.		2,914		386,833
International Flavors & Fragrances Inc.		2,842		383,670
PPG Industries, Inc.		3,547		390,028
Sherwin-Williams Co. (The)		1,105		387,811
				1,904,962
Specialty Stores–0.99%
Signet Jewelers Ltd.		6,556		414,602
Staples, Inc.		42,166		424,612
Tiffany & Co.		4,118		386,557
Tractor Supply Co.		6,840		370,796
Ulta Beauty, Inc.(b)		1,266		363,772
				1,960,339
Steel–0.19%
Nucor Corp.		6,523		377,486
Systems Software–1.02%
CA, Inc.		12,299		423,946

	Shares		Value
Systems Software–(continued)
Microsoft Corp.		5,546	$	382,286
Oracle Corp.		8,661		434,262
Red Hat, Inc.(b)		4,389		420,247
Symantec Corp.		13,127		370,838
				2,031,579
Technology Hardware, Storage & Peripherals–1.36%
Apple Inc.		2,617		376,900
Hewlett Packard Enterprise Co.		22,956		380,840
HP Inc.		21,912		383,022
NetApp, Inc.		9,868		395,213
Seagate Technology PLC		9,204		356,655
Western Digital Corp.		4,533		401,624
Xerox Corp.		14,049		403,628
				2,697,882
Tires & Rubber–0.19%
Goodyear Tire & Rubber Co. (The)		11,002		384,630
Tobacco–0.58%
Altria Group, Inc.		5,168		384,861
Philip Morris International Inc.		3,246		381,243
Reynolds American Inc.		5,972		388,419
				1,154,523
Trading Companies & Distributors–0.60%
Fastenal Co.		8,961		390,072
United Rentals, Inc.(b)		3,538		398,768
W.W. Grainger, Inc.		2,211		399,152
				1,187,992
Trucking–0.20%
J.B. Hunt Transport Services, Inc.		4,408		402,803
Water Utilities–0.19%
American Water Works Co., Inc.		4,942		385,229
Total Common Stocks & Other Equity Interests (Cost $139,667,846)				194,961,860
Money Market Funds–1.42%
Government & Agency Portfolio–Institutional Class, 0.89%(e)		1,691,816		1,691,816
Treasury Portfolio–Institutional Class, 0.85%(e)		1,127,877		1,127,877
Total Money Market Funds (Cost $2,819,693)				2,819,693
TOTAL INVESTMENTS–99.59% (Cost $142,487,539)				197,781,553
OTHER ASSETS LESS LIABILITIES–0.41%				812,654
NET ASSETS–100.00%			$	198,594,207

Investment Abbreviations:

REIT – Real Estate Investment Trust

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Equally-Weighted S&P 500 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)  The Fund’s Adviser is a subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. The value of this security as of June 30, 2017 represented less than 1% of the Fund`s Net Assets. See Note 4.

^(d)  All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1I and Note 5.

^(e)  The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of June 30, 2017.

Portfolio Composition

By sector, based on Net Assets as of June 30, 2017

Consumer Discretionary	15.9	%
Industrials	13.3
Financials	13.2
Information Technology	13.0
Health Care	12.3
Consumer Staples	6.9
Energy	6.6
Real Estate	6.1
Utilities	5.4
Materials	4.8
Telecommunication Services	0.7
Money Market Funds Plus Other Assets Less Liabilities	1.8

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Equally-Weighted S&P 500 Fund

Statement of Assets and Liabilities

June 30, 2017

(Unaudited)

Statement of Operations

For the six months ended June 30, 2017

(Unaudited)

Assets:
Investments, at value (Cost $139,405,797)	$	194,561,961
Investments in affiliates, at value (Cost $3,081,742)		3,219,592
Total investments, at value (Cost $142,487,539)		197,781,553
Receivable for:
Variation margin — futures contracts		1,080
Fund shares sold		748,716
Dividends		224,827
Investment for trustee deferred compensation and retirement plans		30,743
Other assets		2,850
Total assets		198,789,769
Liabilities:
Payable for:
Fund shares reacquired		29,453
Accrued fees to affiliates		80,126
Accrued trustees’ and officers’ fees and benefits		4,992
Accrued other operating expenses		48,242
Trustee deferred compensation and retirement plans		32,749
Total liabilities		195,562
Net assets applicable to shares outstanding	$	198,594,207
Net assets consist of:
Shares of beneficial interest	$	135,071,434
Undistributed net investment income		2,932,826
Undistributed net realized gain		5,309,927
Net unrealized appreciation		55,280,020
	$	198,594,207
Net Assets:
Series I	$	117,482,969
Series II	$	81,111,238
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		6,315,627
Series II		4,476,129
Series I:
Net asset value per share	$	18.60
Series II:
Net asset value per share	$	18.12

Investment income:
Dividends (net of foreign withholding taxes of $1,276)	$	1,690,281
Dividends from affiliates		14,243
Total investment income		1,704,524
Expenses:
Advisory fees		107,689
Administrative services fees		91,284
Custodian fees		13,235
Distribution fees — Series II		79,364
Transfer agent fees		2,217
Trustees’ and officers’ fees and benefits		12,321
Licensing Fees		33,748
Reports to shareholders		17,267
Professional services fees		22,554
Other		5,060
Total expenses		384,739
Less: Fees waived		(1,466	)
Net expenses		383,273
Net investment income		1,321,251
Realized and unrealized gain from:
Net realized gain from:
Investment securities		1,948,692
Futures contracts		252,568
		2,201,260
Change in net unrealized appreciation of:
Investment securities		9,737,690
Futures contracts		12,488
		9,750,178
Net realized and unrealized gain		11,951,438
Net increase in net assets resulting from operations	$	13,272,689

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Equally-Weighted S&P 500 Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2017 and the year ended December 31, 2016

(Unaudited)

	June 30, 2017			December 31, 2016
Operations:
Net investment income	$	1,321,251		$	1,637,645
Net realized gain		2,201,260			4,366,614
Change in net unrealized appreciation		9,750,178			11,005,344
Net increase in net assets resulting from operations		13,272,689			17,009,603
Distributions to shareholders from net investment income:
Series I		—			(658,672	)
Series ll		—			(175,080	)
Total distributions from net investment income		—			(833,752	)
Distributions to shareholders from net realized gains:
Series l		—			(4,417,395	)
Series ll		—			(1,836,209	)
Total distributions from net realized gains		—			(6,253,604	)
Share transactions–net:
Series l		(5,561,789	)		79,882,936
Series ll		27,744,900			6,716,713
Net increase in net assets resulting from share transactions		22,183,111			86,599,649
Net increase in net assets		35,455,800			96,521,896
Net assets:
Beginning of period		163,138,407			66,616,511
End of period (includes undistributed net investment income of $2,932,826 and $1,611,575, respectively)	$	198,594,207		$	163,138,407

Notes to Financial Statements

June 30, 2017

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Equally-Weighted S&P 500 Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance 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 consisting of twenty-four separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

The Fund’s investment objective is to achieve a high level of total return on its assets through a combination of capital appreciation and current income.

The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services — Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Invesco V.I. Equally-Weighted S&P 500 Fund

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

Invesco V.I. Equally-Weighted S&P 500 Fund

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 and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties (“Counterparties”) to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.

J. Collateral — To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays 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		0.12%
Over $2 billion		0.10%

For the six months ended June 30, 2017, the effective advisory fees incurred by the Fund was 0.12%.

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 PowerShares Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2018, 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 Series I shares to 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2018. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Invesco V.I. Equally-Weighted S&P 500 Fund

Further, the Adviser has contractually agreed, through at least June 30, 2019, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended June 30, 2017, the Adviser waived advisory fees of $1,466.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2017, Invesco was paid $24,794 for accounting and fund administrative services and was reimbursed $66,490 for fees paid to insurance companies.

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. For the six months ended June 30, 2017, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2017, expenses incurred under the Plan are detailed 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of June 30, 2017. 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
Common Stocks & Other Equity Interests	$	194,961,860		$	—	$	—	$	194,961,860
Money Market Funds		2,819,693			—		—		2,819,693
		197,781,553			—		—		197,781,553
Futures Contracts*		(13,994	)		—		—		(13,994	)
Total Investments	$	197,767,559		$	—	$	—	$	197,767,559

* Unrealized appreciation (depreciation).

NOTE 4—Investments in Affiliates

The Fund’s Adviser is a subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. The following is a summary of the transactions in, and earnings from, investments in Invesco Ltd. for the six months ended June 30, 2017.

	Value 12/31/16		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain		Value 06/30/17		Dividend Income
Invesco Ltd.	$	304,523	$	55,828	$	(15,263	)	$	53,927	$	884	$	399,899	$	6,233

Invesco V.I. Equally-Weighted S&P 500 Fund

NOTE 5—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

Open Futures Contracts—Equity Risk
Futures Contracts	Type of Contract		Number of Contracts		Expiration Month		Notional Value		Unrealized Appreciation (Depreciation)
E-Mini S&P 500 Index		Long		24		September-2017	$	2,905,080	$	(13,994	)

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of June 30, 2017:

Derivative Liabilities	Value
	Equity Risk
Unrealized depreciation on futures contracts — Exchange-Traded(a)	$	(13,994	)
Derivatives not subject to master netting agreements		13,994
Total Derivative Liabilities subject to master netting agreements	$	—

^(a)  Only current day’s variation margin receivable is reported within the Statement of Assets and Liabilities.

Effect of Derivative Investments for the six months ended June 30, 2017

The table below summarizes the gains on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:

	Location of Gain on Statement of Operations
	Equity Risk
Realized Gain:
Futures contracts	$	252,568
Change in Net Unrealized Appreciation:
Futures contracts		12,488
Total	$	265,056

The table below summarizes the average notional value of futures contracts outstanding during the period.

	Futures Contracts
Average notional value	$	2,506,803

NOTE 6—Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 7—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

Invesco V.I. Equally-Weighted S&P 500 Fund

NOTE 8—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of December 31, 2016.

NOTE 9—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2017 was $39,571,184 and $17,458,784, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	56,713,486
Aggregate unrealized (depreciation) of investment securities		(2,521,580	)
Net unrealized appreciation of investment securities	$	54,191,906

Cost of investments for tax purposes is $143,589,647.

NOTE 10—Share Information

	Summary of Share Activity
	Six months ended June 30, 2017(a)						Year ended December 31, 2016
	Shares			Amount			Shares			Amount
Sold:
Series I		142,199		$	2,589,293			5,223,200		$	86,064,568
Series II		1,778,057			31,478,674			812,311			13,189,348
Issued as reinvestment of dividends:
Series I		—			—			305,052			5,076,067
Series II		—			—			123,848			2,011,289
Reacquired:
Series I		(450,137	)		(8,151,082	)		(674,054	)		(11,257,699	)
Series II		(211,971	)		(3,733,774	)		(529,053	)		(8,483,924	)
Net increase in share activity		1,258,148		$	22,183,111			5,261,304		$	86,599,649

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 92% 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.

Invesco V.I. Equally-Weighted S&P 500 Fund

NOTE 11—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)
Series I
Six months ended 06/30/17	$	17.24	$	0.14	$	1.22		$	1.36		$	—		$	—		$	—		$	18.60		7.89	%	$	117,483		0.34	%(d)		0.34	%(d)		1.56	%(d)		10	%
Year ended 12/31/16		15.81		0.26		1.96			2.22			(0.10	)		(0.69	)		(0.79	)		17.24		14.24			114,202		0.39			0.39			1.56			22
Year ended 12/31/15		19.98		0.26		(0.94	)		(0.68	)		(0.28	)		(3.21	)		(3.49	)		15.81		(2.68	)		27,974		0.55			0.55			1.38			25
Year ended 12/31/14		21.18		0.29		2.41			2.70			(0.33	)		(3.57	)		(3.90	)		19.98		13.88			33,878		0.59			0.59			1.34			18
Year ended 12/31/13		18.23		0.24		5.94			6.18			(0.38	)		(2.85	)		(3.23	)		21.18		35.42			38,144		0.59			0.59			1.16			18
Year ended 12/31/12		18.33		0.33		2.73			3.06			(0.37	)		(2.79	)		(3.16	)		18.23		17.09			34,914		0.46			0.59			1.69			23
Series II
Six months ended 06/30/17		16.82		0.11		1.19			1.30			—			—			—			18.12		7.73			81,111		0.59	(d)		0.59	(d)		1.31	(d)		10
Year ended 12/31/16		15.44		0.21		1.93			2.14			(0.07	)		(0.69	)		(0.76	)		16.82		14.01			48,936		0.64			0.64			1.31			22
Year ended 12/31/15		19.60		0.21		(0.92	)		(0.71	)		(0.24	)		(3.21	)		(3.45	)		15.44		(2.92	)		38,643		0.80			0.80			1.13			25
Year ended 12/31/14		20.84		0.23		2.37			2.60			(0.27	)		(3.57	)		(3.84	)		19.60		13.61			37,205		0.84			0.84			1.09			18
Year ended 12/31/13		17.98		0.19		5.84			6.03			(0.32	)		(2.85	)		(3.17	)		20.84		35.04			38,860		0.84			0.84			0.91			18
Year ended 12/31/12		18.09		0.27		2.71			2.98			(0.30	)		(2.79	)		(3.09	)		17.98		16.88			36,362		0.71			0.84			1.44			23

^(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. Total returns are not annualized for periods less than one year, if applicable, and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.

^(c)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(d)  Ratios are annualized and based on average daily net assets (000’s omitted) of $116,952 and $64,018 for Series I and Series II shares, respectively.

Invesco V.I. Equally-Weighted S&P 500 Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2017 through June 30, 2017.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

Class	Beginning Account Value (01/01/17)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/17)1		Expenses Paid During Period2		Ending Account Value (06/30/17)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,079.50	$	1.75	$	1,023.11	$	1.71		0.34	%
Series II		1,000.00		1,077.90		3.04		1,021.87		2.96		0.59

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2017 through June 30, 2017, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

²  Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Equally-Weighted S&P 500 Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco V.I. Equally-Weighted S&P 500 Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the 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 PowerShares 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, 2017.

In evaluating the fairness and reasonableness of compensation under the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board determined that continuation of the Fund’s investment advisory agreement and the sub-advisory contracts is in the best interest of the Fund and its shareholders and that the compensation payable to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Board had the benefit of reports from the Sub-Committees and Investments Committee throughout the year in considering approval of the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Board receives comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The

Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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 addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The Trustees recognized that the advisory fee rates for the Invesco Funds are, in most cases, the result of years of review and negotiation. The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these arrangements throughout the year and in prior years. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them 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 discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement 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. This information is current as of June 13, 2017, and does not reflect consideration of factors that became known to the Board after that date.

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 advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers. The Board’s review included consideration of Invesco Advisers’ investment process oversight, credit analysis and investment risk management. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, trading operations, internal audit, valuation and legal and compliance.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the greater uncertainty that may be associated with entering into a new relationship. 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 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 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 in which the Fund may invest, make recommendations regarding securities and assist with security trades. 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 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 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, 2016 to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds Multi-Cap Core Funds Index. The Board noted that performance of Series I shares of the Fund was in the first 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 Series I shares of the Fund was above the performance of the Index for the one, three and five year periods. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees

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 at a common asset level. The Board noted that the contractual

Invesco V.I. Equally-Weighted S&P 500 Fund

management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing 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 compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/waivers) to the effective advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, based on asset balances as of December 31, 2016. The Board noted that the Fund’s rate was above the rate of one such mutual fund.

The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other client accounts with investment strategies comparable to those of the Fund.

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 also noted that the sub-advisory fees are not paid directly by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds advised by Invesco Advisers.

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. 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. Invesco Advisers and its subsidiaries did not make a profit from managing the Fund. The

Board received and accepted information from Invesco Advisers demonstrating that Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; and 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 Adviser’s or the Affiliated Sub-Adviser’s expenses. The Board also considered that it receives periodic reports from the Chief Compliance Officer of the Invesco Funds demonstrating 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 money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds with respect to certain investments in the affiliated money market funds. The waiver is in 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that the Fund may use an affiliated broker to execute certain trades for the Fund to, among other things, control information leakage, and was advised that such trades would be executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Equally-Weighted S&P 500 Fund

Proxy Results

A Special Joint Meeting (“Meeting”) of Shareholders of Invesco V.I. Equally-Weighted S&P 500 Fund, an investment portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), a Delaware statutory trust (“Trust”), was held on March 9, 2017. The Meeting was held for the following purposes:

(1) Elect 15 trustees to the Board, each of whom will serve until his or her successor is elected and qualified.

(2) Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.

(3) Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities.

(4)(a) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC.

(4)(b) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited.

The results of the voting on the above matters were as follows:

	Matters					Votes For		Votes Withheld
(1)*	David C. Arch						1,256,086,249		71,094,301
	James T. Bunch						1,254,410,156		72,770,397
	Bruce L. Crockett						1,258,363,948		68,816,603
	Jack M. Fields						1,255,101,592		72,078,961
	Martin L. Flanagan						1,257,885,397		69,295,160
	Cynthia Hostetler						1,261,335,247		65,845,303
	Dr. Eli Jones						1,257,497,296		69,683,257
	Dr. Prema Mathai-Davis						1,254,728,756		72,451,795
	Teresa M. Ressel						1,261,829,473		65,351,074
	Dr. Larry Soll						1,254,261,019		72,919,533
	Ann Barnett Stern						1,260,861,373		66,319,176
	Raymond Stickel, Jr.						1,254,379,471		72,801,083
	Philip A. Taylor						1,256,589,912		70,590,639
	Robert C. Troccoli						1,260,867,549		66,313,003
	Christopher L. Wilson						1,260,186,985		66,993,567
		Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(2)*	Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.		1,054,920,918		171,591,974		100,667,642		18
	Matters	Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(3)	Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities		6,867,278		1,288,491		1,267,939		2
(4)(a)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC		7,433,461		909,805		1,080,443		1
(4)(b)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited		6,959,113		1,141,129		1,323,467		1

* Each of proposal 1 and 2 required approval by a combined vote of all of the portfolios of AIM Variable Insurance Funds (Invesco Variable Insurance Funds).

Invesco V.I. Equally-Weighted S&P 500 Fund

	Semiannual Report to Shareholders	June 30, 2017
	Invesco V.I. Equity and Income Fund

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

  Invesco Distributors, Inc.                                   VK-VIEQI-SAR-1            07192017    0800

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/16 to 6/30/17, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	4.11	%
Series II Shares	4.02
Russell 1000 Value Index▼ (Broad Market Index)	4.66
Bloomberg Barclays U.S. Government/Credit Index▼ (Style-Specific Index)	2.66
Lipper VUF Mixed-Asset Target Allocation Growth Funds Index∎ (Peer Group Index)	8.59
Source(s): ▼FactSet Research Systems Inc.; ∎Lipper Inc.

The Russell 1000^® Value Index is an unmanaged index considered representative of large-cap value stocks. The Russell 1000 Value Index is a trademark/service mark of the Frank Russell Co. Russell^® is a trademark of the Frank Russell Co.

The Bloomberg Barclays U.S. Government/Credit Index is a broad-based benchmark that includes investment-grade, US dollar-denominated, fixed-rate Treasuries, and government-related and corporate securities.

The Lipper VUF Mixed-Asset Target Allocation Growth Funds Index is an unmanaged index considered representative of mixed-asset target allocation growth variable insurance underlying funds tracked by Lipper.

The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns As of 6/30/17
Series I Shares
10 Years	6.29	%
5 Years	11.07
1 Year	17.61
Series II Shares
Inception (4/30/03)	8.16	%
10 Years	6.14
5 Years	10.80
1 Year	17.34

Effective June 1, 2010, Class II shares of the predecessor fund, Universal Institutional Funds Equity and Income Portfolio, advised by Morgan Stanley Investment Management Inc. were reorganized into Series II shares of Invesco Van Kampen V.I. Equity and Income Fund (renamed Invesco V.I. Equity and Income Fund on April 29, 2013). Returns shown above, prior to June 1, 2010, for Series II shares are blended returns of the predecessor fund and Invesco V.I. Equity and Income Fund. Share class returns will differ from the predecessor fund because of different expenses.

Series I shares incepted on June 1, 2010. Series I shares performance shown prior to that date is that of the predecessor fund’s Class II shares and includes the 12b-1 fees applicable to the predecessor fund’s Class II shares.

The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance

figures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.58% and 0.83%, respectively.¹ The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.59% and 0.84%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Invesco V.I. Equity and Income Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent

the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

The most recent month-end performance at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

1 Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2019. See current prospectus for more information.

Invesco V.I. Equity and Income Fund

Schedule of Investments^(a)

June 30, 2017

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–64.71%
Aerospace & Defense–1.06%
General Dynamics Corp.		81,080	$	16,061,948
Apparel, Accessories & Luxury Goods–0.45%
Michael Kors Holdings Ltd.(b)		187,580		6,799,775
Asset Management & Custody Banks–1.92%
Northern Trust Corp.		123,803		12,034,890
State Street Corp.		191,013		17,139,596
				29,174,486
Automobile Manufacturers–0.97%
General Motors Co.		418,959		14,634,238
Biotechnology–0.48%
Amgen Inc.		42,251		7,276,890
Broadcasting–0.21%
CBS Corp.–Class B		49,643		3,166,231
Building Products–1.00%
Johnson Controls International PLC		350,113		15,180,900
Cable & Satellite–1.73%
Charter Communications, Inc.–Class A(b)		30,838		10,387,780
Comcast Corp.–Class A		405,602		15,786,030
				26,173,810
Communications Equipment–1.94%
Cisco Systems, Inc.		510,691		15,984,628
Juniper Networks, Inc.		482,425		13,450,009
				29,434,637
Construction Machinery & Heavy Trucks–0.70%
Caterpillar Inc.		98,406		10,574,709
Data Processing & Outsourced Services–0.63%
PayPal Holdings, Inc.(b)		177,297		9,515,530
Diversified Banks–9.32%
Bank of America Corp.		1,772,233		42,994,373
Citigroup Inc.		826,813		55,297,253
JPMorgan Chase & Co.		469,462		42,908,827
				141,200,453
Diversified Metals & Mining–0.47%
BHP Billiton Ltd. (Australia)		403,227		7,192,937
Drug Retail–1.99%
CVS Health Corp.		145,421		11,700,574
Walgreens Boots Alliance, Inc.		236,161		18,493,768
				30,194,342
Electric Utilities–0.82%
FirstEnergy Corp.		141,731		4,132,876

	Shares		Value
Electric Utilities–(continued)
PG&E Corp.		125,770	$	8,347,355
				12,480,231
Fertilizers & Agricultural Chemicals–1.12%
Agrium Inc. (Canada)		71,094		6,433,296
Mosaic Co. (The)		460,840		10,520,977
				16,954,273
Health Care Distributors–0.72%
Cardinal Health, Inc.		139,645		10,881,138
Health Care Equipment–1.69%
Baxter International Inc.		200,973		12,166,905
Medtronic PLC		152,192		13,507,040
				25,673,945
Health Care Facilities–0.18%
HealthSouth Corp.		56,289		2,724,388
Home Improvement Retail–0.56%
Kingfisher PLC (United Kingdom)		2,176,027		8,522,338
Hotels, Resorts & Cruise Lines–1.36%
Carnival Corp.		313,359		20,546,950
Industrial Conglomerates–0.69%
General Electric Co.		387,945		10,478,394
Industrial Machinery–0.83%
Ingersoll-Rand PLC		137,229		12,541,358
Insurance Brokers–2.20%
Aon PLC		116,234		15,453,310
Marsh & McLennan Cos., Inc.		108,794		8,481,580
Willis Towers Watson PLC		64,623		9,400,062
				33,334,952
Integrated Oil & Gas–3.54%
Exxon Mobil Corp.		95,010		7,670,157
Occidental Petroleum Corp.		273,604		16,380,672
Royal Dutch Shell PLC–Class A (United Kingdom)		720,524		19,139,324
TOTAL S.A. (France)		210,388		10,423,995
				53,614,148
Integrated Telecommunication Services–0.59%
Orange S.A. (France)		144,161		2,296,412
Verizon Communications Inc.		148,640		6,638,262
				8,934,674
Internet Software & Services–0.91%
eBay Inc.(b)		396,413		13,842,742
Investment Banking & Brokerage–3.65%
Charles Schwab Corp. (The)		283,660		12,186,033

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Equity and Income Fund

	Shares		Value
Investment Banking & Brokerage–(continued)
Goldman Sachs Group, Inc. (The)		55,659	$	12,350,732
Morgan Stanley		691,444		30,810,745
				55,347,510
IT Consulting & Other Services–0.89%
Cognizant Technology Solutions Corp.–Class A		204,289		13,564,790
Managed Health Care–0.63%
Anthem, Inc.		50,378		9,477,613
Movies & Entertainment–0.56%
Time Warner Inc.		84,362		8,470,788
Oil & Gas Equipment & Services–1.86%
Baker Hughes, a GE Co., LLC		250,591		13,659,715
TechnipFMC PLC (United Kingdom)(b)		534,320		14,533,504
				28,193,219
Oil & Gas Exploration & Production–3.23%
Apache Corp.		410,570		19,678,620
Canadian Natural Resources Ltd. (Canada)		489,306		14,118,696
Devon Energy Corp.		476,001		15,217,752
				49,015,068
Other Diversified Financial Services–0.45%
Voya Financial, Inc.		184,329		6,799,897
Packaged Foods & Meats–0.65%
Mondelez International, Inc.–Class A		229,176		9,898,111
Pharmaceuticals–3.64%
Merck & Co., Inc.		240,171		15,392,559
Novartis AG (Switzerland)		142,832		11,927,131
Pfizer Inc.		505,834		16,990,964
Sanofi (France)		113,696		10,927,561
				55,238,215
Railroads–0.79%
CSX Corp.		218,998		11,948,531
Regional Banks–5.93%
BB&T Corp.		97,654		4,434,468
Citizens Financial Group, Inc.		672,028		23,977,959
Comerica Inc.		174,991		12,816,341
Fifth Third Bancorp		644,700		16,736,412
First Horizon National Corp.		453,832		7,905,753
KeyCorp		216,221		4,051,982
PNC Financial Services Group, Inc. (The)		160,192		20,003,175
				89,926,090
Semiconductors–1.50%
Intel Corp.		293,887		9,915,747
QUALCOMM Inc.		231,158		12,764,545
				22,680,292

	Shares		Value
Systems Software–1.60%
Oracle Corp.		482,641	$	24,199,620
Tobacco–0.76%
Philip Morris International Inc.		98,181		11,531,359
Wireless Telecommunication Services–0.49%
Vodafone Group PLC–ADR (United Kingdom)		256,303		7,363,585
Total Common Stocks & Other Equity Interests (Cost $708,072,310)				980,765,105
	Principal Amount
Bonds and Notes–17.78%
Advertising–0.02%
Interpublic Group of Cos., Inc. (The), Sr. Unsec. Global Notes, 2.25%, 11/15/2017	$	370,000		370,934
Aerospace & Defense–0.23%
BAE Systems Holdings Inc. (United Kingdom), Sr. Unsec. Gtd. Notes, 2.85%, 12/15/2020(c)		288,000		289,349
Northrop Grumman Corp., Sr. Unsec. Global Notes, 1.75%, 06/01/2018		1,830,000		1,832,266
Precision Castparts Corp., Sr. Unsec. Global Notes, 1.25%, 01/15/2018		590,000		589,552
2.50%, 01/15/2023		365,000		363,628
United Technologies Corp., Sr. Unsec. Global Notes, 4.05%, 05/04/2047		438,000		449,716
				3,524,511
Agricultural & Farm Machinery–0.09%
Deere & Co., Sr. Unsec. Notes, 2.60%, 06/08/2022		1,275,000		1,291,305
Agricultural Products–0.02%
Ingredion Inc., Sr. Unsec. Notes, 6.63%, 04/15/2037		255,000		322,052
Air Freight & Logistics–0.24%
FedEx Corp., Sr. Unsec. Gtd. Bonds, 4.90%, 01/15/2034		440,000		491,094
Sr. Unsec. Gtd. Notes, 5.10%, 01/15/2044		910,000		1,021,832
United Parcel Service, Inc., Sr. Unsec. Global Notes, 1.13%, 10/01/2017		1,925,000		1,924,346
Sr. Unsec. Notes, 3.40%, 11/15/2046		258,000		246,553
				3,683,825
Airlines–0.14%
American Airlines Pass Through Trust, Series 2014-1, Class A, Sr. Sec. First Lien Pass Through Ctfs., 3.70%, 04/01/2028		386,023		398,087

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Equity and Income Fund

	Principal Amount		Value
Airlines–(continued)
Continental Airlines Pass Through Trust, Series 2010-1, Class A,
Sr. Sec. First Lien Pass Through Ctfs., 4.75%, 01/12/2021	$	204,967	$	216,880
Series 2012-1, Class A,
Sr. Sec. First Lien Pass Through Ctfs., 4.15%, 04/11/2024		409,594		433,913
Delta Air Lines Pass Through Trust, Series 2010-1, Class A, Sr. Sec. First Lien Pass Through Ctfs., 6.20%, 01/02/2020		108,964		113,187
United Airlines Pass Through Trust, Series 2014-2, Class A, Sr. Sec. First Lien Pass Through Ctfs., 3.75%, 09/03/2026		498,014		517,934
Virgin Australia Pass Through Trust (Australia), Series 2013-1, Class A, Sec. Gtd. Pass Through Ctfs., 5.00%, 04/23/2025(c)		372,724		385,769
				2,065,770
Apparel Retail–0.02%
Ross Stores, Inc., Sr. Unsec. Notes, 3.38%, 09/15/2024		301,000		306,580
Application Software–0.37%
Citrix Systems, Inc., Sr. Unsec. Conv. Bonds, 0.50%, 04/15/2019		2,171,000		2,611,984
Nuance Communications, Inc., Sr. Unsec. Conv. Bonds, 1.00%, 12/15/2022(d)		2,270,000		2,199,063
RealPage, Inc., Sr. Unsec. Conv. Notes, 1.50%, 11/15/2022(c)		690,000		754,256
				5,565,303
Asset Management & Custody Banks–0.11%
Apollo Management Holdings L.P., Sr. Unsec. Gtd. Notes, 4.00%, 05/30/2024(c)		425,000		432,999
Brookfield Asset Management Inc. (Canada), Sr. Unsec. Notes, 4.00%, 01/15/2025		460,000		467,623
Carlyle Holdings Finance LLC, Sr. Unsec. Gtd. Notes, 3.88%, 02/01/2023(c)		395,000		406,293
KKR Group Finance Co. III LLC, Sr. Unsec. Gtd. Bonds, 5.13%, 06/01/2044(c)		315,000		333,483
				1,640,398
Automobile Manufacturers–0.29%
Daimler Finance North America LLC (Germany), Sr. Unsec. Gtd. Notes, 1.88%, 01/11/2018(c)		555,000		555,623

	Principal Amount		Value
Automobile Manufacturers–(continued)
Ford Motor Credit Co. LLC, Sr. Unsec. Global Notes, 1.72%, 12/06/2017	$	1,445,000	$	1,445,049
3.10%, 05/04/2023		267,000		264,098
3.81%, 01/09/2024		445,000		450,460
4.13%, 08/04/2025		687,000		696,360
General Motors Co., Sr. Unsec. Global Notes, 6.60%, 04/01/2036		397,000		463,133
General Motors Financial Co., Inc., Sr. Unsec. Gtd. Global Notes, 5.25%, 03/01/2026		503,000		543,037
				4,417,760
Automotive Retail–0.07%
Advance Auto Parts, Inc., Sr. Unsec. Gtd. Notes, 4.50%, 12/01/2023		660,000		700,137
5.75%, 05/01/2020		399,000		432,329
				1,132,466
Biotechnology–0.53%
AbbVie Inc., Sr. Unsec. Global Notes, 4.50%, 05/14/2035		720,000		762,064
BioMarin Pharmaceutical Inc., Sr. Unsec. Sub. Conv. Notes, 1.50%, 10/15/2020		2,388,000		2,852,168
Celgene Corp., Sr. Unsec. Global Notes, 4.00%, 08/15/2023		485,000		514,563
4.63%, 05/15/2044		1,390,000		1,466,668
Gilead Sciences, Inc., Sr. Unsec. Global Notes, 4.40%, 12/01/2021		492,000		531,302
Neurocrine Biosciences, Inc., Sr. Unsec. Conv. Notes, 2.25%, 05/15/2024(c)		1,853,000		1,844,893
				7,971,658
Brewers–0.35%
Anheuser-Busch InBev Finance, Inc. (Belgium), Sr. Unsec. Gtd. Global Notes, 2.65%, 02/01/2021		625,000		633,881
3.30%, 02/01/2023		593,000		610,863
4.70%, 02/01/2036		1,005,000		1,105,271
4.90%, 02/01/2046		1,122,000		1,276,902
Heineken NV (Netherlands), Sr. Unsec. Notes, 3.50%, 01/29/2028(c)		1,000,000		1,019,944
Molson Coors Brewing Co., Sr. Unsec. Gtd. Global Notes, 1.45%, 07/15/2019		341,000		337,224
4.20%, 07/15/2046		395,000		391,897
				5,375,982
Broadcasting–0.63%
Liberty Media Corp., Sr. Unsec. Conv. Deb., 2.25%, 10/05/2021(c)(d)		1,538,000		1,662,962
Sr. Unsec. Conv. Notes, 1.00%, 01/30/2023(c)		570,000		662,981
1.38%, 10/15/2023		6,063,000		7,208,301
				9,534,244

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Equity and Income Fund

	Principal Amount		Value
Cable & Satellite–0.65%
Charter Communications Operating, LLC/Charter Communications Operating Capital Corp., Sr. Sec. Gtd. First Lien Global Notes, 4.46%, 07/23/2022	$	1,065,000	$	1,136,821
Comcast Corp., Sr. Unsec. Gtd. Global Notes, 5.70%, 05/15/2018		445,000		461,141
Sr. Unsec. Gtd. Notes, 6.45%, 03/15/2037		305,000		407,283
Cox Communications, Inc., Sr. Unsec. Notes, 8.38%, 03/01/2039(c)		2,080,000		2,761,341
DISH Network Corp., Sr. Unsec. Conv. Notes, 3.38%, 08/15/2026(c)		3,749,000		4,564,408
NBCUniversal Media LLC, Sr. Unsec. Gtd. Global Notes, 5.15%, 04/30/2020		175,000		190,603
5.95%, 04/01/2041		215,000		275,849
				9,797,446
Commodity Chemicals–0.07%
Basell Finance Co. B.V. (Netherlands), Sr. Unsec. Gtd. Deb., 8.10%, 03/15/2027(c)		745,000		1,001,318
Communications Equipment–0.61%
Ciena Corp., Sr. Unsec. Conv. Bonds, 4.00%, 12/15/2020		1,610,000		2,283,181
Finisar Corp., Sr. Unsec. Conv. Notes, 0.50%, 12/15/2021(c)(d)		1,114,000		1,090,328
Viavi Solutions Inc., Sr. Unsec. Conv. Deb., 0.63%, 08/15/2018(d)		3,377,000		3,746,359
Sr. Unsec. Conv. Notes, 1.00%, 03/01/2024(c)		1,986,000		2,085,300
				9,205,168
Construction & Engineering–0.10%
Valmont Industries, Inc., Sr. Unsec. Gtd. Global Notes, 5.00%, 10/01/2044		250,000		246,058
5.25%, 10/01/2054		1,321,000		1,277,467
				1,523,525
Consumer Finance–0.02%
American Express Co., Unsec. Sub. Global Notes, 3.63%, 12/05/2024		336,000		344,904
Data Processing & Outsourced Services–0.29%
Blackhawk Network Holdings, Inc., Sr. Unsec. Conv. Notes, 1.50%, 01/15/2022(c)		3,275,000		3,668,000
Visa Inc., Sr. Unsec. Global Notes, 4.15%, 12/14/2035		670,000		729,047
				4,397,047
Diversified Banks–1.25%
ANZ New Zealand (Int’l) Ltd. (New Zealand), Sr. Unsec. Gtd. Notes, 2.88%, 01/25/2022(c)		350,000		353,003

	Principal Amount		Value
Diversified Banks–(continued)
Australia and New Zealand Banking Group Ltd. (Australia), Sr. Unsec. Medium-Term Global Notes, 2.30%, 06/01/2021	$	713,000	$	709,604
Bank of America Corp., Sr. Unsec. Global Notes, 5.75%, 12/01/2017		975,000		991,703
Sr. Unsec. Medium-Term Global Notes, 3.50%, 04/19/2026		615,000		618,447
5.65%, 05/01/2018		350,000		361,122
Sr. Unsec. Medium-Term Notes, 3.25%, 10/21/2027		565,000		545,398
BBVA Bancomer S.A. (Mexico), Sr. Unsec. Notes, 4.38%, 04/10/2024(c)		700,000		728,209
Citigroup Inc., Unsec. Sub. Global Notes, 5.30%, 05/06/2044		250,000		285,556
6.68%, 09/13/2043		815,000		1,093,397
Unsec. Sub. Notes, 4.75%, 05/18/2046		375,000		397,458
Commonwealth Bank of Australia (Australia), Sr. Unsec. Notes, 2.25%, 03/10/2020(c)		1,085,000		1,087,264
HBOS PLC (United Kingdom), Unsec. Sub. Medium-Term Global Notes, 6.75%, 05/21/2018(c)		325,000		337,617
JPMorgan Chase & Co., Sr. Unsec. Global Notes, 3.20%, 06/15/2026		415,000		409,741
4.26%, 02/22/2048		525,000		550,864
4.50%, 01/24/2022		80,000		86,779
Unsec. Sub. Global Notes, 4.25%, 10/01/2027		345,000		359,383
Series V, Jr. Unsec. Sub. Global Notes, 5.00% (e)		640,000		654,400
Mizuho Financial Group Cayman 3 Ltd. (Japan), Unsec. Gtd. Sub. Notes, 4.60%, 03/27/2024(c)		200,000		211,902
National Australia Bank Ltd. (Australia), Sr. Unsec. Medium-Term Global Notes, 2.00%, 01/14/2019		930,000		932,143
Sr. Unsec. Notes, 1.88%, 07/12/2021		945,000		925,279
3.50%, 01/10/2027(c)		1,055,000		1,071,227
SMBC Aviation Capital Finance DAC (Ireland), Sr. Unsec. Gtd. Notes, 2.65%, 07/15/2021(c)		315,000		309,283
Société Générale S.A. (France), Sr. Unsec. Notes, 2.63%, 09/16/2020(c)		890,000		900,936
Unsec. Sub. Notes, 5.00%, 01/17/2024(c)		735,000		782,292
Standard Chartered PLC (United Kingdom), Sr. Unsec. Notes, 3.05%, 01/15/2021(c)		680,000		688,100

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Equity and Income Fund

	Principal Amount		Value
Diversified Banks–(continued)
Sumitomo Mitsui Banking Corp. (Japan), Sr. Unsec. Gtd. Medium-Term Global Notes, 2.65%, 07/23/2020	$	715,000	$	722,871
U.S. Bancorp, Series W, Unsec. Sub. Medium-Term Notes, 3.10%, 04/27/2026		295,000		292,405
Wells Fargo & Co., Sr. Unsec. Medium-Term Global Notes, 1.50%, 01/16/2018		180,000		180,010
Sr. Unsec. Medium-Term Notes, 3.55%, 09/29/2025		655,000		667,401
Unsec. Sub. Medium-Term Notes, 4.10%, 06/03/2026		450,000		465,094
4.65%, 11/04/2044		1,200,000		1,267,608
				18,986,496
Diversified Capital Markets–0.56%
Credit Suisse Nassau (Switzerland), Sr. Unsec. Conv. Medium-Term Notes, 0.05%, 06/24/2024(c)		7,880,000		7,718,460
Unsec. Sub. Notes, 6.50%, 08/08/2023(c)		686,000		770,225
				8,488,685
Diversified Chemicals–0.05%
Eastman Chemical Co., Sr. Unsec. Global Notes, 2.70%, 01/15/2020		795,000		805,893
Diversified Metals & Mining–0.02%
Rio Tinto Finance USA Ltd. (United Kingdom), Sr. Unsec. Gtd. Global Notes, 7.13%, 07/15/2028		200,000		265,299
Diversified Support Services–0.04%
Cintas Corp. No. 2, Sr. Unsec. Gtd. Notes, 6.13%, 12/01/2017		560,000		570,501
Drug Retail–0.16%
CVS Health Corp., Sr. Unsec. Global Bonds, 3.38%, 08/12/2024		375,000		381,157
CVS Pass Through Trust, Sr. Sec. First Lien Global Pass Through Ctfs., 6.04%, 12/10/2028		830,205		935,992
Walgreens Boots Alliance Inc., Sr. Unsec. Global Notes, 3.30%, 11/18/2021		602,000		620,701
4.50%, 11/18/2034		444,000		464,351
				2,402,201
Electric Utilities–0.27%
Duke Energy Corp., Sr. Unsec. Global Notes, 2.10%, 06/15/2018		1,250,000		1,255,001
Electricite de France S.A. (France), Jr. Unsec. Sub. Notes, 5.63%(c)(e)		745,000		771,075
Sr. Unsec. Notes, 4.60%, 01/27/2020(c)		150,000		158,932
4.88%, 01/22/2044(c)		930,000		983,957

	Principal Amount		Value
Electric Utilities–(continued)
NextEra Energy Capital Holdings Inc., Sr. Unsec. Gtd. Deb., 3.55%, 05/01/2027	$	569,000	$	578,669
Ohio Power Co., Series M, Sr. Unsec. Notes, 5.38%, 10/01/2021		200,000		222,865
PPL Electric Utilities Corp., Sr. Sec. First Mortgage Bonds, 6.25%, 05/15/2039		50,000		66,930
				4,037,429
Electrical Components & Equipment–0.16%
Eaton Corp., Sr. Unsec. Gtd. Global Notes, 1.50%, 11/02/2017		2,490,000		2,490,807
Environmental & Facilities Services–0.03%
Waste Management, Inc., Sr. Unsec. Gtd. Global Notes, 3.90%, 03/01/2035		469,000		485,548
Fertilizers & Agricultural Chemicals–0.02%
Monsanto Co., Sr. Unsec. Global Notes, 2.13%, 07/15/2019		305,000		305,809
Financial Exchanges & Data–0.07%
Moody’s Corp., Sr. Unsec. Global Notes, 4.50%, 09/01/2022		935,000		1,011,991
Gas Utilities–0.04%
NiSource Finance Corp., Sr. Unsec. Gtd. Global Notes, 4.38%, 05/15/2047		616,000		644,205
General Merchandise Stores–0.02%
Dollar General Corp., Sr. Unsec. Global Notes, 3.25%, 04/15/2023		365,000		372,062
Health Care Distributors–0.07%
McKesson Corp., Sr. Unsec. Global Notes, 2.28%, 03/15/2019		1,095,000		1,101,578
Health Care Equipment–0.77%
Becton, Dickinson and Co., Sr. Unsec. Global Notes, 4.88%, 05/15/2044		750,000		781,898
Sr. Unsec. Notes, 2.68%, 12/15/2019		274,000		277,528
DexCom, Inc., Sr. Unsec. Conv. Notes, 0.75%, 05/15/2022(c)		1,334,000		1,364,849
Edwards Lifesciences Corp., Sr. Unsec. Global Notes, 2.88%, 10/15/2018		731,000		738,071
Medtronic, Inc., Sr. Unsec. Gtd. Global Notes, 3.15%, 03/15/2022		1,076,000		1,114,813
4.38%, 03/15/2035		358,000		393,202
4.63%, 03/15/2044		525,000		588,013
NuVasive, Inc., Sr. Unsec. Conv. Bonds, 2.25%, 03/15/2021		1,880,000		2,603,800
Wright Medical Group N.V., Sr. Unsec. Conv. Bonds, 2.25%, 11/15/2021		986,000		1,397,655
Wright Medical Group, Inc., Sr. Unsec. Conv. Bonds, 2.00%, 02/15/2020		2,203,000		2,459,099
				11,718,928

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Equity and Income Fund

	Principal Amount		Value
Health Care Facilities–0.16%
Brookdale Senior Living Inc., Sr. Unsec. Conv. Notes, 2.75%, 06/15/2018	$	2,401,000	$	2,390,496
Health Care REIT’s–0.08%
HCP, Inc., Sr. Unsec. Global Notes, 3.88%, 08/15/2024		505,000		514,736
4.20%, 03/01/2024		480,000		499,043
Ventas Realty L.P., Sr. Unsec. Gtd. Notes, 5.70%, 09/30/2043		215,000		250,901
				1,264,680
Health Care Services–0.10%
Express Scripts Holding Co., Sr. Unsec. Gtd. Global Notes, 2.25%, 06/15/2019		575,000		577,059
Laboratory Corp. of America Holdings, Sr. Unsec. Notes, 3.20%, 02/01/2022		602,000		613,204
4.70%, 02/01/2045		264,000		275,391
				1,465,654
Home Improvement Retail–0.04%
Home Depot, Inc. (The), Sr. Unsec. Global Notes, 2.00%, 04/01/2021		631,000		630,239
Homebuilding–0.07%
MDC Holdings, Inc., Sr. Unsec. Gtd. Notes, 6.00%, 01/15/2043		1,050,000		981,750
Hotel and Resort REIT’s–0.03%
Hospitality Properties Trust, Sr. Unsec. Notes, 4.50%, 06/15/2023		270,000		282,693
5.00%, 08/15/2022		200,000		214,656
				497,349
Housewares & Specialties–0.03%
Tupperware Brands Corp., Sr. Unsec. Gtd. Global Notes, 4.75%, 06/01/2021		475,000		506,771
Insurance Brokers–0.02%
Willis North America, Inc., Sr. Unsec. Gtd. Global Notes, 3.60%, 05/15/2024		250,000		252,950
Integrated Oil & Gas–0.34%
Cenovus Energy Inc. (Canada), Sr. Unsec. Notes, 5.25%, 06/15/2037(c)		707,000		666,348
Chevron Corp., Sr. Unsec. Global Notes, 1.37%, 03/02/2018		1,428,000		1,434,756
1.72%, 06/24/2018		520,000		523,555
Husky Energy Inc. (Canada), Sr. Unsec. Global Notes, 3.95%, 04/15/2022		300,000		311,993
Occidental Petroleum Corp., Sr. Unsec. Global Notes, 3.40%, 04/15/2026		365,000		368,440
Petróleos Mexicanos (Mexico), Sr. Unsec. Gtd. Global Notes, 4.88%, 01/24/2022		570,000		591,521

	Principal Amount		Value
Integrated Oil & Gas–(continued)
Shell International Finance B.V. (Netherlands), Sr. Unsec. Gtd. Global Notes, 4.00%, 05/10/2046	$	897,000	$	887,510
Suncor Energy Inc. (Canada), Sr. Unsec. Notes, 3.60%, 12/01/2024		334,000		341,305
				5,125,428
Integrated Telecommunication Services–0.50%
AT&T Inc., Sr. Unsec. Global Notes, 3.00%, 06/30/2022		520,000		520,875
3.40%, 05/15/2025		289,000		284,577
3.80%, 03/15/2022		330,000		341,853
4.50%, 05/15/2035		463,000		458,641
4.80%, 06/15/2044		935,000		926,970
5.15%, 03/15/2042		90,000		92,969
5.35%, 09/01/2040		101,000		107,429
6.15%, 09/15/2034		140,000		161,811
Telefónica Emisiones, S.A.U. (Spain), Sr. Unsec. Gtd. Global Notes, 5.21%, 03/08/2047		700,000		746,983
7.05%, 06/20/2036		360,000		475,512
Verizon Communications Inc., Sr. Unsec. Global Notes, 4.13%, 08/15/2046		83,000		74,291
4.40%, 11/01/2034		325,000		323,527
4.52%, 09/15/2048		1,988,000		1,896,705
5.01%, 08/21/2054		694,000		687,569
Sr. Unsec. Notes, 4.81%, 03/15/2039(c)		503,000		510,731
				7,610,443
Internet & Direct Marketing Retail–0.56%
Ctrip.com International, Ltd. (China), Sr. Unsec. Conv. Notes, 1.25%, 09/15/2019(c)(d)		2,992,000		3,240,710
Liberty Expedia Holdings, Inc., Sr. Unsec. Conv. Deb., 1.00%, 07/05/2022(c)(d)		1,574,000		1,681,229
Liberty Interactive LLC, Sr. Unsec. Conv. Deb., 1.75%, 10/05/2023(c)(d)		2,357,000		2,706,131
QVC, Inc., Sr. Sec. Gtd. First Lien Global Notes, 5.45%, 08/15/2034		880,000		838,797
				8,466,867
Internet Software & Services–0.17%
eBay Inc., Sr. Unsec. Global Notes, 2.50%, 03/09/2018		1,865,000		1,877,278
WebMD Health Corp., Unsec. Conv. Bonds, 2.63%, 06/15/2023		711,000		698,238
				2,575,516

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Equity and Income Fund

	Principal Amount		Value
Investment Banking & Brokerage–1.26%
Goldman Sachs Group, Inc. (The), Sr. Unsec. Global Notes, 5.25%, 07/27/2021	$	400,000	$	439,162
Unsec. Sub. Notes, 4.25%, 10/21/2025		552,000		569,297
Series 0000, Sr. Unsec. Exchangeable Basket-Linked Conv. Medium-Term Notes, 1.00%, 09/28/2020(c)(f)		6,230,000		8,173,698
GS Finance Corp., Series 0001, Sr. Unsec. Conv. Medium-Term Notes, 0.25%, 07/08/2024		5,920,000		5,867,430
Jefferies Group LLC, Sr. Unsec. Conv. Deb., 3.88%, 11/01/2017(d)		3,286,000		3,310,645
Morgan Stanley, Sr. Unsec. Medium-Term Global Notes, 4.00%, 07/23/2025		680,000		711,183
				19,071,415
IT Consulting & Other Services–0.03%
Computer Sciences Corp., Sr. Unsec. Global Notes, 4.45%, 09/15/2022		490,000		519,224
Life & Health Insurance–0.47%
Athene Global Funding, Sec. Notes, 2.88%, 10/23/2018(c)		624,000		626,656
4.00%, 01/25/2022(c)		1,220,000		1,265,045
Jackson National Life Global Funding,
Sr. Sec. Notes, 2.10%, 10/25/2021(c)		525,000		514,930
3.25%, 01/30/2024(c)		480,000		485,232
Nationwide Financial Services Inc., Sr. Unsec. Notes, 5.30%, 11/18/2044(c)		910,000		1,038,366
Prudential Financial, Inc.,
Sr. Unsec. Medium-Term Notes, 5.10%, 08/15/2043		410,000		473,007
Series D, Sr. Unsec. Medium-Term Notes, 6.00%, 12/01/2017		1,565,000		1,592,784
6.63%, 12/01/2037		110,000		147,453
Reliance Standard Life Global Funding II, Sr. Sec. First Lien Notes, 3.05%, 01/20/2021(c)		465,000		469,853
Teachers Insurance and Annuity Association of America, Unsec. Sub. Notes, 4.27%, 05/15/2047(c)		498,000		508,863
				7,122,189
Movies & Entertainment–0.09%
Live Nation Entertainment, Inc., Sr. Unsec. Conv. Bonds, 2.50%, 05/15/2019		1,203,000		1,377,435
Multi-Line Insurance–0.15%
American Financial Group, Inc., Sr. Unsec. Notes, 4.50%, 06/15/2047		520,000		530,620

	Principal Amount		Value
Multi-Line Insurance–(continued)
American International Group, Inc., Sr. Unsec. Global Notes, 2.30%, 07/16/2019	$	385,000	$	387,339
4.38%, 01/15/2055		720,000		694,783
Metropolitan Life Global Funding I, Sec. Notes, 2.05%, 06/12/2020(c)		590,000		590,016
				2,202,758
Multi-Utilities–0.00%
Virginia Electric & Power Co., Sr. Unsec. Notes, 5.00%, 06/30/2019		15,000		15,889
Office REIT’s–0.04%
Piedmont Operating Partnership L.P., Sr. Unsec. Gtd. Global Notes, 4.45%, 03/15/2024		605,000		621,347
Office Services & Supplies–0.03%
Pitney Bowes Inc., Sr. Unsec. Global Notes, 4.63%, 03/15/2024		500,000		511,521
Oil & Gas Drilling–0.17%
Ensco Jersey Finance Ltd., Sr. Unsec. Gtd. Conv. Notes, 3.00%, 01/31/2024(c)		2,100,000		1,614,098
Nabors Industries Inc., Sr. Unsec. Gtd. Conv. Notes, 0.75%, 01/15/2024(c)		1,150,000		917,844
				2,531,942
Oil & Gas Equipment & Services–0.27%
Helix Energy Solutions Group, Inc., Sr. Unsec. Conv. Notes, 4.25%, 05/01/2022		1,105,000		1,036,628
Weatherford International Ltd., Sr. Unsec. Gtd. Conv. Notes, 5.88%, 07/01/2021		2,952,000		2,994,435
				4,031,063
Oil & Gas Exploration & Production–0.28%
Anadarko Petroleum Corp., Sr. Unsec. Notes, 6.60%, 03/15/2046		443,000		547,413
Chesapeake Energy Corp., Sr. Unsec. Gtd. Conv. Notes, 5.50%, 09/15/2026(c)		1,042,000		979,480
ConocoPhillips Co., Sr. Unsec. Gtd. Global Notes,
2.88%, 11/15/2021		859,000		875,139
4.15%, 11/15/2034		921,000		935,550
Noble Energy, Inc., Sr. Unsec. Global Notes, 5.25%, 11/15/2043		830,000		857,847
				4,195,429
Oil & Gas Storage & Transportation–0.54%
Enable Midstream Partners, LP, Sr. Unsec. Global Notes, 2.40%, 05/15/2019		440,000		435,328
Enbridge Inc. (Canada), Sr. Unsec. Global Notes, 5.50%, 12/01/2046		424,000		484,656

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Equity and Income Fund

	Principal Amount		Value
Oil & Gas Storage & Transportation–(continued)
Energy Transfer, LP, Sr. Unsec. Notes, 4.90%, 03/15/2035	$	357,000	$	350,407
Enterprise Products Operating LLC,
Sr. Unsec. Gtd. Global Bonds, 6.45%, 09/01/2040		25,000		31,494
Sr. Unsec. Gtd. Global Notes, 5.25%, 01/31/2020		155,000		167,140
Sr. Unsec. Gtd. Notes, 2.55%, 10/15/2019		370,000		375,066
Series N, Sr. Unsec. Gtd. Notes, 6.50%, 01/31/2019		245,000		262,593
Kinder Morgan Inc., Sr. Unsec. Gtd. Notes, 5.30%, 12/01/2034		422,000		437,210
MPLX LP,
Sr. Unsec. Global Bonds, 4.50%, 07/15/2023		1,820,000		1,937,731
Sr. Unsec. Global Notes, 5.50%, 02/15/2023		745,000		769,678
Plains All American Pipeline L.P./ PAA Finance Corp., Sr. Unsec. Global Notes, 3.65%, 06/01/2022		355,000		363,343
Spectra Energy Partners, L.P., Sr. Unsec. Global Notes, 4.50%, 03/15/2045		536,000		531,164
Sunoco Logistics Partners Operations L.P., Sr. Unsec. Gtd. Notes, 5.30%, 04/01/2044		645,000		632,649
5.50%, 02/15/2020		535,000		575,858
Texas Eastern Transmission L.P., Sr. Unsec. Notes, 7.00%, 07/15/2032		185,000		236,638
Western Gas Partners, LP, Sr. Unsec. Notes, 5.45%, 04/01/2044		600,000		619,134
				8,210,089
Other Diversified Financial Services–0.19%
ERAC USA Finance LLC, Sr. Unsec. Gtd. Notes, 2.35%, 10/15/2019(c)		935,000		936,415
MassMutual Global Funding II,
Sr. Sec. Notes, 2.10%, 08/02/2018(c)		975,000		979,788
Sec. Notes, 2.00%, 04/15/2021(c)		945,000		926,112
				2,842,315
Packaged Foods & Meats–0.06%
General Mills, Inc., Sr. Unsec. Global Notes, 2.20%, 10/21/2019		850,000		855,669
Mead Johnson Nutrition Co. (United Kingdom), Sr. Unsec. Gtd. Global Notes, 4.13%, 11/15/2025		64,000		68,918
				924,587
Paper Packaging–0.10%
International Paper Co., Sr. Unsec. Global Notes, 6.00%, 11/15/2041		245,000		300,386
Packaging Corp. of America, Sr. Unsec. Global Notes, 4.50%, 11/01/2023		1,139,000		1,228,249
				1,528,635

	Principal Amount		Value
Pharmaceuticals–0.64%
Allergan Funding SCS, Sr. Unsec. Gtd. Global Notes, 4.85%, 06/15/2044	$	950,000	$	1,042,848
Bayer US Finance LLC (Germany), Sr. Unsec. Gtd. Notes, 3.00%, 10/08/2021(c)		590,000		603,653
GlaxoSmithKline Capital Inc. (United Kingdom),
Sr. Unsec. Gtd. Global Bonds, 5.65%, 05/15/2018		75,000		77,638
6.38%, 05/15/2038		70,000		95,338
Jazz Investments I Ltd., Sr. Unsec. Gtd. Conv. Bonds, 1.88%, 08/15/2021		1,455,000		1,596,862
Medicines Co. (The), Sr. Unsec. Conv. Bonds, 2.75%, 07/15/2023		938,000		986,073
Merck Sharp & Dohme Corp., Sr. Unsec. Gtd. Global Notes, 5.00%, 06/30/2019		280,000		297,574
Mylan N.V.,
Sr. Unsec. Gtd. Global Notes, 3.15%, 06/15/2021		431,000		437,556
5.25%, 06/15/2046		590,000		648,787
Pacira Pharmaceuticals, Inc., Sr. Unsec. Conv. Notes, 2.38%, 04/01/2022(c)		396,000		421,740
Roche Holdings, Inc. (Switzerland), Sr. Unsec. Gtd. Notes, 1.35%, 09/29/2017(c)		2,775,000		2,775,186
Teva Pharmaceutical Finance Netherlands III B.V. (Israel), Sr. Unsec. Gtd. Global Notes, 2.80%, 07/21/2023		364,000		354,621
Zoetis Inc., Sr. Unsec. Global Notes, 4.70%, 02/01/2043		365,000		397,817
				9,735,693
Property & Casualty Insurance–0.31%
Allstate Corp. (The), Sr. Unsec. Bonds, 3.28%, 12/15/2026		320,000		325,860
CNA Financial Corp.,
Sr. Unsec. Global Bonds, 5.88%, 08/15/2020		325,000		358,225
Sr. Unsec. Notes, 7.35%, 11/15/2019		25,000		27,985
Liberty Mutual Group Inc., Sr. Unsec. Gtd. Bonds, 4.85%, 08/01/2044(c)		975,000		1,051,846
Markel Corp., Sr. Unsec. Notes, 5.00%, 03/30/2043		385,000		421,468
Old Republic International Corp., Sr. Unsec. Conv. Notes, 3.75%, 03/15/2018		970,000		1,232,506
Travelers Cos., Inc. (The), Sr. Unsec. Global Notes, 4.60%, 08/01/2043		665,000		753,452
WR Berkley Corp., Sr. Unsec. Global Notes, 4.63%, 03/15/2022		420,000		449,108
				4,620,450
Railroads–0.27%
Burlington Northern Santa Fe, LLC, Sr. Unsec. Deb., 5.15%, 09/01/2043		1,990,000		2,385,403

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Equity and Income Fund

	Principal Amount		Value
Railroads–(continued)
CSX Corp., Sr. Unsec. Notes, 5.50%, 04/15/2041	$	380,000	$	459,813
Union Pacific Corp.,
Sr. Unsec. Global Notes, 3.65%, 02/15/2024		101,000		106,902
Sr. Unsec. Notes, 4.15%, 01/15/2045		440,000		462,488
4.85%, 06/15/2044		570,000		648,695
				4,063,301
Regional Banks–0.05%
Citizens Financial Group, Inc., Sr. Unsec. Global Notes, 2.38%, 07/28/2021		455,000		448,448
SunTrust Banks, Inc., Unsec. Sub. Global Notes, 3.30%, 05/15/2026		385,000		377,294
				825,742
Reinsurance–0.06%
Reinsurance Group of America, Inc., Sr. Unsec. Medium-Term Notes, 4.70%, 09/15/2023		780,000		847,574
Renewable Electricity–0.04%
Oglethorpe Power Corp., Sr. Sec. First Mortgage Bonds, 4.55%, 06/01/2044		581,000		579,430
Retail REIT’s–0.00%
Brixmor Operating Partnership LP, Sr. Unsec. Notes, 3.88%, 08/15/2022		45,000		46,050
Semiconductors–0.72%
Broadcom Corp./Broadcom Cayman Finance Ltd., Sr. Unsec. Gtd. Notes, 3.63%, 01/15/2024(c)		1,435,000		1,474,014
Intel Corp., Sr. Unsec. Global Notes, 1.35%, 12/15/2017		740,000		740,135
4.10%, 05/11/2047		190,000		197,437
Microchip Technology Inc., Sr. Unsec. Sub. Conv. Notes, 1.63%, 02/15/2027(c)		3,242,000		3,424,362
Micron Technology, Inc., Series G, Sr. Unsec. Conv. Global Bonds, 3.00%, 11/15/2028(d)		1,878,000		2,122,140
ON Semiconductor Corp., Sr. Unsec. Gtd. Conv. Bonds, 1.00%, 12/01/2020		2,010,000		2,095,425
Silicon Laboratories Inc., Sr. Unsec. Conv. Notes, 1.38%, 03/01/2022(c)		619,000		642,986
Texas Instruments Inc., Sr. Unsec. Notes, 2.63%, 05/15/2024		230,000		229,252
				10,925,751

	Principal Amount		Value
Specialized Finance–0.37%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust (Netherlands), Sr. Unsec. Gtd. Global Notes, 3.95%, 02/01/2022	$	385,000	$	402,325
Air Lease Corp., Sr. Unsec. Global Notes, 2.63%, 09/04/2018		1,150,000		1,158,845
3.00%, 09/15/2023		649,000		645,955
4.25%, 09/15/2024		430,000		452,143
Aviation Capital Group Corp.,
Sr. Unsec. Notes, 2.88%, 09/17/2018(c)		745,000		752,214
2.88%, 01/20/2022(c)		1,364,000		1,358,907
4.88%, 10/01/2025(c)		735,000		798,778
				5,569,167
Specialized REIT’s–0.27%
Crown Castle International Corp., Sr. Unsec. Global Notes, 4.75%, 05/15/2047		50,000		51,147
Crown Castle Towers LLC,
Sr. Sec. Gtd. First Lien Notes, 4.88%, 08/15/2020(c)		538,000		574,137
6.11%, 01/15/2020(c)		770,000		830,568
EPR Properties, Sr. Unsec. Gtd. Global Notes, 4.75%, 12/15/2026		2,145,000		2,206,599
Life Storage, Inc., Sr. Unsec. Gtd. Global Notes, 3.50%, 07/01/2026		444,000		425,915
				4,088,366
Specialty Chemicals–0.01%
Sherwin-Williams Co. (The), Sr. Unsec. Global Notes, 4.50%, 06/01/2047		170,000		179,307
Systems Software–0.30%
FireEye, Inc.,
Series A, Sr. Unsec. Conv. Bonds, 1.00%, 06/01/2020(d)		1,163,000		1,101,942
Series B, Sr. Unsec. Conv. Bonds, 1.63%, 06/01/2022(d)		1,163,000		1,064,872
Microsoft Corp., Sr. Unsec. Global Notes, 3.50%, 02/12/2035		403,000		406,835
Oracle Corp.,
Sr. Unsec. Global Notes, 1.90%, 09/15/2021		1,285,000		1,273,532
4.30%, 07/08/2034		600,000		651,285
				4,498,466
Technology Distributors–0.05%
Avnet, Inc., Sr. Unsec. Global Notes, 4.63%, 04/15/2026		705,000		733,321
Technology Hardware, Storage & Peripherals–0.32%
Apple Inc., Sr. Unsec. Global Notes, 2.15%, 02/09/2022		716,000		711,854
3.35%, 02/09/2027		335,000		343,013

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Equity and Income Fund

	Principal Amount		Value
Technology Hardware, Storage & Peripherals–(continued)
Dell International LLC/ EMC Corp.,
Sr. Sec. Gtd. First Lien Notes, 5.45%, 06/15/2023(c)	$	645,000	$	702,632
8.35%, 07/15/2046(c)		14,000		18,175
SanDisk Corp., Sr. Unsec. Gtd. Conv. Bonds, 0.50%, 10/15/2020		2,520,000		2,438,294
Seagate HDD Cayman, Sr. Unsec. Gtd. Global Bonds, 5.75%, 12/01/2034		702,000		706,388
				4,920,356
Tobacco–0.13%
Philip Morris International Inc.,
Sr. Unsec. Global Bonds, 1.25%, 08/11/2017		214,000		214,001
Sr. Unsec. Global Notes, 3.60%, 11/15/2023		405,000		423,180
4.88%, 11/15/2043		1,210,000		1,356,557
				1,993,738
Wireless Telecommunication Services–0.08%
América Móvil, S.A.B. de C.V. (Mexico), Sr. Unsec. Global Notes, 4.38%, 07/16/2042		600,000		605,438
Rogers Communications Inc. (Canada), Sr. Unsec. Gtd. Global Notes, 4.50%, 03/15/2043		585,000		611,764
				1,217,202
Total Bonds and Notes (Cost $255,587,626)				269,477,523
U.S. Treasury Securities–10.53%
U.S. Treasury Bills–0.01%
0.89%, 08/10/2017(g)(h)		75,000		74,932
U.S. Treasury Notes–9.90%
1.25%, 01/31/2019		19,275,000		19,244,121
1.25%, 05/31/2019		62,710,000		62,566,708
3.63%, 08/15/2019		1,525,000		1,595,769
3.38%, 11/15/2019		300,000		313,482
3.63%, 02/15/2020		46,000		48,506
1.50%, 06/15/2020		24,675,000		24,640,307
2.63%, 11/15/2020		600,000		619,301
1.75%, 05/31/2022		17,589,200		17,486,145
2.00%, 05/31/2024		7,000,400		6,943,109
2.38%, 05/15/2027		16,467,100		16,575,816
				150,033,264
U.S. Treasury Bonds–0.62%
4.50%, 02/15/2036		1,000,000		1,292,717
4.50%, 08/15/2039		40,000		51,888
4.38%, 05/15/2040		80,000		102,236
3.00%, 02/15/2047		7,707,300		7,965,919
				9,412,760
Total U.S. Treasury Securities (Cost $159,149,843)				159,520,956

	Shares		Value
Preferred Stocks–0.52%
Asset Management & Custody Banks–0.18%
AMG Capital Trust II, $2.58 Jr. Unsec. Gtd. Sub. Conv. Pfd.		47,000	$	2,790,625
Diversified Banks–0.02%
Wells Fargo & Co., 5.85% Pfd.		12,000		331,920
Oil & Gas Storage & Transportation–0.32%
El Paso Energy Capital Trust I, $2.38 Jr. Unsec. Gtd. Sub. Conv. Pfd.		95,499		4,784,500
Total Preferred Stocks (Cost $6,118,550)				7,907,045
	Principal Amount
U.S. Government Sponsored Agency Securities–0.15%
Federal Home Loan Mortgage Corp. (FHLMC)–0.15%
Unsec. Global Notes, 5.50%, 08/23/2017	$	140,000		140,850
4.88%, 06/13/2018		1,000,000		1,033,606
6.75%, 03/15/2031		750,000		1,086,854
Total U.S. Government Sponsored Agency Securities (Cost $2,122,927)				2,261,310
U.S. Government Sponsored Agency Mortgage-Backed Securities–0.00%
Federal Home Loan Mortgage Corp. (FHLMC)–0.00%
Pass Through Ctfs., 5.50%, 02/01/2037		27		29
Federal National Mortgage Association (FNMA)–0.00%
Pass Through Ctfs., 5.50%, 03/01/2021		75		79
8.00%, 08/01/2021		309		311
9.50%, 04/01/2030		2,523		2,910
				3,300
Total U.S. Government Sponsored Agency Mortgage-Backed Securities (Cost $3,210)				3,329
	Shares
Money Market Funds–5.57%
Government & Agency Portfolio–Institutional Class, 0.89%(i)		50,654,698		50,654,698
Treasury Portfolio–Institutional Class, 0.85%(i)		33,769,799		33,769,799
Total Money Market Funds (Cost $84,424,497)				84,424,497
TOTAL INVESTMENTS–99.26% (Cost $1,215,478,963)				1,504,359,765
OTHER ASSETS LESS LIABILITIES–0.74%				11,185,449
NET ASSETS–100.00%			$	1,515,545,214

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Equity and Income Fund

Investment Abbreviations:

ADR	– American Depositary Receipt
Conv.	– Convertible
Ctfs.	– Certificates
Deb.	– Debentures
Gtd.	– Guaranteed
Jr.	– Junior
Pfd.	– Preferred
REIT	– Real Estate Investment Trust
Sec.	– Secured
Sr.	– Senior
Sub.	– Subordinated
Unsec.	– Unsecured

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2017 was $86,017,321, which represented 5.68% of the Fund’s Net Assets.

^(d)  Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put.

^(e)  Perpetual bond with no specified maturity date.

^(f)  Exchangeable for a basket of five common stocks.

^(g)  Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund.

^(h)  All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1K and Note 4.

⁽ⁱ⁾  The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of June 30, 2017.

Portfolio Composition

By security type, based on Net Assets

as of June 30, 2017

Common Stocks & Other Equity Interests	64.7	%
Bonds and Notes	17.8
U.S. Treasury Securities	10.5
Security Types Each Less than 1% of Portfolio	0.7
Money Market Funds Plus Other Assets Less Liabilities	6.3

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Equity and Income Fund

Statement of Assets and Liabilities

June 30, 2017

(Unaudited)

Statement of Operations

For the six months ended June 30, 2017

(Unaudited)

Assets:
Investments, at value (Cost $1,131,054,466)	$	1,419,935,268
Investments in affiliated money market funds, at value and cost		84,424,497
Total investments, at value (Cost $1,215,478,963)		1,504,359,765
Foreign currencies, at value (Cost $655,444)		653,808
Receivable for:
Investments sold		19,060,555
Variation margin — futures		9,640
Fund shares sold		158,367
Dividends and interest		4,259,640
Investment for trustee deferred compensation and retirement plans		151,343
Unrealized appreciation on forward foreign currency contracts outstanding		2,735
Total assets		1,528,655,853
Liabilities:
Payable for:
Investments purchased		9,825,041
Fund shares reacquired		209,928
Amount due custodian		1,017,696
Accrued fees to affiliates		1,350,036
Accrued trustees’ and officers’ fees and benefits		7,201
Accrued other operating expenses		109,494
Trustee deferred compensation and retirement plans		168,101
Unrealized depreciation on forward foreign currency contracts outstanding		423,142
Total liabilities		13,110,639
Net assets applicable to shares outstanding	$	1,515,545,214
Net assets consist of:
Shares of beneficial interest	$	1,138,789,687
Undistributed net investment income		27,954,440
Undistributed net realized gain		60,321,672
Net unrealized appreciation		288,479,415
	$	1,515,545,214
Net Assets:
Series I	$	173,043,054
Series II	$	1,342,502,160
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		9,356,384
Series II		72,987,616
Series I:
Net asset value per share	$	18.49
Series II:
Net asset value per share	$	18.39

Investment income:
Dividends (net of foreign withholding taxes of $404,153)	$	11,167,523
Dividends from affiliated money market funds		248,573
Interest		5,251,573
Total investment income		16,667,669
Expenses:
Advisory fees		2,791,777
Administrative services fees		1,200,996
Custodian fees		20,638
Distribution fees — Series II		1,654,819
Transfer agent fees		13,566
Trustees’ and officers’ fees and benefits		19,812
Reports to shareholders		129,343
Professional services fees		21,599
Other		12,545
Total expenses		5,865,095
Less: Fees waived		(44,738	)
Net expenses		5,820,357
Net investment income		10,847,312
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		41,106,231
Foreign currencies		36,085
Forward foreign currency contracts		(1,975,607	)
Futures contracts		(59,609	)
		39,107,100
Change in net unrealized appreciation (depreciation) of:
Investment securities		11,221,625
Foreign currencies		5,721
Forward foreign currency contracts		(1,941,638	)
Futures contracts		(12,779	)
		9,272,929
Net realized and unrealized gain		48,380,029
Net increase in net assets resulting from operations	$	59,227,341

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Equity and Income Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2017 and the year ended December 31, 2016

(Unaudited)

	June 30, 2017			December 31, 2016
Operations:
Net investment income	$	10,847,312		$	20,269,520
Net realized gain		39,107,100			30,804,197
Change in net unrealized appreciation		9,272,929			136,794,055
Net increase in net assets resulting from operations		59,227,341			187,867,772
Distributions to shareholders from net investment income:
Series I		—			(2,492,252	)
Series ll		—			(20,095,211	)
Total distributions from net investment income		—			(22,587,463	)
Distributions to shareholders from net realized gains:
Series l		—			(4,168,661	)
Series ll		—			(38,839,725	)
Total distributions from net realized gains		—			(43,008,386	)
Share transactions–net:
Series l		8,556,901			48,906,569
Series ll		(24,336,438	)		75,370,163
Net increase (decrease) in net assets resulting from share transactions		(15,779,537	)		124,276,732
Net increase in net assets		43,447,804			246,548,655
Net assets:
Beginning of period		1,472,097,410			1,225,548,755
End of period (includes undistributed net investment income of $27,954,440 and $17,107,128, respectively)	$	1,515,545,214		$	1,472,097,410

Notes to Financial Statements

June 30, 2017

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Equity and Income Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance 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 consisting of twenty-four separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

The Fund’s investment objectives are both capital appreciation and current income.

The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services — Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based

Invesco V.I. Equity and Income Fund

on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

Invesco V.I. Equity and Income Fund

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 and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. 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 date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

J. Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

K. Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between Counterparties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to

Invesco V.I. Equity and Income Fund

maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.

L. Collateral — To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays 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 $150 million		0.50%
Next $100 million		0.45%
Next $100 million		0.40%
Over $350 million		0.35%

For the six months ended June 30, 2017, the effective advisory fees incurred by the Fund was 0.38%.

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 PowerShares Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2018, 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 Series I shares to 1.50% and Series II shares to 1.75% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2018. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2019, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended June 30, 2017, the Adviser waived advisory fees of $44,738.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2017, Invesco was paid $173,650 for accounting and fund administrative services and was reimbursed $1,027,346 for fees paid to insurance companies.

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. For the six months ended June 30, 2017, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2017, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2017, the Fund incurred $2,123 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.

Invesco V.I. Equity and Income Fund

NOTE 3—Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of June 30, 2017. 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
Common Stocks & Other Equity Interests	$	918,857,746	$	61,907,359		$	—	$	980,765,105
Bonds and Notes		—		269,477,523			—		269,477,523
U.S. Treasury Securities		—		159,520,956			—		159,520,956
Preferred Stocks		5,116,420		2,790,625			—		7,907,045
U.S. Government Sponsored Agency Securities		—		2,261,310			—		2,261,310
U.S. Government Sponsored Agency Mortgage-Backed Securities		—		3,329			—		3,329
Money Market Funds		84,424,497		—			—		84,424,497
		1,008,398,663		495,961,102			—		1,504,359,765
Forward Foreign Currency Contracts*		—		(420,407	)		—		(420,407	)
Futures Contracts*		9,911		—			—		9,911
Total Investments	$	1,008,408,574	$	495,540,695		$	—	$	1,503,949,269

* Unrealized appreciation (depreciation).

NOTE 4—Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a Fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

Invesco V.I. Equity and Income Fund

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Open Forward Foreign Currency Contracts
Settlement Date		Contract to						Notional Value		Unrealized Appreciation (Depreciation)
	Counterparty	Deliver			Receive
07/28/17	Bank of New York Mellon (The)		AUD	3,472,764		USD	2,642,773	$	2,668,322	$	(25,549	)
07/28/17	Bank of New York Mellon (The)		CAD	7,784,406		USD	5,970,644		6,006,008		(35,364	)
07/28/17	Bank of New York Mellon (The)		CHF	4,462,192		USD	4,652,963		4,662,154		(9,191	)
07/28/17	Bank of New York Mellon (The)		EUR	8,048,675		USD	9,160,359		9,207,248		(46,889	)
07/28/17	Bank of New York Mellon (The)		GBP	10,283,140		USD	13,313,993		13,406,252		(92,259	)
07/28/17	State Street Bank and Trust Co.		AUD	3,472,657		USD	2,643,838		2,668,240		(24,402	)
07/28/17	State Street Bank and Trust Co.		CAD	6,085,065		USD	4,664,779		4,694,892		(30,113	)
07/28/17	State Street Bank and Trust Co.		CHF	4,458,101		USD	4,649,207		4,657,880		(8,673	)
07/28/17	State Street Bank and Trust Co.		EUR	8,052,601		USD	9,160,180		9,211,739		(51,559	)
07/28/17	State Street Bank and Trust Co.		GBP	10,279,648		USD	13,302,556		13,401,699		(99,143	)
07/28/17	State Street Bank and Trust Co.		USD	69,462		AUD	90,599		69,612		150
07/28/17	State Street Bank and Trust Co.		USD	162,639		CAD	211,816		163,425		786
07/28/17	State Street Bank and Trust Co.		USD	139,157		CHF	133,240		139,211		54
07/28/17	State Street Bank and Trust Co.		USD	248,995		EUR	218,252		249,668		673
07/28/17	State Street Bank and Trust Co.		USD	221,239		GBP	170,522		222,311		1,072
Total Open Forward Foreign Currency Contracts — Currency Risk										$	(420,407	)

Currency Abbreviations:

AUD	– Australian Dollar
CAD	– Canadian Dollar
CHF	– Swiss Franc
EUR	– Euro
GBP	– British Pound Sterling
USD	– U.S. Dollar

Open Futures Contracts
Futures Contracts	Type of Contract		Number of Contracts		Expiration Month		Notional Value			Unrealized Appreciation
U.S. Treasury 5 Year Notes		Short		25		September-2017	$	(2,945,898	)	$	5,800
U.S. Treasury 10 Year Notes		Short		19		September-2017		(2,385,094	)		4,111
Total Futures Contracts — Interest Rate Risk										$	9,911

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 June 30, 2017:

Derivative Assets	Value
	Currency Risk		Interest Rate Risk			Total
Unrealized appreciation on futures contracts — Exchange-Traded(a)	$	—	$	9,911		$	9,911
Unrealized appreciation on forward foreign currency contracts outstanding		2,735		—			2,735
Total Derivative Assets	$	2,735	$	9,911		$	12,646
Derivatives not subject to master netting agreements		—		(9,911	)		(9,911	)
Total Derivative Assets subject to master netting agreements	$	2,735	$	—		$	2,735

^(a)  Includes cumulative appreciation on futures contracts. Only current day’s variation margin receivable is reported within the Statement of Assets and Liabilities.

Derivative Liabilities	Value
	Currency Risk
Unrealized depreciation on forward foreign currency contracts outstanding	$	(423,142	)
Derivatives not subject to master netting agreements		—
Total Derivative Liabilities subject to master netting agreements	$	(423,142	)

Invesco V.I. Equity and Income Fund

Offsetting Assets and Liabilities

The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of June 30, 2017.

	Financial Derivative Assets		Financial Derivative Liabilities			Net Value of Derivatives			Collateral (Received)/Pledged				Net Amount
Counterparty	Forward Foreign Currency Contracts		Forward Foreign Currency Contracts						Non-Cash		Cash
Bank of New York Mellon (The)	$	—	$	(209,252	)	$	(209,252	)	$	—	$	—	$	(209,252	)
State Street Bank and Trust Co.		2,735		(213,890	)		(211,155	)		—		—		(211,155	)
Total	$	2,735	$	(423,142	)	$	(420,407	)	$	—	$	—	$	(420,407	)

Effect of Derivative Investments for the six months ended June 30, 2017

The table below summarizes the losses on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:

	Location of Gain (Loss) on Statement of Operations
	Currency Risk			Interest Rate Risk			Total
Realized Gain (Loss):
Forward foreign currency contracts	$	(1,975,607	)	$	—		$	(1,975,607	)
Futures contracts		—			(59,609	)		(59,609	)
Change in Net Unrealized Appreciation (Depreciation):
Forward foreign currency contracts		(1,941,638	)		—			(1,941,638	)
Futures contracts		—			(12,779	)		(12,779	)
Total	$	(3,917,245	)	$	(72,388	)	$	(3,989,633	)

The table below summarizes the average notional value of forward foreign currency contracts and futures contracts outstanding during the period.

	Forward Foreign Currency Contracts		Futures Contracts
Average notional value	$	70,850,186	$	5,530,271

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 State Street Bank and Trust Company, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

Invesco V.I. Equity and Income Fund

The Fund had a capital loss carryforward as of December 31, 2016, which expires as follows:

Capital Loss Carryforward*
Expiration	Short-Term		Long-Term		Total
December 31, 2017	$	524,022	$	—	$	524,022

* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2017 was $142,890,251 and $184,293,947, respectively. During the same period, purchases and sales of U.S. Treasury obligations were $684,089,129 and $671,930,598, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	312,943,062
Aggregate unrealized (depreciation) of investment securities		(33,008,503	)
Net unrealized appreciation of investment securities	$	279,934,559

Cost of investments for tax purposes is $1,224,425,206.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended June 30, 2017(a)						Year ended December 31, 2016
	Shares			Amount			Shares			Amount
Sold:
Series I		971,380		$	17,636,884			3,385,579		$	56,340,459
Series II		2,499,314			45,155,165			11,160,205			184,995,192
Issued as reinvestment of dividends:
Series I		—			—			401,502			6,660,913
Series II		—			—			3,565,332			58,934,936
Reacquired:
Series I		(500,066	)		(9,079,983	)		(835,357	)		(14,094,803	)
Series II		(3,842,357	)		(69,491,603	)		(10,264,860	)		(168,559,965	)
Net increase (decrease) in share activity		(871,729	)	$	(15,779,537	)		7,412,401		$	124,276,732

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 78% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. 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, third party record keeping and account servicing and administrative services. 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.

Invesco V.I. Equity and Income Fund

NOTE 10—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)
Series I
Six months ended 06/30/17	$	17.76	$	0.15		$	0.58		$	0.73		$	—		$	—		$	—		$	18.49		4.11	%	$	173,043		0.56	%(d)		0.57	%(d)		1.68	%(d)		58	%
Year ended 12/31/16		16.23		0.29			2.10			2.39			(0.32	)		(0.54	)		(0.86	)		17.76		15.12			157,774		0.60			0.61			1.78			101
Year ended 12/31/15		18.93		0.28			(0.78	)		(0.50	)		(0.49	)		(1.71	)		(2.20	)		16.23		(2.29	)		96,287		0.64			0.65			1.55			87
Year ended 12/31/14		18.58		0.37	(e)		1.28			1.65			(0.35	)		(0.95	)		(1.30	)		18.93		9.03			72,391		0.66			0.67			1.92	(e)		85
Year ended 12/31/13		15.08		0.27			3.51			3.78			(0.28	)		—			(0.28	)		18.58		25.18			60,288		0.66			0.67			1.59			41
Year ended 12/31/12		13.65		0.28			1.42			1.70			(0.27	)		—			(0.27	)		15.08		12.49			53,990		0.66			0.67			1.85			31
Series II
Six months ended 06/30/17		17.68		0.13			0.58			0.71			—			—			—			18.39		4.02			1,342,502		0.81	(d)		0.82	(d)		1.43	(d)		58
Year ended 12/31/16		16.16		0.25			2.09			2.34			(0.28	)		(0.54	)		(0.82	)		17.68		14.84			1,314,323		0.85			0.86			1.53			101
Year ended 12/31/15		18.86		0.23			(0.78	)		(0.55	)		(0.44	)		(1.71	)		(2.15	)		16.16		(2.58	)		1,129,261		0.89			0.90			1.30			87
Year ended 12/31/14		18.52		0.32	(e)		1.28			1.60			(0.31	)		(0.95	)		(1.26	)		18.86		8.77			1,290,920		0.91			0.92			1.67	(e)		85
Year ended 12/31/13		15.05		0.23			3.50			3.73			(0.26	)		—			(0.26	)		18.52		24.88			1,244,045		0.91			0.92			1.34			41
Year ended 12/31/12		13.63		0.25			1.44			1.69			(0.27	)		—			(0.27	)		15.05		12.39			962,938		0.81			0.92			1.70			31

^(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. Total returns are not annualized for periods less than one year, if applicable and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.

^(c)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(d)  Ratios are annualized and based on average daily net assets (000’s omitted) of $166,552 and $1,334,827 for Series I and Series II shares, respectively.

^(e)  Net investment income per share and the ratio of net investment income to average net assets includes significant dividends received during the period. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.27 and 1.41% and $0.22 and 1.16% for Series I and Series II shares, respectively.

Invesco V.I. Equity and Income Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2017 through June 30, 2017.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

Class	Beginning Account Value (01/01/17)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/17)1		Expenses Paid During Period2		Ending Account Value (06/30/17)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,041.10	$	2.83	$	1,022.02	$	2.81		0.56	%
Series II		1,000.00		1,040.20		4.10		1,020.78		4.06		0.81

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2017 through June 30, 2017, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

²  Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Equity and Income Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco V.I. Equity and Income Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the 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 PowerShares 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, 2017.

In evaluating the fairness and reasonableness of compensation under the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board determined that continuation of the Fund’s investment advisory agreement and the sub-advisory contracts is in the best interest of the Fund and its shareholders and that the compensation payable to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Board had the benefit of reports from the Sub-Committees and Investments Committee throughout the year in considering approval of the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Board receives comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The

Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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 addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The Trustees recognized that the advisory fee rates for the Invesco Funds are, in most cases, the result of years of review and negotiation. The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these arrangements throughout the year and in prior years. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them 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 discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement 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. This information is current as of June 13, 2017, and does not reflect consideration of factors that became known to the Board after that date.

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 advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers. The Board’s review included consideration of Invesco Advisers’ investment process oversight, credit analysis and investment risk management. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, trading operations, internal audit, valuation and legal and compliance.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the greater uncertainty that may be associated with entering into a new relationship. 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 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 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 in which the Fund may invest, make recommendations regarding securities and assist with security trades. 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 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 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 during the past one, three and five calendar years to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds Mixed-Asset Target Allocation Growth Funds Index. The Board noted that performance of Series II shares of the Fund was in the first 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 Series II shares of the Fund was above the performance of the Index for the one, three and five year periods. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees

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 at a common asset

Invesco V.I. Equity and Income Fund

level. The Board noted that the contractual management fee rate for Series II shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing 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 compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/waivers) to the effective advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, based on asset balances as of December 31, 2016. The Board noted that the Fund’s rate was above the rate of one mutual fund and below the rate of one mutual fund. The Board also noted how the Fund’s rate compared to the effective sub-adviser fee rate of two funds sub-advised by Invesco Advisers. The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not advise other client accounts that are managed using an investment process substantially similar to the investment process used for the Fund.

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 also noted that the sub-advisory fees are not paid directly by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds advised by Invesco Advisers.

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. 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 and the Fund. The Board received and accepted information from Invesco Advisers demonstrating that Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; and 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 periodic reports from the Chief Compliance Officer of the Invesco Funds demonstrating 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 money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds with respect to certain investments in the affiliated money market funds. The waiver is in 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any

securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that the Fund may use an affiliated broker to execute certain trades for the Fund to, among other things, control information leakage, and was advised that such trades would be executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Equity and Income Fund

Proxy Results

A Special Joint Meeting (“Meeting”) of Shareholders of Invesco V.I. Equity and Income Fund, an investment portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), a Delaware statutory trust (“Trust”), was held on March 9, 2017. The Meeting was held for the following purposes:

(1) Elect 15 trustees to the Board, each of whom will serve until his or her successor is elected and qualified.

(2) Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.

(3) Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities.

(4)(a) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC.

(4)(b) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited.

The results of the voting on the above matters were as follows:

	Matters					Votes For		Votes Withheld
(1)*	David C. Arch						1,256,086,249		71,094,301
	James T. Bunch						1,254,410,156		72,770,397
	Bruce L. Crockett						1,258,363,948		68,816,603
	Jack M. Fields						1,255,101,592		72,078,961
	Martin L. Flanagan						1,257,885,397		69,295,160
	Cynthia Hostetler						1,261,335,247		65,845,303
	Dr. Eli Jones						1,257,497,296		69,683,257
	Dr. Prema Mathai-Davis						1,254,728,756		72,451,795
	Teresa M. Ressel						1,261,829,473		65,351,074
	Dr. Larry Soll						1,254,261,019		72,919,533
	Ann Barnett Stern						1,260,861,373		66,319,176
	Raymond Stickel, Jr.						1,254,379,471		72,801,083
	Philip A. Taylor						1,256,589,912		70,590,639
	Robert C. Troccoli						1,260,867,549		66,313,003
	Christopher L. Wilson						1,260,186,985		66,993,567
		Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(2)*	Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.		1,054,920,918		171,591,974		100,667,642		18
	Matters	Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(3)	Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities		65,999,633		7,430,369		7,645,483		0
(4)(a)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC		69,654,361		4,541,959		6,879,164		1
(4)(b)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited		67,285,491		6,787,537		7,002,456		1

* Each of proposal 1 and 2 required approval by a combined vote of all of the portfolios of AIM Variable Insurance Funds (Invesco Variable Insurance Funds).

Invesco V.I. Equity and Income Fund

	Semiannual Report to Shareholders	June 30, 2017
	Invesco V.I. Global Core Equity Fund
	The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.     A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.     Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/ proxysearch. The information is also available on the SEC website, sec.gov.     Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
	This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.
	NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc.                                               VIGCE-SAR-1                 07182017    1035

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/16 to 6/30/17, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	11.10	%
Series II Shares	10.87
MSCI World Index▼ (Broad Market/Style-Specific Index)	10.66
Lipper VUF Global Multi-Cap Value Funds Classification Average∎ (Peer Group)	9.54
Source(s): ▼FactSet Research Systems Inc.; ∎Lipper Inc.

The MSCI World Index^SM is an unmanaged index considered representative of stocks of developed countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors.

The Lipper VUF Global Multi-Cap Value Funds Classification Average represents an average of all variable insurance underlying funds in the Lipper Global Multi-Cap Value Funds classification.

The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns As of 6/30/17
Series I Shares
Inception (1/2/97)	5.07	%
10 Years	0.87
5 Years	10.16
1 Year	18.25
Series II Shares
10 Years	0.61	%
5 Years	9.88
1 Year	17.80

Effective June 1, 2010, Class I shares of the predecessor fund, Universal Funds Global Value Equity Portfolio, advised by Morgan Stanley Investment Management Inc. were reorganized into Series I shares of Invesco Van Kampen V.I. Global Value Equity Fund (renamed Invesco V.I. Global Core Equity Fund on April 30, 2012). Returns shown above, prior to June 1, 2010, for Series I shares are blended returns of the predecessor fund and Invesco V.I. Global Value Equity Fund. Share class returns will differ from the predecessor fund because of different expenses.

Series II shares incepted on June 1, 2010. Series II share performance shown prior to that date is that of the predecessor fund’s Class I shares restated to reflect the higher 12b-1 fees applicable to Series II shares.

The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 1.05% and 1.30%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Invesco V.I. Global Core Equity Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

The most recent month-end performance at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

Invesco V.I. Global Core Equity Fund

Schedule of Investments

June 30, 2017

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–100.48%
Australia–3.49%
Australia and New Zealand Banking Group Ltd.		44,744	$	986,301
Qantas Airways Ltd.		415,572		1,829,504
				2,815,805
Brazil–1.48%
Banco do Brasil S.A.		53,400		431,913
Petróleo Brasileiro S.A.–ADR(a)		95,673		764,427
				1,196,340
Canada–2.43%
Peyto Exploration & Development Corp.		34,967		634,171
Suncor Energy, Inc.		45,311		1,323,849
				1,958,020
China–2.51%
Baidu, Inc.–ADR(a)		6,693		1,197,110
Nexteer Automotive Group Ltd.		528,000		827,758
				2,024,868
France–2.66%
LVMH Moet Hennessy Louis Vuitton S.E.		3,875		972,090
Publicis Groupe S.A.		15,601		1,168,805
				2,140,895
Germany–1.86%
Porsche Automobil Holding S.E.– Preference Shares		26,695		1,499,788
Hong Kong–2.42%
AIA Group Ltd.		267,400		1,953,912
Israel–0.99%
Teva Pharmaceutical Industries Ltd.–ADR		23,918		794,556
Italy–1.02%
Prysmian S.p.A.		27,863		822,437
Japan–8.36%
Daito Trust Construction Co., Ltd.		5,000		777,763
Hitachi, Ltd.		244,000		1,500,581
KDDI Corp.		49,700		1,316,715
Komatsu Ltd.		49,000		1,249,231
Mitsubishi Estate Co., Ltd.		52,400		978,946
Mitsui O.S.K. Lines, Ltd.		310,000		912,759
				6,735,995
Luxembourg–2.00%
ArcelorMittal(a)		70,747		1,610,290
Netherlands–5.54%
ING Groep N.V.		93,942		1,633,833
Koninklijke DSM N.V.		10,973		801,661
Philips Lighting N.V.–REGS(b)		25,910		956,449

	Shares		Value
Netherlands–(continued)
Randstad Holding N.V.		18,421	$	1,077,213
				4,469,156
Norway–1.34%
Orkla ASA		106,457		1,082,739
Singapore–1.56%
DBS Group Holdings Ltd.		83,500		1,257,837
South Africa–0.93%
Naspers Ltd.–Class N		3,836		746,138
Switzerland–4.90%
ABB Ltd.		32,306		799,215
Roche Holding AG		4,387		1,120,101
UBS Group AG		119,388		2,026,583
				3,945,899
Taiwan–1.73%
Taiwan Semiconductor Manufacturing Co. Ltd.		204,000		1,391,672
United Kingdom–12.02%
Imperial Brands PLC		25,890		1,164,200
Just Eat PLC(a)		115,097		981,898
Liberty Global PLC–Series A(a)		31,375		1,007,765
Rio Tinto PLC		24,469		1,033,214
Royal Dutch Shell PLC–Class A–ADR		41,926		2,230,044
St. James’s Place PLC		102,264		1,574,350
Vodafone Group PLC–ADR		59,078		1,697,311
				9,688,782
United States–43.24%
Allergan PLC		6,194		1,505,699
Alphabet Inc.–Class C(a)		2,304		2,093,714
American Express Co.		19,104		1,609,321
Berkshire Hathaway Inc.–Class A(a)		5		1,273,500
Biogen Inc.(a)		5,031		1,365,212
BioMarin Pharmaceutical Inc.(a)		8,933		811,295
Celgene Corp.(a)		13,580		1,763,635
Chevron Corp.		14,350		1,497,135
Cognizant Technology Solutions Corp.–Class A		19,608		1,301,971
Comcast Corp.–Class A		42,030		1,635,808
Concho Resources Inc.(a)		9,158		1,112,972
Delphi Automotive PLC		19,229		1,685,422
Delta Air Lines, Inc.		17,159		922,125
EPAM Systems, Inc.(a)		14,742		1,239,655
First Republic Bank		19,214		1,923,321
HCA Healthcare, Inc.(a)		12,881		1,123,223
Johnson Controls International PLC		31,511		1,366,317
Marsh & McLennan Cos., Inc.		14,970		1,167,061
Moody’s Corp.		5,280		642,470

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Global Core Equity Fund

	Shares		Value
United States–(continued)
Nielsen Holdings PLC		24,643	$	952,698
Oracle Corp.		26,547		1,331,067
Priceline Group Inc. (The)(a)		750		1,402,890
Progressive Corp. (The)		34,212		1,508,407
Sherwin-Williams Co. (The)		2,398		841,602
Shire PLC–ADR		11,765		1,944,402

	Shares		Value
United States–(continued)
United Technologies Corp.		6,774	$	827,173
				34,848,095
TOTAL INVESTMENTS–100.48% (Cost $69,838,236)				80,983,224
OTHER ASSETS LESS LIABILITIES–(0.48)%				(388,272	)
NET ASSETS–100.00%			$	80,594,952

Investment Abbreviations:

ADR	– American Depositary Receipt
REGS	– Regulation S

Notes to Schedule of Investments:

^(a)  Non-income producing security.

^(b)  Security purchased or received in 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 June 30, 2017 was $956,449, which represented 1.19% of the Fund’s Net Assets.

Portfolio Composition

By country, based on Total Investments

as of June 30, 2017

United States	43.0	%
United Kingdom	12.0
Japan	8.3
Netherlands	5.5
Switzerland	4.9
Australia	3.5
France	2.6
China	2.5
Canada	2.4
Hong Kong	2.4
Luxembourg	2.0
Countries each less than 2.0% of portfolio	10.9

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Global Core Equity Fund

Statement of Assets and Liabilities

June 30, 2017

(Unaudited)

Statement of Operations

For the six months ended June 30, 2017

(Unaudited)

Assets:
Investments, at value (Cost $69,838,236)	$	80,983,224
Foreign currencies, at value (Cost $195,282)		197,299
Receivable for:
Fund shares sold		8,823
Dividends		202,902
Investment for trustee deferred compensation and retirement plans		36,600
Total assets		81,428,848
Liabilities:
Payable for:
Fund shares reacquired		64,805
Amount due custodian		524,442
Accrued fees to affiliates		38,062
Accrued trustees’ and officers’ fees and benefits		4,670
Accrued other operating expenses		47,948
Trustee deferred compensation and retirement plans		38,948
Unrealized depreciation on forward foreign currency contracts outstanding		115,021
Total liabilities		833,896
Net assets applicable to shares outstanding	$	80,594,952
Net assets consist of:
Shares of beneficial interest	$	74,036,367
Undistributed net investment income		1,398,110
Undistributed net realized gain (loss)		(5,872,399	)
Net unrealized appreciation		11,032,874
	$	80,594,952
Net Assets:
Series I	$	68,010,360
Series II	$	12,584,592
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		6,936,191
Series II		1,285,079
Series I:
Net asset value per share	$	9.81
Series II:
Net asset value per share	$	9.79

Investment income:
Dividends (net of foreign withholding taxes of $103,986)	$	984,304
Dividends from affiliated money market funds		1,196
Total investment income		985,500
Expenses:
Advisory fees		258,406
Administrative services fees		82,594
Custodian fees		12,064
Distribution fees — Series II		15,530
Transfer agent fees		5,521
Trustees’ and officers’ fees and benefits		11,374
Reports to shareholders		9,178
Professional services fees		23,200
Other		3,407
Total expenses		421,274
Less: Fees waived		(271	)
Net expenses		421,003
Net investment income		564,497
Realized and unrealized gain (loss) from:
Net realized gain from:
Investment securities		1,267,931
Foreign currencies		14,404
Forward foreign currency contracts		134,704
		1,417,039
Change in net unrealized appreciation (depreciation) of:
Investment securities		6,475,507
Foreign currencies		10,646
Forward foreign currency contracts		(336,330	)
		6,149,823
Net realized and unrealized gain		7,566,862
Net increase in net assets resulting from operations	$	8,131,359

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Global Core Equity Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2017 and the year ended December 31, 2016

(Unaudited)

	June 30, 2017			December 31, 2016
Operations:
Net investment income	$	564,497		$	814,541
Net realized gain (loss)		1,417,039			(1,489,662	)
Change in net unrealized appreciation		6,149,823			5,373,049
Net increase in net assets resulting from operations		8,131,359			4,697,928
Distributions to shareholders from net investment income:
Series I		—			(635,642	)
Series ll		—			(91,204	)
Total distributions from net investment income		—			(726,846	)
Share transactions–net:
Series l		(951,089	)		(6,324,862	)
Series ll		(1,017,727	)		(1,667,057	)
Net increase (decrease) in net assets resulting from share transactions		(1,968,816	)		(7,991,919	)
Net increase (decrease) in net assets		6,162,543			(4,020,837	)
Net assets:
Beginning of period		74,432,409			78,453,246
End of period (includes undistributed net investment income of $1,398,110 and $833,613, respectively)	$	80,594,952		$	74,432,409

Notes to Financial Statements

June 30, 2017

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Global Core Equity Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance 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 consisting of twenty-four separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

The Fund’s investment objective is long-term capital appreciation by investing primarily in equity securities of issuers throughout the world, including U.S. issuers.

The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services — Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect

Invesco V.I. Global Core Equity Fund

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. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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.

Invesco V.I. Global Core Equity Fund

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 and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. 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 date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

J. Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays 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	.67%
Next $500 million		0	.645%
Next $1 billion		0	.62%
Next $1 billion		0	.595%
Next $1 billion		0	.57%
Over $4.5 billion		0	.545%

For the six months ended June 30, 2017, the effective advisory fees incurred by the Fund was 0.67%.

Invesco V.I. Global Core Equity Fund

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco PowerShares Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2018, 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 Series I shares to 2.25% and Series II shares to 2.50% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2018. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

The Adviser has contractually agreed, through at least June 30, 2019, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended June 30, 2017, the Adviser waived advisory fees of $271.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2017, Invesco was paid $24,795 for accounting and fund administrative services and was reimbursed $57,799 for fees paid to insurance companies.

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. For the six months ended June 30, 2017, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2017, expenses incurred under the Plan are detailed 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of June 30, 2017. 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.

Invesco V.I. Global Core Equity Fund

During the six months ended June 30, 2017, there were transfers from Level 1 to Level 2 of $4,829,222 and from Level 2 to Level 1 of $7,319,101, due to foreign fair value adjustments.

	Level 1		Level 2			Level 3		Total
Australia	$	—	$	2,815,805		$	—	$	2,815,805
Brazil		1,196,340		—			—		1,196,340
Canada		1,958,020		—			—		1,958,020
China		2,024,868		—			—		2,024,868
France		—		2,140,895			—		2,140,895
Germany		1,499,788		—			—		1,499,788
Hong Kong		1,953,912		—			—		1,953,912
Israel		794,556		—			—		794,556
Italy		—		822,437			—		822,437
Japan		777,763		5,958,232			—		6,735,995
Luxembourg		—		1,610,290			—		1,610,290
Netherlands		956,449		3,512,707			—		4,469,156
Norway		—		1,082,739			—		1,082,739
Singapore		1,257,837		—			—		1,257,837
South Africa		746,138		—			—		746,138
Switzerland		—		3,945,899			—		3,945,899
Taiwan		—		1,391,672			—		1,391,672
United Kingdom		8,524,582		1,164,200			—		9,688,782
United States		34,848,095		—			—		34,848,095
		56,538,348		24,444,876			—		80,983,224
Forward Foreign Currency Contracts*		—		(115,021	)		—		(115,021	)
Total Investments	$	56,538,348	$	24,329,855		$	—	$	80,868,203

* Unrealized appreciation (depreciation).

NOTE 4—Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a Fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Open Forward Foreign Currency Contracts
Settlement Date		Contract to						Notional Value		Unrealized Appreciation (Depreciation)
	Counterparty	Deliver			Receive
08/14/17	Barclays Bank PLC		GBP	1,500,000		USD	1,875,347	$	1,956,515	$	(81,168	)
08/14/17	Goldman Sachs International		JPY	202,000,000		USD	1,782,767		1,799,591		(16,824	)
08/14/17	JPMorgan Chase Bank, N.A.		JPY	202,000,000		USD	1,782,562		1,799,591		(17,029	)
Total Forward Foreign Currency Contracts — Currency Risk										$	(115,021	)

Currency Abbreviations:

GBP	– British Pound Sterling
JPY	– Japanese Yen
USD	– U.S. Dollar

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 June 30, 2017:

	Value
Derivative Liabilities	Currency Risk
Unrealized depreciation on forward foreign currency contracts outstanding	$	(115,021	)
Derivatives not subject to master netting agreements		—
Total Derivative Liabilities subject to master netting agreements	$	(115,021	)

Invesco V.I. Global Core Equity Fund

Offsetting Assets and Liabilities

The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of June 30, 2017.

	Financial Derivative Assets		Financial Derivative Liabilities			Net Value of Derivatives			Collateral (Received)/Pledged
Counterparty	Forward Foreign Currency Contracts		Forward Foreign Currency Contracts						Non-Cash		Cash		Net Amount
Barclays Bank PLC	$	—	$	(81,168	)	$	(81,168	)	$	—	$	—	$	(81,168	)
Goldman Sachs International		—		(16,824	)		(16,824	)		—		—		(16,824	)
JPMorgan Chase Bank, N.A.		—		(17,029	)		(17,029	)		—		—		(17,029	)
Total	$	—	$	(115,021	)	$	(115,021	)	$	—	$	—	$	(115,021	)

Effect of Derivative Investments for the six months ended June 30, 2017

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:
Forward foreign currency contracts	$	134,704
Change in Net Unrealized Appreciation (Depreciation):
Forward foreign currency contracts		(336,330	)
Total	$	(201,626	)

The table below summarizes the average notional value of forward foreign currency contracts outstanding during the period.

	Forward Foreign Currency Contracts
Average notional value	$	5,540,436

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 State Street Bank and Trust Company, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

Invesco V.I. Global Core Equity Fund

The Fund had a capital loss carryforward as of December 31, 2016, which expires as follows:

Capital Loss Carryforward*
Expiration	Short-Term		Long-Term		Total
December 31, 2017	$	5,657,588	$	—	$	5,657,588
Not subject to expiration		787,052		615,140		1,402,192
	$	6,444,640	$	615,140	$	7,059,780

* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2017 was $24,260,080 and $23,572,411, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	13,207,820
Aggregate unrealized (depreciation) of investment securities		(2,071,180	)
Net unrealized appreciation of investment securities	$	11,136,640

Cost of investments for tax purposes is $69,846,584.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended June 30, 2017(a)						Year ended December 31, 2016
	Shares			Amount			Shares			Amount
Sold:
Series I		521,833		$	4,892,303			392,398		$	3,370,814
Series II		3,210			29,940			24,893			212,975
Issued as reinvestment of dividends:
Series I		—			—			71,260			635,642
Series II		—			—			10,214			91,204
Reacquired:
Series I		(624,842	)		(5,843,392	)		(1,224,711	)		(10,331,318	)
Series II		(111,991	)		(1,047,667	)		(232,258	)		(1,971,236	)
Net increase (decrease) in share activity		(211,790	)	$	(1,968,816	)		(958,204	)	$	(7,991,919	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 85% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. 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, third party record keeping and account servicing and administrative services. 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.

Invesco V.I. Global Core Equity Fund

NOTE 10—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)
Series I
Six months ended 06/30/17	$	8.83	$	0.07	$	0.91		$	0.98		$	—		$	—		$	—		$	9.81		11.10	%	$	68,010		1.05	%(d)		1.05	%(d)		1.51	%(d)		31	%
Year ended 12/31/16		8.35		0.10		0.47			0.57			(0.09	)		—			(0.09	)		8.83		6.81			62,130		1.05			1.05			1.14			47
Year ended 12/31/15		8.94		0.09		(0.23	)		(0.14	)		(0.13	)		(0.32	)		(0.45	)		8.35		(1.42	)		65,167		1.06			1.06			0.98			75
Year ended 12/31/14		9.06		0.12		(0.05	)		0.07			(0.19	)		—			(0.19	)		8.94		0.69			73,816		1.06			1.06			1.26			123
Year ended 12/31/13		7.54		0.15		1.54			1.69			(0.17	)		—			(0.17	)		9.06		22.50			83,982		1.08			1.08			1.81			32
Year ended 12/31/12		6.80		0.14		0.79			0.93			(0.19	)		—			(0.19	)		7.54		13.75			74,517		1.00			1.08			1.98			23
Series II
Six months ended 06/30/17		8.83		0.06		0.90			0.96			—			—			—			9.79		10.87			12,585		1.30	(d)		1.30	(d)		1.26	(d)		31
Year ended 12/31/16		8.35		0.07		0.47			0.54			(0.06	)		—			(0.06	)		8.83		6.50			12,302		1.30			1.30			0.89			47
Year ended 12/31/15		8.93		0.07		(0.23	)		(0.16	)		(0.10	)		(0.32	)		(0.42	)		8.35		(1.65	)		13,286		1.31			1.31			0.73			75
Year ended 12/31/14		9.04		0.10		(0.05	)		0.05			(0.16	)		—			(0.16	)		8.93		0.48			16,010		1.31			1.31			1.01			123
Year ended 12/31/13		7.52		0.13		1.53			1.66			(0.14	)		—			(0.14	)		9.04		22.25			21,279		1.33			1.33			1.56			32
Year ended 12/31/12		6.79		0.12		0.78			0.90			(0.17	)		—			(0.17	)		7.52		13.41			21,001		1.25			1.33			1.73			23

^(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. Total returns are not annualized for periods less than one year, if applicable, and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.

^(c)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(d)  Ratios are annualized and based on average daily net assets (000’s omitted) of $65,249 and $12,527 for Series I and Series II shares, respectively.

Invesco V.I. Global Core Equity Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2017 through June 30, 2017.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

Class	Beginning Account Value (01/01/17)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/17)1		Expenses Paid During Period2		Ending Account Value (06/30/17)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,111.00	$	5.50	$	1,019.59	$	5.26		1.05	%
Series II		1,000.00		1,108.70		6.80		1,018.35		6.51		1.30

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2017 through June 30, 2017, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

²  Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Global Core Equity Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco V.I. Global Core Equity Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the 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 PowerShares 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, 2017.

In evaluating the fairness and reasonableness of compensation under the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board determined that continuation of the Fund’s investment advisory agreement and the sub-advisory contracts is in the best interest of the Fund and its shareholders and that the compensation payable to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Board had the benefit of reports from the Sub-Committees and Investments Committee throughout the year in considering approval of the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Board receives comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The

Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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 addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The Trustees recognized that the advisory fee rates for the Invesco Funds are, in most cases, the result of years of review and negotiation. The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these arrangements throughout the year and in prior years. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them 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 discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement 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. This information is current as of June 13, 2017, and does not reflect consideration of factors that became known to the Board after that date.

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 advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers. The Board’s review included consideration of Invesco Advisers’ investment process oversight, credit analysis and investment risk management. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, trading operations, internal audit, valuation and legal and compliance.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the greater uncertainty that may be associated with entering into a new relationship. 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 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 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 in which the Fund may invest, make recommendations regarding securities and assist with security trades. 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 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 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 during the past one, three and five calendar years to the performance of funds in the Broadridge performance universe. The Board noted that performance of Series I shares of the Fund was in the third quintile of its performance universe for the one year period and in 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 also noted there was no comparative index. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees

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 at a common asset level. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual

Invesco V.I. Global Core Equity Fund

management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing 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 compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/waivers) to the effective advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, based on asset balances as of December 31, 2016. The Board noted that the Fund’s rate was below the rate of one mutual fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other client accounts with investment strategies comparable to those of the Fund. The Board noted that Invesco Advisers or the Affiliated Sub-Advisers may charge lower fees to large institutional clients. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to certain other types of client accounts. These additional services include provision of administrative services, officers and office space, oversight of service providers, preparation of annual registration statement updates and financial information and regulatory compliance under the Investment Company Act of 1940, as amended.

Invesco Advisers also reviewed generally the higher frequency of shareholder purchases and redemptions in the Invesco Funds relative to the flow of assets for other client accounts. Invesco Advisers advised the Board that advance notice of redemptions is often provided to Invesco Advisers by institutional clients. The Board did note that sub-advisory fee rates charged by the Affiliated Sub-Advisers to manage the Invesco Funds and to manage other client accounts tended to be more comparable, reflecting a similar scope of services.

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 also noted that the sub-advisory fees are not paid directly by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds advised by Invesco Advisers.

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. 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 and the Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund to be excessive given the nature, quality and extent of the services provided. The Board received and accepted information from Invesco Advisers demonstrating that Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; and 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 periodic reports from the Chief Compliance Officer of the Invesco Funds demonstrating 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 money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds with respect to certain investments in the affiliated money market funds. The waiver is in 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that the Fund may use an affiliated broker to execute certain trades for the Fund to, among other things, control information leakage, and was advised that such trades would be executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Global Core Equity Fund

Proxy Results

A Special Joint Meeting (“Meeting”) of Shareholders of Invesco V.I. Global Core Equity Fund, an investment portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), a Delaware statutory trust (“Trust”), was held on March 9, 2017. The Meeting was held for the following purposes:

(1) Elect 15 trustees to the Board, each of whom will serve until his or her successor is elected and qualified.

(2) Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.

(3) Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities.

(4)(a) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC.

(4)(b) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited.

The results of the voting on the above matters were as follows:

	Matters					Votes For		Votes Withheld
(1)*	David C. Arch						1,256,086,249		71,094,301
	James T. Bunch						1,254,410,156		72,770,397
	Bruce L. Crockett						1,258,363,948		68,816,603
	Jack M. Fields						1,255,101,592		72,078,961
	Martin L. Flanagan						1,257,885,397		69,295,160
	Cynthia Hostetler						1,261,335,247		65,845,303
	Dr. Eli Jones						1,257,497,296		69,683,257
	Dr. Prema Mathai-Davis						1,254,728,756		72,451,795
	Teresa M. Ressel						1,261,829,473		65,351,074
	Dr. Larry Soll						1,254,261,019		72,919,533
	Ann Barnett Stern						1,260,861,373		66,319,176
	Raymond Stickel, Jr.						1,254,379,471		72,801,083
	Philip A. Taylor						1,256,589,912		70,590,639
	Robert C. Troccoli						1,260,867,549		66,313,003
	Christopher L. Wilson						1,260,186,985		66,993,567
		Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(2)*	Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.		1,054,920,918		171,591,974		100,667,642		18
	Matters	Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(3)	Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities		6,505,446		943,749		599,703		0
(4)(a)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC		6,883,767		500,377		664,754		0
(4)(b)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited		6,813,136		539,399		696,363		0

* Each of proposal 1 and 2 required approval by a combined vote of all of the portfolios of AIM Variable Insurance Funds (Invesco Variable Insurance Funds).

Invesco V.I. Global Core Equity Fund

	Semiannual Report to Shareholders	June 30, 2017
	Invesco V.I. Global Health Care Fund
	The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.     A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.     Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/ proxysearch. The information is also available on the SEC website, sec.gov.     Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
	This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.
	NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc.                                               I-VIGHC-SAR-1         07132017    1521

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/16 to 6/30/17, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	14.44%
Series II Shares	14.30
MSCI World Index▼ (Broad Market Index)	10.66
MSCI World Health Care Index▼ (Style-Specific Index)	15.96
Lipper VUF Health/Biotechnology Funds Classification Average⬛ (Peer Group)	18.20
Source(s): ▼FactSet Research Systems Inc.; ⬛Lipper Inc.
The MSCI World IndexSM is an unmanaged index considered representative of stocks of developed countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors. The MSCI World Health Care Index is an unmanaged index considered representative of health care stocks of developed countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors. The Lipper VUF Health/Biotechnology Funds Classification Average represents an average of the variable insurance underlying funds in the Lipper Health/ Biotechnology Funds classification. The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/17
Series I Shares
Inception (5/21/97)	8.64	%
10 Years	8.38
5 Years	13.51
1 Year	11.97
Series II Shares
Inception (4/30/04)	7.87	%
10 Years	8.10
5 Years	13.23
1 Year	11.70

The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

    The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.99% and 1.24%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

    Invesco V.I. Global Health Care Fund, a series portfolio of AIM Variable

Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

    The most recent month-end performance at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

Invesco V.I. Global Health Care Fund

Schedule of Investments^(a)

June 30, 2017

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–97.97%
Biotechnology–37.50%
ACADIA Pharmaceuticals Inc.(b)		28,948	$	807,360
Alder Biopharmaceuticals, Inc.(b)		41,842		479,091
Alexion Pharmaceuticals, Inc.(b)		65,588		7,980,092
Amgen Inc.		22,980		3,957,845
Array BioPharma Inc.(b)		196,627		1,645,768
BioCryst Pharmaceuticals, Inc.(b)		105,438		586,235
Biogen Inc.(b)		25,031		6,792,412
BioMarin Pharmaceutical Inc.(b)		85,288		7,745,856
bluebird bio, Inc.(b)		13,803		1,450,005
Celgene Corp.(b)		99,394		12,908,299
Clovis Oncology Inc.(b)		34,137		3,196,247
DBV Technologies S.A.–ADR (France)(b)		54,631		1,950,873
Exact Sciences Corp.(b)		72,686		2,570,904
Heron Therapeutics, Inc.(b)		59,818		828,479
Incyte Corp.(b)		37,152		4,677,808
Neurocrine Biosciences, Inc.(b)		27,465		1,263,390
Prothena Corp. PLC (Ireland)(b)		26,044		1,409,501
REGENXBIO Inc.(b)		30,816		608,616
Sarepta Therapeutics, Inc.(b)		36,210		1,220,639
Seattle Genetics, Inc.(b)		26,451		1,368,575
Shire PLC–ADR		62,551		10,337,804
Spark Therapeutics, Inc.(b)		13,221		789,823
TESARO, Inc.(b)		12,127		1,696,082
Ultragenyx Pharmaceutical Inc.(b)		26,399		1,639,642
Vertex Pharmaceuticals Inc.(b)		44,743		5,766,031
				83,677,377
Drug Retail–0.50%
Raia Drogasil S.A. (Brazil)		52,760		1,116,360
Health Care Distributors–1.62%
Cardinal Health, Inc.		22,251		1,733,798
McKesson Corp.		11,439		1,882,173
				3,615,971
Health Care Equipment–6.18%
Edwards Lifesciences Corp.(b)		23,539		2,783,251
Olympus Corp. (Japan)		98,500		3,599,996
ResMed Inc.		21,323		1,660,422
Wright Medical Group N.V.(b)		123,512		3,395,345
Zimmer Biomet Holdings, Inc.		18,321		2,352,416
				13,791,430
Health Care Facilities–2.24%
Brookdale Senior Living Inc.(b)		72,231		1,062,518
HCA Healthcare, Inc.(b)		25,681		2,239,383
Tenet Healthcare Corp.(b)		88,079		1,703,448
				5,005,349

	Shares		Value
Health Care Services–1.35%
Envision Healthcare Corp.(b)		47,964	$	3,005,904
Health Care Supplies–1.64%
DENTSPLY SIRONA Inc.		56,359		3,654,318
Life Sciences Tools & Services–6.59%
Agilent Technologies, Inc.		41,144		2,440,251
Illumina, Inc.(b)		13,383		2,322,218
Thermo Fisher Scientific, Inc.		56,925		9,931,705
				14,694,174
Managed Health Care–11.72%
Aetna Inc.		42,308		6,423,624
Anthem, Inc.		17,080		3,213,260
Centene Corp.(b)		31,396		2,507,913
HealthEquity, Inc.(b)		26,253		1,308,187
Humana Inc.		19,207		4,621,588
Molina Healthcare, Inc.(b)		16,008		1,107,433
Qualicorp S.A. (Brazil)		109,000		944,122
UnitedHealth Group Inc.		32,482		6,022,812
				26,148,939
Pharmaceuticals–28.63%
Aclaris Therapeutics, Inc.(b)		60,430		1,638,862
Aerie Pharmaceuticals, Inc.(b)		33,132		1,741,087
Agile Therapeutics, Inc.(b)		137,569		515,884
Allergan PLC		13,847		3,366,067
AstraZeneca PLC–ADR (United Kingdom)		75,990		2,590,499
Bayer AG (Germany)		28,703		3,713,711
Bristol-Myers Squibb Co.		95,725		5,333,797
Dermira, Inc.(b)		54,815		1,597,309
Eli Lilly and Co.		79,108		6,510,588
Endo International PLC(b)		126,603		1,414,156
Hikma Pharmaceuticals PLC (Jordan)		53,653		1,027,241
Jazz Pharmaceuticals PLC(b)		14,653		2,278,541
Merck & Co., Inc.		138,788		8,894,923
Nippon Shinyaku Co., Ltd. (Japan)		34,400		2,205,141
Novartis AG–ADR (Switzerland)		68,349		5,705,091
Paratek Pharmaceuticals, Inc.(b)		35,858		864,178
Roche Holding AG (Switzerland)		19,563		4,994,879
Sanofi–ADR (France)		103,293		4,948,768
Supernus Pharmaceuticals Inc.(b)		37,348		1,609,699
Teva Pharmaceutical Industries Ltd.– ADR (Israel)		51,312		1,704,585
Zogenix, Inc.(b)		83,633		1,212,678
				63,867,684
Total Common Stocks & Other Equity Interests (Cost $186,520,535)				218,577,506

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Global Health Care Fund

	Shares		Value
Money Market Funds–2.59%
Government & Agency Portfolio–Institutional Class, 0.89%(c)		3,471,971	$	3,471,971
Treasury Portfolio–Institutional Class, 0.85%(c)		2,314,647		2,314,647
Total Money Market Funds (Cost $5,786,618)				5,786,618
TOTAL INVESTMENTS–100.56% (Cost $192,307,153)				224,364,124
OTHER ASSETS LESS LIABILITIES–(0.56)%				(1,248,337	)
NET ASSETS–100.00%			$	223,115,787

Investment Abbreviations:

ADR – American Depositary Receipt

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of June 30, 2017.

Portfolio Composition

By country, based on Net Assets

as of June 30, 2017

United States	81.9	%
Switzerland	4.8
France	3.1
Japan	2.6
Countries each less than 2.0% of portfolio	5.6
Money Market Funds Plus Other Assets Less Liabilities	2.0

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Global Health Care Fund

Statement of Assets and Liabilities

June 30, 2017

(Unaudited)

Statement of Operations

For the six months ended June 30, 2017

(Unaudited)

Assets:
Investments, at value (Cost $186,520,535)	$	218,577,506
Investments in affiliated money market funds, at value and cost		5,786,618
Total investments, at value (Cost $192,307,153)		224,364,124
Foreign currencies, at value (Cost $212,242)		205,914
Receivable for:
Fund shares sold		147,127
Dividends		355,602
Investment for trustee deferred compensation and retirement plans		74,430
Other assets		14,344
Total assets		225,161,541
Liabilities:
Payable for:
Investments purchased		1,426,802
Fund shares reacquired		351,526
Accrued fees to affiliates		129,925
Accrued trustees’ and officers’ fees and benefits		5,348
Accrued other operating expenses		47,831
Trustee deferred compensation and retirement plans		84,322
Total liabilities		2,045,754
Net assets applicable to shares outstanding	$	223,115,787
Net assets consist of:
Shares of beneficial interest	$	161,428,146
Undistributed net investment income		725,474
Undistributed net realized gain		28,910,434
Net unrealized appreciation		32,051,733
	$	223,115,787
Net Assets:
Series I	$	151,740,573
Series II	$	71,375,214
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		5,499,003
Series II		2,706,542
Series I:
Net asset value per share	$	27.59
Series II:
Net asset value per share	$	26.37

Investment income:
Dividends (net of foreign withholding taxes of $145,112)	$	1,401,724
Dividends from affiliated money market funds		11,004
Total investment income		1,412,728
Expenses:
Advisory fees		826,532
Administrative services fees		192,875
Custodian fees		8,832
Distribution fees — Series II		88,637
Transfer agent fees		20,844
Trustees’ and officers’ fees and benefits		12,471
Reports to shareholders		26,084
Professional services fees		28,610
Other		3,479
Total expenses		1,208,364
Less: Fees waived		(1,866	)
Net expenses		1,206,498
Net investment income		206,230
Realized and unrealized gain from:
Net realized gain from:
Investment securities		17,768,377
Foreign currencies		6,629
		17,775,006
Change in net unrealized appreciation of:
Investment securities		11,711,012
Foreign currencies		5,067
		11,716,079
Net realized and unrealized gain		29,491,085
Net increase in net assets resulting from operations	$	29,697,315

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Global Health Care Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2017 and the year ended December 31, 2016

(Unaudited)

	June 30, 2017			December 31, 2016
Operations:
Net investment income	$	206,230		$	586,472
Net realized gain		17,775,006			11,179,577
Change in net unrealized appreciation (depreciation)		11,716,079			(46,634,315	)
Net increase (decrease) in net assets resulting from operations		29,697,315			(34,868,266	)
Distributions to shareholders from net realized gains:
Series l		—			(24,359,518	)
Series ll		—			(12,160,811	)
Total distributions from net realized gains		—			(36,520,329	)
Share transactions–net:
Series l		(13,839,006	)		(16,391,139	)
Series ll		(7,340,255	)		(10,597,292	)
Net increase (decrease) in net assets resulting from share transactions		(21,179,261	)		(26,988,431	)
Net increase (decrease) in net assets		8,518,054			(98,377,026	)
Net assets:
Beginning of period		214,597,733			312,974,759
End of period (includes undistributed net investment income of $725,474 and $519,244, respectively)	$	223,115,787		$	214,597,733

Notes to Financial Statements

June 30, 2017

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Global Health Care Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance 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 consisting of twenty-four separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

The Fund’s investment objective is long-term growth of capital.

The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services — Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual

Invesco V.I. Global Health Care Fund

trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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.

Invesco V.I. Global Health Care Fund

F. Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. 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 date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

J. Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

K. Other Risks — The Fund’s performance is vulnerable to factors affecting the health care industry, including government regulation, obsolescence caused by scientific advances and technological innovations.

The Fund has invested in non-publicly traded companies, some of which are in the startup or development stages. These investments are inherently risky, as the market for the technologies or products these companies are developing are typically in the early stages and may never materialize. The Fund could lose its entire investment in these companies. These investments are valued at fair value as determined in good faith in accordance with procedures approved by the Board of Trustees. Investments in privately held venture capital securities are illiquid.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays 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		0.75%
Next $250 million		0.74%
Next $500 million		0.73%
Next $1.5 billion		0.72%
Next $2.5 billion		0.71%
Next $2.5 billion		0.70%
Next $2.5 billion		0.69%
Over $10 billion		0.68%

Invesco V.I. Global Health Care Fund

For the six months ended June 30, 2017, the effective advisory fees incurred by the Fund was 0.75%.

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 PowerShares Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2018, 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 Series I shares to 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2018. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2019, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended June 30, 2017, the Adviser waived advisory fees of $1,866.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2017, Invesco was paid $27,826 for accounting and fund administrative services and was reimbursed $165,049 for fees paid to insurance companies.

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. For the six months ended June 30, 2017, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2017, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2017, the Fund incurred $597 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of June 30, 2017. 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.

Invesco V.I. Global Health Care Fund

During the six months ended June 30, 2017, there were transfers from Level 1 to Level 2 of $5,918,852 and from Level 2 to Level 1 of $1,027,241 due to foreign fair value adjustments.

	Level 1		Level 2		Level 3		Total
Common Stock & Other Equities	$	204,063,779	$	14,513,727	$	—	$	218,577,506
Money Market Funds		5,786,618		—		—		5,786,618
Total Investments	$	209,850,397	$	14,513,727	$	—	$	224,364,124

NOTE 4—Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 5—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 6—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of December 31, 2016.

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2017 was $36,701,406 and $55,794,954, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	45,091,472
Aggregate unrealized (depreciation) of investment securities		(13,094,509	)
Net unrealized appreciation of investment securities	$	31,996,963

Cost of investments for tax purposes is $192,367,161.

Invesco V.I. Global Health Care Fund

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended June 30, 2017(a)						Year ended December 31, 2016
	Shares			Amount			Shares			Amount
Sold:
Series I		340,050		$	8,874,938			712,448		$	19,800,449
Series II		69,854			1,749,289			173,821			4,619,231
Issued as reinvestment of dividends:
Series I		—			—			924,811			24,359,518
Series II		—			—			482,189			12,160,811
Reacquired:
Series I		(871,420	)		(22,713,944	)		(2,206,286	)		(60,551,106	)
Series II		(362,132	)		(9,089,544	)		(1,033,250	)		(27,377,334	)
Net increase (decrease) in share activity		(823,648	)	$	(21,179,261	)		(946,267	)	$	(26,988,431	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 49% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. 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, third party record keeping and account servicing and administrative services. 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 9—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)
Series I
Six months ended 06/30/17	$	24.11	$	0.03		$	3.45		$	3.48		$	—		$	—		$	—		$	27.59		14.44	%	$	151,741		1.02	%(d)		1.02	%(d)		0.26	%(d)		17	%
Year ended 12/31/16		31.75		0.09			(3.36	)		(3.27	)		—			(4.37	)		(4.37	)		24.11		(11.46	)		145,408		1.04			1.04			0.31			23
Year ended 12/31/15		33.78		0.00			1.08			1.08			—			(3.11	)		(3.11	)		31.75		3.16			209,511		1.06			1.07			0.01			42
Year ended 12/31/14		29.32		(0.00	)		5.71			5.71			—			(1.25	)		(1.25	)		33.78		19.67			220,561		1.08			1.09			(0.01	)		29
Year ended 12/31/13		21.00		0.01			8.49			8.50			(0.18	)		—			(0.18	)		29.32		40.54			180,535		1.09			1.10			0.03			32
Year ended 12/31/12		17.37		0.12	(e)		3.51			3.63			—			—			—			21.00		20.90			128,898		1.12			1.13			0.63	(e)		43
Series II
Six months ended 06/30/17		23.07		0.00			3.30			3.30			—			—			—			26.37		14.30			71,375		1.27	(d)		1.27	(d)		0.01	(d)		17
Year ended 12/31/16		30.65		0.02			(3.23	)		(3.21	)		—			(4.37	)		(4.37	)		23.07		(11.69	)		69,190		1.29			1.29			0.06			23
Year ended 12/31/15		32.80		(0.08	)		1.04			0.96			—			(3.11	)		(3.11	)		30.65		2.89			103,464		1.31			1.32			(0.24	)		42
Year ended 12/31/14		28.57		(0.08	)		5.56			5.48			—			(1.25	)		(1.25	)		32.80		19.38			78,070		1.33			1.34			(0.26	)		29
Year ended 12/31/13		20.49		(0.05	)		8.27			8.22			(0.14	)		—			(0.14	)		28.57		40.16			58,488		1.34			1.35			(0.22	)		32
Year ended 12/31/12		16.99		0.07	(e)		3.43			3.50			—			—			—			20.49		20.60			32,823		1.37			1.38			0.38	(e)		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. Total returns are not annualized for periods less than one year, if applicable, and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.

^(c)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(d)  Ratios are annualized and based on average daily net assets (000’s omitted) of $150,738 and $71,497 Series I and Series II shares, respectively.

^(e)  Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets includes significant dividends received during the period. Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets excluding the significant dividends are $(0.01) and (0.02)%, $(0.06) and (0.27)%, for Series I and Series II shares, respectively.

Invesco V.I. Global Health Care Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2017 through June 30, 2017.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

Class	Beginning Account Value (01/01/17)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/17)1		Expenses Paid During Period2		Ending Account Value (06/30/17)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,144.40	$	5.42	$	1,019.74	$	5.11		1.02	%
Series II		1,000.00		1,143.00		6.75		1,018.50		6.36		1.27

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2017 through June 30, 2017, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

²  Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Global Health Care Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco V.I. Global Health Care Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the 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 PowerShares 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, 2017.

In evaluating the fairness and reasonableness of compensation under the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board determined that continuation of the Fund’s investment advisory agreement and the sub-advisory contracts is in the best interest of the Fund and its shareholders and that the compensation payable to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Board had the benefit of reports from the Sub-Committees and Investments Committee throughout the year in considering approval of the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Board receives comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The

Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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 addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The Trustees recognized that the advisory fee rates for the Invesco Funds are, in most cases, the result of years of review and negotiation. The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these arrangements throughout the year and in prior years. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them 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 discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement 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. This information is current as of June 13, 2017, and does not reflect consideration of factors that became known to the Board after that date.

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 advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers. The Board’s review included consideration of Invesco Advisers’ investment process oversight, credit analysis and investment risk management. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, trading operations, internal audit, valuation and legal and compliance.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the greater uncertainty that may be associated with entering into a new relationship. 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 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 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 in which the Fund may invest, make recommendations regarding securities and assist with security trades. 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 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 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, 2016 to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds Health/Biotechnology Funds Index. The Board noted that performance of Series I 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 Series I shares of the Fund was below the performance of the Index for the one, three and five year periods. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees

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 at a common asset

Invesco V.I. Global Health Care Fund

level. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing 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 noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other funds or client accounts with investment strategies comparable to those of the Fund.

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 also noted that the sub-advisory fees are not paid directly by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds advised by Invesco Advisers.

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. 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 and the Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund to be excessive given the nature, quality and extent of the services provided. The Board received and accepted information from Invesco Advisers demonstrating that Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; and 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 periodic reports from the Chief Compliance Officer of the Invesco Funds demonstrating 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 money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds with respect to certain investments in the affiliated money market funds. The waiver is in 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that the Fund may use an affiliated broker to execute certain trades for the Fund to, among other things, control information leakage, and was advised that such trades would be executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Global Health Care Fund

Proxy Results

A Special Joint Meeting (“Meeting”) of Shareholders of Invesco V.I. Global Health Care Fund, an investment portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), a Delaware statutory trust (“Trust”), was held on March 9, 2017. The Meeting was held for the following purposes:

(1) Elect 15 trustees to the Board, each of whom will serve until his or her successor is elected and qualified.

(2) Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.

(3) Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities.

(4)(a) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC.

(4)(b) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited.

The results of the voting on the above matters were as follows:

	Matters					Votes For		Votes Withheld
(1)*	David C. Arch						1,256,086,249		71,094,301
	James T. Bunch						1,254,410,156		72,770,397
	Bruce L. Crockett						1,258,363,948		68,816,603
	Jack M. Fields						1,255,101,592		72,078,961
	Martin L. Flanagan						1,257,885,397		69,295,160
	Cynthia Hostetler						1,261,335,247		65,845,303
	Dr. Eli Jones						1,257,497,296		69,683,257
	Dr. Prema Mathai-Davis						1,254,728,756		72,451,795
	Teresa M. Ressel						1,261,829,473		65,351,074
	Dr. Larry Soll						1,254,261,019		72,919,533
	Ann Barnett Stern						1,260,861,373		66,319,176
	Raymond Stickel, Jr.						1,254,379,471		72,801,083
	Philip A. Taylor						1,256,589,912		70,590,639
	Robert C. Troccoli						1,260,867,549		66,313,003
	Christopher L. Wilson						1,260,186,985		66,993,567
		Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(2)*	Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.		1,054,920,918		171,591,974		100,667,642		18
	Matters	Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(3)	Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities		5,539,650		539,178		601,174		0
(4)(a)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC		5,761,524		289,094		629,384		0
(4)(b)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited		5,693,456		432,677		553,860		0

* Each of proposal 1 and 2 required approval by a combined vote of all of the portfolios of AIM Variable Insurance Funds (Invesco Variable Insurance Funds).

Invesco V.I. Global Health Care Fund

	Semiannual Report to Shareholders	June 30, 2017
	Invesco V.I. Global Real Estate Fund

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/ proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc.                                                                                                  VIGRE-SAR-1            07182017    1057

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/16 to 6/30/17, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	6.19	%
Series II Shares	6.06
MSCI World Index▼ (Broad Market Index)	10.66
Custom Invesco Global Real Estate Index∎ (Style-Specific Index)	6.72
Lipper VUF Real Estate Funds Classification Average◆ (Peer Group)	2.52
Source(s): ▼FactSet Research Systems Inc.; ∎Invesco, FactSet Research Systems Inc.; ◆Lipper Inc.

The MSCI World Index^SM is an unmanaged index considered representative of stocks of developed countries. The index is computed using the net return, which withholds applicable taxes for non-resident investors.

The Custom Invesco Global Real Estate Index is composed of the FTSE EPRA/ NAREIT Developed Index (gross) from fund inception through February, 17, 2005; the FTSE EPRA/NAREIT Developed Index (net) from February 18, 2005, through June 30, 2014; and the FTSE EPRA/NAREIT Global Index (net) from July 1, 2014.

The Lipper VUF Real Estate Funds Classification Average represents an average of all of the variable insurance underlying funds in the Lipper Real Estate Funds classification.

The FTSE EPRA/NAREIT Developed Index is an unmanaged index considered representative of listed real estate companies and REITs worldwide.

The FTSE EPRA/NAREIT Global Index is a free float, market capitalization-weighted real estate index designed to represent publicly traded equity REITs and listed property companies in 38 countries worldwide, covering both the developed and emerging markets.

The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns As of 6/30/17
Series I Shares
Inception (3/31/98)	7.88	%
10 Years	2.08
5 Years	7.01
1 Year	1.53
Series II Shares
Inception (4/30/04)	7.82	%
10 Years	1.84
5 Years	6.76
1 Year	1.30

The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 1.01% and 1.26%, respectively. The expense ratios presented above may vary from the expense

ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Invesco V.I. Global Real Estate Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

The most recent month-end performance at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above,

for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

Invesco V.I. Global Real Estate Fund

Schedule of Investments

June 30, 2017

(Unaudited)

	Shares		Value
Real Estate Investment Trusts, Common Stocks & Other Equity Interests–98.23%
Australia–5.05%
Dexus		309,854	$	2,257,845
Goodman Group		673,910		4,076,667
GPT Group (The)		635,360		2,339,290
Mirvac Group		1,205,986		1,978,910
Scentre Group		1,599,071		4,973,107
Westfield Corp.		760,707		4,695,281
				20,321,100
Brazil–0.51%
BR Malls Participacoes S.A.		332,925		1,200,698
BR Properties S.A.		104,900		285,246
Iguatemi Empresa de Shopping Centers S.A.		9,900		98,359
MRV Engenharia e Participacoes S.A.		37,200		151,789
Multiplan Empreendimentos Imobiliarios S.A.		16,700		329,217
				2,065,309
Canada–2.32%
Allied Properties REIT		62,400		1,872,698
Canadian Apartment Properties REIT		63,003		1,630,883
Chartwell Retirement Residences		76,759		916,835
First Capital Realty, Inc.		62,029		945,131
H&R REIT		120,700		2,049,438
RioCan REIT		49,700		922,450
Smart REIT		40,700		1,008,046
				9,345,481
China–4.48%
Agile Group Holdings Ltd.		348,000		318,694
CapitaLand Retail China Trust		213,700		254,553
China Evergrande Group(a)		731,000		1,312,663
China Jinmao Holdings Group Ltd.		1,462,000		602,964
China Overseas Grand Oceans Group Ltd.		368,000		196,549
China Overseas Land & Investment Ltd.		910,000		2,663,272
China Resources Land Ltd.		784,444		2,285,764
China Vanke Co., Ltd.–Class H(a)		489,700		1,386,151
CIFI Holdings (Group) Co. Ltd.		1,836,000		816,000
Country Garden Holdings Co. Ltd.		1,334,000		1,546,295
Global Logistic Properties Ltd.		764,400		1,587,873
Guangzhou R&F Properties Co. Ltd.– Class H		358,800		557,904
KWG Property Holding Ltd.		280,000		187,563
Longfor Properties Co. Ltd.		440,500		946,729
Shenzhen Investment Ltd.		1,233,700		545,151
Shimao Property Holdings Ltd.		438,000		749,495
Sino-Ocean Group Holding Ltd.		733,500		358,882
Sunac China Holdings Ltd.		222,000		464,046
Yanlord Land Group Ltd.		604,600		770,681
Yuexiu Property Co. Ltd.		2,660,000		453,128
				18,004,357

	Shares		Value
France–3.31%
ICADE		24,178	$	2,036,738
Klepierre		96,341		3,948,637
Unibail-Rodamco S.E.		29,045		7,319,787
				13,305,162
Germany–3.42%
Deutsche Euroshop AG		20,591		812,303
Grand City Properties S.A.		184,362		3,694,434
LEG Immobilien AG		40,666		3,823,026
Vonovia SE		136,886		5,439,127
				13,768,890
Hong Kong–7.21%
Cheung Kong Property Holdings Ltd.		582,800		4,564,614
Hang Lung Properties Ltd.		1,269,000		3,169,452
Hongkong Land Holdings Ltd.		300,100		2,208,736
Link REIT		560,500		4,264,323
New World Development Co. Ltd.		2,288,000		2,904,141
Sun Hung Kai Properties Ltd.		420,000		6,170,221
Swire Properties Ltd.		902,400		2,980,424
Wharf (Holdings) Ltd. (The)		332,000		2,751,252
				29,013,163
India–0.16%
Ascendas India Trust		776,700		639,566
Indonesia–0.41%
PT Ciputra Development Tbk		10,345,338		913,757
PT Pakuwon Jati Tbk		13,056,300		600,039
PT Summarecon Agung Tbk		1,556,900		150,465
				1,664,261
Ireland–0.40%
Green REIT PLC		976,372		1,590,142
Japan–9.40%
Activia Properties, Inc.		210		897,173
Advance Residence Investment Corp.		477		1,185,396
AEON REIT Investment Corp.		814		896,724
Daiwa House REIT Investment Corp.		741		1,758,450
Daiwa Office investment Corp.		183		922,566
GLP J-REIT(b)		213		229,344
GLP J-REIT		1,027		1,105,803
Hulic Reit, Inc.		888		1,385,650
Japan Excellent, Inc.		422		469,389
Japan Hotel REIT Investment Corp.		934		660,203
Japan Logistics Fund Inc.		326		676,812
Japan Real Estate Investment Corp.		566		2,813,141
Japan Retail Fund Investment Corp.		1,178		2,173,335
Kenedix Office Investment Corp.		68		362,763
Mitsubishi Estate Co., Ltd.		442,800		8,272,463

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Global Real Estate Fund

	Shares		Value
Japan–(continued)
Mitsui Fudosan Co., Ltd.		358,100	$	8,561,634
Nippon Prologis REIT Inc.		496		1,055,770
Nomura Real Estate Master Fund, Inc.		1,029		1,406,218
Tokyo Tatemono Co., Ltd.		130,900		1,717,889
United Urban Investment Corp.		866		1,235,823
				37,786,546
Malaysia–0.37%
IOI Properties Group Bhd.		823,600		423,153
KLCCP Stapled Group		254,600		473,881
Mah Sing Group Bhd.		1,579,500		596,072
				1,493,106
Malta–0.01%
BGP Holdings PLC (Acquired 08/06/2009; Cost $0)(a)(b)		3,053,090		54,050
Mexico–0.51%
Fibra Uno Administracion S.A. de C.V.		739,700		1,399,679
Macquarie Mexico Real Estate Management S.A. de C.V.		563,900		663,706
				2,063,385
Netherlands–0.47%
Wereldhave N.V.		38,235		1,874,758
Philippines–0.84%
Ayala Land, Inc.		1,796,100		1,414,588
Robinsons Land Corp.		1,447,100		696,655
SM Prime Holdings Inc.		1,958,900		1,280,822
				3,392,065
Singapore–1.94%
CapitaLand Commercial Trust		1,199,100		1,445,748
CapitaLand Ltd.		363,600		924,317
CapitaLand Mall Trust		907,300		1,301,509
City Developments Ltd.		315,700		2,460,387
Mapletree Industrial Trust		1,236,000		1,669,785
				7,801,746
South Africa–1.10%
Growthpoint Properties Ltd.		831,445		1,555,599
Hyprop Investments Ltd.		111,442		994,394
Resilient REIT Ltd.		75,787		705,149
SA Corporate Real Estate Ltd.		2,746,869		1,154,658
				4,409,800
Spain–0.90%
Inmobiliaria Colonial S.A.		214,824		1,874,451
Merlin Properties Socimi, S.A.		137,613		1,738,352
				3,612,803
Sweden–1.34%
Castellum AB		188,593		2,774,928
Wihlborgs Fastigheter AB		123,304		2,604,746
				5,379,674

	Shares		Value
Switzerland–0.95%
Swiss Prime Site AG		42,189	$	3,831,964
Thailand–0.45%
Central Pattana PCL		643,900		1,314,760
Central Pattana PCL–NVDR		37,600		76,774
Supalai PCL–NVDR		543,200		416,429
				1,807,963
United Arab Emirates–0.16%
Emaar Malls PJSC		957,873		657,185
United Kingdom–4.34%
Big Yellow Group PLC		157,656		1,626,285
Derwent London PLC		52,802		1,825,208
Great Portland Estates PLC		268,557		2,090,291
Hansteen Holdings PLC		922,902		1,496,532
Land Securities Group PLC		259,272		3,420,788
SEGRO PLC		434,064		2,765,676
Tritax Big Box REIT PLC		658,577		1,254,050
UNITE Group PLC (The)		351,109		2,967,889
				17,446,719
United States–48.18%
Acadia Realty Trust		55,506		1,543,067
American Campus Communities, Inc.		58,762		2,779,443
American Homes 4 Rent–Class A		179,446		4,050,096
American Tower Corp.–Class A		4,422		585,119
Apple Hospitality REIT, Inc.		164,497		3,077,739
AvalonBay Communities, Inc.		48,038		9,231,462
Boston Properties, Inc.		77,200		9,497,144
Brandywine Realty Trust		130,150		2,281,530
Brixmor Property Group, Inc.		167,439		2,993,809
Brookdale Senior Living Inc.(a)		70,025		1,030,068
Cousins Properties, Inc.		409,312		3,597,852
Crown Castle International Corp.		3,794		380,083
CyrusOne Inc.		27,586		1,537,920
DiamondRock Hospitality Co.		15,764		172,616
Digital Realty Trust, Inc.		27,390		3,093,701
EastGroup Properties, Inc.		16,394		1,373,817
Equity Residential		166,135		10,936,667
Essex Property Trust, Inc.		25,607		6,587,913
Extra Space Storage Inc.		37,346		2,912,988
Federal Realty Investment Trust		28,526		3,605,401
GGP Inc.		199,377		4,697,322
HCP, Inc.		137,442		4,392,646
Healthcare Realty Trust, Inc.		129,609		4,426,147
Host Hotels & Resorts Inc.		286,187		5,228,636
Hudson Pacific Properties Inc.		175,615		6,004,277
InfraREIT, Inc.		14,137		270,724
Invitation Homes Inc.		59,847		1,294,491
Kimco Realty Corp.		142,975		2,623,591
Liberty Property Trust		122,534		4,988,359
Macerich Co. (The)		83,976		4,875,647

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Global Real Estate Fund

	Shares		Value
United States–(continued)
Mid-America Apartment Communities, Inc.		28,963	$	3,052,121
National Health Investors, Inc.		24,181		1,915,135
National Retail Properties, Inc.		29,003		1,134,017
Paramount Group, Inc.		118,675		1,898,800
Pebblebrook Hotel Trust		84,593		2,727,278
Physicians Realty Trust		51,984		1,046,958
Prologis, Inc.		163,682		9,598,312
Public Storage		47,447		9,894,123
QTS Realty Trust, Inc.–Class A		54,791		2,867,213
Realty Income Corp.		56,321		3,107,793
Regency Centers Corp.		23,297		1,459,324
Retail Opportunity Investments Corp.		68,387		1,312,347
RLJ Lodging Trust		43,142		857,232
SBA Communications Corp.–Class A(a)		7,138		962,916
Simon Property Group, Inc.		87,886		14,216,439
SL Green Realty Corp.		5,384		569,627
Sun Communities, Inc.		45,968		4,030,934
Terreno Realty Corp.		37,875		1,274,873
Ventas, Inc.		47,726		3,316,002

	Shares		Value
United States–(continued)
Vornado Realty Trust		79,277	$	7,444,110
Washington REIT		87,663		2,796,450
Weingarten Realty Investors		36,151		1,088,145
Welltower Inc.		94,844		7,099,073
				193,739,497
Total Real Estate Investment Trusts, Common Stocks & Other Equity Interests (Cost $347,114,902)				395,068,692
Money Market Funds–1.20%
Government & Agency Portfolio–Institutional Class, 0.89%(c)		2,882,629		2,882,629
Treasury Portfolio–Institutional Class, 0.85%(c)		1,921,753		1,921,753
Total Money Market Funds (Cost $4,804,382)				4,804,382
TOTAL INVESTMENTS–99.43% (Cost $351,919,284)				399,873,074
OTHER ASSETS LESS LIABILITIES–0.57%				2,278,597
NET ASSETS–100.00%			$	402,151,671

Investment Abbreviations:

NVDR	– Non-Voting Depositary Receipt
REIT	– Real Estate Investment Trust

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 June 30, 2017 was $283,394, which represented less than 1% of the Fund’s Net Assets.

^(c)  The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of June 30, 2017.

Portfolio Composition

By country, based on Net Assets

as of June 30, 2017

United States	48.2	%
Japan	9.4
Hong Kong	7.2
Australia	5.1
China	4.5
United Kingdom	4.3
Germany	3.4
France	3.3
Canada	2.3
Countries each less than 2.0% of portfolio	10.5
Money Market Funds Plus Other Assets Less Liabilities	1.8

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Global Real Estate Fund

Statement of Assets and Liabilities

June 30, 2017

(Unaudited)

Statement of Operations

For the six months ended June 30, 2017

(Unaudited)

Assets:
Investments, at value (Cost $347,114,902)	$	395,068,692
Investments in affiliated money market funds, at value and cost		4,804,382
Total investments, at value (Cost $351,919,284)		399,873,074
Foreign currencies, at value (Cost $1,740,873)		1,747,838
Receivable for:
Investments sold		933,132
Fund shares sold		472,213
Dividends		1,601,809
Investment for trustee deferred compensation and retirement plans		66,588
Other assets		902
Total assets		404,695,556
Liabilities:
Payable for:
Investments purchased		1,819,808
Fund shares reacquired		211,784
Accrued foreign taxes		59,259
Accrued fees to affiliates		298,650
Accrued trustees’ and officers’ fees and benefits		4,907
Accrued other operating expenses		73,679
Trustee deferred compensation and retirement plans		75,798
Total liabilities		2,543,885
Net assets applicable to shares outstanding	$	402,151,671
Net assets consist of:
Shares of beneficial interest	$	342,965,429
Undistributed net investment income		8,795,527
Undistributed net realized gain		2,429,920
Net unrealized appreciation		47,960,795
	$	402,151,671
Net Assets:
Series I	$	155,422,330
Series II	$	246,729,341
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		9,061,445
Series II		14,827,722
Series I:
Net asset value per share	$	17.15
Series II:
Net asset value per share	$	16.64

Investment income:
Dividends (net of foreign withholding taxes of $320,691)	$	7,358,248
Dividends from affiliated money market funds		15,235
Total investment income		7,373,483
Expenses:
Advisory fees		1,428,759
Administrative services fees		333,449
Custodian fees		82,784
Distribution fees — Series II		289,045
Transfer agent fees		19,095
Trustees’ and officers’ fees and benefits		13,067
Reports to shareholders		41,171
Professional services fees		31,397
Other		6,491
Total expenses		2,245,258
Less: Fees waived		(2,694	)
Net expenses		2,242,564
Net investment income		5,130,919
Realized and unrealized gain from:
Net realized gain from:
Investment securities (net of foreign taxes $2,649)		180,687
Foreign currencies		11,991
		192,678
Change in net unrealized appreciation of:
Investment securities (net of foreign taxes $59,213)		16,839,155
Foreign currencies		28,367
		16,867,522
Net realized and unrealized gain		17,060,200
Net increase in net assets resulting from operations	$	22,191,119

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Global Real Estate Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2017 and the year ended December 31, 2016

(Unaudited)

	June 30, 2017			December 31, 2016
Operations:
Net investment income	$	5,130,919		$	6,742,282
Net realized gain		192,678			10,069,841
Change in net unrealized appreciation (depreciation)		16,867,522			(7,718,085	)
Net increase in net assets resulting from operations		22,191,119			9,094,038
Distributions to shareholders from net investment income:
Series I		—			(2,467,652	)
Series ll		—			(3,330,972	)
Total distributions from net investment income		—			(5,798,624	)
Distributions to shareholders from net realized gains:
Series l		—			(2,886,843	)
Series ll		—			(4,517,031	)
Total distributions from net realized gains		—			(7,403,874	)
Share transactions–net:
Series l		(1,040,435	)		(62,074,057	)
Series ll		16,726,136			13,734,445
Net increase (decrease) in net assets resulting from share transactions		15,685,701			(48,339,612	)
Net increase (decrease) in net assets		37,876,820			(52,448,072	)
Net assets:
Beginning of period		364,274,851			416,796,223
End of period (includes undistributed net investment income of $8,795,527 and $3,664,608, respectively)	$	402,151,671		$	364,274,851

Notes to Financial Statements

For the six months ended June 30, 2017

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Global Real Estate Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance 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 consisting of twenty-four separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

The Fund’s investment objective is total return through growth of capital and current income.

The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services — Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Invesco V.I. Global Real Estate Fund

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees.

Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

The Fund recharacterizes distributions received from REIT investments based on information provided by the REIT into the following categories: ordinary income, long-term and short-term capital gains, and return of capital. If information is not available on a timely basis from the REIT, the recharacterization will be based on available information which may include the previous year’s allocation. If new or additional information becomes available from the REIT at a later date, a recharacterization will be made in the following year. The Fund records as dividend income the amount recharacterized as ordinary income and as realized gain the amount recharacterized as capital gain in the Statement of Operations, and the amount recharacterized as return of capital as a reduction of the cost of the related investment. These recharacterizations are reflected in the accompanying financial statements.

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among

Invesco V.I. Global Real Estate Fund

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 to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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 and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. 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 date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

J. Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

K. Other Risks — The Fund’s investments are concentrated in a comparatively narrow segment of the economy. Consequently, the Fund may tend to be more volatile than other mutual funds, and the value of the Fund’s investments may tend to rise and fall more rapidly.

Because the Fund concentrates its assets in the real estate industry, an investment in the Fund will be closely linked to the performance of the real estate markets. Property values may fall due to increasing vacancies or declining rents resulting from economic, legal, cultural or technological developments.

Invesco V.I. Global Real Estate Fund

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays 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		0.75%
Next $250 million		0.74%
Next $500 million		0.73%
Next $1.5 billion		0.72%
Next $2.5 billion		0.71%
Next $2.5 billion		0.70%
Next $2.5 billion		0.69%
Over $10 billion		0.68%

For the six months ended June 30, 2017, the effective advisory fees incurred by the Fund was 0.75%.

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 PowerShares Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2018, 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 Series I shares to 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2018. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2019, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended June 30, 2017, the Adviser waived advisory fees of $2,694.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2017, Invesco was paid $46,502 for accounting and fund administrative services and was reimbursed $286,947 for fees paid to insurance companies.

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. For the six months ended June 30, 2017, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2017, expenses incurred under the Plan are detailed 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.

Invesco V.I. Global Real Estate Fund

NOTE 3—Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the

securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of June 30, 2017. 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.

During the six months ended June 30, 2017, there were transfers from Level 1 to Level 2 of $16,138,101 and from Level 2 to Level 1 of $88,241,987, due to foreign fair value adjustments.

	Level 1		Level 2		Level 3		Total
Australia	$	13,369,083	$	6,952,017	$	—	$	20,321,100
Brazil		2,065,309		—		—		2,065,309
Canada		9,345,481		—		—		9,345,481
China		18,004,357		—		—		18,004,357
France		11,268,424		2,036,738		—		13,305,162
Germany		7,517,460		6,251,430		—		13,768,890
Hong Kong		26,032,739		2,980,424		—		29,013,163
India		—		639,566		—		639,566
Indonesia		150,465		1,513,796		—		1,664,261
Ireland		—		1,590,142		—		1,590,142
Japan		19,234,560		18,551,986		—		37,786,546
Malaysia		1,069,953		423,153		—		1,493,106
Malta		—		54,050		—		54,050
Mexico		2,063,385		—		—		2,063,385
Netherlands		1,874,758		—		—		1,874,758
Philippines		2,695,410		696,655		—		3,392,065
Singapore		7,801,746		—		—		7,801,746
South Africa		4,409,800		—		—		4,409,800
Spain		1,738,352		1,874,451		—		3,612,803
Sweden		2,604,746		2,774,928		—		5,379,674
Switzerland		3,831,964		—		—		3,831,964
Thailand		1,807,963		—		—		1,807,963
United Arab Emirates		657,185		—		—		657,185
United Kingdom		15,356,428		2,090,291		—		17,446,719
United States		193,739,497		—		—		193,739,497
Money Market Funds		4,804,382		—		—		4,804,382
Total Investments	$	351,443,447	$	48,429,627	$	—	$	399,873,074

NOTE 4—Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

Invesco V.I. Global Real Estate Fund

NOTE 5—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 6—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of December 31, 2016.

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2017 was $106,987,876 and $87,718,711, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	43,853,591
Aggregate unrealized (depreciation) of investment securities		(7,126,998	)
Net unrealized appreciation of investment securities	$	36,726,593

Cost of investments for tax purposes is $363,146,481.

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended June 30, 2017(a)						Year ended December 31, 2016
	Shares			Amount			Shares			Amount
Sold:
Series I		930,927		$	15,559,351			1,866,923		$	31,090,102
Series II		2,390,070			39,114,031			2,573,469			42,010,957
Issued as reinvestment of dividends:
Series I		—			—			307,377			5,354,495
Series II		—			—			463,556			7,848,003
Reacquired:
Series I		(993,084	)		(16,599,786	)		(5,815,971	)		(98,591,954	)
Series II		(1,384,952	)		(22,387,895	)		(2,288,818	)		(36,124,515	)
Net increase (decrease) in share activity		942,961		$	15,685,701			(2,893,464	)	$	(48,412,912	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 59% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. 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, third party record keeping and account servicing and administrative services. 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.

Invesco V.I. Global Real Estate Fund

NOTE 9—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)
Series I
Six months ended 06/30/17	$	16.15	$	0.24	$	0.76		$	1.00		$	—		$	—		$	—		$	17.15		6.19	%	$	155,422		1.02	%(d)		1.02	%(d)		2.83	%(d)		23	%
Year ended 12/31/16		16.36		0.30		0.08			0.38			(0.27	)		(0.32	)		(0.59	)		16.15		2.04			147,382		1.05			1.05			1.81			66
Year ended 12/31/15		17.24		0.31		(0.59	)		(0.28	)		(0.60	)		—			(0.60	)		16.36		(1.48	)		208,796		1.11			1.11			1.79			72
Year ended 12/31/14		15.29		0.33		1.89			2.22			(0.27	)		—			(0.27	)		17.24		14.62			209,829		1.10			1.10			1.99			44
Year ended 12/31/13		15.47		0.22		0.21			0.43			(0.61	)		—			(0.61	)		15.29		2.71			189,835		1.10			1.10			1.41			49
Year ended 12/31/12		12.14		0.27		3.14			3.41			(0.08	)		—			(0.08	)		15.47		28.12			176,933		1.14			1.14			1.94			51
Series II
Six months ended 06/30/17		15.69		0.21		0.74			0.95			—			—			—			16.64		6.06			246,729		1.27	(d)		1.27	(d)		2.58	(d)		23
Year ended 12/31/16		15.91		0.25		0.08			0.33			(0.23	)		(0.32	)		(0.55	)		15.69		1.82			216,893		1.30			1.30			1.56			66
Year ended 12/31/15		16.79		0.26		(0.58	)		(0.32	)		(0.56	)		—			(0.56	)		15.91		(1.74	)		208,000		1.36			1.36			1.54			72
Year ended 12/31/14		14.90		0.28		1.84			2.12			(0.23	)		—			(0.23	)		16.79		14.34			200,299		1.35			1.35			1.74			44
Year ended 12/31/13		15.11		0.18		0.20			0.38			(0.59	)		—			(0.59	)		14.90		2.44			170,145		1.35			1.35			1.16			49
Year ended 12/31/12		11.87		0.23		3.07			3.30			(0.06	)		—			(0.06	)		15.11		27.85			124,219		1.39			1.39			1.69			51

^(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. Total returns are not annualized for periods less than one year, if applicable, and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.

^(c)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(d)  Ratios are annualized and based on average daily net assets (000’s omitted) of $152,821 and $233,152 for Series I and Series II shares, respectively.

Invesco V.I. Global Real Estate Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2017 through June 30, 2017.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

Class	Beginning Account Value (01/01/17)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/17)1		Expenses Paid During Period2		Ending Account Value (06/30/17)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,061.90	$	5.21	$	1,019.74	$	5.11		1.02	%
Series II		1,000.00		1,060.60		6.49		1,018.50		6.36		1.27

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2017 through June 30, 2017, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

²  Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Global Real Estate Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco V.I. Global Real Estate Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the 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 PowerShares 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, 2017.

In evaluating the fairness and reasonableness of compensation under the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board determined that continuation of the Fund’s investment advisory agreement and the sub-advisory contracts is in the best interest of the Fund and its shareholders and that the compensation payable to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Board had the benefit of reports from the Sub-Committees and Investments Committee throughout the year in considering approval of the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Board receives comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The

Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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 addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The Trustees recognized that the advisory fee rates for the Invesco Funds are, in most cases, the result of years of review and negotiation. The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these arrangements throughout the year and in prior years. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them 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 discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement 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. This information is current as of June 13, 2017, and does not reflect consideration of factors that became known to the Board after that date.

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 advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers. The Board’s review included consideration of Invesco Advisers’ investment process oversight, credit analysis and investment risk management. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, trading operations, internal audit, valuation and legal and compliance.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the greater uncertainty that may be associated with entering into a new relationship. 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 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 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 in which the Fund may invest, make recommendations regarding securities and assist with security trades. 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 by the Affiliated Sub-Advisers are appropriate and satisfactory.

B. Fund Investment Performance

The Board considered Fund investment performance as a relevant factor in considering whether to approve the investment advisory agreement as well as the sub-advisory contracts for the Fund, as Invesco Asset Management Limited currently manages certain assets of the Fund.

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2016 to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds Global Real Estate Funds Index. The Board noted that performance of Series I shares of the Fund was in the second quintile of its performance universe for the one year period and the third quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series I shares of the Fund was above the performance of the Index for the one year period and below the performance of the Index for the three and five year periods. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s

Invesco V.I. Global Real Estate Fund

Broadridge expense group at a common asset level. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing 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 compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/waivers) to the effective advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, based on asset balances as of December 31, 2016. The Board noted that the Fund’s rate was above the rate of one such mutual fund. The Board also noted how the Fund’s rate compared to off-shore funds advised by Invesco Advisers and to the effective sub-adviser fee rate of other funds sub-advised by Invesco Advisers.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other client accounts with investment strategies comparable to those of the Fund. The Board noted that Invesco Advisers or the Affiliated Sub-Advisers may charge lower fees to large institutional clients. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to certain other types of client accounts. These additional services include provision of administrative services, officers and office space, oversight of service providers, preparation of annual registration statement updates and financial information and regulatory compliance under the Investment Company Act of 1940, as amended.

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. The Board also noted that the sub-advisory fees are not paid directly

by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds advised by Invesco Advisers.

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. 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 and the Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund to be excessive given the nature, quality and extent of the services provided. The Board received and accepted information from Invesco Advisers demonstrating that Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; and 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 Adviser’s or the Affiliated Sub-Adviser’s expenses. The Board also considered that it receives periodic reports from the Chief Compliance Officer of the Invesco Funds demonstrating 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 money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds with respect to certain investments in the affiliated money market funds. The waiver is in 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that the Fund may use an affiliated broker to execute certain trades for the Fund to, among other things, control information leakage, and was advised that such trades would be executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Global Real Estate Fund

Proxy Results

A Special Joint Meeting (“Meeting”) of Shareholders of Invesco V.I. Global Real Estate Fund, an investment portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), a Delaware statutory trust (“Trust”), was held on March 9, 2017. The Meeting was held for the following purposes:

(1) Elect 15 trustees to the Board, each of whom will serve until his or her successor is elected and qualified.

(2) Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.

(3) Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities.

(4)(a) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC.

(4)(b) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited.

The results of the voting on the above matters were as follows:

	Matters					Votes For		Votes Withheld
(1)*	David C. Arch						1,256,086,249		71,094,301
	James T. Bunch						1,254,410,156		72,770,397
	Bruce L. Crockett						1,258,363,948		68,816,603
	Jack M. Fields						1,255,101,592		72,078,961
	Martin L. Flanagan						1,257,885,397		69,295,160
	Cynthia Hostetler						1,261,335,247		65,845,303
	Dr. Eli Jones						1,257,497,296		69,683,257
	Dr. Prema Mathai-Davis						1,254,728,756		72,451,795
	Teresa M. Ressel						1,261,829,473		65,351,074
	Dr. Larry Soll						1,254,261,019		72,919,533
	Ann Barnett Stern						1,260,861,373		66,319,176
	Raymond Stickel, Jr.						1,254,379,471		72,801,083
	Philip A. Taylor						1,256,589,912		70,590,639
	Robert C. Troccoli						1,260,867,549		66,313,003
	Christopher L. Wilson						1,260,186,985		66,993,567
		Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(2)*	Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.		1,054,920,918		171,591,974		100,667,642		18
	Matters	Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(3)	Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities		10,778,625		1,760,684		1,420,231		0
(4)(a)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC		11,514,403		1,117,230		1,327,907		0
(4)(b)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited		11,359,490		1,295,580		1,304,470		0

* Each of proposal 1 and 2 required approval by a combined vote of all of the portfolios of AIM Variable Insurance Funds (Invesco Variable Insurance Funds).

Invesco V.I. Global Real Estate Fund

	Semiannual Report to Shareholders	June 30, 2017
	Invesco V.I. Government Money Market Fund

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc.                                                                                           VIGMKT-SAR-1              07182017        0937

About your Fund

Invesco V.I. Government Money Market Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

The most recent month-end performance at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

    The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risks associated with an investment in the Fund.

Invesco V.I. Government Money Market Fund

Schedule of Investments

June 30, 2017

(Unaudited)

	Interest Rate			Maturity Date		Principal Amount (000)		Value
U.S. Government Sponsored Agency Securities–43.10%
Federal Farm Credit Bank (FFCB)–9.74%
Unsec. Bonds(a)		1.12	%		07/06/2017	$	10,000	$	9,999,979
Unsec. Bonds(a)		1.17	%		07/14/2017		6,000		6,000,036
Unsec. Bonds(a)		1.26	%		08/29/2017		15,525		15,523,630
Unsec. Bonds(a)		1.16	%		11/13/2017		4,480		4,478,109
Unsec. Bonds(a)		1.18	%		11/13/2017		5,000		4,998,253
Unsec. Bonds(a)		1.25	%		11/22/2017		7,000		6,996,711
Unsec. Bonds(a)		1.24	%		01/17/2018		5,715		5,714,250
Unsec. Bonds(a)		1.18	%		03/02/2018		5,000		5,005,428
Unsec. Bonds(a)		1.25	%		03/26/2018		1,200		1,202,301
Unsec. Bonds(a)		1.23	%		05/17/2018		3,000		3,000,000
Unsec. Bonds(a)		1.19	%		05/22/2018		2,500		2,507,375
									65,426,072
Federal Home Loan Bank (FHLB)–25.84%
Unsec. Bonds(a)		1.12	%		08/08/2017		4,000		4,000,000
Unsec. Bonds(a)		1.20	%		08/18/2017		4,000		3,999,746
Unsec. Bonds(a)		1.17	%		08/25/2017		7,000		7,003,918
Unsec. Bonds(a)		1.13	%		11/28/2017		2,000		2,002,277
Unsec. Bonds(a)		1.25	%		12/22/2017		3,500		3,505,934
Unsec. Bonds(a)		1.10	%		01/26/2018		3,000		3,001,787
Unsec. Bonds(a)		1.04	%		02/26/2018		2,000		2,002,796
Unsec. Bonds(a)		1.08	%		03/15/2018		5,000		5,000,000
Unsec. Bonds(a)		1.07	%		03/16/2018		6,000		6,000,000
Unsec. Bonds(a)		0.90	%		04/13/2018		8,000		7,999,939
Unsec. Bonds(a)		0.88	%		04/23/2018		4,000		3,999,836
Unsec. Bonds(a)		0.95	%		08/01/2018		5,000		5,000,000
Unsec. Bonds(a)		0.87	%		08/15/2018		12,000		11,994,992
Unsec. Bonds(a)		0.86	%		10/10/2018		13,000		12,993,260
Unsec. Bonds(a)		0.95	%		11/05/2018		12,000		12,000,000
Unsec. Bonds(a)		0.97	%		11/09/2018		3,000		3,000,000
Unsec. Bonds(a)		1.02	%		12/14/2018		10,000		10,000,000
Unsec. Disc. Notes(b)		0.64	%		07/05/2017		6,000		5,999,787
Unsec. Disc. Notes(b)		0.64	%		08/09/2017		10,000		9,993,422
Unsec. Disc. Notes(b)		0.67	%		08/16/2017		10,000		9,991,811
Unsec. Disc. Notes(b)		0.70	%		08/23/2017		11,000		10,989,170
Unsec. Global Bonds(a)		1.17	%		08/15/2017		4,000		4,000,000
Unsec. Global Bonds(a)		1.15	%		12/05/2017		5,000		4,999,891
Unsec. Global Bonds(a)		1.04	%		02/23/2018		4,000		4,000,000
Unsec. Global Bonds(a)		1.12	%		03/26/2018		5,000		5,000,000
Unsec. Global Bonds(a)		0.83	%		05/14/2018		10,000		9,996,497
Unsec. Global Bonds(a)		1.09	%		12/21/2018		5,000		5,000,000
									173,475,063
Federal Home Loan Mortgage Corp. (FHLMC)–1.79%
Unsec. Global Notes(a)		1.34	%		07/21/2017		12,000		11,999,939

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Government Money Market Fund

	Interest Rate			Maturity Date		Principal Amount (000)		Value
Federal National Mortgage Association (FNMA)–2.38%
Unsec. Global Notes(a)		1.10	%		09/08/2017	$	10,000	$	9,997,874
Unsec. Notes(a)		1.18	%		08/16/2017		6,000		5,999,854
									15,997,728
Overseas Private Investment Corp. (OPIC)–3.35%
Sr. Unsec. Gtd. VRD COP Bonds(c)		1.07	%		02/15/2028		10,000		10,000,000
Unsec. Gtd. VRD COP Bonds(c)		1.07	%		09/15/2020		5,000		5,000,000
Unsec. Gtd. VRD COP Bonds(c)		1.10	%		07/07/2040		7,500		7,500,000
									22,500,000
Total U.S. Government Sponsored Agency Securities (Cost $289,398,802)									289,398,802
U.S. Treasury Securities–17.99%
U.S. Treasury Bills–16.35%(b)
U.S. Treasury Bills		0.83	%		08/03/2017		25,000		24,982,121
U.S. Treasury Bills		0.64	%		08/17/2017		10,000		9,991,981
U.S. Treasury Bills		0.91	%		08/17/2017		15,000		14,983,050
U.S. Treasury Bills		0.96	%		10/26/2017		30,000		29,908,863
U.S. Treasury Bills		0.98	%		11/02/2017		30,000		29,900,875
									109,766,890
U.S. Treasury Notes–1.64%
U.S. Treasury Floating Rate Notes(a)		1.07	%		04/30/2019		11,000		11,002,072
Total U.S. Treasury Securities (Cost $120,768,962)									120,768,962
TOTAL INVESTMENTS (excluding Repurchase Agreements)–61.09% (Cost $410,167,764)									410,167,764
						Repurchase Amount
Repurchase Agreements–44.07%(d)
ABN AMRO Bank N.V., joint agreement dated 06/30/2017, aggregate maturing value of $450,040,500 (collateralized by U.S. Treasury obligations and domestic agency mortgage-backed securities valued at $459,000,000; 0.63%-6.50%; 09/30/2017-03/20/2047)		1.08	%		07/03/2017		34,003,060		34,000,000
Bank of Nova Scotia, joint agreement dated 06/30/2017, aggregate maturing value of $200,018,667 (collateralized by domestic agency mortgage-backed securities valued at $204,000,000; 2.50%-6.50%; 02/01/2027-04/20/2047)		1.12	%		07/03/2017		22,002,053		22,000,000
Citigroup Global Markets Inc., joint agreement dated 06/30/2017, aggregate maturing value of $250,022,917 (collateralized by U.S. government sponsored agency obligations valued at $255,003,891; 1.38%-6.25%; 05/28/2019-09/15/2060)		1.10	%		07/03/2017		34,003,117		34,000,000
ING Financial Markets, LLC, joint term agreement dated 06/29/2017, aggregate maturing value of $300,062,417 (collateralized by U.S. Treasury obligations and domestic agency mortgage-backed securities valued at $306,000,645; 2.00%-5.50%; 10/01/2025-08/01/2048)(e)		1.07	%		07/06/2017		20,004,161		20,000,000
ING Financial Markets, LLC, joint term agreement dated 06/30/2017, aggregate maturing value of $275,000,000 (collateralized by domestic agency mortgage-backed securities valued at $280,504,298; 3.50%-4.00%; 01/01/2031-02/01/2047)		1.30	%		10/02/2017		5,000,000		5,000,000
Merrill Lynch, Pierce, Fenner & Smith, Inc., joint term agreement dated 06/29/2017, aggregate maturing value of $950,201,347 (collateralized by U.S. Treasury obligations valued at $960,505,165; 3.63%; 08/15/2043)(e)		1.09	%		07/06/2017		30,006,358		30,000,000
Metropolitan Life Insurance Co., joint term agreement dated 06/28/2017, aggregate maturing value of $1,200,270,715 (collateralized by U.S. Treasury obligations valued at $1,203,273,272; 0.00%-4.50%; 08/15/2018-08/15/2045)(e)		1.15	%		07/05/2017		25,006,528		25,000,938
RBC Capital Markets LLC, joint term agreement dated 06/13/2017, aggregate maturing value of $600,525,000 (collateralized by domestic agency mortgage-backed securities valued at $612,000,001; 3.22%-4.50%; 12/01/2040-06/01/2047)(e)		1.05	%		07/13/2017		15,013,125		15,000,000
RBC Capital Markets LLC, joint term agreement dated 06/19/2017, aggregate maturing value of $345,238,050 (collateralized by U.S. government sponsored agency obligations and domestic agency mortgage-backed securities valued at $351,900,001; 1.35%-8.50%; 03/01/2019-06/01/2047)(e)		1.08	%		07/12/2017		5,003,450		5,000,000

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Government Money Market Fund

	Interest Rate			Maturity Date		Repurchase Amount		Value
RBC Capital Markets LLC, joint term agreement dated 06/30/2017, aggregate maturing value of $1,000,000,000 (collateralized by domestic agency mortgage-backed securities valued at $1,020,000,042; 0.00%-7.00%; 11/01/2017-06/01/2047)(e)		1.16	%		08/30/2017	$	45,000,000	$	45,000,000
Societe Generale, joint open agreement dated 04/27/2017, aggregate maturing value of $1,500,000,000 (collateralized by U.S. Treasury obligations, U.S. government sponsored agency obligations and domestic agency mortgage-backed securities valued at $1,530,000,000; 0.00%-9.00%; 07/31/2017-02/15/2047)(f)		1.08	%		—		—		30,000,000
Wells Fargo Securities, LLC, joint agreement dated 06/30/2017, aggregate maturing value of $550,050,417 (collateralized by domestic agency mortgage-backed securities valued at $561,000,001; 4.00%; 03/01/2047-04/01/2047)		1.10	%		07/03/2017		26,895,560		26,893,095
Wells Fargo Securities, LLC, term agreement dated 06/19/2017, maturing value of $4,011,049 (collateralized by a domestic agency mortgage-backed security valued at $4,080,001; 4.00%; 05/01/2047)		1.13	%		09/15/2017		4,011,049		4,000,000
Total Repurchase Agreements (Cost $295,894,033)									295,894,033
TOTAL INVESTMENTS(g)–105.16% (Cost $706,061,797)									706,061,797
OTHER ASSETS LESS LIABILITIES–(5.16)%									(34,610,030	)
NET ASSETS–100.00%								$	671,451,767

Investment Abbreviations:

COP	– Certificates of Participation
Disc.	– Discount
Gtd.	– Guaranteed
Sr.	– Senior
Unsec.	– Unsecured
VRD	– Variable Rate Demand

Notes to Schedule of Investments:

^(a)  Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2017.

^(b)  Security may be traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund.

^(c)  Demand security payable upon demand by the Fund at specified time intervals no greater than thirteen months. Interest rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2017.

^(d)  Principal amount equals value at period end. See Note 1I.

^(e)  The Fund may demand payment of the term repurchase agreement upon one to seven business days’ notice depending on the timing of the demand.

^(f)  Either party may terminate the agreement upon demand. Interest rates, principal amount and collateral are redetermined daily.

^(g)  Also represents cost for federal income tax purposes.

Portfolio Composition by Maturity*

In days, as of June 30, 2017

1-7	46.1	%
8-30	2.5
31-60	17.2
61-90	2.0
91-180	13.0
181+	19.2

* The number of days to maturity of each holding is determined in accordance with the provisions of Rule 2a-7 of the Investment Company Act of 1940.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Government Money Market Fund

Statement of Assets and Liabilities

June 30, 2017

(Unaudited)

Statement of Operations

For the six months ended June 30, 2017

(Unaudited)

Assets:
Investments, excluding repurchase agreements, at value and cost	$	410,167,764
Repurchase agreements, at value and cost		295,894,033
Total investments, at value and cost		706,061,797
Receivable for:
Fund shares sold		78,228
Interest		234,830
Custody expenses reimbursed		459
Investment for trustee deferred compensation and retirement plans		52,013
Other assets		96,407
Total assets		706,523,734
Liabilities:
Payable for:
Fund shares reacquired		34,715,230
Dividends		7,924
Accrued fees to affiliates		281,184
Accrued trustees’ and officers’ fees and benefits		6,731
Trustee deferred compensation and retirement plans		60,898
Total liabilities		35,071,967
Net assets applicable to shares outstanding	$	671,451,767
Net assets consist of:
Shares of beneficial interest	$	671,472,351
Undistributed net investment income		(5,228	)
Undistributed net realized gain (loss)		(15,356	)
	$	671,451,767
Net Assets:
Series I	$	578,294,275
Series II	$	93,157,492
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		578,300,976
Series II		93,158,513
Series I:
Net asset value per share	$	1.00
Series II:
Net asset value per share	$	1.00

Investment income:
Interest	$	2,802,833
Expenses:
Advisory fees		528,809
Administrative services fees		704,558
Distribution fees — Series II		118,557
Trustees’ and officers’ fees and benefits		15,807
Reports to shareholders		64,708
Other		(36,464	)
Total expenses		1,395,975
Less: Expenses reimbursed		(2,159	)
Net expenses		1,393,816
Net investment income		1,409,017
Net realized gain (loss) from investment securities		(23,536	)
Net increase in net assets resulting from operations	$	1,385,481

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Government Money Market Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2017 and the year ended December 31, 2016

(Unaudited)

	June 30, 2017			December 31, 2016
Operations:
Net investment income	$	1,409,017		$	667,531
Net realized gain (loss)		(23,536	)		8,180
Net increase in net assets resulting from operations		1,385,481			675,711
Distributions to shareholders from net investment income:
Series I		(1,319,250	)		(637,907	)
Series ll		(89,432	)		(29,624	)
Total distributions from net investment income		(1,408,682	)		(667,531	)
Share transactions–net:
Series l		(58,217,735	)		(101,332,142	)
Series ll		(4,201,849	)		73,420,621
Net increase (decrease) in net assets resulting from share transactions		(62,419,584	)		(27,911,521	)
Net increase (decrease) in net assets		(62,442,785	)		(27,903,341	)
Net assets:
Beginning of period		733,894,552			761,797,893
End of period (includes undistributed net investment income of $(5,228) and $(5,563), respectively)	$	671,451,767		$	733,894,552

Notes to Financial Statements

June 30, 2017

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Government Money Market Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance 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 consisting of twenty-four separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

The Fund’s investment objective is to provide current income consistent with preservation of capital and liquidity.

The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

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 — The Fund’s securities are recorded on the basis of amortized cost which approximates value as permitted by Rule 2a-7 under the 1940 Act. This method values a security at its cost on the date of purchase and, thereafter, assumes a constant amortization to maturity of any premiums or accretion of any discounts.

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 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.

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), adjusted for amortization of premiums and accretion of discounts on investments, is recorded on the accrual basis from settlement date. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income.

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.

Invesco V.I. Government Money Market Fund

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 gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates realized and unrealized capital gains and losses to a class based on the relative net assets of each class. The Fund allocates income to a class based on the relative value of the settled shares of each class.

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D. Distributions — Distributions from net investment income, if any, are declared daily and paid monthly to separate accounts of participating insurance companies. Distributions from net realized gain, if any, are generally declared and paid annually and recorded on the ex-dividend date.

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 and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. Repurchase Agreements — The Fund may enter into repurchase agreements. Collateral on repurchase agreements, including the Fund’s pro-rata interest in joint repurchase agreements, is taken into possession by the Fund upon entering into the repurchase agreement. Collateral consisting of U.S. Government Securities and U.S. Government Sponsored Agency Securities is marked to market daily to ensure its market value is at least 102% of the sales price of the repurchase agreement. The investments in some repurchase agreements, pursuant to procedures approved by the Board of Trustees, are through participation with other mutual funds, private accounts and certain non-registered investment companies managed by the investment advisor or its affiliates (“Joint repurchase agreements”). The principal amount of the repurchase agreement is equal to the value at period-end. If the seller of a repurchase agreement fails to repurchase the security in accordance with the terms of the agreement, the Fund might incur expenses in enforcing its rights, and could experience losses, including a decline in the value of the collateral and loss of income.

J. Other Risks — Investments in obligations issued by agencies and instrumentalities of the U.S. Government may vary in the level of support they receive from the government. The government may choose not to provide financial support to government sponsored agencies or instrumentalities if it is not legally obligated to do so. In this case, if the issuer defaulted, the Fund may not be able to recover its investment in such issuer from the U.S. Government.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays an advisory fee to the Adviser based on the annual rate of 0.15% of the Fund’s average daily net assets.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco PowerShares Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such

Invesco V.I. Government Money Market Fund

Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2018, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual operating expenses after fee waivers and/or expense reimbursements (excluding certain items discussed below) of Series I shares to 1.50% and Series II shares to 1.75% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual operating expenses after fee waivers and/or expense reimbursements to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2018. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

The Adviser and/or Invesco Distributors, Inc., (“IDI”) voluntarily agreed to waive fees and/or reimburse expenses in order to increase the Fund’s yield. Voluntary fee waivers and/or reimbursements may be modified at any time upon consultation with the Board of Trustees without further notice to investors.

For the six months ended June 30, 2017, Invesco voluntarily reimbursed class level expenses of $2,159 for Series II shares in order to increase the Fund’s yield.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2017, Invesco was paid $189,325 for accounting and fund administrative services and was reimbursed $515,233 for fees paid to insurance companies.

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. For the six months ended June 30, 2017, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master distribution agreement with IDI to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2017, expenses incurred under the Plan are detailed 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

As of June 30, 2017, all of the securities in this Fund were valued based on Level 2 inputs (see the Schedule of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

Invesco V.I. Government Money Market Fund

NOTE 4—Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 5—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The Bank of New York Mellon, 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 6—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of December 31, 2016.

NOTE 7—Share Information

	Summary of Share Activity
	Six months ended June 30, 2017(a)						Year ended December 31, 2016
	Shares			Amount			Shares			Amount
Sold:
Series I		582,737,160		$	582,737,160			1,047,450,351		$	1,047,450,351
Series II		32,136,364			32,136,364			145,053,508			145,053,508
Issued as reinvestment of dividends:
Series I		1,283,580			1,283,580			622,014			622,014
Series II		89,432			89,432			29,624			29,624
Reacquired:
Series I		(642,238,475	)		(642,238,475	)		(1,149,404,507	)		(1,149,404,507	)
Series II		(36,427,645	)		(36,427,645	)		(71,662,511	)		(71,662,511	)
Net increase (decrease) in share activity		(62,419,584	)	$	(62,419,584	)		(27,911,521	)	$	(27,911,521	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 96% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. 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, third party record keeping and account servicing and administrative services. 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.

Invesco V.I. Government Money Market Fund

NOTE 8—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 realized gains (losses) on securities			Total from investment operations		Dividends from net investment income			Net asset value, end of period		Total return(b)			Net assets, end of period (000’s omitted)		Ratio of expenses to average net assets with fee waivers and/or expenses absorbed			Ratio of expenses to average net assets without fee waivers and/or expenses absorbed			Ratio of net investment income to average net assets
Series I
Six months ended 06/30/17	$	1.00	$	0.00	$	(0.00	)	$	0.00	$	(0.00	)	$	1.00		0.21	%	$	578,294		0.36	%(c)		0.36	%(c)		0.44	%(c)
Year ended 12/31/16		1.00		0.00		0.00			0.00		(0.00	)		1.00		0.10			636,532		0.35			0.38			0.10
Year ended 12/31/15		1.00		0.00		0.00			0.00		(0.00	)		1.00		0.01			737,858		0.21			0.51			0.01
Year ended 12/31/14		1.00		0.00		0.00			0.00		(0.00	)		1.00		0.01			606,553		0.16			0.50			0.01
Year ended 12/31/13		1.00		0.00		(0.00	)		0.00		(0.00	)		1.00		0.03			422,491		0.16			0.70			0.03
Year ended 12/31/12		1.00		0.00		0.00			0.00		(0.00	)		1.00		0.03			156,931		0.23			0.54			0.03
Series II
Six months ended 06/30/17		1.00		0.00		(0.00	)		0.00		(0.00	)		1.00		0.09			93,157		0.61	(c)		0.61	(c)		0.19	(c)
Year ended 12/31/16		1.00		0.00		0.00			0.00		(0.00	)		1.00		0.03			97,362		0.43			0.63			0.02
Year ended 12/31/15		1.00		0.00		0.00			0.00		(0.00	)		1.00		0.01			23,940		0.21			0.76			0.01
Year ended 12/31/14		1.00		0.00		0.00			0.00		(0.00	)		1.00		0.01			17,496		0.16			0.75			0.01
Year ended 12/31/13		1.00		0.00		(0.00	)		0.00		(0.00	)		1.00		0.03			15,883		0.16			0.95			0.03
Year ended 12/31/12		1.00		0.00		0.00			0.00		(0.00	)		1.00		0.03			746		0.23			0.79			0.03

^(a)  Calculated using average shares outstanding.

^(b)  Includes adjustments in accordance with accounting principles generally accepted in the United States of America. Total returns are not annualized for periods less than one year, if applicable and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.

^(c)  Ratios are annualized and based on average daily net assets (000’s omitted) of $615,290 and $95,631 for Series I and Series II shares, respectively.

Invesco V.I. Government Money Market Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2017 through June 30, 2017.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

Class	Beginning Account Value (01/01/17)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/17)1		Expenses Paid During Period2		Ending Account Value (06/30/17)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,002.10	$	1.79	$	1,023.01	$	1.81		0.36	%
Series II		1,000.00		1,000.90		3.03		1,021.77		3.06		0.61

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2017 through June 30, 2017, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

²  Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Government Money Market Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco V.I. Government Money Market Fund’s (formerly, Invesco V.I. Money Market Fund) (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the 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 PowerShares 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, 2017.

In evaluating the fairness and reasonableness of compensation under the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board determined that continuation of the Fund’s investment advisory agreement and the sub-advisory contracts is in the best interest of the Fund and its shareholders and that the compensation payable to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Board had the benefit of reports from the Sub-Committees and Investments Committee throughout the year in considering approval of the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Board receives comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent

provider of investment company data. The Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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 addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The Trustees recognized that the advisory fee rates for the Invesco Funds are, in most cases, the result of years of review and negotiation. The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these arrangements throughout the year and in prior years. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them 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 discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement 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. This information is current as of June 13, 2017, and does not reflect consideration of factors that became known to the Board after that date.

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 advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers. The Board’s review included consideration of Invesco Advisers’ investment process oversight, credit analysis and investment risk management. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support

functions, trading operations, internal audit, valuation and legal and compliance.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the greater uncertainty that may be associated with entering into a new relationship. 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 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 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 in which the Fund may invest, make recommendations regarding securities and assist with security trades. 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 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 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, 2016 to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds Money Market Funds Index. The Board noted that performance of Series I shares of the Fund was in the first 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 Series I shares of the Fund was above the performance of the Index for the one, three and five year periods. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s

Invesco V.I. Government Money Market Fund

Broadridge expense group at a common asset level. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing 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 compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/waivers) to the effective advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, based on asset balances as of December 31, 2016. The Board noted that the Fund’s rate was below the rate of one mutual fund and the same as the rate of one mutual fund.

The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other client accounts with investment strategies comparable to those of the Fund.

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 also noted that the sub-advisory fees are not paid directly by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board noted that the Fund does not benefit from economies of scale through contractual breakpoints, but does share directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds advised by Invesco Advisers.

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. 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. The Board noted that in the current low

yield environment Invesco Advisers and its subsidiaries did not make a profit from managing the Fund. The Board received and accepted information from Invesco Advisers demonstrating that Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; and that the services are required for the operation of the Fund.

Invesco V.I. Government Money Market Fund

Proxy Results

A Special Joint Meeting (“Meeting”) of Shareholders of Invesco V.I. Government Money Market Fund, an investment portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), a Delaware statutory trust (“Trust”), was held on March 9, 2017. The Meeting was held for the following purposes:

(1) Elect 15 trustees to the Board, each of whom will serve until his or her successor is elected and qualified.

(2) Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.

(3) Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities.

(4)(a) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC.

(4)(b) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited.

The results of the voting on the above matters were as follows:

	Matters					Votes For		Votes Withheld
(1)*	David C. Arch						1,256,086,249		71,094,301
	James T. Bunch						1,254,410,156		72,770,397
	Bruce L. Crockett						1,258,363,948		68,816,603
	Jack M. Fields						1,255,101,592		72,078,961
	Martin L. Flanagan						1,257,885,397		69,295,160
	Cynthia Hostetler						1,261,335,247		65,845,303
	Dr. Eli Jones						1,257,497,296		69,683,257
	Dr. Prema Mathai-Davis						1,254,728,756		72,451,795
	Teresa M. Ressel						1,261,829,473		65,351,074
	Dr. Larry Soll						1,254,261,019		72,919,533
	Ann Barnett Stern						1,260,861,373		66,319,176
	Raymond Stickel, Jr.						1,254,379,471		72,801,083
	Philip A. Taylor						1,256,589,912		70,590,639
	Robert C. Troccoli						1,260,867,549		66,313,003
	Christopher L. Wilson						1,260,186,985		66,993,567
		Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(2)*	Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.		1,054,920,918		171,591,974		100,667,642		18
	Matters	Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(3)	Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities		496,878,215		57,779,405		45,132,269		2
(4)(a)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC		525,972,528		34,768,690		39,048,672		2
(4)(b)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited		524,086,781		35,037,165		40,665,944		1

* Each of proposal 1 and 2 required approval by a combined vote of all of the portfolios of AIM Variable Insurance Funds (Invesco Variable Insurance Funds).

Invesco V.I. Government Money Market Fund

	Semiannual Report to Shareholders	June 30, 2017
	Invesco V.I. Government Securities Fund

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

  Invesco Distributors, Inc. VIGOV-SAR-1         07172017 1157

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/16 to 6/30/17, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	1.40	%
Series II Shares	1.24
Bloomberg Barclays U.S. Aggregate Index▼ (Broad Market Index)	2.27
Bloomberg Barclays U.S. Government Index▼ (Style-Specific Index)	1.86
Lipper VUF General U.S. Government Funds Index∎ (Peer Group Index)	1.61
Source(s): ▼FactSet Research Systems Inc.; ∎Lipper Inc.

The Bloomberg Barclays U.S. Aggregate Index is an unmanaged index considered representative of the US investment-grade, fixed-rate bond market.

The Bloomberg Barclays U.S. Government Index is an unmanaged index considered representative of fixed income obligations issued by the US Treasury, government agencies and quasi-federal corporations.

The Lipper VUF General U.S. Government Funds Index is an unmanaged index considered representative of general US government variable insurance underlying funds tracked by Lipper.

The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns As of 6/30/17
Series I Shares
Inception (5/5/93)	4.29	%
10 Years	3.69
5 Years	1.00
1 Year	-1.30
Series II Shares
Inception (9/19/01)	3.32	%
10 Years	3.42
5 Years	0.74
1 Year	-1.63

The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.68% and 0.93%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Invesco V.I. Government Securities Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

The most recent month-end performance at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

Invesco V.I. Government Securities Fund

Schedule of Investments

June 30, 2017

(Unaudited)

	Principal Amount		Value
U.S. Government Sponsored Agency Mortgage-Backed Securities–44.58%
Collateralized Mortgage Obligations–22.08%
Fannie Mae ACES, 1.64%, 09/25/2023(a)	$	3,622,119	$	3,640,607
Fannie Mae REMICs,
4.00%, 07/25/2018 to 07/25/2040		2,883,191		3,024,307
5.00%, 08/25/2019		268,600		272,706
3.00%, 10/25/2025		608,037		614,208
2.50%, 03/25/2026		663,991		666,564
7.00%, 09/18/2027		308,435		343,294
1.50%, 01/25/2028		5,396,292		5,295,930
6.50%, 03/25/2032		854,093		973,946
5.75%, 10/25/2035		413,146		452,173
1.52%, 05/25/2036(a)		2,943,055		2,938,966
4.25%, 02/25/2037		962,765		994,780
1.67%, 03/25/2037(a)		1,414,157		1,420,412
1.72%, 03/25/2037 to 05/25/2041(a)		4,954,751		4,967,614
1.62%, 06/25/2038(a)		4,067,797		4,073,748
6.58%, 06/25/2039(a)		3,598,831		4,202,132
1.77%, 02/25/2041(a)		3,128,065		3,146,577
1.74%, 11/25/2041(a)		1,507,356		1,514,280
1.32%, 08/25/2044(a)		3,418,608		3,411,377
1.40%, 11/25/2046(a)		5,089,088		5,098,337
1.48%, 02/25/2056(a)		6,444,534		6,457,092
1.42%, 12/25/2056(a)		6,563,903		6,573,003
Federal Home Loan Bank 5.77%, 03/23/2018		658,817		676,451
Freddie Mac REMICs,
4.00%, 12/15/2017		45,643		45,775
5.00%, 02/15/2018 to 04/15/2019		198,397		200,937
4.50%, 07/15/2018		63,576		64,351
3.00%, 10/15/2018 to 04/15/2026		1,219,738		1,233,370
1.66%, 12/15/2035 to 03/15/2040(a)		5,323,757		5,347,125
1.46%, 03/15/2036 to 09/15/2044(a)		13,148,816		13,141,009
1.35%, 11/15/2036(a)		4,952,280		4,958,169
1.53%, 03/15/2037(a)		1,448,765		1,451,891
1.56%, 05/15/2037 to 06/15/2037(a)		3,560,803		3,572,696
2.02%, 11/15/2039(a)		831,344		848,273
1.61%, 03/15/2040 to 02/15/2042(a)		13,453,536		13,453,318
Freddie Mac STRIPS, 1.35%, 10/15/2037(a)		3,772,197		3,773,906
Ginnie Mae REMICs,
6.00%, 01/16/2025		499,562		540,213
5.72%, 08/20/2034(a)		1,281,371		1,429,327
4.00%, 02/20/2038		80,995		81,171
5.90%, 01/20/2039(a)		4,357,534		4,876,988
1.97%, 09/16/2039(a)		1,477,206		1,499,887
4.49%, 07/20/2041(a)		908,617		966,414

	Principal Amount		Value
Collateralized Mortgage Obligations–(continued)
2.23%, 09/20/2041(a)	$	4,079,936	$	4,221,784
1.46%, 01/20/2042(a)		784,769		783,240
Ginnie Mae REMICs, IO, 1.59%, 09/20/2064(a)		9,564,532		821,274
				124,069,622
Federal Home Loan Mortgage Corp. (FHLMC)–8.89%
Pass Through Ctfs.,
7.00%, 08/01/2017 to 11/01/2035		3,267,524		3,661,902
6.50%, 10/01/2017 to 12/01/2035		2,834,786		3,237,857
5.00%, 07/01/2018 to 01/01/2040		1,424,093		1,565,821
6.00%, 09/01/2018 to 07/01/2038		492,150		534,846
4.50%, 09/01/2020 to 08/01/2041		9,673,675		10,512,422
10.00%, 03/01/2021		6,245		6,310
9.00%, 06/01/2021 to 06/01/2022		57,744		60,267
8.00%, 12/01/2021 to 09/01/2036		1,390,349		1,517,350
7.50%, 09/01/2022 to 06/01/2035		1,064,148		1,193,784
8.50%, 11/17/2022 to 08/01/2031		503,679		561,611
5.50%, 12/01/2022		240,397		247,720
3.50%, 08/01/2026		840,234		879,818
3.00%, 05/01/2027 to 02/01/2032		6,950,587		7,153,897
7.05%, 05/20/2027		115,306		126,623
6.03%, 10/20/2030		763,049		863,419
Pass Through Ctfs., ARM,
3.25%, 09/01/2035(a)		4,755,053		5,046,938
3.49%, 07/01/2036(a)		3,841,069		4,052,071
2.86%, 10/01/2036(a)		2,153,342		2,270,149
3.33%, 10/01/2036(a)		156,415		166,291
3.51%, 11/01/2037(a)		2,382,185		2,482,321
3.68%, 01/01/2038(a)		119,094		127,303
3.51%, 07/01/2038(a)		1,022,282		1,089,731
2.97%, 06/01/2043(a)		2,482,892		2,594,118
				49,952,569
Federal National Mortgage Association (FNMA)–10.35%
Pass Through Ctfs.,
6.00%, 09/01/2017 to 10/01/2038		1,861,214		2,110,319
6.50%, 09/01/2017 to 11/01/2037		2,801,027		3,080,742
7.00%, 09/01/2017 to 06/01/2036		4,175,259		4,523,323
5.00%, 11/01/2017 to 12/01/2033		331,518		347,287
8.50%, 11/01/2017 to 08/01/2037		1,161,834		1,319,560
4.50%, 04/01/2019 to 08/01/2041		7,104,841		7,648,991
7.50%, 07/01/2020 to 08/01/2037		4,839,617		5,536,279
8.00%, 02/01/2021 to 10/01/2037		3,535,335		4,160,984
5.50%, 03/01/2021 to 05/01/2035		1,749,359		1,995,906
6.75%, 07/01/2024		351,149		388,817
6.95%, 10/01/2025		18,483		18,664
3.50%, 03/01/2027 to 08/01/2027		9,627,868		10,034,409
3.00%, 05/01/2027 to 12/01/2031		7,870,186		8,095,705

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Government Securities Fund

	Principal Amount		Value
Federal National Mortgage Association (FNMA)–(continued)
Pass Through Ctfs., ARM,
2.97%, 10/01/2034(a)	$	2,360,954	$	2,494,390
2.96%, 05/01/2035(a)		368,804		388,422
3.38%, 03/01/2038(a)		99,893		104,915
2.73%, 02/01/2042(a)		1,426,972		1,493,899
2.18%, 08/01/2043(a)		2,485,708		2,524,102
2.28%, 05/01/2044(a)		1,836,877		1,862,426
				58,129,140
Government National Mortgage Association (GNMA)–3.26%
Pass Through Ctfs.,
6.50%, 09/15/2017 to 01/15/2035		3,755,702		4,126,603
7.00%, 11/15/2017 to 12/15/2036		852,558		925,598
7.50%, 09/15/2018 to 10/15/2035		2,322,664		2,646,730
10.00%, 06/15/2019		1,526		1,532
6.00%, 09/15/2020 to 08/15/2033		587,944		652,541
8.00%, 01/15/2023 to 01/15/2037		1,241,598		1,441,725
5.00%, 02/15/2025		178,316		194,397
8.50%, 02/15/2025 to 01/15/2037		143,169		150,309
6.95%, 08/20/2025 to 08/20/2027		286,263		292,318
6.38%, 10/20/2027 to 04/20/2028		273,230		291,553
6.10%, 12/20/2033		4,097,555		4,740,851
3.50%, 10/20/2042		2,810,342		2,874,942
				18,339,099
Total U.S. Government Sponsored Agency Mortgage-Backed Securities (Cost $246,762,813)				250,490,430
U.S. Treasury Securities–36.56%
U.S. Treasury Bills–0.28%
0.89%, 08/10/2017(b)(c)		1,600,000		1,598,556
U.S. Treasury Notes–28.01%
0.75%, 08/31/2018		4,250,000		4,222,112
1.00%, 11/30/2018		5,000,000		4,976,465
1.25%, 12/31/2018		6,000,000		5,991,210
1.50%, 12/31/2018		2,500,000		2,505,860
1.00%, 03/15/2019		7,500,000		7,454,587
1.50%, 05/31/2019		7,000,000		7,017,065
1.63%, 06/30/2019		4,000,000		4,018,828
0.75%, 07/15/2019		9,100,000		8,983,584
1.63%, 07/31/2019		2,700,000		2,712,868
1.75%, 09/30/2019		2,500,000		2,518,555
3.38%, 11/15/2019		625,000		653,088
1.50%, 04/15/2020		7,000,000		6,995,625
1.38%, 08/31/2020		11,000,000		10,923,297
2.00%, 09/30/2020		6,000,000		6,073,596
1.75%, 12/31/2020		8,000,000		8,023,280
1.38%, 01/31/2021		3,000,000		2,968,770
3.13%, 05/15/2021		2,100,000		2,209,717
1.38%, 05/31/2021		4,000,000		3,944,920
2.13%, 08/15/2021		2,700,000		2,738,075
2.00%, 10/31/2021		2,500,000		2,520,215

	Principal Amount			Value
U.S. Treasury Notes–(continued)
2.00%, 11/15/2021	$	3,300,000		$	3,328,037
2.00%, 12/31/2021		3,000,000			3,021,972
1.88%, 03/31/2022		6,000,000			6,003,984
1.75%, 05/15/2022		6,000,000			5,967,072
2.13%, 06/30/2022		3,000,000			3,032,694
2.00%, 07/31/2022		2,000,000			2,008,984
1.63%, 11/15/2022		2,000,000			1,966,758
2.13%, 12/31/2022		7,000,000			7,056,329
1.63%, 04/30/2023		4,000,000			3,913,516
1.63%, 05/31/2023		1,400,000			1,369,157
1.63%, 10/31/2023		625,000			608,704
2.13%, 11/30/2023		7,000,000			7,023,107
2.13%, 03/31/2024		4,000,000			4,002,420
1.50%, 08/15/2026		10,250,000			9,589,756
2.38%, 05/15/2027		1,000,000			1,006,602
					157,350,809
U.S. Treasury Bonds–5.85%
8.75%, 05/15/2020		1,200,000			1,443,281
7.88%, 02/15/2021		1,100,000			1,337,961
5.38%, 02/15/2031		3,800,000			5,112,037
3.38%, 05/15/2044		6,000,000			6,639,258
3.00%, 05/15/2045		3,000,000			3,096,798
2.88%, 08/15/2045		750,000			755,537
3.00%, 11/15/2045		3,000,000			3,095,742
2.50%, 05/15/2046		6,000,000			5,592,192
2.25%, 08/15/2046		6,550,000			5,777,565
					32,850,371
U.S. Treasury Inflation–Indexed Notes–2.42%
0.13%, 04/15/2021		13,617,252	(d)		13,600,625
Total U.S. Treasury Securities (Cost $205,169,717)					205,400,361
Non-U.S. Government Sponsored Agency Securities–15.02%
Collateralized Mortgage Obligations–13.04%
Banc of America Commercial Mortgage Trust, Series 2015-UBS7, Class XA, IO, Variable Rate Pass Through Ctfs., 1.06%, 09/15/2048(a)		16,716,114			935,658
Barclays Bank Commercial Mortgage Securities Trust, Series 2015-RRI, Class D, Floating Rate Pass Through Ctfs., 4.16%, 05/15/2032(a)(e)		2,460,000			2,463,962
Bear Stearns Adjustable Rate Mortgage Trust, Series 2004-10, Class 12A1, Variable Rate Pass Through Ctfs., 3.27%, 01/25/2035(a)		762,826			773,841
Chase Mortgage Trust,
Series 2016-1, Class M3, Variable Rate Pass Through Ctfs., 3.75%, 04/25/2045(a)(e)		2,759,104			2,767,416
Series 2016-2, Class M3, Variable Rate Pass Through Ctfs., 3.75%, 12/25/2045(a)(e)		3,176,701			3,177,317

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Government Securities Fund

	Principal Amount		Value
Collateralized Mortgage Obligations–(continued)
Commercial Mortgage Trust,
Series 2013-THL, Class A2, Floating Rate Pass Through Ctfs., 2.14%, 06/08/2030(a)(e)	$	5,900,000	$	5,908,429
Series 2015-CR23, Class CMB, Variable Rate Pass Through Ctfs., 3.81%, 05/10/2048(a)(e)		4,740,000		4,729,713
Series 2015-CR24, Class B, Variable Rate Pass Through Ctfs., 4.52%, 08/10/2048(a)		6,200,000		6,553,447
Credit Suisse Mortgage Capital Trust, Series 2015-TOWN, Class B, Floating Rate Pass Through Ctfs., 3.03%, 03/15/2028(a)(e)		7,100,000		7,101,664
La Hipotecaria El Salvadorian Mortgage Trust (El Salvador), Series 2013-1A, Class A, Pass Through Ctfs., 3.50%, 10/25/2041 (Acquired 04/22/2013; Cost $8,631,400)(e)		8,339,516		8,665,279
La Hipotecaria Panamanian Mortgage Trust (El Salvador), Series 2010-1GA, Class A, Floating Rate Pass Through Ctfs., 2.25%, 09/08/2039 (Acquired 11/05/2010; Cost $14,017,827)(a)(e)		13,568,375		14,047,508
LSTAR Commercial Mortgage Trust, Series 2014-2, Class A2, Pass Through Ctfs., 2.77%, 01/20/2041(e)		3,695,590		3,697,729
Morgan Stanley Capital I Trust, Series 2015-XLF2, Class AFSD, Floating Rate Pass Through Ctfs., 4.78%, 08/15/2026(a)(e)		3,000,000		3,021,468
Towd Point Mortgage Trust, Series 2015-1, Class AES, Pass Through Ctfs., 3.00%, 10/25/2053(e)		3,444,189		3,495,277
Wells Fargo Commercial Mortgage Trust, Series 2015-C28, Class B, Variable Rate Pass Through Ctfs., 4.27%, 05/15/2048(a)		5,900,000		5,943,482
				73,282,190

	Principal Amount		Value
Bonds & Notes–1.98%
Israel Government Agency for International Development (AID) Bond, Unsec. Gtd. Global Bonds, 5.13%, 11/01/2024	$	3,800,000	$	4,482,722
Private Export Funding Corp.,
Series BB, Sec. Gtd. Notes, 4.30%, 12/15/2021		1,540,000		1,687,514
Series HH, Sr. Sec. Gtd. Notes, 1.45%, 08/15/2019		5,000,000		4,981,845
				11,152,081
Total Non-U.S. Government Sponsored Agency Securities (Cost $83,122,937)				84,434,271
U.S. Government Sponsored Agency Securities–2.52%
Federal Farm Credit Bank (FFCB)–0.48%
Unsec. Medium-Term Notes, 5.75%, 12/07/2028		2,100,000		2,686,131
Federal Home Loan Bank (FHLB)–1.16%
Unsec. Bonds, 3.38%, 06/12/2020		6,220,000		6,529,569
Financing Corp (FICO)–0.52%
Sec. Bonds, 9.80%, 04/06/2018		700,000		745,064
Series E, Sec. Bonds, 9.65%, 11/02/2018		1,985,000		2,199,124
				2,944,188
Tennessee Valley Authority (TVA)–0.36%
Sr. Unsec. Global Notes, 1.88%, 08/15/2022		2,000,000		1,990,228
Total U.S. Government Sponsored Agency Securities (Cost $13,300,251)				14,150,116
	Shares
Money Market Funds–1.08%
Government & Agency Portfolio–Institutional Class, 0.89% (Cost $6,048,136)(f)		6,048,136		6,048,136
TOTAL INVESTMENTS–99.76% (Cost $554,403,854)				560,523,314
OTHER ASSETS LESS LIABILITIES–0.24%				1,324,795
NET ASSETS–100.00%			$	561,848,109

Investment Abbreviations:

ACES	– Automatically Convertible Extendable Security
ARM	– Adjustable Rate Mortgage
Ctfs.	– Certificates
Gtd.	– Guaranteed
IO	– Interest Only
REMICs	– Real Estate Mortgage Investment Conduits
Sec.	– Secured
Sr.	– Senior
STRIPS	– Separately Traded Registered Interest and Principal Security
Unsec.	– Unsecured

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Government Securities Fund

Notes to Schedule of Investments:

^(a)  Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2017.

^(b)  Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund.

^(c)  All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1J and Note 4.

^(d)  Principal amount of security and interest payments are adjusted for inflation. See Note 1I.

^(e)  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 June 30, 2017 was $59,075,762, which represented 10.51% of the Fund’s Net Assets.

^(f)  The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of June 30, 2017.

Portfolio Composition

By security type, based on Net Assets

as of June 30, 2017

U.S. Government Sponsored Agency Mortgage-Backed Securities	44.6	%
U.S. Treasury Securities	36.6
Non U.S. Government Sponsored Agency Securities	15.0
U.S. Government Sponsored Agency Securities	2.5
Money Market Funds Plus Other Assets Less Liabilities	1.3

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Government Securities Fund

Statement of Assets and Liabilities

June 30, 2017

(Unaudited)

Statement of Operations

For the six months ended June 30, 2017

(Unaudited)

Assets:
Investments, at value (Cost $548,355,718)	$	554,475,178
Investments in affiliated money market funds, at value and cost		6,048,136
Total investments, at value (Cost $554,403,854)		560,523,314
Cash		14,743
Receivable for:
Fund shares sold		94,051
Dividends and interest		1,759,743
Principal paydowns		391,250
Investment for trustee deferred compensation and retirement plans		241,955
Other assets		790
Total assets		563,025,846
Liabilities:
Payable for:
Fund shares reacquired		287,732
Variation margin — futures		206,033
Accrued fees to affiliates		338,451
Accrued trustees’ and officers’ fees and benefits		6,265
Accrued other operating expenses		72,460
Trustee deferred compensation and retirement plans		266,796
Total liabilities		1,177,737
Net assets applicable to shares outstanding	$	561,848,109
Net assets consist of:
Shares of beneficial interest	$	559,706,482
Undistributed net investment income		15,894,194
Undistributed net realized gain (loss)		(20,730,758	)
Net unrealized appreciation		6,978,191
	$	561,848,109
Net Assets:
Series I	$	353,031,814
Series II	$	208,816,295
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		30,465,519
Series II		18,205,689
Series I:
Net asset value per share	$	11.59
Series II:
Net asset value per share	$	11.47

Investment income:
Interest	$	7,299,446
Dividends from affiliated money market funds		25,986
Total investment income		7,325,432
Expenses:
Advisory fees		1,300,533
Administrative services fees		477,075
Custodian fees		15,029
Distribution fees — Series II		257,711
Transfer agent fees		17,189
Trustees’ and officers’ fees and benefits		14,692
Reports to shareholders		60,236
Professional services fees		22,706
Other		55,689
Total expenses		2,220,860
Less: Fees waived		(4,766	)
Net expenses		2,216,094
Net investment income		5,109,338
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		(2,310,678	)
Futures contracts		981,531
		(1,329,147	)
Change in net unrealized appreciation of:
Investment securities		2,342,476
Futures contracts		881,233
		3,223,709
Net realized and unrealized gain		1,894,562
Net increase in net assets resulting from operations	$	7,003,900

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Government Securities Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2017 and the year ended December 31, 2016

(Unaudited)

	June 30, 2017			December 31, 2016
Operations:
Net investment income	$	5,109,338		$	11,085,017
Net realized gain (loss)		(1,329,147	)		1,829,666
Change in net unrealized appreciation (depreciation)		3,223,709			(5,192,977	)
Net increase in net assets resulting from operations		7,003,900			7,721,706
Distributions to shareholders from net investment income:
Series I		—			(7,819,357	)
Series ll		—			(3,787,853	)
Total distributions from net investment income		—			(11,607,210	)
Share transactions–net:
Series l		(5,097,117	)		(37,454,400	)
Series ll		1,316,984			11,482,998
Net increase (decrease) in net assets resulting from share transactions		(3,780,133	)		(25,971,402	)
Net increase (decrease) in net assets		3,223,767			(29,856,906	)
Net assets:
Beginning of period		558,624,342			588,481,248
End of period (includes undistributed net investment income of $15,894,194 and $10,784,856, respectively)	$	561,848,109		$	558,624,342

Notes to Financial Statements

June 30, 2017

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Government Securities Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance 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 consisting of twenty-four separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

The Fund’s investment objective is total return, comprised of current income and capital appreciation.

The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Invesco V.I. Government Securities Fund

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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.

Invesco V.I. Government Securities Fund

F. Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. Treasury Inflation-Protected Securities — The Fund may invest in Treasury Inflation-Protected Securities (“TIPS”). TIPS are fixed income securities whose principal value is periodically adjusted to the rate of inflation. The principal value of TIPS will be adjusted upward or downward, and any increase or decrease in the principal amount of TIPS will be included as interest income in the Statement of Operations, even though investors do not receive their principal until maturity.

J. Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties (“Counterparties”) to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.

K. Dollar Rolls and Forward Commitment Transactions — The Fund may enter into dollar roll transactions to enhance the Fund’s performance. The Fund executes its dollar roll transactions in the to be announced (“TBA”) market whereby the Fund makes a forward commitment to purchase a security and, instead of accepting delivery, the position is offset by the sale of the security with a simultaneous agreement to repurchase at a future date.

The Fund accounts for dollar roll transactions as purchases and sales and realizes gains and losses on these transactions. These transactions increase the Fund’s portfolio turnover rate. The Fund will segregate liquid assets in an amount equal to its dollar roll commitments. Dollar roll transactions may be considered borrowings under the 1940 Act.

Dollar roll transactions involve the risk that a Counterparty to the transaction may fail to complete the transaction. If this occurs, the Fund may lose the opportunity to purchase or sell the security at the agreed upon price. Dollar roll transactions also involve the risk that the value of the securities retained by the Fund may decline below the price of the securities that the Fund has sold but is obligated to purchase under the agreement.

L. Call Options Purchased and Written — The Fund may write covered call options and/or buy call options. A covered call option gives the purchaser of such option the right to buy, and the writer the obligation to sell, the underlying security or foreign currency at the stated exercise price during the option period. Options written by the Fund normally will have expiration dates between three and nine months from the date written. The exercise price of a call option may be below, equal to, or above the current market value of the underlying security at the time the option is written.

Additionally, the Fund may enter into an option on a swap agreement, also called a “swaption”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the Counterparties.

When the Fund writes a covered call option, an amount equal to the premium received by the Fund is recorded as an asset and an equivalent liability in the Statement of Assets and Liabilities. The amount of the liability is subsequently “marked-to-market” to reflect the current market value of the option written. If a written covered call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written covered call option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. Realized and unrealized gains and losses on call options written are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Option contracts written. A risk in writing a covered call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised.

When the Fund buys a call option, an amount equal to the premium paid by the Fund is recorded as an investment on the Statement of Assets and Liabilities. The amount of the investment is subsequently “marked-to-market” to reflect the current value of the option purchased. Realized

Invesco V.I. Government Securities Fund

and unrealized gains and losses on call options purchased are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.

M. Put Options Purchased and Written — The Fund may purchase and write put options including options on securities indexes, or foreign currency and/or futures contracts. By purchasing a put option, the Fund obtains the right (but not the obligation) to sell the option’s underlying instrument at a fixed strike price. In return for this right, the Fund pays an option premium. The option’s underlying instrument may be a security, securities index, or a futures contract. Put options may be used by the Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund’s resulting losses. At the same time, because the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the underlying portfolio securities. The Fund may write put options to earn additional income in the form of option premiums if it expects the price of the underlying instrument to remain stable or rise during the option period so that the option will not be exercised. The risk in this strategy is that the price of the underlying securities may decline by an amount greater than the premium received. Put options written are reported as a liability in the Statement of Assets and Liabilities. Realized and unrealized gains and losses on put options purchased and put options written are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities and Option contracts written, respectively. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.

N. Other Risks — The Fund may invest in obligations issued by agencies and instrumentalities of the U.S. Government that may vary in the level of support they receive from the government. The government may choose not to provide financial support to government sponsored agencies or instrumentalities if it is not legally obligated to do so. In this case, if the issuer defaulted, the Fund may not be able to recover its investment in such issuer from the U.S. Government. Many securities purchased by the Fund are not guaranteed by the U.S. Government.

O. Collateral – To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays 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		0.50%
Over $250 million		0.45%

For the six months ended June 30, 2017, the effective advisory fees incurred by the Fund was 0.47%.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco PowerShares Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2018, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waivers and/or expense reimbursements (excluding certain items discussed below) of Series I shares to 1.50% and Series II shares to 1.75% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waivers and/or expense reimbursements to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2018. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2019, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended June 30, 2017, the Adviser waived advisory fees of $4,766.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2017, Invesco was paid $65,783 for accounting and fund administrative services and was reimbursed $411,292 for fees paid to insurance companies.

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. For the six months ended June 30, 2017, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

Invesco V.I. Government Securities Fund

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2017, expenses incurred under the Plan are detailed 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of June 30, 2017. 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
U.S. Government Sponsored Agency Mortgage-Backed Securities	$	—	$	250,490,430	$	—	$	250,490,430
U.S. Treasury Securities		—		205,400,361		—		205,400,361
Non-U.S. Government Sponsored Agency Securities		—		84,434,271		—		84,434,271
U.S. Government Sponsored Agency Securities		—		14,150,116		—		14,150,116
Money Market Funds		6,048,136		—		—		6,048,136
		6,048,136		554,475,178		—		560,523,314
Futures Contracts*		858,731		—		—		858,731
Total Investments	$	6,906,867	$	554,475,178	$	—	$	561,382,045

* 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.

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 June 30, 2017:

	Value
Derivative Assets	Interest Rate Risk
Unrealized appreciation on futures contracts — Exchange-Traded(a)	$	965,839
Derivatives not subject to master netting agreements		(965,839	)
Total Derivative Assets subject to master netting agreements	$	—

	Value
Derivative Liabilities	Interest Rate Risk
Unrealized depreciation on futures contracts — Exchange-Traded(a)	$	(107,108)
Derivatives not subject to master netting agreements		107,108
Total Derivative Liabilities subject to master netting agreements	$	—

^(a)  Only current day’s variation margin receivable (payable) is reported within the Statement of Assets and Liabilities.

Invesco V.I. Government Securities Fund

Open Futures Contracts
Futures Contracts	Type of Contract		Number of Contracts		Expiration Month		Notional Value			Unrealized Appreciation (Depreciation)
Euro 90 Day Notes		Short		45		September-2017	$	(11,097,563	)	$	3,831
Euro 90 Day Notes		Short		45		December-2017		(11,084,063	)		7,215
Euro 90 Day Notes		Short		45		March-2018		(11,074,500	)		9,465
Euro 90 Day Notes		Short		45		June-2018		(11,066,063	)		9,465
Euro 90 Day Notes		Short		45		September-2018		(11,057,625	)		9,455
Euro 90 Day Notes		Short		45		December-2018		(11,047,500	)		9,455
Euro 90 Day Notes		Short		45		March-2019		(11,041,313	)		11,152
Euro 90 Day Notes		Short		45		June-2019		(11,034,563	)		12,277
U.S. Treasury 2 Year Notes		Long		126		September-2017		27,229,781			(11,145	)
U.S. Treasury 5 Year Notes		Long		146		September-2017		17,204,047			(55,535	)
U.S. Treasury 10 Year Notes		Long		73		September-2017		9,163,781			(2,455	)
U.S. Treasury 10 Year Ultra Bonds		Short		119		September-2017		(16,042,688	)		21,916
U.S. Treasury Long Bonds		Long		15		September-2017		2,305,313			(37,973	)
U.S. Treasury Ultra Bonds		Long		269		September-2017		44,620,375			871,608
Total Futures Contracts — interest rate risk										$	858,731

Effect of Derivative Investments for the six months ended June 30, 2017

The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:

	Location of Gain (Loss) on Statement of Operations
	Interest Rate Risk
Realized Gain (Loss):
Futures contracts	$	981,531
Options purchased(a)		(295,000	)
Change in Net Unrealized Appreciation:
Futures contracts		881,233
Options purchased(a)		98,857
Total	$	1,666,621

^(a)  Options purchased are included in the net realized gain (loss) from investment securities and the change in net unrealized appreciation of investment securities.

The table below summarizes the six month average notional value of futures contracts outstanding and the five month average notional value of options purchased, outstanding during the period.

	Futures Contracts		Options Purchased
Average notional value	$	154,373,906	$	10,000,000

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 may borrow for leveraging in an amount up to 5% of the Fund’s total assets (excluding the amount borrowed) at the time the borrowing is made. In doing so, the Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. Such balances, if any at period end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks exceed 5% of the Fund’s total assets.

Invesco V.I. Government Securities Fund

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund had a capital loss carryforward as of December 31, 2016, which expires as follows:

Capital Loss Carryforward*
Expiration	Short-Term		Long-Term		Total
December 31, 2017	$	3,845,839	$	—	$	3,845,839
Not subject to expiration		8,772,508		6,539,306		15,311,814
	$	12,618,347	$	6,539,306	$	19,157,653

* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2017 was $41,503,665 and $48,606,402, respectively. During the same period, purchases and sales of U.S. Treasury obligations were $68,350,919 and $30,526,240, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	8,932,998
Aggregate unrealized (depreciation) of investment securities		(2,814,577	)
Net unrealized appreciation of investment securities	$	6,118,421

Cost of investments for tax purposes is $554,404,893.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended June 30, 2017(a)						Year ended December 31, 2016
	Shares			Amount			Shares			Amount
Sold:
Series I		3,092,157		$	35,753,606			5,588,689		$	65,831,931
Series II		1,180,447			13,453,285			3,992,862			46,492,943
Issued as reinvestment of dividends:
Series I		—			—			666,044			7,819,357
Series II		—			—			325,417			3,787,853
Reacquired:
Series I		(3,548,650	)		(40,850,723	)		(9,454,799	)		(111,105,688	)
Series II		(1,063,813	)		(12,136,301	)		(3,337,612	)		(38,797,798	)
Net increase (decrease) in share activity		(339,859	)	$	(3,780,133	)		(2,219,399	)	$	(25,971,402	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 81% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. 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, third party record keeping and account servicing and administrative services. 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.

Invesco V.I. Government Securities Fund

NOTE 10—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

	Net asset value, beginning of period		Net investment income(a)		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends from net investment income			Net asset value, end of period		Total return(b)			Net assets, end of period (000’s omitted)		Ratio of expenses to average net assets with fee waivers and/or expenses absorbed			Ratio of expenses to average net assets without fee waivers and/or expenses absorbed			Ratio of net investment income to average net assets			Portfolio turnover(c)
Series I
Six months ended 06/30/17	$	11.44	$	0.11	$	0.04		$	0.15		$	—		$	11.59		1.40	%	$	353,032		0.71	%(d)		0.71	%(d)		1.95	%(d)		15	%
Year ended 12/31/16		11.52		0.23		(0.07	)		0.16			(0.24	)		11.44		1.32			353,614		0.73			0.73			1.93			31
Year ended 12/31/15		11.74		0.17		(0.13	)		0.04			(0.26	)		11.52		0.34			393,090		0.77			0.77			1.44			59
Year ended 12/31/14		11.64		0.16		0.32			0.48			(0.38	)		11.74		4.14			474,556		0.78			0.78			1.36			55
Year ended 12/31/13		12.40		0.13		(0.45	)		(0.32	)		(0.44	)		11.64		(2.62	)		565,690		0.74			0.76			1.10			139
Year ended 12/31/12		12.49		0.19		0.12			0.31			(0.40	)		12.40		2.47			873,212		0.65			0.76			1.49			118
Series II
Six months ended 06/30/17		11.33		0.10		0.04			0.14			—			11.47		1.24			208,816		0.96	(d)		0.96	(d)		1.70	(d)		15
Year ended 12/31/16		11.42		0.20		(0.08	)		0.12			(0.21	)		11.33		1.00			205,010		0.98			0.98			1.68			31
Year ended 12/31/15		11.64		0.14		(0.13	)		0.01			(0.23	)		11.42		0.06			195,392		1.02			1.02			1.19			59
Year ended 12/31/14		11.54		0.13		0.31			0.44			(0.34	)		11.64		3.88			212,788		1.03			1.03			1.11			55
Year ended 12/31/13		12.29		0.10		(0.45	)		(0.35	)		(0.40	)		11.54		(2.85	)		227,237		0.99			1.01			0.85			139
Year ended 12/31/12		12.39		0.16		0.12			0.28			(0.38	)		12.29		2.22			261,083		0.90			1.01			1.24			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. Total returns are not annualized for periods less than one year, if applicable, and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.

^(c)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(d)  Ratios are annualized and based on average daily net assets (000’s omitted) of $347,150 and $207,877 Series I and Series II shares, respectively.

Invesco V.I. Government Securities Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2017 through June 30, 2017.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

Class	Beginning Account Value (01/01/17)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/17)1		Expenses Paid During Period2		Ending Account Value (06/30/17)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,014.00	$	3.55	$	1,021.27	$	3.56		0.71	%
Series II		1,000.00		1,012.40		4.79		1,020.03		4.81		0.96

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2017 through June 30, 2017, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

²  Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Government Securities Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco V.I. Government Securities Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the 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 PowerShares 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, 2017.

In evaluating the fairness and reasonableness of compensation under the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board determined that continuation of the Fund’s investment advisory agreement and the sub-advisory contracts is in the best interest of the Fund and its shareholders and that the compensation payable to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Board had the benefit of reports from the Sub-Committees and Investments Committee throughout the year in considering approval of the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Board receives comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The

Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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 addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The Trustees recognized that the advisory fee rates for the Invesco Funds are, in most cases, the result of years of review and negotiation. The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these arrangements throughout the year and in prior years. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them 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 discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement 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. This information is current as of June 13, 2017, and does not reflect consideration of factors that became known to the Board after that date.

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 advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers. The Board’s review included consideration of Invesco Advisers’ investment process oversight, credit analysis and investment risk management. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, trading operations, internal audit, valuation and legal and compliance.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the greater uncertainty that may be associated with entering into a new relationship. 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 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 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 in which the Fund may invest, make recommendations regarding securities and assist with security trades. 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 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 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, 2016 to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds General U.S. Government Funds Index. The Board noted that performance of Series I shares of the Fund was in the second quintile of its performance universe for the one year period, the third quintile for the three year period and the fourth quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series I shares of the Fund was above the performance of the Index for the one year period and below the performance of the Index for the three and five year periods. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

Invesco V.I. Government Securities Fund

C. Advisory and Sub-Advisory Fees

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 at a common asset level. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing 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 noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other mutual funds or client accounts with investment strategies comparable to those of the Fund.

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 also noted that the sub-advisory fees are not paid directly by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds advised by Invesco Advisers.

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. 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 and the Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund to be excessive given the nature, quality and extent of the services provided. The Board received and accepted information from Invesco Advisers demonstrating that Invesco Advisers

and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. Invesco Advisers noted that the Fund does not execute brokerage transactions through “soft dollar” arrangements to any significant degree.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds with respect to certain investments in the affiliated money market funds. The waiver is in 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

Invesco V.I. Government Securities Fund

Proxy Results

A Special Joint Meeting (“Meeting”) of Shareholders of Invesco V.I. Government Securities Fund, an investment portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), a Delaware statutory trust (“Trust”), was held on March 9, 2017. The Meeting was held for the following purposes:

(1) Elect 15 trustees to the Board, each of whom will serve until his or her successor is elected and qualified.

(2) Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.

(3) Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities.

(4)(a) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC.

(4)(b) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited.

The results of the voting on the above matters were as follows:

	Matters					Votes For		Votes Withheld
(1)*	David C. Arch						1,256,086,249		71,094,301
	James T. Bunch						1,254,410,156		72,770,397
	Bruce L. Crockett						1,258,363,948		68,816,603
	Jack M. Fields						1,255,101,592		72,078,961
	Martin L. Flanagan						1,257,885,397		69,295,160
	Cynthia Hostetler						1,261,335,247		65,845,303
	Dr. Eli Jones						1,257,497,296		69,683,257
	Dr. Prema Mathai-Davis						1,254,728,756		72,451,795
	Teresa M. Ressel						1,261,829,473		65,351,074
	Dr. Larry Soll						1,254,261,019		72,919,533
	Ann Barnett Stern						1,260,861,373		66,319,176
	Raymond Stickel, Jr.						1,254,379,471		72,801,083
	Philip A. Taylor						1,256,589,912		70,590,639
	Robert C. Troccoli						1,260,867,549		66,313,003
	Christopher L. Wilson						1,260,186,985		66,993,567
		Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(2)*	Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.		1,054,920,918		171,591,974		100,667,642		18
	Matters	Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(3)	Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities		37,829,975		3,618,706		3,965,574		1
(4)(a)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC		39,454,629		2,088,799		3,870,828		0
(4)(b)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited		38,249,168		2,824,445		4,340,641		2

* Each of proposal 1 and 2 required approval by a combined vote of all of the portfolios of AIM Variable Insurance Funds (Invesco Variable Insurance Funds).

Invesco V.I. Government Securities Fund

	Semiannual Report to Shareholders	June 30, 2017
	Invesco V.I. Growth and Income Fund

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc.                                                                                     VK-VIGRI-SAR-1                08042017    0906

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/16 to 6/30/17, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	4.61	%
Series II Shares	4.47
S&P 500 Index▼ (Broad Market Index)	9.34
Russell 1000 Value Index▼ (Style-Specific Index)	4.66
Lipper VUF Large-Cap Value Funds Index∎ (Peer Group Index)	5.66
Source(s): ▼FactSet Research Systems Inc.; ∎Lipper Inc.

The S&P 500^® Index is an unmanaged index considered representative of the US stock market.

The Russell 1000^® Value Index is an unmanaged index considered representative of large-cap value stocks. The Russell 1000 Value Index is a trademark/service mark of the Frank Russell Co. Russell^® is a trademark of the Frank Russell Co.

The Lipper VUF Large-Cap Value Funds Index is an unmanaged index considered representative of large-cap value variable insurance underlying funds tracked by Lipper.

The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns As of 6/30/15
Series I Shares
Inception (12/23/96)	9.05	%
10 Years	6.25
5 Years	13.85
1 Year	24.07
Series II Shares
Inception (9/18/00)	6.75	%
10 Years	5.98
5 Years	13.57
1 Year	23.76

Effective June 1, 2010, Class I and Class II shares of the predecessor fund, Van Kampen Life Investment Trust Growth and Income Portfolio, advised by Van Kampen Asset Management were reorganized into Series I and Series II shares, respectively, of Invesco Van Kampen V.I. Growth and Income Fund (renamed Invesco V.I. Growth and Income Fund on April 29, 2013). Returns shown above, prior to June 1, 2010, for Series I and Series II shares are blended returns of the predecessor fund and Invesco V.I. Growth and Income Fund. Share class returns will differ from the predecessor fund because of different expenses.

The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.78% and 1.03%, respectively.^1,2 The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.80% and 1.05%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Invesco V.I. Growth and Income Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

The most recent month-end performance at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

1 Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least April 30, 2018. See current prospectus for more information.

2 Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2019. See current prospectus for more information.

Invesco V.I. Growth and Income Fund

Schedule of Investments^(a)

June 30, 2017

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–96.80%
Aerospace & Defense–1.61%
General Dynamics Corp.		160,493	$	31,793,663
Apparel, Accessories & Luxury Goods–0.68%
Michael Kors Holdings Ltd.(b)		368,544		13,359,720
Asset Management & Custody Banks–2.81%
Northern Trust Corp.		230,987		22,454,246
State Street Corp.		366,453		32,881,828
				55,336,074
Automobile Manufacturers–1.47%
General Motors Co.		827,221		28,894,830
Biotechnology–0.74%
Amgen Inc.		84,528		14,558,257
Broadcasting–0.30%
CBS Corp.–Class B		93,749		5,979,311
Building Products–1.53%
Johnson Controls International PLC		696,684		30,208,218
Cable & Satellite–2.57%
Charter Communications, Inc.–Class A(b)		59,464		20,030,448
Comcast Corp.–Class A		787,042		30,631,675
				50,662,123
Communications Equipment–3.00%
Cisco Systems, Inc.		995,766		31,167,476
Juniper Networks, Inc.		999,029		27,852,928
				59,020,404
Construction Machinery & Heavy Trucks–1.05%
Caterpillar Inc.		192,814		20,719,792
Data Processing & Outsourced Services–0.99%
PayPal Holdings, Inc.(b)		362,940		19,478,990
Diversified Banks–13.62%
Bank of America Corp.		3,382,728		82,064,982
Citigroup Inc.		1,585,648		106,048,138
JPMorgan Chase & Co.		876,125		80,077,825
				268,190,945
Diversified Metals & Mining–0.70%
BHP Billiton Ltd. (Australia)		772,784		13,785,255
Drug Retail–2.93%
CVS Health Corp.		271,768		21,866,453
Walgreens Boots Alliance, Inc.		458,682		35,919,388
				57,785,841
Electric Utilities–1.28%
FirstEnergy Corp.		273,095		7,963,450
PG&E Corp.		260,357		17,279,894
				25,243,344

	Shares		Value
Fertilizers & Agricultural Chemicals–1.73%
Agrium Inc. (Canada)		140,509	$	12,714,660
Mosaic Co. (The)		931,339		21,262,469
				33,977,129
Health Care Distributors–1.07%
Cardinal Health, Inc.		271,347		21,143,358
Health Care Equipment–2.60%
Baxter International Inc.		402,548		24,370,256
Medtronic PLC		302,712		26,865,690
				51,235,946
Home Improvement Retail–0.83%
Kingfisher PLC (United Kingdom)		4,157,814		16,283,942
Hotels, Resorts & Cruise Lines–2.02%
Carnival Corp.		605,118		39,677,587
Industrial Conglomerates–1.04%
General Electric Co.		760,127		20,531,030
Industrial Machinery–1.23%
Ingersoll-Rand PLC		263,948		24,122,208
Insurance Brokers–3.24%
Aon PLC		219,968		29,244,746
Marsh & McLennan Cos., Inc.		212,573		16,572,191
Willis Towers Watson PLC		122,970		17,887,216
				63,704,153
Integrated Oil & Gas–5.71%
Exxon Mobil Corp.		195,868		15,812,424
Occidental Petroleum Corp.		599,072		35,866,441
Royal Dutch Shell PLC–Class A (United Kingdom)		1,478,158		39,264,403
TOTAL S.A. (France)		435,321		21,568,644
				112,511,912
Integrated Telecommunication Services–0.87%
Orange S.A. (France)		269,615		4,294,830
Verizon Communications Inc.		286,941		12,814,785
				17,109,615
Internet Software & Services–1.35%
eBay Inc.(b)		759,772		26,531,238
Investment Banking & Brokerage–5.40%
Charles Schwab Corp. (The)		550,025		23,629,074
Goldman Sachs Group, Inc. (The)		106,134		23,551,134
Morgan Stanley		1,326,037		59,088,209
				106,268,417
IT Consulting & Other Services–1.34%
Cognizant Technology Solutions Corp.–Class A		398,161		26,437,890
Managed Health Care–0.91%
Anthem, Inc.		95,722		18,008,180

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Growth and Income Fund

	Shares		Value
Movies & Entertainment–0.84%
Time Warner Inc.		164,399	$	16,507,304
Oil & Gas Equipment & Services–2.93%
Baker Hughes Inc.		545,673		29,744,635
TechnipFMC PLC (United Kingdom)(b)		1,027,414		27,945,661
				57,690,296
Oil & Gas Exploration & Production–5.09%
Apache Corp.		822,531		39,423,911
Canadian Natural Resources Ltd. (Canada)		1,092,474		31,522,826
Devon Energy Corp.		915,160		29,257,665
				100,204,402
Other Diversified Financial Services–0.65%
Voya Financial, Inc.		344,486		12,708,089
Packaged Foods & Meats–0.97%
Mondelez International, Inc.–Class A		443,655		19,161,459
Pharmaceuticals–5.66%
Merck & Co., Inc.		469,543		30,093,011
Novartis AG (Switzerland)		317,328		26,498,351
Pfizer Inc.		1,017,778		34,187,163
Sanofi (France)		215,618		20,723,498
				111,502,023
Railroads–1.17%
CSX Corp.		420,425		22,938,388
Regional Banks–8.35%
BB&T Corp.		182,199		8,273,657
Citizens Financial Group, Inc.		1,294,526		46,188,688
Comerica Inc.		326,488		23,911,981

	Shares		Value
Regional Banks–(continued)
Fifth Third Bancorp		1,250,713	$	32,468,509
First Horizon National Corp.		846,736		14,750,141
PNC Financial Services Group, Inc. (The)		310,616		38,786,620
				164,379,596
Semiconductors–2.30%
Intel Corp.		586,080		19,774,339
QUALCOMM Inc.		460,421		25,424,448
				45,198,787
Systems Software–2.38%
Oracle Corp.		932,700		46,765,578
Tobacco–1.13%
Philip Morris International Inc.		189,925		22,306,691
Wireless Telecommunication Services–0.71%
Vodafone Group PLC–ADR (United Kingdom)		483,350		13,886,646
Total Common Stocks & Other Equity Interests (Cost $1,565,003,227)				1,905,808,631
Money Market Funds–2.76%
Government & Agency Portfolio–Institutional Class, 0.89%(c)		32,537,455		32,537,455
Treasury Portfolio–Institutional Class, 0.85%(c)		21,691,636		21,691,636
Total Money Market Funds (Cost $54,229,091)				54,229,091
TOTAL INVESTMENTS–99.56% (Cost $1,619,232,318)				1,960,037,722
OTHER ASSETS LESS LIABILITIES–0.44%				8,734,706
NET ASSETS–100.00%			$	1,968,772,428

Investment Abbreviations:

ADR – American Depositary Receipt

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of June 30, 2017.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2017

Financials	34.1	%
Energy	13.7
Information Technology	11.4
Health Care	11.0
Consumer Discretionary	8.7
Industrials	7.6
Consumer Staples	5.0
Materials	2.4
Telecommunication Services	1.6
Utilities	1.3
Money Market Funds Plus Other Assets Less Liabilities	3.2

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Growth and Income Fund

Statement of Assets and Liabilities

June 30, 2017

(Unaudited)

Statement of Operations

For the six months ended June 30, 2017

(Unaudited)

Assets:
Investments, at value (Cost $1,565,003,227)	$	1,905,808,631
Investments in affiliated money market funds, at value and cost		54,229,091
Total investments, at value (Cost $1,619,232,318)		1,960,037,722
Cash		106,990
Foreign currencies, at value (Cost $1,314,730)		1,314,229
Receivable for:
Investments sold		5,114,941
Fund shares sold		5,261,838
Dividends		3,402,597
Investment for trustee deferred compensation and retirement plans		202,152
Total assets		1,975,440,469
Liabilities:
Payable for:
Investments purchased		3,094,404
Fund shares reacquired		513,635
Accrued fees to affiliates		1,844,734
Accrued trustees’ and officers’ fees and benefits		9,804
Accrued other operating expenses		124,056
Trustee deferred compensation and retirement plans		229,900
Unrealized depreciation on forward foreign currency contracts outstanding		851,508
Total liabilities		6,668,041
Net assets applicable to shares outstanding	$	1,968,772,428
Net assets consist of:
Shares of beneficial interest	$	1,415,350,152
Undistributed net investment income		37,984,168
Undistributed net realized gain		175,468,544
Net unrealized appreciation		339,969,564
	$	1,968,772,428
Net Assets:
Series I	$	173,274,762
Series II	$	1,795,497,666
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		7,867,458
Series II		81,743,663
Series I:
Net asset value per share	$	22.02
Series II:
Net asset value per share	$	21.96

Investment income:
Dividends (net of foreign withholding taxes of $826,221)	$	21,815,206
Dividends from affiliated money market funds		117,010
Total investment income		21,932,216
Expenses:
Advisory fees		5,546,235
Administrative services fees		1,678,884
Custodian fees		26,855
Distribution fees — Series II		2,252,493
Transfer agent fees		9,723
Trustees’ and officers’ fees and benefits		23,822
Reports to shareholders		178,776
Professional services fees		16,598
Other		10,920
Total expenses		9,744,306
Less: Fees waived		(25,521	)
Net expenses		9,718,785
Net investment income		12,213,431
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		101,226,724
Foreign currencies		60,794
Forward foreign currency contracts		(3,780,765	)
		97,506,753
Change in net unrealized appreciation (depreciation) of:
Investment securities		(17,951,572	)
Foreign currencies		19,252
Forward foreign currency contracts		(4,045,493	)
		(21,977,813	)
Net realized and unrealized gain		75,528,940
Net increase in net assets resulting from operations	$	87,742,371

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Growth and Income Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2017 and the year ended December 31, 2016

(Unaudited)

	June 30, 2017			December 31, 2016
Operations:
Net investment income	$	12,213,431		$	25,590,251
Net realized gain		97,506,753			80,727,734
Change in net unrealized appreciation (depreciation)		(21,977,813	)		222,115,422
Net increase in net assets resulting from operations		87,742,371			328,433,407
Distributions to shareholders from net investment income:
Series I		—			(1,752,815	)
Series ll		—			(15,406,306	)
Total distributions from net investment income		—			(17,159,121	)
Distributions to shareholders from net realized gains:
Series l		—			(14,485,559	)
Series ll		—			(163,022,756	)
Total distributions from net realized gains		—			(177,508,315	)
Share transactions–net:
Series l		(2,517,753	)		7,123,071
Series ll		(122,608,197	)		281,089,879
Net increase (decrease) in net assets resulting from share transactions		(125,125,950	)		288,212,950
Net increase (decrease) in net assets		(37,383,579	)		421,978,921
Net assets:
Beginning of period		2,006,156,007			1,584,177,086
End of period (includes undistributed net investment income of $37,984,168 and $25,770,737, respectively)	$	1,968,772,428		$	2,006,156,007

Notes to Financial Statements

June 30, 2017

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Growth and Income Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance 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 consisting of twenty-four separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

The Fund’s investment objective is to seek long-term growth of capital and income.

The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Invesco V.I. Growth and Income Fund

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

Invesco V.I. Growth and Income Fund

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 and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. 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 date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

J. Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays 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		0.60%
Over $500 million		0.55%

For the six months ended June 30, 2017, the effective advisory fees incurred by the Fund was 0.56%.

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 PowerShares Capital Management LLC and Invesco Asset Management (India)

Invesco V.I. Growth and Income Fund

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 April 30, 2018, 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 Series I shares to 0.78% and Series II shares to 1.03% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, 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 April 30, 2018. During its term, the fee waiver agreement cannot be terminated or amended to increase the expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2019, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended June 30, 2017, the Adviser waived advisory fees of $25,521.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2017, Invesco was paid $205,025 for accounting and fund administrative services and was reimbursed $1,473,859 for fees paid to insurance companies.

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. For the six months ended June 30, 2017, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2017, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2017, the Fund incurred $4,379 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of June 30, 2017. 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.

Invesco V.I. Growth and Income Fund

During the six months ended June 30, 2017, there were transfers from Level 1 to Level 2 of $47,221,849 and from Level 2 to Level 1 of $16,283,942, due to foreign fair value adjustments.

	Level 1		Level 2			Level 3		Total
Common Stocks & Other Equity Interests	$	1,779,673,650	$	126,134,981		$	—	$	1,905,808,631
Money Market Funds		54,229,091		—			—		54,229,091
		1,833,902,741		126,134,981			—		1,960,037,722
Forward Foreign Currency Contracts*		—		(851,508	)		—		(851,508	)
Total Investments	$	1,833,902,741	$	125,283,473		$	—	$	1,959,186,214

* Unrealized appreciation (depreciation).

NOTE 4—Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a Fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Open Forward Foreign Currency Contracts
Settlement Date	Counterparty	Contract to						Notional Value		Unrealized Appreciation (Depreciation)
		Deliver			Receive
07/28/17	Bank of New York Mellon (The)		AUD	6,633,487		USD	5,048,083	$	5,096,885	$	(48,802	)
07/28/17	Bank of New York Mellon (The)		CAD	17,282,029		USD	13,255,326		13,333,836		(78,510	)
07/28/17	Bank of New York Mellon (The)		CHF	9,857,553		USD	10,278,991		10,299,295		(20,304	)
07/28/17	Bank of New York Mellon (The)		EUR	15,770,481		USD	17,948,699		18,040,574		(91,875	)
07/28/17	Bank of New York Mellon (The)		GBP	20,328,066		USD	26,319,560		26,501,941		(182,381	)
07/28/17	State Street Bank and Trust Co.		AUD	6,633,282		USD	5,050,117		5,096,728		(46,611	)
07/28/17	State Street Bank and Trust Co.		CAD	13,509,351		USD	10,356,198		10,423,051		(66,853	)
07/28/17	State Street Bank and Trust Co.		CHF	9,848,516		USD	10,270,693		10,289,853		(19,160	)
07/28/17	State Street Bank and Trust Co.		EUR	15,778,173		USD	17,948,350		18,049,373		(101,023	)
07/28/17	State Street Bank and Trust Co.		GBP	20,321,162		USD	26,296,951		26,492,940		(195,989	)
Total Forward Foreign Currency Contracts — Currency Risk										$	(851,508	)

Currency Abbreviations:

AUD	– Australian Dollar
CAD	– Canadian Dollar

CHF	– Swiss Franc
EUR	– Euro

GBP	– British Pound Sterling
USD	– U.S. Dollar

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 June 30, 2017:

Derivative Liabilities	Value
	Currency Risk
Unrealized depreciation on forward foreign currency contracts outstanding	$	(851,508	)
Derivatives not subject to master netting agreements		—
Total Derivative Liabilities subject to master netting agreements	$	(851,508	)

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 June 30, 2017.

	Financial Derivative Assets		Financial Derivative Liabilities			Net Value of Derivatives			Collateral (Received)/Pledged
Counterparty	Forward Foreign Currency Contracts		Forward Foreign Currency Contracts						Non-Cash		Cash		Net Amount
Bank of New York Mellon (The)	$	—	$	(421,872	)	$	(421,872	)	$	—	$	—	$	(421,872	)
State Street Bank and Trust Co.		—		(429,636	)		(429,636	)		—		—		(429,636	)
Total	$	—	$	(851,508	)	$	(851,508	)	$	—	$	—	$	(851,508	)

Invesco V.I. Growth and Income Fund

Effect of Derivative Investments for the six months ended June 30, 2017

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	$	(3,780,765	)
Change in Net Unrealized Appreciation (Depreciation):
Forward foreign currency contracts		(4,045,493	)
Total	$	(7,826,258	)

The table below summarizes the average notional value of forward foreign currency contracts outstanding during the period.

	Forward Foreign Currency Contracts
Average notional value	$	144,697,919

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 State Street Bank and Trust Company, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of December 31, 2016.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2017 was $149,905,004 and $295,243,177, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	426,369,332
Aggregate unrealized (depreciation) of investment securities		(86,324,932	)
Net unrealized appreciation of investment securities	$	340,044,400

Cost of investments for tax purposes is $1,619,993,322.

Invesco V.I. Growth and Income Fund

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended June 30, 2017(a)						Year ended December 31, 2016
	Shares			Amount			Shares			Amount
Sold:
Series I		845,017		$	18,099,720			1,098,200		$	21,457,639
Series II		969,681			20,935,604			26,177,046			523,596,316
Issued as reinvestment of dividends:
Series I		—			—			855,102			16,238,374
Series II		—			—			9,405,855			178,429,062
Reacquired:
Series I		(961,554	)		(20,617,473	)		(1,574,684	)		(30,572,942	)
Series II		(6,662,758	)		(143,543,801	)		(21,459,558	)		(420,935,499	)
Net increase (decrease) in share activity		(5,809,614	)	$	(125,125,950	)		14,501,961		$	288,212,950

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 79% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. 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, third party record keeping and account servicing and administrative services. 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 10—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)
Series I
Six months ended 06/30/17	$	21.05	$	0.16		$	0.81		$	0.97		$	—		$	—		$	—		$	22.02		4.61	%	$	173,275		0.76	%(d)		0.76	%(d)		1.47	%(d)		8	%
Year ended 12/31/16		19.60		0.33			3.29			3.62			(0.23	)		(1.94	)		(2.17	)		21.05		19.69			168,082		0.77			0.79			1.69			28
Year ended 12/31/15		25.15		0.33			(1.30	)		(0.97	)		(0.74	)		(3.84	)		(4.58	)		19.60		(3.06	)		149,066		0.78			0.84			1.41			22
Year ended 12/31/14		26.29		0.59	(e)		2.02			2.61			(0.50	)		(3.25	)		(3.75	)		25.15		10.28			161,866		0.78			0.83			2.22	(e)		31
Year ended 12/31/13		20.07		0.32			6.47			6.79			(0.36	)		(0.21	)		(0.57	)		26.29		34.08			170,637		0.75			0.83			1.37			29
Year ended 12/31/12		17.77		0.33			2.27			2.60			(0.30	)		—			(0.30	)		20.07		14.63			139,947		0.66			0.84			1.72			31
Series II
Six months ended 06/30/17		21.02		0.13			0.81			0.94			—			—			—			21.96		4.47			1,795,498		1.01	(d)		1.01	(d)		1.22	(d)		8
Year ended 12/31/16		19.58		0.28			3.28			3.56			(0.18	)		(1.94	)		(2.12	)		21.02		19.37			1,838,074		1.02			1.04			1.44			28
Year ended 12/31/15		25.09		0.27			(1.29	)		(1.02	)		(0.65	)		(3.84	)		(4.49	)		19.58		(3.26	)		1,435,111		1.03			1.09			1.16			22
Year ended 12/31/14		26.23		0.52	(e)		2.01			2.53			(0.42	)		(3.25	)		(3.67	)		25.09		9.96			1,828,854		1.03			1.08			1.97	(e)		31
Year ended 12/31/13		20.03		0.26			6.46			6.72			(0.31	)		(0.21	)		(0.52	)		26.23		33.77			2,335,747		1.00			1.08			1.12			29
Year ended 12/31/12		17.74		0.28			2.27			2.55			(0.26	)		—			(0.26	)		20.03		14.35			1,946,286		0.91			1.09			1.47			31

^(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. Total returns are not annualized for periods less than one year, if applicable, and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.

^(c)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(d) Ratios are annualized and based on average daily net assets (000’s omitted) of $171,144 and $1,816,928 for Series I and Series II shares, respectively.

^(e)  Net investment income per share and the ratio of net investment income to average net assets include significant dividends received during the period. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.35 and 1.29%, and $0.28 and 1.04%, for Series I and Series II, respectively.

Invesco V.I. Growth and Income Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2017 through June 30, 2017.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

Class	Beginning Account Value (01/01/17)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/17)1		Expenses Paid During Period2		Ending Account Value (06/30/17)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,046.10	$	3.86	$	1,021.03	$	3.81		0.76	%
Series II		1,000.00		1,044.70		5.12		1,019.79		5.06		1.01

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2017 through June 30, 2017, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

²  Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Growth and Income Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco V.I. Growth and Income Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the 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 PowerShares 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, 2017.

In evaluating the fairness and reasonableness of compensation under the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board determined that continuation of the Fund’s investment advisory agreement and the sub-advisory contracts is in the best interest of the Fund and its shareholders and that the compensation payable to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Board had the benefit of reports from the Sub-Committees and Investments Committee throughout the year in considering approval of the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Board receives comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The

Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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 addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The Trustees recognized that the advisory fee rates for the Invesco Funds are, in most cases, the result of years of review and negotiation. The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these arrangements throughout the year and in prior years. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them 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 discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement 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. This information is current as of June 13, 2017, and does not reflect consideration of factors that became known to the Board after that date.

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 advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers. The Board’s review included consideration of Invesco Advisers’ investment process oversight, credit analysis and investment risk management. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, trading operations, internal audit, valuation and legal and compliance.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the greater uncertainty that may be associated with entering into a new relationship. 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 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 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 in which the Fund may invest, make recommendations regarding securities and assist with security trades. 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 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 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, 2016 to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds Large-Cap Value Funds Index. The Board noted that performance of Series I shares of the Fund was in the first 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 Series I shares of the Fund was above the performance of the Index for the one, three and five year periods. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees

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 at a common asset

Invesco V.I. Growth and Income Fund

level. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing 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 noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least April 30, 2018 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 compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/waivers) to the effective advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, based on asset balances as of December 31, 2016. The Board noted that the Fund’s rate was above the rate of one mutual fund. The Board also noted how the Fund’s rate compared to the effective sub-adviser fee rate of one fund sub-advised by Invesco Advisers.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other client accounts with investment strategies comparable to those of the Fund. The Board noted that Invesco Advisers or the Affiliated Sub-Advisers may charge lower fees to large institutional clients. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to certain other types of client accounts. These additional services include provision of administrative services, officers and office space, oversight of service providers, preparation of annual registration statement updates and financial information and regulatory compliance under the Investment Company Act of 1940, as amended.

Invesco Advisers also reviewed generally the higher frequency of shareholder purchases and redemptions in the Invesco Funds relative to the flow of assets for other client accounts. Invesco Advisers advised the Board that advance notice of redemptions is often provided to Invesco Advisers by institutional clients. The Board did note that sub-advisory fee rates charged by the Affiliated Sub-Advisers to manage the Invesco

Funds and to manage other client accounts tended to be more comparable, reflecting a similar scope of services.

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 also noted that the sub-advisory fees are not paid directly by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds advised by Invesco Advisers.

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. 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 and the Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund to be excessive given the nature, quality and extent of the services provided. The Board received and accepted information from Invesco Advisers demonstrating that Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; and 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 periodic reports from the Chief Compliance Officer of the Invesco Funds demonstrating 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 money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds with respect to certain investments in the affiliated money market funds. The waiver is in 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that the Fund may use an affiliated broker to execute certain trades for the Fund to, among other things, control information leakage, and was advised that such trades would be executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Growth and Income Fund

Proxy Results

A Special Joint Meeting (“Meeting”) of Shareholders of Invesco V.I. Growth and Income Fund, an investment portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), a Delaware statutory trust (“Trust”), was held on March 9, 2017. The Meeting was held for the following purposes:

(1) Elect 15 trustees to the Board, each of whom will serve until his or her successor is elected and qualified.

(2) Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.

(3) Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities.

(4)(a) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC.

(4)(b) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited.

The results of the voting on the above matters were as follows:

	Matters					Votes For		Votes Withheld
(1)*	David C. Arch						1,256,086,249		71,094,301
	James T. Bunch						1,254,410,156		72,770,397
	Bruce L. Crockett						1,258,363,948		68,816,603
	Jack M. Fields						1,255,101,592		72,078,961
	Martin L. Flanagan						1,257,885,397		69,295,160
	Cynthia Hostetler						1,261,335,247		65,845,303
	Dr. Eli Jones						1,257,497,296		69,683,257
	Dr. Prema Mathai-Davis						1,254,728,756		72,451,795
	Teresa M. Ressel						1,261,829,473		65,351,074
	Dr. Larry Soll						1,254,261,019		72,919,533
	Ann Barnett Stern						1,260,861,373		66,319,176
	Raymond Stickel, Jr.						1,254,379,471		72,801,083
	Philip A. Taylor						1,256,589,912		70,590,639
	Robert C. Troccoli						1,260,867,549		66,313,003
	Christopher L. Wilson						1,260,186,985		66,993,567
		Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(2)*	Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.		1,054,920,918		171,591,974		100,667,642		18

	Matters	Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(3)	Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities		80,921,880		7,145,373		8,098,106		3
(4)(a)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC		83,942,160		4,547,715		7,675,484		3
(4)(b)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited		81,472,939		6,537,047		8,155,373		3

* Each of proposal 1 and 2 required approval by a combined vote of all of the portfolios of AIM Variable Insurance Funds (Invesco Variable Insurance Funds).

Invesco V.I. Growth and Income Fund

	Semiannual Report to Shareholders	June 30, 2017
	Invesco V.I. High Yield Fund
	The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.     A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.     Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/ proxysearch. The information is also available on the SEC website, sec.gov.     Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
	This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.
	NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc.                                               VIHYI-SAR-1         08072017    1517

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/16 to 6/30/17, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	4.07%
Series II Shares	3.92
Bloomberg Barclays U.S. Aggregate Index▼ (Broad Market Index)	2.27
Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Cap Index▼ (Style-Specific Index)	4.92
Lipper VUF High Yield Bond Funds Classification Average⬛ (Peer Group)	4.08
Source(s): ▼FactSet Research Systems Inc.; ⬛Lipper Inc.
The Bloomberg Barclays U.S. Aggregate Index is an unmanaged index considered representative of the US investment-grade, fixed-rate bond market. The Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Cap Index is an unmanaged index considered representative of the US high-yield, fixed-rate corporate bond market. Index weights for each issuer are capped at 2%. The Lipper VUF High Yield Bond Funds Classification Average represents an average of all of the variable insurance underlying funds in the Lipper High Yield Bond Funds classification. The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/17
Series I Shares
Inception (5/1/98)	4.34	%
10 Years	6.20
5 Years	5.82
1 Year	9.47
Series II Shares
Inception (3/26/02)	6.97	%
10 Years	5.94
5 Years	5.55
1 Year	9.10

The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

    The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.98% and 1.23%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

    Invesco V.I. High Yield Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance

Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

    The most recent month-end performance at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

Invesco V.I. High Yield Fund

Schedule of Investments^(a)

June 30, 2017

(Unaudited)

	Principal Amount		Value
U.S. Dollar Denominated Bonds & Notes–89.97%
Advertising–0.74%
Lamar Media Corp., Sr. Unsec. Gtd. Global Notes, 5.75%, 02/01/2026	$	1,290,000	$	1,399,650
Aerospace & Defense–2.11%
Bombardier Inc. (Canada), Sr. Unsec. Notes, 6.00%, 10/15/2022(b)		380,000		380,950
7.50%, 03/15/2025(b)		300,000		311,625
KLX Inc., Sr. Unsec. Gtd. Notes, 5.88%, 12/01/2022(b)		640,000		674,400
Moog Inc., Sr. Unsec. Gtd. Notes, 5.25%, 12/01/2022(b)		442,000		461,890
TransDigm Inc., Sr. Unsec. Gtd. Sub. Global Notes, 6.50%, 07/15/2024		157,000		162,102
6.50%, 05/15/2025		1,960,000		2,011,450
				4,002,417
Agricultural & Farm Machinery–0.47%
Titan International Inc., Sr. Sec. Gtd. First Lien Global Notes, 6.88%, 10/01/2020		861,000		895,440
Air Freight & Logistics–0.14%
XPO Logistics, Inc., Sr. Unsec. Gtd. Notes, 6.50%, 06/15/2022(b)		249,000		263,006
Airlines–0.24%
Air Canada (Canada), Sr. Unsec. Gtd. Notes, 7.75%, 04/15/2021(b)		400,000		460,920
Alternative Carriers–0.72%
Level 3 Financing, Inc., Sr. Unsec. Gtd. Global Notes, 5.25%, 03/15/2026		753,000		785,944
5.38%, 05/01/2025		540,000		571,050
				1,356,994
Aluminum–0.92%
Alcoa Nederland Holding B.V., Sr. Unsec. Gtd. Notes, 6.75%, 09/30/2024(b)		932,000		1,011,639
Novelis Corp., Sr. Unsec. Gtd. Notes, 6.25%, 08/15/2024(b)		696,000		731,670
				1,743,309
Apparel Retail–1.52%
Gap, Inc. (The), Sr. Unsec. Global Bonds, 5.95%, 04/12/2021		413,000		447,885
Hot Topic, Inc., Sr. Sec. Gtd. First Lien Notes, 9.25%, 06/15/2021(b)		882,000		851,130
L Brands, Inc., Sr. Unsec. Gtd. Global Notes, 5.63%, 02/15/2022		1,023,000		1,099,725
6.75%, 07/01/2036		101,000		97,213
6.88%, 11/01/2035		404,000		391,880
				2,887,833

	Principal Amount		Value
Auto Parts & Equipment–0.45%
Dana Financing Luxembourg S.a.r.l., Sr. Unsec. Gtd. Notes, 5.75%, 04/15/2025(b)	$	270,000	$	280,463
Dana Inc., Sr. Unsec. Notes, 5.38%, 09/15/2021		56,000		57,680
5.50%, 12/15/2024		498,000		519,165
				857,308
Automobile Manufacturers–0.00%
Motors Liquidation Co., Sr. Unsec. Notes, 0.00%, 07/15/2033(c)		1,060,000		0
Automotive Retail–0.26%
Murphy Oil USA, Inc., Sr. Unsec. Gtd. Global Notes, 5.63%, 05/01/2027		472,000		493,240
Broadcasting–2.89%
Clear Channel Worldwide Holdings Inc., Series B, Sr. Unsec. Gtd. Global Notes, 6.50%, 11/15/2022		694,000		716,555
Sr. Unsec. Gtd. Sub. Global Notes, 7.63%, 03/15/2020		697,000		696,129
iHeartCommunications, Inc., Sr. Sec. Gtd. First Lien Global Notes, 9.00%, 12/15/2019		789,000		623,310
Netflix, Inc., Sr. Unsec. Global Notes, 5.75%, 03/01/2024		833,000		914,217
Nexstar Broadcasting, Inc., Sr. Unsec. Gtd. Notes, 5.63%, 08/01/2024(b)		540,000		547,425
Sirius XM Radio Inc., Sr. Unsec. Gtd. Notes, 5.38%, 04/15/2025(b)		4,000		4,155
5.38%, 07/15/2026(b)		620,000		644,800
6.00%, 07/15/2024(b)		668,000		713,090
Tribune Media Co., Sr. Unsec. Gtd. Global Notes, 5.88%, 07/15/2022		581,000		611,503
				5,471,184
Building Products–1.71%
Allegion PLC, Sr. Unsec. Gtd. Notes, 5.88%, 09/15/2023		408,000		438,983
BMC East, LLC, Sr. Sec. Gtd. First Lien Notes, 5.50%, 10/01/2024(b)		649,000		679,827
Builders FirstSource, Inc., Sr. Unsec. Gtd. Notes, 10.75%, 08/15/2023(b)		735,000		851,681
Gibraltar Industries Inc., Sr. Unsec. Gtd. Sub. Global Notes, 6.25%, 02/01/2021		721,000		745,334
Standard Industries Inc., Sr. Unsec. Notes, 5.00%, 02/15/2027(b)		515,000		524,012
				3,239,837
Cable & Satellite–8.67%
AMC Networks Inc., Sr. Unsec. Gtd. Global Notes, 5.00%, 04/01/2024		500,000		515,000

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. High Yield Fund

	Principal Amount		Value
Cable & Satellite–(continued)
CCO Holdings LLC/CCO Holdings Capital Corp., Sr. Unsec. Global Notes, 5.75%, 09/01/2023	$	620,000	$	649,450
5.75%, 01/15/2024		40,000		42,250
Sr. Unsec. Notes, 5.75%, 02/15/2026(b)		1,710,000		1,838,250
CSC Holdings LLC, Sr. Unsec. Gtd. Notes, 6.63%, 10/15/2025(b)		200,000		220,500
Sr. Unsec. Notes, 10.13%, 01/15/2023(b)		1,755,000		2,042,381
10.88%, 10/15/2025(b)		530,000		637,987
DISH DBS Corp., Sr. Unsec. Gtd. Global Notes, 5.88%, 11/15/2024		1,714,000		1,833,980
7.88%, 09/01/2019		1,111,000		1,223,489
Hughes Satellite Systems Corp., Sr. Unsec. Gtd. Global Notes, 7.63%, 06/15/2021		892,000		1,016,880
Intelsat Jackson Holdings S.A. (Luxembourg), Sr. Unsec. Gtd. Global Notes, 7.25%, 04/01/2019		242,000		242,605
7.25%, 10/15/2020		575,000		546,250
SFR Group S.A. (France), Sr. Sec. Gtd. First Lien Bonds, 6.00%, 05/15/2022(b)		905,000		947,987
Sr. Sec. Gtd. First Lien Notes, 7.38%, 05/01/2026(b)		564,000		611,940
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH (Germany), Sr. Sec. Gtd. First Lien Bonds, 5.00%, 01/15/2025(b)		885,000		929,250
UPCB Finance IV Ltd. (Netherlands), Sr. Sec. First Lien Notes, 5.38%, 01/15/2025(b)		450,000		471,938
Virgin Media Finance PLC (United Kingdom), Sr. Unsec. Gtd. Notes, 6.00%, 10/15/2024(b)		450,000		478,688
Virgin Media Secured Finance PLC (United Kingdom), Sr. Sec. Gtd. First Lien Notes, 5.50%, 08/15/2026(b)		699,000		734,824
VTR Finance B.V. (Chile), Sr. Sec. First Lien Notes, 6.88%, 01/15/2024(b)		590,000		627,612
Ziggo Bond Finance B.V. (Netherlands), Sr. Unsec. Notes, 5.88%, 01/15/2025(b)		400,000		410,000
Ziggo Secured Finance B.V. (Netherlands), Sr. Sec. Gtd. FIrst Lien Notes, 5.50%, 01/15/2027(b)		400,000		413,000
				16,434,261
Casinos & Gaming–3.13%
Boyd Gaming Corp., Sr. Unsec. Gtd. Global Notes, 6.38%, 04/01/2026		335,000		363,056
6.88%, 05/15/2023		940,000		1,009,325

	Principal Amount		Value
Casinos & Gaming–(continued)
Codere Finance 2 (Luxembourg) S.A. (Spain), Sr. Sec. Gtd. First Lien Notes, 7.63%, 11/01/2021(b)	$	448,000	$	447,160
MGM Resorts International, Sr. Unsec. Gtd. Notes, 4.63%, 09/01/2026		469,000		474,276
6.00%, 03/15/2023		475,000		526,063
7.75%, 03/15/2022		519,000		608,528
Pinnacle Entertainment, Inc., Sr. Unsec. Notes, 5.63%, 05/01/2024(b)		914,000		952,845
Scientific Games International Inc., Sr. Unsec. Gtd. Global Notes, 10.00%, 12/01/2022		395,000		434,006
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., Sr. Unsec. Gtd. Notes, 5.25%, 05/15/2027(b)		694,000		712,217
5.50%, 03/01/2025(b)		385,000		406,175
				5,933,651
Commercial Printing–0.40%
Multi-Color Corp., Sr. Unsec. Gtd. Notes, 6.13%, 12/01/2022(b)		723,000		759,150
Commodity Chemicals–0.26%
Koppers Inc., Sr. Unsec. Gtd. Notes, 6.00%, 02/15/2025(b)		460,000		491,050
Construction & Engineering–0.15%
AECOM, Sr. Unsec. Gtd. Notes, 5.13%, 03/15/2027(b)		277,000		279,078
Construction Machinery & Heavy Trucks–0.84%
Meritor Inc., Sr. Unsec. Gtd. Notes, 6.25%, 02/15/2024		392,000		409,640
6.75%, 06/15/2021		497,000		516,880
Oshkosh Corp., Sr. Unsec. Gtd. Global Notes, 5.38%, 03/01/2025		179,000		188,174
Terex Corp., Sr. Unsec. Gtd. Notes, 5.63%, 02/01/2025(b)		456,000		470,820
				1,585,514
Consumer Finance–1.00%
Ally Financial Inc., Sr. Unsec. Global Notes, 4.63%, 03/30/2025		454,000		467,052
5.13%, 09/30/2024		991,000		1,050,460
Sr. Unsec. Gtd. Global Notes, 8.00%, 03/15/2020		325,000		371,313
				1,888,825
Copper–0.48%
First Quantum Minerals Ltd. (Zambia), Sr. Unsec. Gtd. Notes, 7.00%, 02/15/2021(b)		880,000		906,400
Data Processing & Outsourced Services–1.01%
First Data Corp., Sr. Unsec. Gtd. Notes, 7.00%, 12/01/2023(b)		1,780,000		1,909,050

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. High Yield Fund

	Principal Amount		Value
Diversified Banks–1.80%
Bank of America Corp., Series K, Jr. Unsec. Sub. Global Notes, 8.00%(d)	$	197,000	$	203,403
Citigroup Inc., Series R, Jr. Unsec. Sub. Global Notes, 6.13%(d)		440,000		473,000
Series T, Jr. Unsec. Sub. Global Notes, 6.25%(d)		664,000		737,040
Dresdner Funding Trust I (Germany), REGS, Jr. Unsec. Sub. Euro Notes, 8.15%, 06/30/2031(b)		365,000		460,063
JPMorgan Chase & Co., Series 1, Jr. Unsec. Sub. Global Notes, 7.90%(d)		445,000		463,356
Royal Bank of Scotland Group PLC (The) (United Kingdom), Unsec. Sub. Global Bonds, 5.13%, 05/28/2024		1,019,000		1,071,134
				3,407,996
Diversified Chemicals–0.80%
Chemours Co. (The), Sr. Unsec. Gtd. Global Notes, 6.63%, 05/15/2023		1,204,000		1,285,270
7.00%, 05/15/2025		220,000		240,350
				1,525,620
Diversified Metals & Mining–1.48%
Freeport-McMoRan Inc., Sr. Unsec. Gtd. Global Notes, 5.40%, 11/14/2034		1,020,000		915,450
HudBay Minerals, Inc. (Canada), Sr. Unsec. Gtd. Notes, 7.63%, 01/15/2025(b)		848,000		890,400
Teck Resources Ltd. (Canada), Sr. Unsec. Gtd. Global Notes, 4.75%, 01/15/2022		513,000		533,520
Sr. Unsec. Notes, 6.13%, 10/01/2035		453,000		474,517
				2,813,887
Diversified Support Services–0.17%
Alpine Finance Merger Sub LLC, Sr. Unsec. Notes, 6.88%, 08/01/2025(b)		54,000		55,215
Jaguar Holding Co. II/Pharmaceutical Product Development, LLC, Sr. Unsec. Gtd. Notes, 6.38%, 08/01/2023(b)		250,000		264,688
				319,903
Electric Utilities–0.16%
Southern Co. (The), Series B, Jr. Unsec. Sub. Global Notes, 5.50%, 03/15/2057		286,000		304,948
Electrical Components & Equipment–0.78%
EnerSys, Sr. Unsec. Gtd. Notes, 5.00%, 04/30/2023(b)		798,000		821,940
Sensata Technologies B.V., Sr. Unsec. Gtd. Notes, 4.88%, 10/15/2023(b)		270,000		275,400
5.00%, 10/01/2025(b)		370,000		388,500
				1,485,840

	Principal Amount		Value
Environmental & Facilities Services–0.22%
Advanced Disposal Services, Inc., Sr. Unsec. Gtd. Notes, 5.63%, 11/15/2024(b)	$	408,000	$	422,280
Food Distributors–0.36%
US Foods, Inc., Sr. Unsec. Gtd. Notes, 5.88%, 06/15/2024(b)		653,000		684,018
Food Retail–0.87%
1011778 BC ULC/ New Red Finance, Inc. (Canada), Sec. Gtd. Second Lien Notes, 6.00%, 04/01/2022(b)		715,000		744,494
Ingles Markets, Inc., Sr. Unsec. Global Notes, 5.75%, 06/15/2023		927,000		913,095
				1,657,589
Forest Products–0.00%
Sino-Forest Corp. (Hong Kong), Sr. Unsec. Gtd. Notes, 6.25%, 10/21/2017 (Acquired 04/01/2014; Cost $0)(b)(c)(e)		40,000		4
Gas Utilities–1.21%
AmeriGas Partners, L.P./AmeriGas Finance Corp., Sr. Unsec. Global Notes, 5.63%, 05/20/2024		390,000		403,650
5.88%, 08/20/2026		492,000		506,760
Ferrellgas L.P./Ferrellgas Finance Corp., Sr. Unsec. Global Notes, 6.50%, 05/01/2021		297,000		282,150
Suburban Propane Partners, L.P./Suburban Energy Finance Corp., Sr. Unsec. Global Notes, 5.50%, 06/01/2024		1,105,000		1,105,000
				2,297,560
General Merchandise Stores–0.30%
Dollar Tree, Inc., Sr. Unsec. Gtd. Global Notes, 5.75%, 03/01/2023		537,000		568,549
Health Care Equipment–0.67%
Eagle Holding Co. II, LLC, Sr. Unsec. PIK Notes, 8.38%, 05/15/2022(b)(f)		526,000		544,410
Hill-Rom Holdings, Inc., Sr. Unsec. Gtd. Notes, 5.00%, 02/15/2025(b)		545,000		559,306
Teleflex Inc., Sr. Unsec. Gtd. Global Notes, 4.88%, 06/01/2026		111,000		113,775
5.25%, 06/15/2024		43,000		44,828
				1,262,319
Health Care Facilities–3.94%
Acadia Healthcare Co., Inc., Sr. Unsec. Gtd. Global Notes, 6.50%, 03/01/2024		500,000		538,750
Community Health Systems, Inc., Sr. Sec. Gtd. First Lien Global Notes, 5.13%, 08/01/2021		425,000		434,031
Sr. Sec. Gtd. First Lien Notes, 6.25%, 03/31/2023		702,000		730,080
Sr. Unsec. Gtd. Global Notes, 6.88%, 02/01/2022		327,202		286,711
8.00%, 11/15/2019		450,000		453,937

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. High Yield Fund

	Principal Amount		Value
Health Care Facilities–(continued)
HCA Healthcare, Inc., Sr. Unsec. Notes, 6.25%, 02/15/2021	$	94,000	$	102,930
HCA, Inc., Sr. Sec. Gtd. First Lien Notes, 5.25%, 04/15/2025		748,000		807,840
Sr. Unsec. Gtd. Global Notes, 7.50%, 02/15/2022		334,000		385,353
Sr. Unsec. Gtd. Notes, 5.38%, 02/01/2025		640,000		676,800
5.88%, 02/15/2026		1,560,000		1,688,700
HealthSouth Corp., Sr. Unsec. Gtd. Global Notes, 5.75%, 09/15/2025		640,000		676,800
LifePoint Health, Inc., Sr. Unsec. Gtd. Global Notes, 5.38%, 05/01/2024		555,000		577,200
Sr. Unsec. Gtd. Notes, 5.88%, 12/01/2023		110,000		116,325
				7,475,457
Health Care Services–2.83%
DaVita Inc., Sr. Unsec. Gtd. Global Notes, 5.00%, 05/01/2025		952,000		959,140
MEDNAX, Inc., Sr. Unsec. Gtd. Notes, 5.25%, 12/01/2023(b)		765,000		791,775
MPH Acquisition Holdings LLC, Sr. Unsec. Gtd. Notes, 7.13%, 06/01/2024(b)		1,019,000		1,090,330
Surgery Center Holdings, Inc., Sr. Unsec. Notes, 6.75%, 07/01/2025(b)		92,000		93,725
Team Health Holdings, Inc., Sr. Unsec. Gtd. Notes, 6.38%, 02/01/2025(b)		460,000		448,500
Tenet Healthcare Corp., Sec. Gtd. Second Lien Notes, 7.50%, 01/01/2022(b)		103,000		112,013
Sr. Unsec. Global Notes, 6.75%, 06/15/2023		1,114,000		1,116,785
8.00%, 08/01/2020		103,000		105,060
8.13%, 04/01/2022		615,000		656,512
				5,373,840
Home Improvement Retail–0.45%
Hillman Group Inc. (The), Sr. Unsec. Gtd. Notes, 6.38%, 07/15/2022(b)		880,000		844,800
Homebuilding–2.56%
Ashton Woods USA LLC/Ashton Woods Finance Co., Sr. Unsec. Notes, 6.88%, 02/15/2021(b)		749,000		766,789
Beazer Homes USA, Inc., Sr. Unsec. Gtd. Global Notes, 6.75%, 03/15/2025		619,000		648,384
8.75%, 03/15/2022		415,000		462,725
CalAtlantic Group Inc., Sr. Unsec. Gtd. Notes, 5.25%, 06/01/2026		183,000		190,091
5.38%, 10/01/2022		554,000		599,012
CalAtlantic Group, Inc., Sr. Unsec. Gtd. Global Notes, 8.38%, 01/15/2021		112,000		133,000

	Principal Amount		Value
Homebuilding–(continued)
KB Home, Sr. Unsec. Gtd. Notes, 7.50%, 09/15/2022	$	236,000	$	268,745
8.00%, 03/15/2020		119,000		134,173
Lennar Corp., Sr. Unsec. Gtd. Notes, 4.88%, 12/15/2023		350,000		371,438
Meritage Homes Corp., Sr. Unsec. Gtd. Global Notes, 7.15%, 04/15/2020		270,000		299,363
6.00%, 06/01/2025		405,000		436,387
Taylor Morrison Communities Inc./Taylor Morrison Holdings II, Inc., Sr. Unsec. Gtd. Notes, 5.88%, 04/15/2023(b)		498,000		534,727
				4,844,834
Household Products–1.41%
Reynolds Group Issuer Inc./LLC (New Zealand), Sr. Sec. Gtd. First Lien Global Notes, 5.75%, 10/15/2020		357,000		365,033
Sr. Sec. Gtd. First Lien Notes, 5.13%, 07/15/2023(b)		450,000		466,875
Sr. Unsec. Gtd. Notes, 7.00%, 07/15/2024(b)		561,000		601,673
Spectrum Brands, Inc., Sr. Unsec. Gtd. Global Notes, 5.75%, 07/15/2025		705,000		759,637
Springs Industries, Inc., Sr. Sec. Global Notes, 6.25%, 06/01/2021		469,000		486,001
				2,679,219
Independent Power Producers & Energy Traders–2.16%
AES Corp. (The), Sr. Unsec. Notes, 5.50%, 04/15/2025		2,138,000		2,250,245
Calpine Corp., Sr. Unsec. Global Notes, 5.50%, 02/01/2024		334,000		315,212
Dynegy Inc., Sr. Unsec. Gtd. Global Notes, 7.38%, 11/01/2022		285,000		282,863
NRG Energy, Inc., Sr. Unsec. Gtd. Global Notes, 6.25%, 05/01/2024		295,000		300,163
6.63%, 03/15/2023		352,000		363,440
6.63%, 01/15/2027		575,000		579,312
				4,091,235
Industrial Machinery–0.05%
Mueller Industries, Inc., Unsec. Sub. Deb., 6.00%, 03/01/2027		98,000		100,940
Integrated Oil & Gas–0.16%
California Resources Corp., Sec. Gtd. Second Lien Notes, 8.00%, 12/15/2022(b)		469,000		298,988
Integrated Telecommunication Services–1.91%
CenturyLink, Inc., Series S, Sr. Unsec. Notes, 6.45%, 06/15/2021		425,000		461,125
Series Y, Sr. Unsec. Global Notes, 7.50%, 04/01/2024		496,000		544,360

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. High Yield Fund

	Principal Amount		Value
Integrated Telecommunication Services–(continued)
Cincinnati Bell Inc., Sr. Unsec. Gtd. Notes, 7.00%, 07/15/2024(b)	$	429,000	$	450,450
Frontier Communications Corp., Sr. Unsec. Global Notes, 8.50%, 04/15/2020		173,000		182,082
10.50%, 09/15/2022		880,000		841,500
11.00%, 09/15/2025		415,000		384,394
Telecom Italia Capital S.A. (Italy), Sr. Unsec. Gtd. Global Notes, 6.38%, 11/15/2033		232,000		251,430
7.20%, 07/18/2036		442,000		513,825
				3,629,166
Internet Software & Services–1.12%
CyrusOne L.P./CyrusOne Finance Corp., Sr. Unsec. Gtd. Notes, 5.00%, 03/15/2024(b)		166,000		170,565
5.38%, 03/15/2027(b)		366,000		381,555
Equinix, Inc., Sr. Unsec. Notes, 5.75%, 01/01/2025		122,000		131,912
5.88%, 01/15/2026		1,306,000		1,430,070
				2,114,102
Leisure Facilities–0.50%
Cedar Fair L.P./Canada’s Wonderland Co./Magnum Management Corp., Sr. Unsec. Gtd. Global Notes, 5.38%, 06/01/2024		225,000		237,375
Sr. Unsec. Gtd. Notes, 5.38%, 04/15/2027(b)		200,000		211,750
Six Flags Entertainment Corp., Sr. Unsec. Gtd. Notes, 4.88%, 07/31/2024(b)		500,000		504,375
				953,500
Managed Health Care–0.78%
Centene Corp., Sr. Unsec. Notes, 4.75%, 01/15/2025		315,000		326,812
Molina Healthcare, Inc., Sr. Unsec. Gtd. Notes, 4.88%, 06/15/2025(b)		340,000		344,250
WellCare Health Plans Inc., Sr. Unsec. Notes, 5.25%, 04/01/2025		770,000		812,350
				1,483,412
Metal & Glass Containers–0.69%
Ardagh Packaging Finance PLC/Ardagh Holdings USA Inc. (Ireland), Sr. Sec. Gtd. First Lien Notes, 4.25%, 09/15/2022(b)		227,000		232,959
Sr. Unsec. Gtd. Notes, 6.00%, 02/15/2025(b)		200,000		210,500
7.25%, 05/15/2024(b)		310,000		339,450
Berry Global, Inc., Sec. Gtd. Second Lien Global Notes, 6.00%, 10/15/2022		90,000		96,300
Sec. Gtd. Second Lien Notes, 5.50%, 05/15/2022		405,000		422,719
				1,301,928

	Principal Amount		Value
Movies & Entertainment–0.73%
AMC Entertainment Holdings, Inc., Sr. Unsec. Gtd. Sub. Global Notes, 5.75%, 06/15/2025	$	860,000	$	898,700
Lions Gate Entertainment Corp., Sr. Unsec. Gtd. Notes, 5.88%, 11/01/2024(b)		466,000		490,465
				1,389,165
Oil & Gas Drilling–0.84%
Ensco PLC, Sr. Unsec. Global Notes, 4.50%, 10/01/2024		548,000		424,700
Precision Drilling Corp. (Canada), Sr. Unsec. Gtd. Global Notes, 5.25%, 11/15/2024		514,000		454,890
6.50%, 12/15/2021		233,000		229,214
Sr. Unsec. Gtd. Notes, 7.75%, 12/15/2023(b)		94,000		93,530
Transocean Inc., Sr. Unsec. Gtd. Global Notes, 7.50%, 04/15/2031		483,000		388,815
				1,591,149
Oil & Gas Equipment & Services–0.83%
Archrock Partners, L.P./Archrock Partners Finance Corp., Sr. Unsec. Gtd. Global Notes, 6.00%, 10/01/2022		240,000		234,000
SESI, L.L.C., Sr. Unsec. Gtd. Global Notes, 6.38%, 05/01/2019		224,000		222,320
7.13%, 12/15/2021		521,000		498,857
Weatherford International Ltd., Sr. Unsec. Gtd. Notes, 6.50%, 08/01/2036		524,000		446,710
8.25%, 06/15/2023		178,000		178,668
				1,580,555
Oil & Gas Exploration & Production–5.59%
Callon Petroleum Co., Sr. Unsec. Gtd. Global Notes, 6.13%, 10/01/2024		682,000		695,640
Continental Resources Inc., Sr. Unsec. Gtd. Global Notes, 3.80%, 06/01/2024		725,000		667,906
Denbury Resources Inc., Sr. Unsec. Gtd. Sub. Notes, 5.50%, 05/01/2022		323,000		182,495
EP Energy LLC/Everest Acquisition Finance Inc., Sr. Sec. Gtd. First Lien Notes, 8.00%, 11/29/2024(b)		420,000		421,050
Gulfport Energy Corp., Sr. Unsec. Gtd. Notes, 6.00%, 10/15/2024(b)		497,000		484,575
Newfield Exploration Co., Sr. Unsec. Global Notes, 5.63%, 07/01/2024		341,000		357,198
Oasis Petroleum Inc., Sr. Unsec. Gtd. Global Notes, 6.88%, 01/15/2023		619,000		601,978
Parsley Energy LLC/Parsley Finance Corp., Sr. Unsec. Gtd. Notes, 6.25%, 06/01/2024(b)		919,000		967,247

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. High Yield Fund

	Principal Amount		Value
Oil & Gas Exploration & Production–(continued)
QEP Resources, Inc., Sr. Unsec. Global Notes, 5.25%, 05/01/2023	$	225,000	$	214,875
Sr. Unsec. Notes, 6.88%, 03/01/2021		610,000		635,925
Range Resources Corp., Sr. Unsec. Gtd. Global Notes, 4.88%, 05/15/2025		516,000		492,780
Sr. Unsec. Gtd. Notes, 5.88%, 07/01/2022(b)		446,000		454,920
Rice Energy Inc., Sr. Unsec. Gtd. Global Notes, 7.25%, 05/01/2023		585,000		633,263
RSP Permian, Inc., Sr. Unsec. Gtd. Notes, 5.25%, 01/15/2025(b)		329,000		331,056
SM Energy Co., Sr. Unsec. Global Notes, 6.13%, 11/15/2022		553,000		528,115
6.75%, 09/15/2026		185,000		177,138
Southwestern Energy Co., Sr. Unsec. Global Notes, 4.10%, 03/15/2022		781,000		730,235
Whiting Petroleum Corp., Sr. Unsec. Gtd. Global Notes, 6.25%, 04/01/2023		903,000		837,532
WildHorse Resource Development Corp., Sr. Unsec. Gtd. Notes, 6.88%, 02/01/2025(b)		673,000		634,302
WPX Energy Inc., Sr. Unsec. Notes, 5.25%, 09/15/2024		580,000		555,350
				10,603,580
Oil & Gas Refining & Marketing–0.08%
MPLX LP, Sr. Unsec. Global Notes, 4.88%, 06/01/2025		145,000		154,788
Oil & Gas Storage & Transportation–2.86%
Antero Midstream Partners LP/Antero Midstream Finance Corp., Sr. Unsec. Gtd. Notes, 5.38%, 09/15/2024(b)		207,000		212,693
Antero Resources Corp., Sr. Unsec. Gtd. Global Notes, 5.63%, 06/01/2023		700,000		714,000
Energy Transfer Equity, L.P., Sr. Sec. First Lien Notes, 5.88%, 01/15/2024		563,000		598,187
Holly Energy Partners L.P./Holly Energy Finance Corp., Sr. Unsec. Gtd. Notes, 6.00%, 08/01/2024(b)		257,000		269,208
NGL Energy Partners L.P./NGL Energy Finance Corp., Sr. Unsec. Gtd. Notes, 6.13%, 03/01/2025(b)		372,000		345,960
SemGroup Corp., Sr. Unsec. Gtd. Notes, 6.38%, 03/15/2025(b)		535,000		520,287
Targa Resources Partners L.P./Targa Resources Partners Finance Corp.,
Sr. Unsec. Gtd. Global Bonds, 5.25%, 05/01/2023		448,000		461,440
Sr. Unsec. Gtd. Notes, 5.13%, 02/01/2025(b)		484,000		498,520
Tesoro Corp., Sr. Unsec. Gtd. Global Notes, 5.13%, 04/01/2024		72,000		76,500

	Principal Amount		Value
Oil & Gas Storage & Transportation–(continued)
Tesoro Logistics L.P./Tesoro Logistics Finance Corp., Sr. Unsec. Gtd. Global Notes, 6.38%, 05/01/2024	$	676,000	$	733,460
Sr. Unsec. Gtd. Notes, 5.25%, 01/15/2025		144,000		151,920
Williams Cos., Inc. (The), Sr. Unsec. Global Notes, 4.55%, 06/24/2024		460,000		473,551
Sr. Unsec. Notes, 7.88%, 09/01/2021		311,000		362,704
				5,418,430
Other Diversified Financial Services–0.37%
Lincoln Finance Ltd. (Netherlands), Sr. Sec. Gtd. First Lien Notes, 7.38%, 04/15/2021(b)		492,000		522,860
Orchestra Borrower LLC/Orchestra Co-Issuer, Inc., Sec. Second Lien Notes, 6.75%, 06/15/2022(b)		171,000		176,985
				699,845
Packaged Foods & Meats–1.36%
B&G Foods, Inc., Sr. Unsec. Gtd. Notes, 5.25%, 04/01/2025		626,000		640,085
JBS Investments GmbH (Brazil), Gtd. Notes, 7.25%, 04/03/2024(b)		525,000		469,875
JBS USA Lux S.A./JBS USA Finance Inc. (Brazil), Sr. Unsec. Gtd. Notes, 5.75%, 06/15/2025(b)		180,000		169,875
Lamb Weston Holdings, Inc., Sr. Unsec. Gtd. Notes, 4.63%, 11/01/2024(b)		420,000		434,700
TreeHouse Foods, Inc., Sr. Unsec. Gtd. Notes, 6.00%, 02/15/2024(b)		814,000		867,927
				2,582,462
Paper Packaging–0.21%
Graphic Packaging International Inc., Sr. Unsec. Gtd. Notes, 4.13%, 08/15/2024		30,000		30,713
4.88%, 11/15/2022		350,000		372,750
				403,463
Paper Products–1.06%
Clearwater Paper Corp., Sr. Unsec. Gtd. Global Notes, 4.50%, 02/01/2023		644,000		637,560
Mercer International Inc. (Canada), Sr. Unsec. Global Notes, 7.75%, 12/01/2022		230,000		247,825
Sr. Unsec. Notes, 6.50%, 02/01/2024(b)		259,000		270,655
P.H. Glatfelter Co., Sr. Unsec. Gtd. Global Notes, 5.38%, 10/15/2020		326,000		334,965
Rayonier A.M. Products Inc., Sr. Unsec. Gtd. Notes, 5.50%, 06/01/2024(b)		542,000		527,772
				2,018,777

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. High Yield Fund

	Principal Amount		Value
Pharmaceuticals–1.24%
Endo DAC/Endo Finance LLC/Endo Finco Inc., Sr. Unsec. Gtd. Notes, 6.00%, 07/15/2023(b)	$	240,000	$	202,800
Valeant Pharmaceuticals International, Inc., Sr. Unsec. Gtd. Notes, 5.50%, 03/01/2023(b)		388,000		331,255
5.63%, 12/01/2021(b)		16,000		14,520
5.88%, 05/15/2023(b)		200,000		172,500
6.13%, 04/15/2025(b)		410,000		349,525
6.75%, 08/15/2018(b)		50,000		50,375
7.00%, 10/01/2020(b)		251,000		247,862
7.50%, 07/15/2021(b)		1,000,000		975,000
				2,343,837
Restaurants–0.75%
Aramark Services, Inc., Sr. Unsec. Gtd. Notes, 5.00%, 04/01/2025(b)		445,000		472,256
Carrols Restaurant Group, Inc., Sec. Gtd. Second Lien Global Notes, 8.00%, 05/01/2022		465,000		498,713
Sec. Gtd. Second Lien Notes, 8.00%, 05/01/2022(b)		195,000		208,650
KFC Holding Co. (The)/Pizza Hut Holdings LLC/Taco Bell of America LLC, Sr. Unsec. Gtd. Notes, 4.75%, 06/01/2027(b)		241,000		247,025
				1,426,644
Security & Alarm Services–0.85%
ADT Corp. (The), Sr. Sec. Gtd. First Lien Global Notes, 6.25%, 10/15/2021		250,000		272,812
Prime Security Services Borrower, LLC/Prime Finance, Inc., Sec. Gtd. Second Lien Notes, 9.25%, 05/15/2023(b)		1,230,000		1,340,700
				1,613,512
Semiconductors–0.34%
Micron Technology, Inc., Sr. Unsec. Global Notes, 5.50%, 02/01/2025		618,000		653,535
Specialized Consumer Services–0.77%
ServiceMaster Co., LLC (The), Sr. Unsec. Gtd. Notes, 5.13%, 11/15/2024(b)		272,000		282,540
Sr. Unsec. Notes, 7.45%, 08/15/2027		1,086,000		1,172,880
				1,455,420
Specialized Finance–2.41%
AerCap Global Aviation Trust (Ireland), Jr. Unsec. Gtd. Sub. Notes, 6.50%, 06/15/2045(b)		434,000		463,295
Aircastle Ltd., Sr. Unsec. Global Notes, 7.63%, 04/15/2020		160,000		181,800
Sr. Unsec. Notes, 5.00%, 04/01/2023		596,000		640,700
5.50%, 02/15/2022		512,000		558,720

	Principal Amount		Value
Specialized Finance–(continued)
CIT Group Inc., Sr. Unsec. Global Notes, 5.00%, 08/01/2023	$	956,000	$	1,032,480
Fly Leasing Ltd. (Ireland), Sr. Unsec. Global Notes, 6.75%, 12/15/2020		821,000		859,997
MSCI Inc., Sr. Unsec. Gtd. Notes, 5.25%, 11/15/2024(b)		640,000		684,000
5.75%, 08/15/2025(b)		140,000		151,725
				4,572,717
Specialized REIT’s–0.73%
GLP Capital L.P./GLP Financing II, Inc., Sr. Unsec. Gtd. Notes, 5.38%, 04/15/2026		495,000		540,169
Iron Mountain US Holdings, Inc., Sr. Unsec. Gtd. Notes, 5.38%, 06/01/2026(b)		809,000		852,483
				1,392,652
Specialty Chemicals–2.12%
Ashland LLC, Sr. Unsec. Gtd. Global Notes, 4.75%, 08/15/2022		520,000		543,400
Axalta Coating Systems, LLC, Sr. Unsec. Gtd. Notes, 4.88%, 08/15/2024(b)		472,000		489,700
GCP Applied Technologies Inc., Sr. Unsec. Gtd. Notes, 9.50%, 02/01/2023(b)		516,000		588,885
Kraton Polymers LLC/Kraton Polymers Capital Corp., Sr. Unsec. Gtd. Notes, 10.50%, 04/15/2023(b)		596,000		693,595
PolyOne Corp., Sr. Unsec. Global Notes, 5.25%, 03/15/2023		588,000		618,870
PQ Corp., Sr. Sec. Gtd. First Lien Notes, 6.75%, 11/15/2022(b)		415,000		448,200
Valvoline Inc., Sr. Unsec. Gtd. Notes, 5.50%, 07/15/2024(b)		388,000		412,250
Venator Finance S.a.r.l./Venator Materials Corp. (Luxembourg), Sr. Unsec. Gtd. Notes, 5.75%, 07/15/2025(b)		215,000		218,225
				4,013,125
Steel–0.84%
ArcelorMittal (Luxembourg), Sr. Unsec. Global Notes, 7.50%, 10/15/2039		482,000		545,624
Steel Dynamics, Inc., Sr. Unsec. Gtd. Global Notes, 5.00%, 12/15/2026		583,000		597,575
United States Steel Corp., Sr. Unsec. Global Notes, 7.50%, 03/15/2022		87,000		89,501
Sr. Unsec. Notes, 6.88%, 04/01/2021		345,000		355,781
				1,588,481
Systems Software–0.03%
j2 Cloud Services, LLC/ j2 Cloud Co-Obligor, Inc., Sr. Unsec. Gtd. Notes, 6.00%, 07/15/2025(b)		49,000		50,715

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. High Yield Fund

	Principal Amount		Value
Technology Distributors–0.30%
CDW LLC/CDW Finance Corp., Sr. Unsec. Gtd. Notes, 5.00%, 09/01/2025	$	538,000	$	560,865
Technology Hardware, Storage & Peripherals–2.09%
CommScope Technologies LLC, Sr. Unsec. Gtd. Notes, 6.00%, 06/15/2025(b)		1,002,000		1,077,150
Dell International LLC/EMC Corp., Sr. Unsec. Gtd. Notes, 7.13%, 06/15/2024(b)		1,202,000		1,328,210
Diebold Nixdorf, Inc., Sr. Unsec. Gtd. Global Notes, 8.50%, 04/15/2024		569,000		637,280
Western Digital Corp., Sr. Unsec. Gtd. Global Notes, 10.50%, 04/01/2024		784,000		929,040
				3,971,680
Tobacco–0.19%
Alliance One International, Inc., Sr. Sec. Gtd. First Lien Notes, 8.50%, 04/15/2021(b)		352,000		368,720
Trading Companies & Distributors–0.78%
Herc Rentals Inc., Sec. Gtd. Second Lien Notes, 7.75%, 06/01/2024(b)		470,000		497,025
United Rentals North America, Inc., Sr. Unsec. Gtd. Global Notes, 5.50%, 07/15/2025		41,000		43,152
Sr. Unsec. Gtd. Notes, 5.88%, 09/15/2026		120,000		128,100
6.13%, 06/15/2023		775,000		810,844
				1,479,121
Trucking–1.72%
Avis Budget Car Rental LLC/Avis Budget Finance Inc., Sr. Unsec. Gtd. Notes, 5.25%, 03/15/2025(b)		705,000		668,869
Hertz Corp. (The), Sec. Gtd. Second Lien Notes, 7.63%, 06/01/2022(b)		690,000		692,587
Sr. Unsec. Gtd. Global Notes, 5.88%, 10/15/2020		245,000		237,038
6.75%, 04/15/2019		465,000		465,000
7.38%, 01/15/2021		240,000		232,800
Kenan Advantage Group Inc. (The), Sr. Unsec. Notes, 7.88%, 07/31/2023(b)		918,000		968,490
				3,264,784
Wireless Telecommunication Services–5.39%
Altice Financing S.A. (Luxembourg), Sr. Sec. Gtd. First Lien Bonds, 7.50%, 05/15/2026(b)		430,000		478,375
Sr. Sec. Gtd. First Lien Notes, 6.63%, 02/15/2023(b)		600,000		638,250
Altice Luxembourg S.A. (Luxembourg), Sr. Unsec. Gtd. Notes, 7.63%, 02/15/2025(b)		207,000		227,700
7.75%, 05/15/2022(b)		700,000		745,500

	Principal Amount		Value
Wireless Telecommunication Services–(continued)
Altice US Finance I Corp., Sr. Sec. Notes, 5.50%, 05/15/2026(b)	$	440,000	$	463,650
SBA Communications Corp., Sr. Unsec. Global Notes, 4.88%, 07/15/2022		178,000		184,008
Sr. Unsec. Notes, 4.88%, 09/01/2024(b)		808,000		824,160
Sprint Corp., Sr. Unsec. Gtd. Global Notes, 7.25%, 09/15/2021		1,366,000		1,519,675
7.63%, 02/15/2025		535,000		616,588
7.88%, 09/15/2023		1,449,000		1,669,972
T-Mobile USA, Inc., Sr. Unsec. Gtd. Global Bonds, 6.50%, 01/15/2026		968,000		1,070,850
Sr. Unsec. Gtd. Global Notes, 6.38%, 03/01/2025		647,000		700,377
Wind Acquisition Finance S.A. (Italy), Sr. Sec. Gtd. First Lien Notes, 6.50%, 04/30/2020(b)		250,000		259,375
Sr. Sec. Gtd. First Lien Euro Notes, 6.50%, 04/30/2020(b)		200,000		207,250
Sec. Gtd. Second Lien Notes, 7.38%, 04/23/2021(b)		595,000		621,032
				10,226,762
Total U.S. Dollar Denominated Bonds & Notes (Cost $172,608,696)				170,624,835
	Shares
Exchange-Traded Funds–4.01%
iShares® 0-5 Year High Yield Corporate Bond ETF		80,000		3,828,800
SPDR® Bloomberg Barclays Short Term High Yield Bond ETF		135,000		3,775,950
Total Exchange-Traded Funds (Cost $7,607,000)				7,604,750
	Principal Amount
Variable Rate Senior Loan Interests–0.59%(g)
Building Products–0.48%
HD Supply Waterworks Group Inc., Term Loan, —, 12/22/2017(h)	$	904,000		904,000
Specialty Chemicals–0.11%
Kraton Polymers LLC, Term Loan, 5.23%, 01/06/2022		211,448		213,755
Total Variable Rate Senior Loan Interests (Cost $1,114,504)				1,117,755
Non-U.S. Dollar Denominated Bonds & Notes–0.52%(i)
Casinos & Gaming–0.19%
Cirsa Funding Luxembourg S.A. (Spain), REGS, Sr. Unsec. Gtd. Euro Notes, 5.88%, 05/15/2023(b)	EUR	200,000		240,463
Snaitech S.p.A. (Italy), Sr. Sec. First Lien Bonds, 6.38%, 11/07/2021(b)	EUR	100,000		122,639
				363,102

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. High Yield Fund

	Principal Amount		Value
Environmental & Facilities Services–0.06%
Paprec Holding S.A. (France), Sr. Sec. Gtd. First Lien Bonds, 5.25%, 04/01/2022(b)	EUR	100,000	$	120,282
Health Care Services–0.27%
Synlab Unsecured Bondco PLC (United Kingdom), REGS, Sr. Unsec. Gtd. Euro Bonds, 8.25%, 07/01/2023(b)	EUR	400,000		511,183
Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $903,714)				994,567
U.S. Treasury Bills–0.35%(j)
0.82%, 08/10/2017(k)	$	240,000		239,783
0.88%, 08/10/2017(k)		250,000		249,774
0.89%, 08/10/2017(l)		180,000		179,838
Total U.S. Treasury Bills (Cost $669,361)				669,395
	Shares
Preferred Stock–0.07%
Specialized Finance–0.07%
CIT Group Inc., Series A, 5.80% Pfd. (Cost $120,000)		120,000		125,700

	Shares		Value
Common Stocks & Other Equity Interests–0.00%
Automobile Manufacturers–0.00%
Motors Liquidation Co. GUC Trust		1	$	9
Broadcasting–0.00%
Adelphia Recovery Trust–Series ACC-1(m)		318,570		64
Adelphia Recovery Trust–Series Arahova(m)		109,170		11
				75
Diversified Support Services–0.00%
ACC Claims Holdings, LLC(n)		269,616		1,011
Total Common Stocks & Other Equity Interests (Cost $143,574)				1,095
Money Market Funds–3.74%
Government & Agency Portfolio, Institutional Class, 0.89%(o)		4,250,552		4,250,552
Treasury Portfolio, Institutional Class, 0.85%(o)		2,833,701		2,833,701
Total Money Market Funds (Cost $7,084,253)				7,084,253
TOTAL INVESTMENTS–99.25% (Cost $190,251,102)				188,222,350
OTHER ASSETS LESS LIABILITIES–0.75%				1,417,484
NET ASSETS–100.00%			$	189,639,834

Investment Abbreviations:

Deb.	– Debentures
ETF	– Exchange-Traded Fund
EUR	– Euro
Gtd.	– Guaranteed

PIK	– Payment in Kind
REGS	– Regulation S
REIT	– Real Estate Investment Trust
Sec.	– Secured

Sr.	– Senior
Sub.	– Subordinated
Unsec.	– Unsecured
Jr.	– Junior

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2017 was $72,271,204, which represented 38.11% of the Fund’s Net Assets.

^(c)  Defaulted security. Currently, the issuer is partially or fully in default with respect to interest payments. The aggregate value of these securities at June 30, 2017 was $4, which represented less than 1% of the Fund’s Net Assets.

^(d)  Perpetual bond with no specified maturity date.

^(e)  Acquired as part of the Sino-Forest Corp. reorganization.

^(f)  All or a portion of this security is Payment-in-Kind.

Issuer	Cash Rate			PIK Rate
Eagle Holding Co. II, LLC, Sr. Unsec PIK Notes		7.63	%		8.38	%

^(g)  Variable rate senior loan interests are, at present, not readily marketable, not registered under the 1933 Act, and may be subject to contractual and legal restrictions on sale. Senior secured corporate loans and senior secured debt securities in the Fund’s portfolio generally have variable rates which adjust to a base, such as the London Inter-Bank Offered Rate (“LIBOR”), on set dates, typically every 30 days but not greater than one year; and/or have interest rates that float at a margin above a widely recognized base lending rate such as the Prime Rate of a designated U.S. bank.

^(h)  This floating rate interest will settle after June 30, 2017, at which time the interest rate will be determined.

⁽ⁱ⁾  Foreign denominated security. Principal amount is denominated in the currency indicated.

^(j)  Security traded on a discount basis. The interest rate shown represents the discount rate at the time of purchase by the Fund.

^(k)  All or a portion of the value was designated as collateral to cover margin requirements for swap agreements. See Note 1N and Note 4.

^(l)  All or a portion of the value was pledged as collateral to cover margin requirements for futures contracts. See Note 1M.

^(m)  Acquired as part of the Adelphia Communications bankruptcy reorganization.

⁽ⁿ⁾  Non-income producing security.

^(o)  The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of June 30, 2017.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. High Yield Fund

Portfolio Composition^†

By credit quality, based on Total Investments*

as of June 30, 2017

BBB	0.8	%
BB	39.2
B	48.2
CCC	9.2
Not Rated	2.6

^†  Source: Standard & Poor’s. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations, including specific securities, money market instruments or other debts. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest); ratings are subject to change without notice. “Non-Rated” indicates the debtor was not rated, and should not be interpreted as indicating low quality. For more information on Standard and Poor’s rating methodology, please visit standardandpoors.com and select “Understanding Ratings” under Rating Resources on the homepage.

* Excluding U.S. Treasury Bills and money market fund holdings, if any.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. High Yield Fund

Statement of Assets and Liabilities

June 30, 2017

(Unaudited)

Statement of Operations

For the six months ended June 30, 2017

(Unaudited)

Assets:
Investments, at value (Cost $183,166,849)	$	181,138,097
Investments in affiliated money market funds, at value and cost		7,084,253
Total investments, at value (Cost $190,251,102)		188,222,350
Foreign currencies, at value (Cost $862,164)		891,260
Receivable for:
Investments sold		5,998,036
Variation margin — centrally cleared swap agreements		13,519
Fund shares sold		109,948
Dividends and interest		2,760,285
Investment for trustee deferred compensation and retirement plans		80,466
Other assets		31
Total assets		198,075,895
Liabilities:
Payable for:
Investments purchased		7,331,590
Fund shares reacquired		520,424
Amount due custodian		322,929
Accrued fees to affiliates		122,477
Accrued trustees’ and officers’ fees and benefits		4,314
Accrued other operating expenses		30,948
Trustee deferred compensation and retirement plans		85,005
Unrealized depreciation on forward foreign currency contracts outstanding		18,374
Total liabilities		8,436,061
Net assets applicable to shares outstanding	$	189,639,834
Net assets consist of:
Shares of beneficial interest	$	193,937,772
Undistributed net investment income		12,200,681
Undistributed net realized gain (loss)		(14,456,220	)
Net unrealized appreciation (depreciation)		(2,042,399	)
	$	189,639,834
Net Assets:
Series I	$	101,088,166
Series II	$	88,551,668
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		17,993,422
Series II		15,895,586
Series I:
Net asset value per share	$	5.62
Series II:
Net asset value per share	$	5.57

Investment income:
Interest (net of foreign withholding taxes of $632)	$	5,163,212
Dividends		20,323
Dividends from affiliates		63,112
Total investment income		5,246,647
Expenses:
Advisory fees		574,247
Administrative services fees		161,796
Custodian fees		3,044
Distribution fees — Series II		106,811
Transfer agent fees		8,633
Trustees’ and officers’ fees and benefits		11,702
Reports to shareholders		18,655
Professional services fees		18,974
Other		4,559
Total expenses		908,421
Less: Fees waived		(13,257	)
Net expenses		895,164
Net investment income		4,351,483
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		1,111,311
Foreign currencies		29,019
Forward foreign currency contracts		(68,219	)
Futures contracts		(413,456	)
Swap agreements		69,818
		728,473
Change in net unrealized appreciation (depreciation) of:
Investment securities		2,053,210
Foreign currencies		31,284
Forward foreign currency contracts		(27,038	)
Futures contracts		24,152
Swap agreements		(25,496	)
		2,056,112
Net realized and unrealized gain		2,784,585
Net increase in net assets resulting from operations	$	7,136,068

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. High Yield Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2017 and the year ended December 31, 2016

(Unaudited)

	June 30, 2017		December 31, 2016
Operations:
Net investment income	$	4,351,483	$	8,396,076
Net realized gain (loss)		728,473		(5,542,632	)
Change in net unrealized appreciation		2,056,112		13,733,616
Net increase in net assets resulting from operations		7,136,068		16,587,060
Distributions to shareholders from net investment income:
Series I		—		(4,133,290	)
Series ll		—		(3,068,973	)
Total distributions from net investment income		—		(7,202,263	)
Share transactions–net:
Series l		2,563,232		16,319,925
Series ll		2,316,386		7,485,826
Net increase in net assets resulting from share transactions		4,879,618		23,805,751
Net increase in net assets		12,015,686		33,190,548
Net assets:
Beginning of period		177,624,148		144,433,600
End of period (includes undistributed net investment income of $12,200,681 and $7,849,198, respectively)	$	189,639,834	$	177,624,148

Notes to Financial Statements

June 30, 2017

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. High Yield Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance 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 consisting of twenty-four separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

The Fund’s investment objective is total return, comprised of current income and capital appreciation.

The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services — Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. 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.

Variable rate senior loan interests are fair valued using quotes provided by an independent pricing service. Quotes provided by the pricing service may reflect appropriate factors such as ratings, tranche type, industry, company performance, spread, individual trading characteristics, institution-size trading in similar groups of securities and other market data.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net

Invesco V.I. High Yield Fund

asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Swap agreements are fair valued using an evaluated quote, if available, provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end-of-day net present values, spreads, ratings, industry, company performance and returns of referenced assets. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

Invesco V.I. High Yield Fund

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 and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. Lower-Rated Securities — The Fund normally invests at least 80% of its net assets in lower-quality debt securities, i.e., “junk bonds”. Investments in lower-rated securities or unrated securities of comparable quality tend to be more sensitive to economic conditions than higher rated securities. Junk bonds involve a greater risk of default by the issuer because such securities are generally unsecured and are often subordinated to other creditors’ claims.

J. Securities Purchased on a When-Issued and Delayed Delivery Basis — The Fund may purchase and sell interests in corporate loans and corporate debt securities and other portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date.

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 date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

L. Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

M. Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between Counterparties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only

Invesco V.I. High Yield Fund

in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.

N. Swap Agreements — The Fund may enter into various swap transactions, including interest rate, total return, index, currency and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency or credit risk. Such transactions are agreements between Counterparties. A swap agreement may be negotiated bilaterally and traded over-the-counter (“OTC”) between two parties (“uncleared/OTC”) or, in some instances, must be transacted through a future commission merchant (“FCM”) and cleared through a clearinghouse that serves as a central Counterparty (“centrally cleared swap”). These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s NAV over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any.

Interest rate, total return, index, and currency swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.

In a centrally cleared swap, the Fund’s ultimate Counterparty is a central clearinghouse. The Fund initially will enter into centrally cleared swaps through an executing broker. When a fund enters into a centrally cleared swap, it must deliver to the central Counterparty (via the FCM) an amount referred to as “initial margin.” Initial margin requirements are determined by the central Counterparty, but an FCM may require additional initial margin above the amount required by the central Counterparty. Initial margin deposits required upon entering into centrally cleared swaps are satisfied by cash or securities as collateral at the FCM. Securities deposited as initial margin are designated on the Schedule of Investments and cash deposited is recorded on the Statement of Assets and Liabilities. During the term of a cleared swap agreement, a “variation margin” amount may be required to be paid by the Fund or may be received by the Fund, based on the daily change in price of the underlying reference instrument subject to the swap agreement and is recorded as a receivable or payable for variation margin in the Statement of Assets and Liabilities until the centrally cleared swap is terminated at which time a realized gain or loss is recorded.

A CDS is an agreement between Counterparties to exchange the credit risk of an issuer. A buyer of a CDS is said to buy protection by paying a fixed payment over the life of the agreement and in some situations an upfront payment to the seller of the CDS. If a defined credit event occurs (such as payment default or bankruptcy), the Fund as a protection buyer would cease paying its fixed payment, the Fund would deliver eligible bonds issued by the reference entity to the seller, and the seller would pay the full notional value, or the “par value”, of the referenced obligation to the Fund. A seller of a CDS is said to sell protection and thus would receive a fixed payment over the life of the agreement and an upfront payment, if applicable. If a credit event occurs, the Fund as a protection seller would cease to receive the fixed payment stream, the Fund would pay the buyer “par value” or the full notional value of the referenced obligation, and the Fund would receive the eligible bonds issued by the reference entity. In turn, these bonds may be sold in order to realize a recovery value. Alternatively, the seller of the CDS and its Counterparty may agree to net the notional amount and the market value of the bonds and make a cash payment equal to the difference to the buyer of protection. If no credit event occurs, the Fund receives the fixed payment over the life of the agreement. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the CDS. In connection with these agreements, cash and securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default under the swap agreement or bankruptcy/insolvency of a party to the swap agreement. If a Counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund’s maximum risk of loss from Counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the Counterparty and by the designation of collateral by the Counterparty to cover the Fund’s exposure to the Counterparty.

Implied credit spreads represent the current level at which protection could be bought or sold given the terms of the existing CDS contract and serve as an indicator of the current status of the payment/performance risk of the CDS. An implied spread that has widened or increased since entry into the initial contract may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets.

An interest rate swap is an agreement between Counterparties pursuant to which the parties exchange a floating rate payment for a fixed rate payment based on a specified notional amount.

Changes in the value of centrally cleared and OTC swap agreements are recognized as unrealized gains (losses) in the Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at

Invesco V.I. High Yield Fund

the beginning of the agreement are reflected as such on the Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statement of Operations. The Fund segregates cash or liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. Cash held as collateral is recorded as deposits with brokers on the Statement of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and Counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements. A short position in a security poses more risk than holding the same security long. As there is no limit on how much the price of the security can increase, the Fund’s exposure is unlimited.

Notional amounts of each individual credit default swap agreement outstanding as of June 30, 2017 for which the Fund is the seller of protection are disclosed in the open swap agreements table. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.

O. Bank Loan Risk — Although the resale, or secondary market for floating rate loans has grown substantially over the past decade, both in overall size and number of market participants, there is no organized exchange or board of trade on which floating rate loans are traded. Instead, the secondary market for floating rate loans is a private, unregulated interdealer or interbank resale market. Such a market may therefore be subject to irregular trading activity, wide bid/ask spreads, and extended trade settlement periods, which may impair the Fund’s ability to sell bank loans within its desired time frame or at an acceptable price and its ability to accurately value existing and prospective investments. Extended trade settlement periods may result in cash not being immediately available to the Fund. As a result, the Fund may have to sell other investments or engage in borrowing transactions to raise cash to meet its obligations. Similar to other asset classes, bank loan funds may be exposed to counterparty credit risk, or the risk than an entity with which the Fund has unsettled or open transactions may fail to or be unable to perform on its commitments. The Fund seeks to manage counterparty credit risk by entering into transactions only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

P. Leverage Risk — Leverage exists when the Fund can lose more than it originally invests because it purchases or sells an instrument or enters into a transaction without investing an amount equal to the full economic exposure of the instrument or transaction.

Q. Other Risks — The Fund invests in corporate loans from U.S. or non-U.S. companies (the “Borrowers”). The investment of the Fund in a corporate loan may take the form of participation interests or assignments. If the Fund purchases a participation interest from a syndicate of lenders (“Lenders”) or one of the participants in the syndicate (“Participant”), one or more of which administers the loan on behalf of all the Lenders (the “Agent Bank”), the Fund would be required to rely on the Lender that sold the participation interest not only for the enforcement of the Fund’s rights against the Borrower but also for the receipt and processing of payments due to the Fund under the corporate loans. As such, the Fund is subject to the credit risk of the Borrower and the Participant. Lenders and Participants interposed between the Fund and a Borrower, together with Agent Banks, are referred to as “Intermediate Participants”.

R. Collateral — To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets	Rate
First $200 million		0	.625%
Next $300 million		0	.55%
Next $500 million		0	.50%
Over $1 billion		0	.45%

For the six months ended June 30, 2017, the effective advisory fees incurred by the Fund was 0.63%.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco PowerShares Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2018, 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 Series I shares to 1.50% and Series II shares to 1.75% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2018.

Invesco V.I. High Yield Fund

During its term, the fee waiver agreement cannot be terminated or amended to increase expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2019, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended June 30, 2017, the Adviser waived advisory fees of $13,257.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2017, Invesco was paid $24,794 for accounting and fund administrative services and was reimbursed $137,002 for fees paid to insurance companies.

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. For the six months ended June 30, 2017, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2017, expenses incurred under the Plan are detailed 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of June 30, 2017. 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
U.S. Dollar Denominated Bonds & Notes	$	—	$	170,624,831		$	4	$	170,624,835
Exchange-Traded Funds		7,604,750		—			—		7,604,750
Variable Rate Senior Loan Interests		—		1,117,755			—		1,117,755
Non-U.S. Dollar Denominated Bonds & Notes		—		994,567			—		994,567
U.S. Treasury Bills		—		669,395			—		669,395
Preferred Stock		—		125,700			—		125,700
Common Stocks & Other Equity Interests		9		75			1,011		1,095
Money Market Funds		7,084,253		—			—		7,084,253
		14,689,012		173,532,323			1,015		188,222,350
Forward Foreign Currency Contracts*		—		(18,374	)		—		(18,374	)
Swap Agreements*		—		(25,496	)		—		(25,496	)
Total Investments	$	14,689,012	$	173,488,453		$	1,015	$	188,178,480

* Unrealized appreciation (depreciation).

Invesco V.I. High Yield Fund

NOTE 4—Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a Fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Open Forward Foreign Currency Contracts
Settlement Date	Counterparty	Contract to						Notional Value		Unrealized Appreciation (Depreciation)
		Deliver			Receive
08/31/2017	Citigroup Global Markets Inc.		EUR	696,478		USD	782,182	$	798,107	$	(15,925	)
08/31/2017	Citigroup Global Markets Inc.		GBP	353,033		USD	458,248		460,697		(2,449	)
Total Open Forward Foreign Currency Contracts — Currency Risk										$	(18,374	)

Currency Abbreviations:

EUR	– Euro
GBP	– British Pound Sterling
USD	– U.S. Dollar

Open Centrally Cleared Credit Default Swap Agreements-Credit Risk
Counterparty/Clearinghouse	Reference Entity	Buy/Sell Protection		(Pay)/Receive Fixed Rate			Expiration Date		Implied Credit Spread(a)			Notional Value		Upfront Payments Paid		Unrealized Appreciation (Depreciation)
Credit Suisse Securities (USA) LLC/CME	Markit iTraxx Europe Index		Sell		5.00	%		06/20/2022		3.39	%	$	6,500,000	$	471,289	$	(25,496	)

Abbreviations:

CME – Chicago Mercantile Exchange

^(a)  Implied credit spreads represent the current level, as of June 30, 2017, at which protection could be bought or sold given the terms of the existing credit default swap contract and serve as an indicator of the current status of the payment/performance risk of the credit default swap contract. An implied credit 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 generally.

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 June 30, 2017:

	Value
Derivative Liabilities	Credit Risk			Currency Risk			Total
Unrealized depreciation on swap agreements — Centrally Cleared(a)	$	(25,496	)	$	—		$	(25,496	)
Unrealized depreciation on forward foreign currency contracts outstanding		—			(18,374	)		(18,374	)
Total Derivative Liabilities		(25,496	)		(18,374	)		(43,870	)
Derivatives not subject to master netting agreements		25,496			—			25,496
Total Derivative Liabilities subject to master netting agreements	$	—		$	(18,374	)	$	(18,374	)

^(a)  Includes cumulative appreciation (depreciation) on centrally cleared swap agreements. Only current day’s variation margin receivable is reported within 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 June 30, 2017.

	Financial Derivative Assets		Financial Derivative Liabilities						Collateral (Received)/Pledged
Counterparty	Forward Foreign Currency Contracts		Forward Foreign Currency Contracts			Net Value of Derivatives			Non-Cash		Cash		Net Amount
Citigroup Global Markets Inc.	$	—	$	(18,374	)	$	(18,374	)	$	—	$	—	$	(18,374	)

Invesco V.I. High Yield Fund

Effect of Derivative Investments for the six months ended June 30, 2017

The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:

	Location of Gain (Loss) on Statement of Operations
	Credit Risk			Currency Risk			Interest Rate Risk			Total
Realized Gain (Loss):
Forward foreign currency contracts	$	—		$	(68,219	)	$	—		$	(68,219	)
Futures contracts		—			—			(413,456	)		(413,456	)
Swap agreements		69,818			—			—			69,818
Change in Net Unrealized Appreciation (Depreciation):
Forward foreign currency contracts		—			(27,038	)		—			(27,038	)
Futures contracts		—			—			24,152			24,152
Swap agreements		(25,496	)		—			—			(25,496	)
Total	$	44,322		$	(95,257	)	$	(389,304	)	$	(440,239	)

The table below summarizes the six month average notional value of forward foreign currency contracts, four month average notional value of futures contracts and three month average notional value of swap agreements outstanding during the period.

	Forward Foreign Currency Contracts		Futures Contracts		Swap Agreements
Average notional value	$	1,899,021	$	11,305,758	$	6,224,333

NOTE 5—Investments in Affiliates

The Fund’s Adviser and the adviser for PowerShares Senior Loan Portfolio are subsidiaries of Invesco Ltd. and therefore, PowerShares Senior Loan Portfolio is considered to be affiliated with the Fund. The following is a summary of the transactions in, and earnings from, investments in PowerShares Senior Loan Portfolio for the six months ended June 30, 2017.

	Value 12/31/16		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)			Value 06/30/17		Dividend Income
PowerShares Senior Loan Portfolio	$	1,868,800	$	1,167,000	$	(3,018,690	)	$	(13,832	)	$	(3,278	)	$	–	$	42,615

NOTE 6—Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 7—Cash Balances

The Fund may borrow for leveraging in an amount up to 5% of the Fund’s total assets (excluding the amount borrowed) at the time the borrowing is made. In doing so, the Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. Such balances, if any at period end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate. The Fund may not purchase additional securities when any borrowings from banks exceed 5% of the Fund’s total assets.

NOTE 8—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Invesco V.I. High Yield Fund

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund had a capital loss carryforward as of December 31, 2016, which expires as follows:

Capital Loss Carryforward*
Expiration	Short-Term		Long-Term		Total
December 31, 2017	$	3,251,947	$	–	$	3,251,947
Not subject to expiration		5,689,006		6,028,515		11,717,521
	$	8,940,953	$	6,028,515	$	14,969,468

* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

NOTE 9—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2017 was $86,998,366 and $77,416,482, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	6,383,794
Aggregate unrealized (depreciation) of investment securities		(8,643,062	)
Net unrealized appreciation (depreciation) of investment securities	$	(2,259,268	)

Cost of investments for tax purposes is $190,481,618.

NOTE 10—Share Information

	Summary of Share Activity
	Six months ended June 30, 2017(a)						Year ended December 31, 2016
	Shares			Amount			Shares			Amount
Sold:
Series I		7,439,598		$	41,057,438			17,324,848		$	92,655,603
Series II		1,369,771			7,532,452			4,567,922			24,054,376
Issued as reinvestment of dividends:
Series I		—			—			774,024			4,133,290
Series II		—			—			577,961			3,068,973
Reacquired:
Series I		(6,972,548	)		(38,494,206	)		(15,111,083	)		(80,468,968	)
Series II		(949,014	)		(5,216,066	)		(3,757,906	)		(19,637,523	)
Net increase in share activity		887,807		$	4,879,618			4,375,766		$	23,805,751

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 70% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. 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, third party record keeping and account servicing and administrative services. 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.

Invesco V.I. High Yield Fund

NOTE 11—Senior Loan Participation Commitments

The Fund invests in participations, assignments, or acts as a party to the primary lending syndicate of a Senior Loan interest to corporations, partnerships, and other entities. When the Fund purchases a participation of a Senior Loan interest, the Fund typically enters into a contractual agreement with the lender or other third party selling the participation, but not with the borrower directly. As such, the Fund assumes the credit risk of the borrower, selling participant or other persons interpositioned between the Fund and the borrower.

At the six months ended June 30, 2017, the following sets forth the selling participants with respect to interest in Senior Loans purchased by the Fund on a participation basis.

Selling Participant	Principal Amount		Value
Bank of America Securities	$	904,000	$	904,000

NOTE 12—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

	Net asset value, beginning of period		Net investment income(a)		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends from net investment income			Net asset value, end of period		Total return(b)			Net assets, end of period (000’s omitted)		Ratio of expenses to average net assets with fee waivers and/or expenses absorbed			Ratio of expenses to average net assets without fee waivers and/or expenses absorbed			Ratio of net investment income to average net assets			Portfolio turnover(c)
Series I
Six months ended 06/30/17	$	5.40	$	0.13	$	0.09		$	0.22		$	—		$	5.62		4.07	%	$	101,088		0.86	%(d)		0.87	%(d)		4.85	%(d)		44	%
Year ended 12/31/16		5.06		0.28		0.28			0.56			(0.22	)		5.40		11.21			94,653		0.96			0.96			5.25			99
Year ended 12/31/15		5.53		0.29		(0.46	)		(0.17	)		(0.30	)		5.06		(3.17	)		73,594		1.03			1.03			5.23			99
Year ended 12/31/14		5.70		0.29		(0.19	)		0.10			(0.27	)		5.53		1.73			94,345		0.92			0.98			5.11			103
Year ended 12/31/13		5.61		0.33		0.05			0.38			(0.29	)		5.70		7.01			98,455		0.81			1.03			5.79			74
Year ended 12/31/12		5.04		0.33		0.53			0.86			(0.29	)		5.61		17.17			93,529		0.79			1.04			6.10			58
Series II
Six months ended 06/30/17		5.36		0.13		0.08			0.21			—			5.57		3.92			88,552		1.11	(d)		1.12	(d)		4.60	(d)		44
Year ended 12/31/16		5.03		0.26		0.28			0.54			(0.21	)		5.36		10.83			82,971		1.21			1.21			5.00			99
Year ended 12/31/15		5.50		0.27		(0.45	)		(0.18	)		(0.29	)		5.03		(3.37	)		70,840		1.28			1.28			4.98			99
Year ended 12/31/14		5.67		0.28		(0.19	)		0.09			(0.26	)		5.50		1.59			59,683		1.17			1.23			4.86			103
Year ended 12/31/13		5.59		0.32		0.05			0.37			(0.29	)		5.67		6.76			44,416		1.06			1.28			5.54			74
Year ended 12/31/12		5.03		0.32		0.52			0.84			(0.28	)		5.59		16.96			21,004		1.04			1.29			5.85			58

^(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. Total returns are not annualized for periods less than one year, if applicable, and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.

^(c) Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable. For the period ended December 31, 2013, the portfolio turnover calculation excludes the value of securities purchased of $32,385,318 and sold of $10,521,731 in the effort to realign the Fund’s portfolio holdings after the reorganization of Invesco V.I. High Yield Securities Fund into the Fund.

^(d) Ratios are annualized and based on average daily net assets (000’s omitted) of $99,125 and $86,157 for Series I and Series II shares, respectively.

Invesco V.I. High Yield Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2017 through June 30, 2017.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

Class	Beginning Account Value (01/01/17)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/17)1		Expenses Paid During Period2		Ending Account Value (06/30/17)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,040.70	$	4.35	$	1,020.53	$	4.31		0.86	%
Series II		1,000.00		1,039.20		5.61		1,019.29		5.56		1.11

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2017 through June 30, 2017, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

²  Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. High Yield Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco V.I. High Yield Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the 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 PowerShares 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, 2017.

In evaluating the fairness and reasonableness of compensation under the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board determined that continuation of the Fund’s investment advisory agreement and the sub-advisory contracts is in the best interest of the Fund and its shareholders and that the compensation payable to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Board had the benefit of reports from the Sub-Committees and Investments Committee throughout the year in considering approval of the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Board receives comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The

Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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 addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The Trustees recognized that the advisory fee rates for the Invesco Funds are, in most cases, the result of years of review and negotiation. The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these arrangements throughout the year and in prior years. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them 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 discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement 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. This information is current as of June 13, 2017, and does not reflect consideration of factors that became known to the Board after that date.

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 advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers. The Board’s review included consideration of Invesco Advisers’ investment process oversight, credit analysis and investment risk management. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, trading operations, internal audit, valuation and legal and compliance.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the greater uncertainty that may be associated with entering into a new relationship. 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 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 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 in which the Fund may invest, make recommendations regarding securities and assist with security trades. 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 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 Canada Ltd. currently manages assets of the Fund.

The Board compared the Fund’s performance over multiple time periods ending December 31, 2016 to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds High Yield Index. The Board noted that performance of Series I shares of the Fund was in the fourth 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 Series I shares of the Fund was below the performance of the Index for the one and three year periods and above the performance of the Index for the five year period. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees

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 at a common asset level. The Board noted that the contractual

Invesco V.I. High Yield Fund

management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing 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 compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/waivers) to the effective advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, based on asset balances as of December 31, 2016. The Board noted that the Fund’s rate was above the rate of one mutual fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other client accounts with investment strategies comparable to those of the Fund. The Board noted that Invesco Advisers or the Affiliated Sub-Advisers may charge lower fees to large institutional clients. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to certain other types of client accounts. These additional services include provision of administrative services, officers and office space, oversight of service providers, preparation of annual registration statement updates and financial information and regulatory compliance under the Investment Company Act of 1940, as amended.

Invesco Advisers also reviewed generally the higher frequency of shareholder purchases and redemptions in the Invesco Funds relative to the flow of assets for other client accounts. Invesco Advisers advised the Board that advance notice of redemptions is often provided to Invesco Advisers by institutional clients. The Board did note that sub-advisory fee rates charged by the Affiliated Sub-Advisers to manage the Invesco Funds and to manage other client accounts tended to be more comparable, reflecting a similar scope of services.

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 also noted that the sub-advisory fees are not paid directly

by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds advised by Invesco Advisers.

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. 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 and the Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund to be excessive given the nature, quality and extent of the services provided. The Board received and accepted information from Invesco Advisers demonstrating that Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; and that the services are required for the operation of the Fund.

The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. Invesco Advisers noted that the Fund does not execute brokerage transactions through “soft dollar” arrangements to any significant degree.

The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that

Invesco Advisers receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds with respect to certain investments in the affiliated money market funds. The waiver is in 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

Invesco V.I. High Yield Fund

Proxy Results

A Special Joint Meeting (“Meeting”) of Shareholders of Invesco V.I. High Yield Fund, an investment portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), a Delaware statutory trust (“Trust”), was held on March 9, 2017. The Meeting was held for the following purposes:

(1) Elect 15 trustees to the Board, each of whom will serve until his or her successor is elected and qualified.

(2) Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.

(3) Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities.

(4)(a) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC.

(4)(b) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited.

The results of the voting on the above matters were as follows:

	Matters					Votes For		Votes Withheld
(1)*	David C. Arch						1,256,086,249		71,094,301
	James T. Bunch						1,254,410,156		72,770,397
	Bruce L. Crockett						1,258,363,948		68,816,603
	Jack M. Fields						1,255,101,592		72,078,961
	Martin L. Flanagan						1,257,885,397		69,295,160
	Cynthia Hostetler						1,261,335,247		65,845,303
	Dr. Eli Jones						1,257,497,296		69,683,257
	Dr. Prema Mathai-Davis						1,254,728,756		72,451,795
	Teresa M. Ressel						1,261,829,473		65,351,074
	Dr. Larry Soll						1,254,261,019		72,919,533
	Ann Barnett Stern						1,260,861,373		66,319,176
	Raymond Stickel, Jr.						1,254,379,471		72,801,083
	Philip A. Taylor						1,256,589,912		70,590,639
	Robert C. Troccoli						1,260,867,549		66,313,003
	Christopher L. Wilson						1,260,186,985		66,993,567
		Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(2)*	Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.		1,054,920,918		171,591,974		100,667,642		18
	Matters	Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(3)	Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities		21,292,742		1,966,589		2,208,774		1
(4)(a)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC		22,213,290		1,164,443		2,090,372		1
(4)(b)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited		21,796,998		1,613,800		2,057,308		0

* Each of proposal 1 and 2 required approval by a combined vote of all of the portfolios of AIM Variable Insurance Funds (Invesco Variable Insurance Funds).

Invesco V.I. High Yield Fund

	Semiannual Report to Shareholders	June 30, 2017
	Invesco V.I. International Growth Fund
	The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.     A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.     Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/ proxysearch. The information is also available on the SEC website, sec.gov.     Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
	This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.
	NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc.                                               VIIGR-SAR-1         07182017    1008

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/16 to 6/30/17, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	14.23%
Series II Shares	14.09
MSCI All Country World ex-U.S. Index▼ (Broad Market Index)	14.10
Custom Invesco International Growth Index⬛ (Style-Specific Index)	17.38
Lipper VUF International Large-Cap Growth Funds Index◆ (Peer Group Index)	17.19
Source(s): ▼FactSet Research Systems Inc.; ⬛Invesco, FactSet Research Systems Inc.; ◆Lipper Inc.
The MSCI All Country World ex-U.S. Index is an index considered representative of developed and emerging market stock markets, excluding the US. The index is computed using the net return, which withholds applicable taxes for non-resident investors. The Custom Invesco International Growth Index is composed of the MSCI EAFE Growth Index through February 28, 2013, and the MSCI All Country World ex-U.S. Growth Index thereafter. The Lipper VUF International Large-Cap Growth Funds Index is an unmanaged index considered representative of international large-cap growth variable insurance underlying funds tracked by Lipper. The MSCI EAFE® Growth Index is an unmanaged index considered representative of growth stocks of Europe, Australasia and the Far East. The index is computed using the net return, which withholds applicable taxes for non-resident investors. The MSCI All Country World ex-U.S. Growth Index is a market capitalization weighted index that includes growth companies in developed and emerging markets throughout the world, excluding the US. The index is computed using the net return, which withholds applicable taxes for non-resident investors. The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

    The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.92% and 1.17%, respectively.¹ The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.93% and 1.18%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Average Annual Total Returns
As of 6/30/17
Series I Shares
Inception (5/5/93)	7.23	%
10 Years	2.82
5 Years	7.96
1 Year	14.46
Series II Shares
Inception (9/19/01)	7.48	%
10 Years	2.56
5 Years	7.69
1 Year	14.16

    Invesco V.I. International Growth Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

     The most recent month-end performance at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

     Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

1 Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2019. See current prospectus for more information.

Invesco V.I. International Growth Fund

Schedule of Investments

June 30, 2017

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–91.28%
Australia–4.10%
Amcor Ltd.		3,618,184	$	45,081,909
Brambles Ltd.		2,180,705		16,309,415
CSL Ltd.		182,679		19,412,157
				80,803,481
Brazil–4.68%
B3 S.A. — Brasil, Bolsa, Balcão		5,752,334		34,287,102
Banco Bradesco S.A.–ADR		2,206,614		18,756,219
Cielo S.A.		4,363,589		32,396,532
Kroton Educacional S.A.		1,532,993		6,879,719
				92,319,572
Canada–8.14%
Canadian National Railway Co.		260,966		21,173,492
Cenovus Energy Inc.		1,715,118		12,643,350
CGI Group Inc.–Class A(a)		870,560		44,479,551
Fairfax Financial Holdings Ltd.		45,617		19,768,832
Great-West Lifeco Inc.		579,730		15,713,081
PrairieSky Royalty Ltd.		877,394		19,978,752
Suncor Energy, Inc.		912,565		26,662,365
				160,419,423
China–2.70%
Baidu, Inc.–ADR(a)		92,829		16,603,395
Kweichow Moutai Co., Ltd.–Class A		524,997		36,531,999
				53,135,394
Denmark–2.10%
Carlsberg A/S–Class B		386,146		41,338,944
France–4.02%
Essilor International S.A.		122,888		15,712,473
Pernod Ricard S.A.		84,917		11,383,755
Publicis Groupe S.A.		265,699		19,905,797
Schneider Electric S.E.		417,963		32,171,430
				79,173,455
Germany–9.28%
Allianz S.E.		181,579		35,783,576
Deutsche Boerse AG		504,265		53,326,683
Deutsche Post AG		522,784		19,616,933
ProSiebenSat.1 Media S.E.		514,486		21,530,403
SAP S.E.		503,263		52,600,636
				182,858,231
Hong Kong–3.60%
CK Hutchison Holdings Ltd.		3,338,768		41,908,327
Galaxy Entertainment Group Ltd.		4,777,000		29,001,576
				70,909,903

	Shares		Value
Israel–1.73%
Teva Pharmaceutical Industries Ltd.–ADR		1,027,547	$	34,135,111
Italy–1.01%
Intesa Sanpaolo S.p.A.		6,216,295		19,830,749
Japan–5.89%
FANUC Corp.		74,300		14,348,256
Japan Tobacco, Inc.		988,500		34,745,104
Kao Corp.		285,400		16,963,957
Keyence Corp.		31,700		13,953,962
Komatsu Ltd.		386,337		9,849,474
Yahoo! Japan Corp.		6,052,700		26,316,087
				116,176,840
Mexico–3.12%
Fomento Economico Mexicano, S.A.B. de C.V.–ADR		453,779		44,624,627
Grupo Televisa S.A.B.–ADR		694,533		16,925,769
				61,550,396
Netherlands–1.06%
Wolters Kluwer N.V.		494,528		20,956,787
Singapore–1.24%
United Overseas Bank Ltd.		1,451,300		24,371,046
South Korea–2.25%
NAVER Corp.		43,879		32,046,062
Samsung Electronics Co., Ltd.		5,920		12,299,054
				44,345,116
Spain–1.42%
Amadeus IT Group S.A.		468,707		28,024,719
Sweden–3.21%
Getinge AB–Class B		674,213		13,226,523
Investor AB–Class B		863,050		41,739,282
Telefonaktiebolaget LM Ericsson–Class B		1,153,865		8,320,687
				63,286,492
Switzerland–6.83%
Cie Financiere Richemont S.A.		275,394		22,723,655
Julius Baer Group Ltd.		594,674		31,338,824
Kuehne + Nagel International AG		64,115		10,716,789
Novartis AG		163,272		13,633,965
Roche Holding AG		93,897		23,974,041
UBS Group AG		1,900,410		32,259,017
				134,646,291
Taiwan–2.29%
Taiwan Semiconductor Manufacturing Co. Ltd.–ADR		1,289,524		45,081,759

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. International Growth Fund

	Shares		Value
Thailand–1.63%
Kasikornbank PCL–NVDR		5,491,700	$	32,122,650
Turkey–1.01%
Akbank T.A.S.		7,155,731		19,928,433
United Kingdom–17.70%
Aberdeen Asset Management PLC		3,612,261		14,230,799
British American Tobacco PLC		615,272		41,889,045
Compass Group PLC		1,685,227		35,557,766
Informa PLC		2,650,879		23,118,470
Lloyds Banking Group PLC		32,280,005		27,861,761
Next PLC		412,369		20,710,190
RELX PLC		2,504,217		54,191,091
Royal Dutch Shell PLC–Class B		511,776		13,747,855
Sky PLC		3,362,618		43,533,640
Smith & Nephew PLC		1,164,913		20,121,897
Unilever N.V.		573,913		31,717,310
WPP PLC		1,054,572		22,168,731
				348,848,555

	Shares		Value
United States–2.27%
Broadcom Ltd.		191,781	$	44,694,562
Total Common Stocks & Other Equity Interests (Cost $1,297,271,152)				1,798,957,909
Money Market Funds–8.54%
Government & Agency Portfolio–Institutional Class, 0.89%(b)		101,016,983		101,016,983
Treasury Portfolio–Institutional Class, 0.85%(b)		67,344,656		67,344,656
Total Money Market Funds (Cost $168,361,639)				168,361,639
TOTAL INVESTMENTS–99.82% (Cost $1,465,632,791)				1,967,319,548
OTHER ASSETS LESS LIABILITIES–0.18%				3,544,916
NET ASSETS–100.00%			$	1,970,864,464

Investment Abbreviations:

ADR	– American Depositary Receipt
NVDR	– Non-Voting Depositary Receipt

Notes to Schedule of Investments:

^(a)  Non-income producing security.

^(b)  The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of June 30, 2017.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2017

Financials	21.4	%
Information Technology	18.1
Consumer Discretionary	13.3
Consumer Staples	13.2
Industrials	12.2
Health Care	7.1
Energy	3.7
Materials	2.3
Money Market Funds Plus Other Assets Less Liabilities	8.7

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. International Growth Fund

Statement of Assets and Liabilities

June 30, 2017

(Unaudited)

Statement of Operations

For the six months ended June 30, 2017

(Unaudited)

Assets:
Investments, at value (Cost $1,297,271,152)	$	1,798,957,909
Investments in affiliated money market funds, at value and cost		168,361,639
Total investments, at value (Cost $1,465,632,791)		1,967,319,548
Foreign currencies, at value (Cost $2,367,933)		2,332,787
Receivable for:
Investments sold		2,933,451
Fund shares sold		1,115,207
Dividends		7,631,057
Investment for trustee deferred compensation and retirement plans		255,448
Other assets		190
Total assets		1,981,587,688
Liabilities:
Payable for:
Investments purchased		6,532,882
Fund shares reacquired		1,414,382
Accrued foreign taxes		696,284
Accrued fees to affiliates		1,568,606
Accrued trustees’ and officers’ fees and benefits		8,788
Accrued other operating expenses		216,884
Trustee deferred compensation and retirement plans		285,398
Total liabilities		10,723,224
Net assets applicable to shares outstanding	$	1,970,864,464
Net assets consist of:
Shares of beneficial interest	$	1,467,489,415
Undistributed net investment income		31,406,615
Undistributed net realized gain (loss)		(29,798,708	)
Net unrealized appreciation		501,767,142
	$	1,970,864,464
Net Assets:
Series I	$	597,622,360
Series II	$	1,373,242,104
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		15,908,502
Series II		37,100,606
Series I:
Net asset value per share	$	37.57
Series II:
Net asset value per share	$	37.01

Investment income:
Dividends (net of foreign withholding taxes of $2,758,678)	$	28,714,939
Dividends from affiliated money market funds		427,281
Total investment income		29,142,220
Expenses:
Advisory fees		6,568,473
Administrative services fees		1,585,294
Custodian fees		311,311
Distribution fees — Series II		1,611,896
Transfer agent fees		53,917
Trustees’ and officers’ fees and benefits		22,064
Reports to shareholders		170,611
Professional services fees		29,808
Other		16,169
Total expenses		10,369,543
Less: Fees waived		(74,118	)
Net expenses		10,295,425
Net investment income		18,846,795
Realized and unrealized gain from:
Net realized gain from:
Investment securities		36,490,988
Foreign currencies		212,378
		36,703,366
Change in net unrealized appreciation of:
Investment securities (net of foreign taxes of $356,483)		189,615,141
Foreign currencies		262,241
		189,877,382
Net realized and unrealized gain		226,580,748
Net increase in net assets resulting from operations	$	245,427,543

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. International Growth Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2017 and the year ended December 31, 2016

(Unaudited)

	June 30, 2017			December 31, 2016
Operations:
Net investment income	$	18,846,795		$	23,189,171
Net realized gain (loss)		36,703,366			(1,173,971	)
Change in net unrealized appreciation (depreciation)		189,877,382			(36,501,234	)
Net increase (decrease) in net assets resulting from operations		245,427,543			(14,486,034	)
Distributions to shareholders from net investment income:
Series I		—			(7,627,878	)
Series ll		—			(14,078,193	)
Total distributions from net investment income		—			(21,706,071	)
Share transactions–net:
Series l		(18,671,812	)		(51,402,690	)
Series ll		35,828,501			24,291,791
Net increase (decrease) in net assets resulting from share transactions		17,156,689			(27,110,899	)
Net increase (decrease) in net assets		262,584,232			(63,303,004	)
Net assets:
Beginning of period		1,708,280,232			1,771,583,236
End of period (includes undistributed net investment income of $31,406,615 and $12,559,820, respectively)	$	1,970,864,464		$	1,708,280,232

Notes to Financial Statements

June 30, 2017

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. International Growth Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance 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 consisting of twenty-four separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

The Fund’s investment objective is long-term growth of capital.

The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services — Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for

Invesco V.I. International Growth Fund

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. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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.

Invesco V.I. International Growth Fund

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 and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. 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 date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

J. Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays 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		0.75%
Over $250 million		0.70%

For the six months ended June 30, 2017, the effective advisory fees incurred by the Fund was 0.71%.

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 PowerShares Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2018, 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

Invesco V.I. International Growth Fund

below) of Series I shares to 2.25% and Series II shares to 2.50% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2018. During its term, the fee waiver agreement cannot be terminated or amended to increase expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2019, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended June 30, 2017, the Adviser waived advisory fees of $74,118.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2017, Invesco was paid $197,698 for accounting and fund administrative services and was reimbursed $1,387,596 for fees paid to insurance companies.

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. For the six months ended June 30, 2017, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2017, expenses incurred under the Plan are detailed 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of June 30, 2017. 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.

Invesco V.I. International Growth Fund

During the six months ended June 30, 2017, there were transfers from Level 1 to Level 2 of $323,682,861 and from Level 2 to Level 1 of $339,312,516, due to foreign fair value adjustments.

	Level 1		Level 2		Level 3		Total
Australia	$	61,391,324	$	19,412,157	$	—	$	80,803,481
Brazil		92,319,572		—		—		92,319,572
Canada		160,419,423		—		—		160,419,423
China		53,135,394		—		—		53,135,394
Denmark		—		41,338,944		—		41,338,944
France		—		79,173,455		—		79,173,455
Germany		21,530,403		161,327,828		—		182,858,231
Hong Kong		70,909,903		—		—		70,909,903
Israel		34,135,111		—		—		34,135,111
Italy		—		19,830,749		—		19,830,749
Japan		26,316,087		89,860,753		—		116,176,840
Mexico		61,550,396		—		—		61,550,396
Netherlands		—		20,956,787		—		20,956,787
Singapore		24,371,046		—		—		24,371,046
South Korea		12,299,054		32,046,062		—		44,345,116
Spain		28,024,719		—		—		28,024,719
Sweden		—		63,286,492		—		63,286,492
Switzerland		—		134,646,291		—		134,646,291
Taiwan		45,081,759		—		—		45,081,759
Thailand		—		32,122,650		—		32,122,650
Turkey		19,928,433		—		—		19,928,433
United Kingdom		135,718,182		213,130,373		—		348,848,555
United States		44,694,562		—		—		44,694,562
Money Market Funds		168,361,639		—		—		168,361,639
Total Investments	$	1,060,187,007	$	907,132,541	$	—	$	1,967,319,548

NOTE 4—Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 5—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 6—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

Invesco V.I. International Growth Fund

The Fund had a capital loss carryforward as of December 31, 2016, which expires as follows:

Capital Loss Carryforward*
Expiration	Short-Term		Long-Term		Total
December 31, 2017	$	6,001,009	$	—	$	6,001,009
December 31, 2018		37,802,555		—		37,802,555
	$	43,803,564	$	—	$	43,803,564

* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2017 was $269,984,646 and $294,418,759, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	510,176,173
Aggregate unrealized (depreciation) of investment securities		(44,014,203	)
Net unrealized appreciation of investment securities	$	466,161,970

Cost of investments for tax purposes is $1,501,157,578.

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended June 30, 2017(a)						Year ended December 31, 2016
	Shares			Amount			Shares			Amount
Sold:
Series I		1,202,198		$	42,280,387			2,604,909		$	86,162,855
Series II		4,358,306			150,506,678			8,332,304			275,601,981
Issued as reinvestment of dividends:
Series I		—			—			219,998			7,587,737
Series II		—			—			413,456			14,078,193
Reacquired:
Series I		(1,727,403	)		(60,952,199	)		(4,361,304	)		(145,153,282	)
Series II		(3,252,581	)		(114,678,177	)		(8,151,842	)		(265,388,383	)
Net increase (decrease) in share activity		580,520		$	17,156,689			(942,479	)	$	(27,110,899	)

^(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. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. 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, third party record keeping and account servicing and administrative services. 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.

Invesco V.I. International Growth Fund

NOTE 9—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

	Net asset value, beginning of period		Net investment income(a)		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends from net investment income			Net asset value, end of period		Total return(b)			Net assets, end of period (000’s omitted)		Ratio of expenses to average net assets with fee waivers and/or expenses absorbed			Ratio of expenses to average net assets without fee waivers and/or expenses absorbed			Ratio of net investment income to average net assets			Portfolio turnover(c)
Series I
Six months ended 06/30/17	$	32.89	$	0.39	$	4.29		$	4.68		$	—		$	37.57		14.23	%	$	597,622		0.93	%(d)		0.94	%(d)		2.21	%(d)		16	%
Year ended 12/31/16		33.49		0.50		(0.63	)		(0.13	)		(0.47	)		32.89		(0.45	)		540,460		0.95			0.96			1.51			18
Year ended 12/31/15		34.87		0.48		(1.33	)		(0.85	)		(0.53	)		33.49		(2.34	)		601,760		1.00			1.01			1.35			22
Year ended 12/31/14		35.32		0.56		(0.44	)		0.12			(0.57	)		34.87		0.33			647,530		1.01			1.02			1.58			26
Year ended 12/31/13		30.03		0.44		5.25			5.69			(0.40	)		35.32		19.01			686,305		1.01			1.02			1.37			24
Year ended 12/31/12		26.37		0.35		3.73			4.08			(0.42	)		30.03		15.53			591,491		1.00			1.01			1.24			24
Series II
Six months ended 06/30/17		32.44		0.34		4.23			4.57			—			37.01		14.09			1,373,242		1.18	(d)		1.19	(d)		1.96	(d)		16
Year ended 12/31/16		33.04		0.41		(0.62	)		(0.21	)		(0.39	)		32.44		(0.70	)		1,167,820		1.20			1.21			1.26			18
Year ended 12/31/15		34.42		0.38		(1.31	)		(0.93	)		(0.45	)		33.04		(2.61	)		1,169,823		1.25			1.26			1.10			22
Year ended 12/31/14		34.88		0.47		(0.43	)		0.04			(0.50	)		34.42		0.09			1,079,488		1.26			1.27			1.33			26
Year ended 12/31/13		29.68		0.36		5.18			5.54			(0.34	)		34.88		18.72			1,062,929		1.26			1.27			1.12			24
Year ended 12/31/12		26.08		0.28		3.69			3.97			(0.37	)		29.68		15.26			827,361		1.25			1.26			0.99			24

^(a)  Calculated using average shares outstanding.

^(b)  Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year, if applicable, and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.

^(c)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(d)  Ratios are annualized and based on average daily net assets (000’s omitted) of $574,199 and $1,300,204 for Series I and Series II shares, respectively.

Invesco V.I. International Growth Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2017 through June 30, 2017.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

Class	Beginning Account Value (01/01/17)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/17)1		Expenses Paid During Period2		Ending Account Value (06/30/17)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,142.30	$	4.94	$	1,020.18	$	4.66		0.93	%
Series II		1,000.00		1,140.90		6.26		1,018.94		5.91		1.18

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2017 through June 30, 2017, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

²  Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. International Growth Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco V.I. International Growth Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the 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 PowerShares 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, 2017.

In evaluating the fairness and reasonableness of compensation under the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board determined that continuation of the Fund’s investment advisory agreement and the sub-advisory contracts is in the best interest of the Fund and its shareholders and that the compensation payable to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Board had the benefit of reports from the Sub-Committees and Investments Committee throughout the year in considering approval of the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Board receives comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The

Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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 addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The Trustees recognized that the advisory fee rates for the Invesco Funds are, in most cases, the result of years of review and negotiation. The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these arrangements throughout the year and in prior years. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them 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 discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement 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. This information is current as of June 13, 2017, and does not reflect consideration of factors that became known to the Board after that date.

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 advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers. The Board’s review included consideration of Invesco Advisers’ investment process oversight, credit analysis and investment risk management. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, trading operations, internal audit, valuation and legal and compliance.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the greater uncertainty that may be associated with entering into a new relationship. 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 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 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 in which the Fund may invest, make recommendations regarding securities and assist with security trades. 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 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 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, 2016 to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds International Large-Cap Growth Funds Index. The Board noted that performance of Series I shares of the Fund was in the second quintile of its performance universe for the one and five year periods and the first quintile for the three year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series I shares of the Fund was above 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 Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees

The Board compared the Fund’s contractual management fee rate to the contractual

Invesco V.I. International Growth Fund

management fee rates of funds in the Fund’s Broadridge expense group at a common asset level. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing 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 compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/waivers) to the effective advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, based on asset balances as of December 31, 2016. The Board noted that the Fund’s rate was below the rate of one such mutual fund. The Board also noted how the Fund’s rate compared to the effective advisory fee rate of two off shore funds advised by Invesco Advisers and its affiliates and the effective sub-adviser fee rate of other funds sub-advised by Invesco Advisers.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other client accounts with investment strategies comparable to those of the Fund. The Board noted that Invesco Advisers or the Affiliated Sub-Advisers may charge lower fees to large institutional clients. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to certain other types of client accounts. These additional services include provision of administrative services, officers and office space, oversight of service providers, preparation of annual registration statement updates and financial information and regulatory compliance under the Investment Company Act of 1940, as amended.

Invesco Advisers also reviewed generally the higher frequency of shareholder purchases and redemptions in the Invesco Funds relative to the flow of assets for other client accounts. Invesco Advisers advised the Board that advance notice of redemptions is often provided to Invesco Advisers by institutional clients. The Board did note that sub-advisory fee rates charged by the Affiliated Sub-Advisers to manage the Invesco Funds and to manage other client accounts

tended to be more comparable, reflecting a similar scope of services.

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 also noted that the sub-advisory fees are not paid directly by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds advised by Invesco Advisers.

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. 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 and the Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund to be excessive given the nature, quality and extent of the services provided. The Board received and accepted information from Invesco Advisers demonstrating that Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; and 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 Adviser’s or the Affiliated Sub-Adviser’s expenses. The Board also considered that it receives periodic reports from the Chief Compliance Officer of the Invesco Funds demonstrating 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 money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds with respect to certain investments in the affiliated money market funds. The waiver is in 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that the Fund may use an affiliated broker to execute certain trades for the Fund to, among other things, control information leakage, and was advised that such trades would be executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. International Growth Fund

Proxy Results

A Special Joint Meeting (“Meeting”) of Shareholders of Invesco V.I. International Growth Fund, an investment portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), a Delaware statutory trust (“Trust”), was held on March 9, 2017. The Meeting was held for the following purposes:

(1) Elect 15 trustees to the Board, each of whom will serve until his or her successor is elected and qualified.

(2) Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.

(3) Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities.

(4)(a) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC.

(4)(b) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited.

The results of the voting on the above matters were as follows:

	Matters					Votes For		Votes Withheld
(1)*	David C. Arch						1,256,086,249		71,094,301
	James T. Bunch						1,254,410,156		72,770,397
	Bruce L. Crockett						1,258,363,948		68,816,603
	Jack M. Fields						1,255,101,592		72,078,961
	Martin L. Flanagan						1,257,885,397		69,295,160
	Cynthia Hostetler						1,261,335,247		65,845,303
	Dr. Eli Jones						1,257,497,296		69,683,257
	Dr. Prema Mathai-Davis						1,254,728,756		72,451,795
	Teresa M. Ressel						1,261,829,473		65,351,074
	Dr. Larry Soll						1,254,261,019		72,919,533
	Ann Barnett Stern						1,260,861,373		66,319,176
	Raymond Stickel, Jr.						1,254,379,471		72,801,083
	Philip A. Taylor						1,256,589,912		70,590,639
	Robert C. Troccoli						1,260,867,549		66,313,003
	Christopher L. Wilson						1,260,186,985		66,993,567
		Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(2)*	Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.		1,054,920,918		171,591,974		100,667,642		18
	Matters	Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(3)	Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities		31,313,981		3,945,732		3,115,649		0
(4)(a)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC		33,595,366		1,952,982		2,827,012		2
(4)(b)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited		32,781,127		2,614,625		2,979,610		0

* Each of proposal 1 and 2 required approval by a combined vote of all of the portfolios of AIM Variable Insurance Funds (Invesco Variable Insurance Funds).

Invesco V.I. International Growth Fund

	Semiannual Report to Shareholders	June 30, 2017
	Invesco V.I. Managed Volatility Fund
	The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.     A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.     Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/ proxysearch. The information is also available on the SEC website, sec.gov.     Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
	This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.
	NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc.                                               I-VIMGV-SAR-1         08042017    0933

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/16 to 6/30/17, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	4.01%
Series II Shares	3.88
Russell 1000 Value Index▼ (Broad Market Index)	4.66
Bloomberg Barclays U.S. Government/Credit Index▼ (Style-Specific Index)	2.66
Lipper VUF Mixed-Asset Target Allocation Growth Funds Index⬛ (Peer Group Index)	8.59
Source(s): ▼FactSet Research Systems Inc.; ⬛Lipper Inc.
The Russell 1000® Value Index is an unmanaged index considered representative of large-cap value stocks. The Russell 1000 Value Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co. The Bloomberg Barclays U.S. Government/Credit Index is a broad-based benchmark that includes investment grade, US dollar-denominated, fixed rate Treasuries and government-related and corporate securities. The Lipper VUF Mixed-Asset Target Allocation Growth Funds Index is an unmanaged index considered representative of mixed-asset target allocation growth variable insurance underlying funds tracked by Lipper. The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/17
Series I Shares
Inception (12/30/94)	7.37	%
10 Years	4.84
5 Years	8.45
1 Year	15.87
Series II Shares
Inception (4/30/04)	9.15	%
10 Years	4.57
5 Years	8.17
1 Year	15.52

The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

    The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 1.16% and 1.41%, respectively.¹ The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 1.17% and 1.42%, respectively. The expense ratios presented above may vary from the expense

ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

    Invesco V.I. Managed Volatility Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

    The most recent month-end performance at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

1 Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2019. See current prospectus for more information.

Invesco V.I. Managed Volatility Fund

Schedule of Investments^(a)

June 30, 2017

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–64.39%
Aerospace & Defense–1.05%
General Dynamics Corp.		2,673	$	529,521
Apparel, Accessories & Luxury Goods–0.46%
Michael Kors Holdings Ltd.(b)		6,374		231,058
Asset Management & Custody Banks–1.88%
Northern Trust Corp.		4,030		391,756
State Street Corp.		6,205		556,775
				948,531
Automobile Manufacturers–0.99%
General Motors Co.		14,285		498,975
Biotechnology–0.48%
Amgen Inc.		1,400		241,122
Broadcasting–0.19%
CBS Corp.–Class B		1,486		94,777
Building Products–0.99%
Johnson Controls International PLC		11,467		497,209
Cable & Satellite–1.69%
Charter Communications, Inc.–Class A(b)		987		332,471
Comcast Corp.–Class A		13,412		521,995
				854,466
Communications Equipment–1.91%
Cisco Systems, Inc.		16,371		512,412
Juniper Networks, Inc.		16,193		451,461
				963,873
Construction Machinery & Heavy Trucks–0.69%
Caterpillar Inc.		3,238		347,955
Data Processing & Outsourced Services–0.68%
PayPal Holdings, Inc.(b)		6,437		345,474
Diversified Banks–9.24%
Bank of America Corp.		58,814		1,426,828
Citigroup Inc.		27,263		1,823,349
JPMorgan Chase & Co.		15,421		1,409,479
				4,659,656
Diversified Metals & Mining–0.47%
BHP Billiton Ltd. (Australia)		13,376		238,607
Drug Retail–1.99%
CVS Health Corp.		4,766		383,472
Walgreens Boots Alliance, Inc.		7,919		620,137
				1,003,609
Electric Utilities–0.83%
FirstEnergy Corp.		5,083		148,220
PG&E Corp.		4,109		272,715
				420,935

	Shares		Value
Fertilizers & Agricultural Chemicals–1.20%
Agrium Inc. (Canada)		2,476	$	224,053
Mosaic Co. (The)		16,663		380,417
				604,470
Health Care Distributors–0.72%
Cardinal Health, Inc.		4,660		363,107
Health Care Equipment–1.72%
Baxter International Inc.		6,691		405,073
Medtronic PLC		5,226		463,808
				868,881
Health Care Facilities–0.34%
HealthSouth Corp.		3,525		170,592
Home Improvement Retail–0.57%
Kingfisher PLC (United Kingdom)		73,632		288,377
Hotels, Resorts & Cruise Lines–1.28%
Carnival Corp.		9,867		646,979
Industrial Conglomerates–0.68%
General Electric Co.		12,694		342,865
Industrial Machinery–0.81%
Ingersoll-Rand PLC		4,458		407,417
Insurance Brokers–2.18%
Aon PLC		3,820		507,869
Marsh & McLennan Cos., Inc.		3,549		276,680
Willis Towers Watson PLC		2,163		314,630
				1,099,179
Integrated Oil & Gas–3.56%
Exxon Mobil Corp.		3,192		257,690
Occidental Petroleum Corp.		9,315		557,689
Royal Dutch Shell PLC–Class A (United Kingdom)		23,926		635,548
TOTAL S.A. (France)		6,992		346,429
				1,797,356
Integrated Telecommunication Services–0.57%
Orange S.A. (France)		4,839		77,083
Verizon Communications Inc.		4,698		209,812
				286,895
Internet Software & Services–0.89%
eBay Inc.(b)		12,814		447,465
Investment Banking & Brokerage–3.60%
Charles Schwab Corp. (The)		9,397		403,695
Goldman Sachs Group, Inc. (The)		1,807		400,973
Morgan Stanley		22,682		1,010,710
				1,815,378

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Managed Volatility Fund

	Shares		Value
IT Consulting & Other Services–0.91%
Cognizant Technology Solutions Corp.–Class A		6,904	$	458,426
Managed Health Care–0.61%
Anthem, Inc.		1,637		307,969
Movies & Entertainment–0.56%
Time Warner Inc.		2,818		282,955
Oil & Gas Equipment & Services–1.90%
Baker Hughes, a GE Co., LLC		8,777		478,434
TechnipFMC PLC (United Kingdom)(b)		17,752		482,855
				961,289
Oil & Gas Exploration & Production–3.22%
Apache Corp.		13,671		655,251
Canadian Natural Resources Ltd. (Canada)		16,157		466,203
Devon Energy Corp.		15,718		502,504
				1,623,958
Other Diversified Financial Services–0.44%
Voya Financial, Inc.		6,057		223,443
Packaged Foods & Meats–0.65%
Mondelez International, Inc.–Class A		7,629		329,497
Pharmaceuticals–3.69%
Merck & Co., Inc.		7,718		494,647
Novartis AG (Switzerland)		5,106		426,374
Pfizer Inc.		17,029		572,004
Sanofi (France)		3,820		367,148
				1,860,173
Railroads–0.77%
CSX Corp.		7,089		386,776
Regional Banks–5.60%
BB&T Corp.		3,178		144,313
Citizens Financial Group, Inc.		22,187		791,632
Comerica Inc.		5,696		417,175
Fifth Third Bancorp		21,260		551,910
First Horizon National Corp.		14,772		257,328
PNC Financial Services Group, Inc. (The)		5,327		665,183
				2,827,541
Semiconductors–1.52%
Intel Corp.		9,867		332,913
QUALCOMM Inc.		7,820		431,820
				764,733
Systems Software–1.63%
Oracle Corp.		16,410		822,797
Tobacco–0.73%
Philip Morris International Inc.		3,118		366,209

	Shares		Value
Wireless Telecommunication Services–0.50%
Vodafone Group PLC–ADR (United Kingdom)		8,797	$	252,738
Total Common Stocks & Other Equity Interests (Cost $26,912,273)				32,483,233
	Principal Amount
Bonds & Notes–22.55%
Aerospace & Defense–0.19%
Northrop Grumman Corp., Sr. Unsec. Global Notes, 1.75%, 06/01/2018	$	60,000		60,074
Precision Castparts Corp., Sr. Unsec. Global Notes, 1.25%, 01/15/2018		25,000		24,981
United Technologies Corp., Sr. Unsec. Global Notes, 4.05%, 05/04/2047		9,000		9,241
				94,296
Air Freight & Logistics–0.14%
United Parcel Service, Inc., Sr. Unsec. Global Notes, 1.13%, 10/01/2017		65,000		64,978
Sr. Unsec. Notes, 3.40%, 11/15/2046		4,000		3,822
				68,800
Airlines–0.12%
American Airlines Pass Through Trust, Series 2014-1, Class A, Sr. Sec. First Lien Pass Through Ctfs., 3.70%, 04/01/2028		21,446		22,116
United Airlines Pass Through Trust, Series 2014-2, Class A, Sr. Sec. First Lien Pass Through Ctfs., 3.75%, 09/03/2026		27,413		28,510
Virgin Australia Pass Through Trust (Australia), Series 2013-1, Class A, Sec. Gtd. Pass Through Ctfs., 5.00%, 04/23/2025(c)		10,726		11,101
				61,727
Apparel Retail–0.03%
Ross Stores, Inc., Sr. Unsec. Notes, 3.38%, 09/15/2024		16,000		16,297
Application Software–0.53%
Citrix Systems, Inc., Sr. Unsec. Conv. Bonds, 0.50%, 04/15/2019		117,000		140,766
Nuance Communications, Inc., Sr. Unsec. Conv. Bonds, 1.00%, 12/15/2022(d)		106,000		102,687
RealPage, Inc., Sr. Unsec. Conv. Notes, 1.50%, 11/15/2022(c)		24,000		26,235
				269,688
Asset Management & Custody Banks–0.67%
Apollo Management Holdings L.P., Sr. Unsec. Gtd. Notes, 4.00%, 05/30/2024(c)		40,000		40,753
Blackstone Holdings Finance Co. LLC, Sr. Unsec. Gtd. Notes, 5.00%, 06/15/2044(c)		150,000		164,689
Brookfield Asset Management Inc. (Canada), Sr. Unsec. Notes, 4.00%, 01/15/2025		25,000		25,414

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Managed Volatility Fund

	Principal Amount		Value
Asset Management & Custody Banks–(continued)
Carlyle Holdings Finance LLC, Sr. Unsec. Gtd. Notes, 3.88%, 02/01/2023(c)	$	15,000	$	15,429
KKR Group Finance Co. III LLC, Sr. Unsec. Gtd. Bonds, 5.13%, 06/01/2044(c)		85,000		89,987
				336,272
Automobile Manufacturers–0.48%
Ford Motor Credit Co. LLC, Sr. Unsec. Global Notes, 4.13%, 08/04/2025		200,000		202,725
General Motors Co., Sr. Unsec. Global Notes, 6.60%, 04/01/2036		16,000		18,665
General Motors Financial Co., Inc., Sr. Unsec. Gtd. Global Notes, 5.25%, 03/01/2026		21,000		22,672
				244,062
Biotechnology–0.74%
AbbVie Inc., Sr. Unsec. Global Notes, 4.50%, 05/14/2035		38,000		40,220
BioMarin Pharmaceutical Inc., Sr. Unsec. Sub. Conv. Notes, 1.50%, 10/15/2020		117,000		139,742
Celgene Corp., Sr. Unsec. Global Notes, 4.63%, 05/15/2044		100,000		105,515
Gilead Sciences, Inc., Sr. Unsec. Global Notes, 4.40%, 12/01/2021		25,000		26,997
Neurocrine Biosciences, Inc., Sr. Unsec. Conv. Notes, 2.25%, 05/15/2024(c)		62,000		61,729
				374,203
Brewers–0.44%
Anheuser-Busch InBev Finance, Inc. (Belgium), Sr. Unsec. Gtd. Global Notes, 2.65%, 02/01/2021		30,000		30,426
3.30%, 02/01/2023		25,000		25,753
4.70%, 02/01/2036		45,000		49,490
4.90%, 02/01/2046		47,000		53,489
Heineken NV (Netherlands), Sr. Unsec. Notes, 3.50%, 01/29/2028(c)		35,000		35,698
Molson Coors Brewing Co., Sr. Unsec. Gtd. Global Notes, 1.45%, 07/15/2019		13,000		12,856
4.20%, 07/15/2046		16,000		15,874
				223,586
Broadcasting–0.87%
Liberty Media Corp.,
Sr. Unsec. Conv. Deb., 2.25%, 10/05/2021(c)(d)		55,000		59,469
Sr. Unsec. Conv. Notes, 1.00%, 01/30/2023(c)		20,000		23,262
1.38%, 10/15/2023		299,000		355,481
				438,212
Cable & Satellite–1.16%
Charter Communications Operating, LLC/Charter Communications Operating Capital Corp., Sr. Sec. Gtd. First Lien Global Notes, 4.46%, 07/23/2022		60,000		64,046

	Principal Amount		Value
Cable & Satellite–(continued)
Comcast Corp., Sr. Unsec. Gtd. Global Notes, 5.70%, 05/15/2018	$	150,000	$	155,441
Cox Communications, Inc., Sr. Unsec. Notes, 8.38%, 03/01/2039(c)		150,000		199,135
DISH Network Corp., Sr. Unsec. Conv. Notes, 3.38%, 08/15/2026(c)		136,000		165,580
				584,202
Communications Equipment–0.80%
Ciena Corp., Sr. Unsec. Conv. Bonds, 4.00%, 12/15/2020		75,000		106,359
Finisar Corp., Sr. Unsec. Conv. Notes, 0.50%, 12/15/2021(c)(d)		39,000		38,171
Viavi Solutions Inc., Sr. Unsec. Conv. Deb., 0.63%, 08/15/2018(d)		167,000		185,266
Sr. Unsec. Conv. Notes, 1.00%, 03/01/2024(c)		68,000		71,400
				401,196
Construction & Engineering–0.04%
Valmont Industries, Inc., Sr. Unsec. Gtd. Global Notes, 5.25%, 10/01/2054		22,000		21,275
Consumer Finance–0.04%
American Express Co., Unsec. Sub. Global Notes, 3.63%, 12/05/2024		18,000		18,477
Data Processing & Outsourced Services–0.33%
Blackhawk Network Holdings, Inc., Sr. Unsec. Conv. Notes, 1.50%, 01/15/2022(c)		119,000		133,280
Visa Inc., Sr. Unsec. Global Notes, 4.15%, 12/14/2035		30,000		32,644
				165,924
Diversified Banks–1.17%
Bank of America Corp., Sr. Unsec. Medium-Term Global Notes, 3.50%, 04/19/2026		25,000		25,140
Sr. Unsec. Medium-Term Notes, 3.25%, 10/21/2027		10,000		9,653
Citigroup Inc., Unsec. Sub. Notes,
4.00%, 08/05/2024		60,000		61,790
4.75%, 05/18/2046		15,000		15,898
Commonwealth Bank of Australia (Australia), Sr. Unsec. Notes, 2.25%, 03/10/2020(c)		40,000		40,084
JPMorgan Chase & Co., Sr. Unsec. Global Notes, 3.20%, 06/15/2026		15,000		14,810
4.26%, 02/22/2048		10,000		10,493
Unsec. Sub. Global Notes, 4.25%, 10/01/2027		15,000		15,625
Series V, Jr. Unsec. Sub. Global Notes, 5.00%(e)		150,000		153,375
U.S. Bancorp, Series W, Unsec. Sub. Medium-Term Notes, 3.10%, 04/27/2026		10,000		9,912

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Managed Volatility Fund

	Principal Amount		Value
Diversified Banks–(continued)
Wells Fargo & Co., Sr. Unsec. Medium-Term Notes, 3.55%, 09/29/2025	$	30,000	$	30,568
Unsec. Sub. Medium-Term Notes, 4.10%, 06/03/2026		95,000		98,186
4.65%, 11/04/2044		100,000		105,634
				591,168
Diversified Capital Markets–0.50%
Credit Suisse AG (Switzerland), Sr. Unsec. Conv. Medium-Term Notes, 0.05%, 06/24/2024(c)		260,000		254,670
Diversified Chemicals–0.09%
Eastman Chemical Co., Sr. Unsec. Global Notes, 2.70%, 01/15/2020		43,000		43,589
Drug Retail–0.16%
CVS Health Corp., Sr. Unsec. Global Bonds, 3.38%, 08/12/2024		20,000		20,329
Walgreens Boots Alliance Inc., Sr. Unsec. Global Notes,
3.30%, 11/18/2021		32,000		32,994
4.50%, 11/18/2034		24,000		25,100
				78,423
Electric Utilities–0.10%
Duke Energy Corp., Sr. Unsec. Global Notes, 2.10%, 06/15/2018		40,000		40,160
NextEra Energy Capital Holdings Inc., Sr. Unsec. Gtd. Deb., 3.55%, 05/01/2027		11,000		11,187
				51,347
Electrical Components & Equipment–0.19%
Eaton Corp., Sr. Unsec. Gtd. Global Notes, 1.50%, 11/02/2017		95,000		95,031
Environmental & Facilities Services–0.05%
Waste Management, Inc., Sr. Unsec. Gtd. Global Notes, 3.90%, 03/01/2035		25,000		25,882
Fertilizers & Agricultural Chemicals–0.03%
Monsanto Co., Sr. Unsec. Global Notes, 2.13%, 07/15/2019		15,000		15,040
Gas Utilities–0.02%
NiSource Finance Corp., Sr. Unsec. Gtd. Global Notes, 4.38%, 05/15/2047		9,000		9,412
General Merchandise Stores–0.04%
Dollar General Corp., Sr. Unsec. Global Notes, 3.25%, 04/15/2023		20,000		20,387
Health Care Equipment–1.19%
Becton, Dickinson and Co., Sr. Unsec. Global Notes, 4.88%, 05/15/2044		170,000		177,230
Sr. Unsec. Notes, 2.68%, 12/15/2019		15,000		15,193
DexCom, Inc., Sr. Unsec. Conv. Notes, 0.75%, 05/15/2022(c)		46,000		47,064

	Principal Amount		Value
Health Care Equipment–(continued)
Medtronic, Inc., Sr. Unsec. Gtd. Global Notes, 3.15%, 03/15/2022	$	58,000	$	60,092
4.38%, 03/15/2035		20,000		21,967
NuVasive, Inc., Sr. Unsec. Conv. Bonds, 2.25%, 03/15/2021		80,000		110,800
Wright Medical Group N.V., Sr. Unsec. Conv. Bonds, 2.25%, 11/15/2021		39,000		55,282
Wright Medical Group, Inc., Sr. Unsec. Conv. Bonds, 2.00%, 02/15/2020		99,000		110,509
				598,137
Health Care Facilities–0.34%
Brookdale Senior Living Inc., Sr. Unsec. Conv. Notes, 2.75%, 06/15/2018		173,000		172,243
Health Care REIT’s–0.05%
HCP, Inc., Sr. Unsec. Global Notes, 3.88%, 08/15/2024		25,000		25,482
Health Care Services–0.17%
Express Scripts Holding Co., Sr. Unsec. Gtd. Global Notes, 2.25%, 06/15/2019		30,000		30,108
Laboratory Corp. of America Holdings, Sr. Unsec. Notes,
3.20%, 02/01/2022		33,000		33,614
4.70%, 02/01/2045		22,000		22,949
				86,671
Home Improvement Retail–0.05%
Home Depot, Inc. (The), Sr. Unsec. Global Notes, 2.00%, 04/01/2021		27,000		26,967
Hotel and Resort REIT’s–0.02%
Hospitality Properties Trust, Sr. Unsec. Notes, 4.50%, 06/15/2023		10,000		10,470
Insurance Brokers–0.01%
Willis North America, Inc., Sr. Unsec. Gtd. Global Notes, 3.60%, 05/15/2024		5,000		5,059
Integrated Oil & Gas–0.34%
Cenovus Energy Inc. (Canada), Sr. Unsec. Notes, 5.25%, 06/15/2037(c)		25,000		23,562
Chevron Corp., Sr. Unsec. Global Notes, 1.37%, 03/02/2018		77,000		77,364
Occidental Petroleum Corp., Sr. Unsec. Global Notes, 3.40%, 04/15/2026		15,000		15,141
Shell International Finance B.V. (Netherlands), Sr. Unsec. Gtd. Global Notes, 4.00%, 05/10/2046		37,000		36,609
Suncor Energy Inc. (Canada), Sr. Unsec. Notes, 3.60%, 12/01/2024		18,000		18,394
				171,070
Integrated Telecommunication Services–1.15%
AT&T Inc., Sr. Unsec. Global Notes, 3.00%, 06/30/2022		28,000		28,047
3.40%, 05/15/2025		15,000		14,770
4.50%, 05/15/2035		25,000		24,765
5.15%, 03/15/2042		150,000		154,948
4.80%, 06/15/2044		40,000		39,657

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Managed Volatility Fund

	Principal Amount		Value
Integrated Telecommunication Services–(continued)
Telefónica Emisiones, S.A.U. (Spain), Sr. Unsec. Gtd. Global Notes, 7.05%, 06/20/2036	$	150,000	$	198,130
Verizon Communications Inc., Sr. Unsec. Global Notes, 4.40%, 11/01/2034		120,000		119,456
				579,773
Internet & Direct Marketing Retail–0.66%
Amazon.com, Inc., Sr. Unsec. Global Notes, 4.80%, 12/05/2034		9,000		10,385
Ctrip.com International, Ltd. (China), Sr. Unsec. Conv. Notes, 1.25%, 09/15/2019(c)(d)		113,000		122,393
Liberty Expedia Holdings, Inc., Sr. Unsec. Conv. Deb., 1.00%, 07/05/2022(c)(d)		53,000		56,611
Liberty Interactive LLC, Sr. Unsec. Conv. Deb., 1.75%, 10/05/2023(c)(d)		85,000		97,590
QVC, Inc., Sr. Sec. Gtd. First Lien Global Notes, 5.45%, 08/15/2034		50,000		47,659
				334,638
Internet Software & Services–0.17%
eBay Inc., Sr. Unsec. Global Notes, 2.50%, 03/09/2018		65,000		65,428
WebMD Health Corp., Unsec. Conv. Bonds, 2.63%, 06/15/2023		23,000		22,587
				88,015
Investment Banking & Brokerage–1.19%
Goldman Sachs Group, Inc. (The), Unsec. Sub. Notes, 4.25%, 10/21/2025		27,000		27,846
GS Finance Corp., Series 0001, Sr. Unsec. Conv. Medium-Term Notes, 0.25%, 07/08/2024		198,000		196,242
Jefferies Group LLC, Sr. Unsec. Conv. Deb., 3.88%, 11/01/2017(d)		161,000		162,208
Morgan Stanley, Sr. Unsec. Medium-Term Global Notes,
2.38%, 07/23/2019		175,000		176,398
4.00%, 07/23/2025		35,000		36,605
				599,299
Life & Health Insurance–0.50%
Athene Global Funding, Sec. Notes, 2.88%, 10/23/2018(c)		31,000		31,132
4.00%, 01/25/2022(c)		45,000		46,661
Jackson National Life Global Funding, Sr. Sec. Notes,
2.10%, 10/25/2021(c)		10,000		9,808
3.25%, 01/30/2024(c)		15,000		15,164
Nationwide Financial Services Inc., Sr. Unsec. Notes, 5.30%, 11/18/2044(c)		50,000		57,053
Prudential Financial, Inc., Series D, Sr. Unsec. Medium-Term Notes, 6.00%, 12/01/2017		55,000		55,976
Reliance Standard Life Global Funding II, Sr. Sec. First Lien Notes, 3.05%, 01/20/2021(c)		20,000		20,209

	Principal Amount		Value
Life & Health Insurance–(continued)
Teachers Insurance and Annuity Association of America, Unsec. Sub. Notes, 4.27%, 05/15/2047(c)	$	17,000	$	17,371
				253,374
Movies & Entertainment–0.14%
Live Nation Entertainment, Inc., Sr. Unsec. Conv. Bonds, 2.50%, 05/15/2019		61,000		69,845
Multi-Line Insurance–0.50%
American Financial Group, Inc., Sr. Unsec. Notes,
9.88%, 06/15/2019		150,000		171,450
4.50%, 06/15/2047		20,000		20,408
American International Group, Inc., Sr. Unsec. Global Notes, 2.30%, 07/16/2019		20,000		20,122
4.38%, 01/15/2055		40,000		38,599
				250,579
Office REIT’s–0.30%
Highwoods Realty L.P., Sr. Unsec. Notes, 3.20%, 06/15/2021		150,000		151,477
Oil & Gas Drilling–0.17%
Ensco Jersey Finance Ltd., Sr. Unsec. Gtd. Conv. Notes, 3.00%, 01/31/2024(c)		73,000		56,109
Nabors Industries Inc., Sr. Unsec. Gtd. Conv. Notes, 0.75%, 01/15/2024(c)		40,000		31,925
				88,034
Oil & Gas Equipment & Services–0.30%
Helix Energy Solutions Group, Inc., Sr. Unsec. Conv. Notes, 4.25%, 05/01/2022		40,000		37,525
Weatherford International Ltd., Sr. Unsec. Gtd. Conv. Notes, 5.88%, 07/01/2021		114,000		115,639
				153,164
Oil & Gas Exploration & Production–0.30%
Anadarko Petroleum Corp., Sr. Unsec. Notes, 6.60%, 03/15/2046		18,000		22,243
Chesapeake Energy Corp., Sr. Unsec. Gtd. Conv. Notes, 5.50%, 09/15/2026(c)		37,000		34,780
ConocoPhillips Co., Sr. Unsec. Gtd. Global Notes, 2.88%, 11/15/2021		46,000		46,864
4.15%, 11/15/2034		49,000		49,774
				153,661
Oil & Gas Storage & Transportation–0.74%
Enable Midstream Partners, LP, Sr. Unsec. Global Notes, 2.40%, 05/15/2019		200,000		197,876
Enbridge Inc. (Canada), Sr. Unsec. Global Notes, 5.50%, 12/01/2046		16,000		18,289
Energy Transfer, LP, Sr. Unsec. Notes, 4.90%, 03/15/2035		19,000		18,649
Enterprise Products Operating LLC, Sr. Unsec. Gtd. Notes, 2.55%, 10/15/2019		20,000		20,274

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Managed Volatility Fund

	Principal Amount		Value
Oil & Gas Storage & Transportation–(continued)
Kinder Morgan Inc., Sr. Unsec. Gtd. Notes, 5.30%, 12/01/2034	$	23,000	$	23,829
MPLX LP, Sr. Unsec. Global Bonds, 4.50%, 07/15/2023		65,000		69,205
Sr. Unsec. Global Notes, 5.50%, 02/15/2023		25,000		25,828
				373,950
Other Diversified Financial Services–0.10%
ERAC USA Finance LLC, Sr. Unsec. Gtd. Notes, 2.35%, 10/15/2019(c)		50,000		50,076
Packaged Foods & Meats–0.10%
General Mills, Inc., Sr. Unsec. Global Notes, 2.20%, 10/21/2019		45,000		45,300
Mead Johnson Nutrition Co. (United Kingdom), Sr. Unsec. Gtd. Global Notes, 4.13%, 11/15/2025		3,000		3,231
				48,531
Pharmaceuticals–1.12%
Allergan Funding SCS, Sr. Unsec. Gtd. Global Notes, 4.85%, 06/15/2044		150,000		164,660
Bayer US Finance LLC (Germany), Sr. Unsec. Gtd. Notes, 3.00%, 10/08/2021(c)		200,000		204,629
Jazz Investments I Ltd., Sr. Unsec. Gtd. Conv. Bonds, 1.88%, 08/15/2021		76,000		83,410
Medicines Co. (The), Sr. Unsec. Conv. Bonds, 2.75%, 07/15/2023		37,000		38,896
Mylan N.V., Sr. Unsec. Gtd. Global Notes, 3.15%, 06/15/2021		17,000		17,259
5.25%, 06/15/2046		25,000		27,491
Pacira Pharmaceuticals, Inc., Sr. Unsec. Conv. Notes, 2.38%, 04/01/2022(c)		13,000		13,845
Teva Pharmaceutical Finance Netherlands III B.V. (Israel), Sr. Unsec. Gtd. Global Notes, 2.80%, 07/21/2023		14,000		13,639
				563,829
Property & Casualty Insurance–0.41%
Allstate Corp. (The), Sr. Unsec. Bonds, 3.28%, 12/15/2026		10,000		10,183
Liberty Mutual Group Inc., Sr. Unsec. Gtd. Bonds, 4.85%, 08/01/2044(c)		115,000		124,064
Old Republic International Corp., Sr. Unsec. Conv. Notes, 3.75%, 03/15/2018		59,000		74,967
				209,214
Railroads–0.05%
Union Pacific Corp., Sr. Unsec. Notes, 4.15%, 01/15/2045		25,000		26,278
Regional Banks–0.03%
Citizens Financial Group, Inc., Sr. Unsec. Global Notes, 2.38%, 07/28/2021		15,000		14,784
Renewable Electricity–0.30%
Oglethorpe Power Corp., Sr. Sec. First Mortgage Bonds, 4.55%, 06/01/2044		150,000		149,595

	Principal Amount		Value
Retail REIT’s–0.30%
Realty Income Corp., Sr. Unsec. Notes, 2.00%, 01/31/2018	$	150,000	$	150,107
Semiconductors–0.91%
Broadcom Corp./Broadcom Cayman Finance Ltd., Sr. Unsec. Gtd. Notes, 3.63%, 01/15/2024(c)		50,000		51,359
Intel Corp., Sr. Unsec. Global Notes, 1.35%, 12/15/2017		30,000		30,005
4.10%, 05/11/2047		5,000		5,196
Microchip Technology Inc., Sr. Unsec. Sub. Conv. Notes, 1.63%, 02/15/2027(c)		111,000		117,244
Micron Technology, Inc., Series G, Sr. Unsec. Conv. Global Bonds, 3.00%, 11/15/2028(d)		117,000		132,210
ON Semiconductor Corp., Sr. Unsec. Gtd. Conv. Bonds, 1.00%, 12/01/2020		90,000		93,825
Silicon Laboratories Inc., Sr. Unsec. Conv. Notes, 1.38%, 03/01/2022(c)		21,000		21,814
Texas Instruments Inc., Sr. Unsec. Notes, 2.63%, 05/15/2024		5,000		4,984
				456,637
Specialized Finance–0.46%
Air Lease Corp., Sr. Unsec. Global Notes, 2.63%, 09/04/2018		45,000		45,346
3.00%, 09/15/2023		24,000		23,888
4.25%, 09/15/2024		35,000		36,802
Aviation Capital Group Corp., Sr. Unsec. Notes, 2.88%, 09/17/2018(c)		35,000		35,339
2.88%, 01/20/2022(c)		49,000		48,817
4.88%, 10/01/2025(c)		40,000		43,471
				233,663
Specialized REIT’s–0.53%
Crown Castle Towers LLC, Sr. Sec. Gtd. First Lien Notes, 4.88%, 08/15/2020(c)		178,000		189,956
EPR Properties, Sr. Unsec. Gtd. Global Notes, 4.75%, 12/15/2026		75,000		77,154
				267,110
Specialty Chemicals–0.01%
Sherwin-Williams Co. (The), Sr. Unsec. Global Notes, 4.50%, 06/01/2047		3,000		3,164
Systems Software–0.43%
FireEye, Inc., Series A, Sr. Unsec. Conv. Bonds, 1.00%, 06/01/2020(d)		51,000		48,322
Series B, Sr. Unsec. Conv. Bonds, 1.63%, 06/01/2022(d)		51,000		46,697
Microsoft Corp., Sr. Unsec. Global Notes, 3.50%, 02/12/2035		37,000		37,352
Oracle Corp., Sr. Unsec. Global Notes, 1.90%, 09/15/2021		50,000		49,554
4.30%, 07/08/2034		30,000		32,564
				214,489

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Managed Volatility Fund

	Principal Amount		Value
Technology Distributors–0.06%
Avnet, Inc., Sr. Unsec. Global Notes, 4.63%, 04/15/2026	$	30,000	$	31,205
Technology Hardware, Storage & Peripherals–0.50%
Apple Inc., Sr. Unsec. Global Notes, 2.15%, 02/09/2022		39,000		38,774
3.35%, 02/09/2027		10,000		10,239
Dell International LLC/ EMC Corp., Sr. Sec. Gtd. First Lien Notes, 5.45%, 06/15/2023(c)		26,000		28,323
SanDisk Corp., Sr. Unsec. Gtd. Conv. Bonds, 0.50%, 10/15/2020		140,000		135,461
Seagate HDD Cayman, Sr. Unsec. Gtd. Global Bonds, 5.75%, 12/01/2034		37,000		37,232
				250,029
Tobacco–0.02%
Philip Morris International Inc., Sr. Unsec. Global Bonds, 1.25%, 08/11/2017		11,000		11,000
Total Bonds & Notes (Cost $11,028,714)				11,374,785
U.S. Treasury Securities–7.39%
U.S. Treasury Notes–7.07%
1.25%, 01/31/2019		710,000		708,863
1.25%, 05/31/2019		2,403,000		2,397,509
1.50%, 06/15/2020		235,000		234,670
1.75%, 05/31/2022		19,200		19,087
2.00%, 05/31/2024		181,000		179,519

	Principal Amount		Value
U.S. Treasury Notes–(continued)
2.38%, 05/15/2027	$	27,200	$	27,379
				3,567,027
U.S. Treasury Bonds–0.32%
4.50%, 02/15/2036		75,000		96,954
3.00%, 02/15/2047		64,800		66,974
				163,928
Total U.S. Treasury Securities (Cost $3,730,788)				3,730,955
	Shares
Preferred Stocks–0.20%
Asset Management & Custody Banks–0.20%
AMG Capital Trust II, $2.58 Jr. Unsec. Gtd. Sub. Conv. Pfd. (Cost $106,269)		1,700		100,938
Money Market Funds–3.95%
Government & Agency Portfolio–Institutional Class, 0.89%(f)		1,196,355		1,196,355
Treasury Portfolio–Institutional Class, 0.85%(f)		797,570		797,570
Total Money Market Funds (Cost $1,993,925)				1,993,925
TOTAL INVESTMENTS–98.48% (Cost $43,771,969)				49,683,836
OTHER ASSETS LESS LIABILITIES–1.52%				765,011
NET ASSETS–100.00%			$	50,448,847

Investment Abbreviations:

ADR	– American Depositary Receipt
Conv.	– Convertible
Ctfs.	– Certificates
Deb.	– Debentures
Gtd.	– Guaranteed
Jr.	– Junior
Pfd.	– Preferred
REIT	– Real Estate Investment Trust
Sec.	– Secured
Sr.	– Senior
Sub.	– Subordinated
Unsec.	– Unsecured

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)�� Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2017 was $3,027,041, which represented 6.00% of the Fund’s Net Assets.

^(d)  Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put.

^(e)  Perpetual bond with no specified maturity date.

^(f)  The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of June 30, 2017.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Managed Volatility Fund

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2017

Financials	28.3	%
Information Technology	11.3
Health Care	11.1
Energy	10.5
Consumer Discretionary	9.2
U.S. Treasury Securities	7.4
Industrials	6.2
Consumer Staples	4.1
Telecommunication Services	2.2
Materials	1.8
Utilities	1.2
Real Estate	1.2
Money Market Funds Plus Other Assets Less Liabilities	5.5

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Managed Volatility Fund

Statement of Assets and Liabilities

June 30, 2017

(Unaudited)

Statement of Operations

For the six months ended June 30, 2017

(Unaudited)

Assets:
Investments, at value (Cost $41,778,044)	$	47,689,911
Investments in affiliated money market funds, at value and cost		1,993,925
Total investments, at value (Cost $43,771,969)		49,683,836
Foreign currencies, at value (Cost $45,956)		45,834
Receivable for:
Investments sold		1,186,391
Fund shares sold		13,480
Dividends and interest		148,298
Investment for trustee deferred compensation and retirement plans		69,720
Unrealized appreciation on forward foreign currency contracts outstanding		230
Total assets		51,147,789
Liabilities:
Payable for:
Investments purchased		319,079
Fund shares reacquired		167,630
Amount due custodian		65,236
Accrued fees to affiliates		20,270
Accrued trustees’ and officers’ fees and benefits		4,632
Accrued other operating expenses		33,744
Trustee deferred compensation and retirement plans		74,153
Unrealized depreciation on forward foreign currency contracts outstanding		14,198
Total liabilities		698,942
Net assets applicable to shares outstanding	$	50,448,847
Net assets consist of:
Shares of beneficial interest	$	44,054,933
Undistributed net investment income		712,493
Undistributed net realized gain (loss)		(216,902	)
Net unrealized appreciation		5,898,323
	$	50,448,847
Net Assets:
Series I	$	48,970,262
Series II	$	1,478,585
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		3,932,344
Series II		120,171
Series I:
Net asset value per share	$	12.45
Series II:
Net asset value per share	$	12.30

Investment income:
Dividends (net of foreign withholding taxes of $14,083)	$	377,044
Dividends from affiliated money market funds		7,109
Interest		193,961
Total investment income		578,114
Expenses:
Advisory fees		152,344
Administrative services fees		62,322
Custodian fees		8,788
Distribution fees — Series II		1,829
Transfer agent fees		9,917
Trustees’ and officers’ fees and benefits		11,243
Reports to shareholders		8,105
Professional services fees		26,701
Other		5,771
Total expenses		287,020
Less: Fees waived		(1,354	)
Net expenses		285,666
Net investment income		292,448
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		1,293,976
Foreign currencies		2,281
Forward foreign currency contracts		(67,375	)
Futures contracts		(25,150	)
		1,203,732
Change in net unrealized appreciation (depreciation) of:
Investment securities		603,628
Foreign currencies		574
Forward foreign currency contracts		(67,463	)
		536,739
Net realized and unrealized gain		1,740,471
Net increase in net assets resulting from operations	$	2,032,919

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Managed Volatility Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2017 and the year ended December 31, 2016

(Unaudited)

	June 30, 2017			December 31, 2016
Operations:
Net investment income	$	292,448		$	625,840
Net realized gain (loss)		1,203,732			(1,186,418	)
Change in net unrealized appreciation		536,739			5,466,222
Net increase in net assets resulting from operations		2,032,919			4,905,644
Distributions to shareholders from net investment income:
Series I		—			(906,262	)
Series ll		—			(22,509	)
Total distributions from net investment income		—			(928,771	)
Distributions to shareholders from net realized gains:
Series l		—			(1,460,269	)
Series ll		—			(42,846	)
Total distributions from net realized gains		—			(1,503,115	)
Share transactions–net:
Series l		(3,188,363	)		(4,579,259	)
Series ll		(40,788	)		(110,167	)
Net increase (decrease) in net assets resulting from share transactions		(3,229,151	)		(4,689,426	)
Net increase (decrease) in net assets		(1,196,232	)		(2,215,668	)
Net assets:
Beginning of period		51,645,079			53,860,747
End of period (includes undistributed net investment income of $712,493 and $420,045, respectively)	$	50,448,847		$	51,645,079

Notes to Financial Statements

June 30, 2017

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Managed Volatility Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance 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 consisting of twenty-four separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

The Fund’s investment objective is both capital appreciation and current income while managing portfolio volatility.

The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services — Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Invesco V.I. Managed Volatility Fund

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

Invesco V.I. Managed Volatility Fund

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 and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. 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 date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

J. Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

K. Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between Counterparties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to

Invesco V.I. Managed Volatility Fund

maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.

L. Collateral — To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays an advisory fee to the Adviser based on the annual rate of 0.60% of the Fund’s average daily net assets.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco PowerShares Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2018, 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 Series I shares to 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2018. During its term, the fee waiver agreement cannot be terminated or amended to increase expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits

Further, the Adviser has contractually agreed, through at least June 30, 2019, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended June 30, 2017, the Adviser waived advisory fees of $1,354.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2017, Invesco was paid $24,795 for accounting and fund administrative services and was reimbursed $37,527 for fees paid to insurance companies.

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. For the six months ended June 30, 2017, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2017, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2017, the Fund incurred $74 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Invesco V.I. Managed Volatility 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 Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of June 30, 2017. 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
Common Stocks & Other Equity Interests	$	30,392,044	$	2,091,189		$	—	$	32,483,233
Bonds and Notes		—		11,374,785			—		11,374,785
U.S. Treasury Securities		—		3,730,955			—		3,730,955
Preferred Stocks		—		100,938			—		100,938
Money Market Funds		1,993,925		—			—		1,993,925
		32,385,969		17,297,867			—		49,683,836
Forward Foreign Currency Contracts*		—		(13,968	)		—		(13,968	)
Total Investments	$	32,385,969	$	17,283,899		$	—	$	49,669,868

* Unrealized appreciation (depreciation).

NOTE 4—Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a Fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Open Forward Foreign Currency Contracts
Settlement Date	Counterparty	Contract to						Notional Value		Unrealized Appreciation (Depreciation)
		Deliver			Receive
07/28/17	Bank of New York Mellon (The)		AUD	115,359		USD	87,788	$	88,637	$	(849	)
07/28/17	Bank of New York Mellon (The)		CAD	257,520		USD	197,518		198,688		(1,170	)
07/28/17	Bank of New York Mellon (The)		CHF	159,795		USD	166,626		166,955		(329	)
07/28/17	Bank of New York Mellon (The)		EUR	269,558		USD	306,790		308,360		(1,570	)
07/28/17	Bank of New York Mellon (The)		GBP	345,763		USD	447,673		450,775		(3,102	)
07/28/17	State Street Bank and Trust Co.		AUD	115,355		USD	87,824		88,634		(810	)
07/28/17	State Street Bank and Trust Co.		CAD	201,303		USD	154,318		155,314		(996	)
07/28/17	State Street Bank and Trust Co.		CHF	159,648		USD	166,491		166,802		(311	)
07/28/17	State Street Bank and Trust Co.		EUR	269,690		USD	306,784		308,511		(1,727	)
07/28/17	State Street Bank and Trust Co.		GBP	345,645		USD	447,288		450,622		(3,334	)
07/28/17	State Street Bank and Trust Co.		USD	5,476		AUD	7,145		5,490		14
07/28/17	State Street Bank and Trust Co.		USD	11,780		CAD	15,347		11,841		61
07/28/17	State Street Bank and Trust Co.		USD	10,936		CHF	10,473		10,943		7
07/28/17	State Street Bank and Trust Co.		USD	18,288		EUR	16,039		18,348		60
07/28/17	State Street Bank and Trust Co.		USD	16,131		GBP	12,441		16,219		88
Total Forward Foreign Currency Contracts — Currency Risk										$	(13,968	)

Currency Abbreviations:

AUD	– Australian Dollar
CAD	– Canadian Dollar
CHF	– Swiss Franc
EUR	– Euro
GBP	– British Pound Sterling
USD	– U.S. Dollar

Invesco V.I. Managed Volatility Fund

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of June 30, 2017:

Derivative Assets	Value
	Currency Risk
Unrealized appreciation on forward foreign currency contracts outstanding	$	230
Derivatives not subject to master netting agreements		—
Total Derivative Assets subject to master netting agreements	$	230

Derivative Liabilities	Value
	Currency Risk
Unrealized depreciation on forward foreign currency contracts outstanding	$	(14,198	)
Derivatives not subject to master netting agreements		—
Total Derivative Liabilities subject to master netting agreements	$	(14,198	)

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 June 30, 2017.

	Financial Derivative Assets		Financial Derivative Liabilities			Net Value of Derivatives			Collateral (Received)/Pledged				Net Amount
Counterparty	Forward Foreign Currency Contracts		Forward Foreign Currency Contracts						Non-Cash		Cash
Bank of New York Mellon (The)	$	—	$	(7,020	)	$	(7,020	)	$	—	$	—	$	(7,020	)
State Street Bank and Trust Co.		230		(7,178	)		(6,948	)		—		—		(6,948	)
Total	$	230	$	(14,198	)	$	(13,968	)	$	—	$	—	$	(13,968	)

Effect of Derivative Investments for the six months ended June 30, 2017

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	$	(67,375	)	$	—		$	(67,375	)
Futures contracts		—			(25,150	)		(25,150	)
Change in Net Unrealized Appreciation (Depreciation):
Forward foreign currency contracts		(67,463	)		—			(67,463	)
Total	$	(134,838	)	$	(25,150	)	$	(159,988	)

The table below summarizes the six months average notional value of forward foreign currency contracts and the two days average notional value of futures contracts outstanding during the period.

	Forward Foreign Currency Contracts		Futures Contracts
Average notional value	$	2,464,795	$	3,824,288

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.

Invesco V.I. Managed Volatility Fund

NOTE 6—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund had a capital loss carryforward as of December 31, 2016, as follows:

Capital Loss Carryforward*
Expiration	Short-Term		Long-Term		Total
Not subject to expiration	$	867,268	$	245,023	$	1,112,291

* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2017 was $4,640,380 and $8,126,627, respectively. During the same period, purchases and sales of U.S. Treasury obligations were $18,215,708 and $17,796,568, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	7,064,825
Aggregate unrealized (depreciation) of investment securities		(1,513,846	)
Net unrealized appreciation of investment securities	$	5,550,979

Cost of investments for tax purposes is $44,132,857.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended June 30, 2017(a)						Year ended December 31, 2016
	Shares			Amount			Shares			Amount
Sold:
Series I		195,175		$	2,391,246			300,423		$	3,419,830
Series II		9,721			116,219			8,242			92,158
Issued as reinvestment of dividends:
Series I		—			—			209,985			2,366,531
Series II		—			—			5,856			65,355
Reacquired:
Series I		(455,447	)		(5,579,609	)		(918,562	)		(10,365,620	)
Series II		(13,053	)		(157,007	)		(23,850	)		(267,680	)
Net increase (decrease) in share activity		(263,604	)	$	(3,229,151	)		(417,906	)	$	(4,689,426	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 58% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. 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, third party record keeping and account servicing and administrative services. 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.

Invesco V.I. Managed Volatility Fund

NOTE 10—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)
Series I
Six months ended 06/30/17	$	11.97	$	0.07	$	0.41		$	0.48		$	—		$	—		$	—		$	12.45		4.01	%	$	48,970		1.11	%(d)		1.12	%(d)		1.17	%(d)		47	%
Year ended 12/31/16		11.38		0.14		1.03			1.17			(0.22	)		(0.36	)		(0.58	)		11.97		10.61			50,183		1.15			1.16			1.26			92
Year ended 12/31/15		19.02		0.18		(0.74	)		(0.56	)		(0.27	)		(6.81	)		(7.08	)		11.38		(2.15	)		52,360		1.08			1.10			1.07			117
Year ended 12/31/14		17.03		0.24		3.23			3.47			(0.56	)		(0.92	)		(1.48	)		19.02		20.57			70,717		1.03			1.10			1.26			201
Year ended 12/31/13		16.20		0.47		1.25			1.72			(0.52	)		(0.37	)		(0.89	)		17.03		10.76			61,806		1.07			1.08			2.73			15
Year ended 12/31/12		16.74		0.52		0.10			0.62			(0.54	)		(0.62	)		(1.16	)		16.20		3.61			64,158		0.99			1.03			3.10			3
Series II
Six months ended 06/30/17		11.84		0.05		0.41			0.46			—			—			—			12.30		3.88			1,479		1.36	(d)		1.37	(d)		0.92	(d)		47
Year ended 12/31/16		11.26		0.11		1.02			1.13			(0.19	)		(0.36	)		(0.55	)		11.84		10.31			1,462		1.40			1.41			1.01			92
Year ended 12/31/15		18.88		0.13		(0.72	)		(0.59	)		(0.22	)		(6.81	)		(7.03	)		11.26		(2.37	)		1,500		1.33			1.35			0.82			117
Year ended 12/31/14		16.91		0.19		3.21			3.40			(0.51	)		(0.92	)		(1.43	)		18.88		20.30			1,794		1.28			1.35			1.01			201
Year ended 12/31/13		16.09		0.43		1.23			1.66			(0.47	)		(0.37	)		(0.84	)		16.91		10.45			1,664		1.32			1.33			2.48			15
Year ended 12/31/12		16.63		0.47		0.10			0.57			(0.49	)		(0.62	)		(1.11	)		16.09		3.34			1,637		1.24			1.28			2.85			3

^(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. Total returns are not annualized for periods less than one year, if applicable, and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.

^(c)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(d)  Ratios are annualized and based on average daily net assets (000’s omitted) of $49,727 and $1,475 for Series I and Series II shares, respectively.

Invesco V.I. Managed Volatility Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2017 through June 30, 2017.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

Class	Beginning Account Value (01/01/17)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/17)1		Expenses Paid During Period2		Ending Account Value (06/30/17)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,040.10	$	5.61	$	1,019.29	$	5.56		1.11	%
Series II		1,000.00		1,038.80		6.87		1,018.05		6.80		1.36

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2017 through June 30, 2017, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

²  Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Managed Volatility Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco V.I. Managed Volatility Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the 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 PowerShares 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, 2017.

In evaluating the fairness and reasonableness of compensation under the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board determined that continuation of the Fund’s investment advisory agreement and the sub-advisory contracts is in the best interest of the Fund and its shareholders and that the compensation payable to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Board had the benefit of reports from the Sub-Committees and Investments Committee throughout the year in considering approval of the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Board receives comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The

Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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 addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The Trustees recognized that the advisory fee rates for the Invesco Funds are, in most cases, the result of years of review and negotiation. The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these arrangements throughout the year and in prior years. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them 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 discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement 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. This information is current as of June 13, 2017, and does not reflect consideration of factors that became known to the Board after that date.

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 advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers. The Board’s review included consideration of Invesco Advisers’ investment process oversight, credit analysis and investment risk management. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, trading operations, internal audit, valuation and legal and compliance.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the greater uncertainty that may be associated with entering into a new relationship. 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 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 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 in which the Fund may invest, make recommendations regarding securities and assist with security trades. 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 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 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, 2016 to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds Mixed-Asset Target Allocation Growth Funds Index. The Board noted that performance of Series I shares of the Fund was in the first 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 Series I shares of the Fund was above 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 Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s

Invesco V.I. Managed Volatility Fund

Broadridge expense group at a common asset level. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing 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 compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/waivers) to the effective advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, based on asset balances as of December 31, 2016. The Board noted that the Fund’s rate was above the rates of two such mutual funds and also above the rate of two mutual funds sub-advised by Invesco Advisers. The Board noted that Invesco Advisers and its affiliates do not advise other client accounts with investment strategies comparable to those of the Fund.

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 also noted that the sub-advisory fees are not paid directly by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board noted that the Fund does not benefit from economies of scale through contractual breakpoints, but does share directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds advised by Invesco Advisers.

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. 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 and the Fund. The Board did not deem the

level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund to be excessive given the nature, quality and extent of the services provided. The Board received and accepted information from Invesco Advisers demonstrating that Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; and 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 periodic reports from the Chief Compliance Officer of the Invesco Funds demonstrating 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 money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds with respect to certain investments in the affiliated money market funds. The waiver is in 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any

securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that the Fund may use an affiliated broker to execute certain trades for the Fund to, among other things, control information leakage, and was advised that such trades would be executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Managed Volatility Fund

Proxy Results

A Special Joint Meeting (“Meeting”) of Shareholders of Invesco V.I. Managed Volatility Fund, an investment portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), a Delaware statutory trust (“Trust”), was held on March 9, 2017. The Meeting was held for the following purposes:

(1) Elect 15 trustees to the Board, each of whom will serve until his or her successor is elected and qualified.

(2) Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.

(3) Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities.

(4)(a) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC.

(4)(b) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited.

The results of the voting on the above matters were as follows:

	Matters					Votes For		Votes Withheld
(1)*	David C. Arch						1,256,086,249		71,094,301
	James T. Bunch						1,254,410,156		72,770,397
	Bruce L. Crockett						1,258,363,948		68,816,603
	Jack M. Fields						1,255,101,592		72,078,961
	Martin L. Flanagan						1,257,885,397		69,295,160
	Cynthia Hostetler						1,261,335,247		65,845,303
	Dr. Eli Jones						1,257,497,296		69,683,257
	Dr. Prema Mathai-Davis						1,254,728,756		72,451,795
	Teresa M. Ressel						1,261,829,473		65,351,074
	Dr. Larry Soll						1,254,261,019		72,919,533
	Ann Barnett Stern						1,260,861,373		66,319,176
	Raymond Stickel, Jr.						1,254,379,471		72,801,083
	Philip A. Taylor						1,256,589,912		70,590,639
	Robert C. Troccoli						1,260,867,549		66,313,003
	Christopher L. Wilson						1,260,186,985		66,993,567
		Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(2)*	Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.		1,054,920,918		171,591,974		100,667,642		18
	Matters	Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(3)	Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities		3,089,682		336,321		304,364		0
(4)(a)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC		3,364,940		146,387		219,040		0
(4)(b)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited		3,273,992		224,679		231,696		0

* Each of proposal 1 and 2 required approval by a combined vote of all of the portfolios of AIM Variable Insurance Funds (Invesco Variable Insurance Funds).

Invesco V.I. Managed Volatility Fund

	Semiannual Report to Shareholders	June 30, 2017
	Invesco V.I. Mid Cap Core Equity Fund

    

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

    A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

    Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/ proxysearch. The information is also available on the SEC website, sec.gov.

    Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc.                                                                                      VIMCCE-SAR-1                 07132017        1530

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/16 to 6/30/17, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	7.38%
Series II Shares	7.30
S&P 500 Index▼ (Broad Market Index)	9.34
Russell Midcap Index▼ (Style-Specific Index)	7.99
Lipper VUF Mid-Cap Core Funds Index⬛ (Peer Group Index)	6.13
Source(s): ▼FactSet Research Systems Inc.; ⬛Lipper Inc.
The S&P 500® Index is an unmanaged index considered representative of the US stock market. The Russell Midcap® Index is an unmanaged index considered representative of mid-cap stocks. The Russell Midcap Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co. The Lipper VUF Mid-Cap Core Funds Index is an unmanaged index considered representative of mid-cap core variable insurance underlying funds tracked by Lipper. The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/17
Series I Shares
Inception (9/10/01)	7.52	%
10 Years	5.62
5 Years	10.83
1 Year	16.80
Series II Shares
Inception (9/10/01)	7.27	%
10 Years	5.36
5 Years	10.57
1 Year	16.53

The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

    The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.95% and 1.20%, respectively.¹ The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.97% and 1.22%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of

this report that are based on expenses incurred during the period covered by this report.

    Invesco V.I. Mid Cap Core Equity Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

    The most recent month-end performance at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses

currently or in the past, returns would have been lower. See current prospectus for more information.

1 Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2019. See current prospectus for more information.

Invesco V.I. Mid Cap Core Equity Fund

Schedule of Investments^(a)

June 30, 2017

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–83.06%
Advertising–1.69%
Publicis Groupe S.A. (France)		75,009	$	5,619,569
Apparel, Accessories & Luxury Goods–3.55%
Hanesbrands, Inc.		256,472		5,939,892
Samsonite International S.A.		1,399,500		5,843,573
				11,783,465
Application Software–1.16%
Synopsys, Inc.(b)		52,788		3,849,829
Asset Management & Custody Banks–1.08%
Northern Trust Corp.		36,832		3,580,439
Auto Parts & Equipment–1.74%
Delphi Automotive PLC		65,805		5,767,808
Biotechnology–1.04%
BioMarin Pharmaceutical Inc.(b)		37,915		3,443,440
Building Products–1.48%
Johnson Controls International PLC		112,791		4,890,618
Casinos & Gaming–1.08%
Wynn Resorts Ltd.		26,647		3,573,896
Construction Machinery & Heavy Trucks–1.06%
Allison Transmission Holdings, Inc.		93,480		3,506,435
Data Processing & Outsourced Services–1.67%
Jack Henry & Associates, Inc.		53,358		5,542,295
Electronic Components–1.55%
Amphenol Corp.–Class A		69,419		5,124,511
Electronic Equipment & Instruments–1.45%
FLIR Systems, Inc.		86,512		2,998,506
Zebra Technologies Corp.–Class A(b)		17,964		1,805,741
				4,804,247
Electronic Manufacturing Services–0.50%
IPG Photonics Corp.(b)		11,496		1,668,070
Environmental & Facilities Services–1.68%
Republic Services, Inc.		58,121		3,704,052
Tetra Tech, Inc.		40,875		1,870,031
				5,574,083
Financial Exchanges & Data–1.55%
Moody’s Corp.		42,319		5,149,376
Health Care Equipment–2.94%
C.R. Bard, Inc.		6,612		2,090,119
ResMed Inc.		45,827		3,568,548
Wright Medical Group N.V.(b)		148,197		4,073,936
				9,732,603

	Shares		Value
Health Care Supplies–1.04%
DENTSPLY SIRONA Inc.		53,379	$	3,461,094
Home Furnishings–1.36%
Mohawk Industries, Inc.(b)		18,648		4,507,035
Homebuilding–1.94%
D.R. Horton, Inc.		185,872		6,425,595
Household Appliances–1.26%
Whirlpool Corp.		21,861		4,189,005
Housewares & Specialties–1.75%
Newell Brands, Inc.		108,173		5,800,236
Industrial Machinery–8.20%
Dover Corp.		85,485		6,857,607
Fortive Corp.		83,401		5,283,453
ITT Inc.		125,987		5,062,158
Nordson Corp.		27,087		3,286,195
Stanley Black & Decker Inc.		47,576		6,695,370
				27,184,783
Insurance Brokers–1.00%
Brown & Brown, Inc.		77,292		3,328,966
Internet Software & Services–0.89%
Just Eat PLC (United Kingdom)(b)		346,705		2,957,757
IT Consulting & Other Services–1.87%
EPAM Systems, Inc.(b)		73,591		6,188,267
Life & Health Insurance–3.61%
St. James’s Place PLC (United Kingdom)		555,918		8,558,335
Torchmark Corp.		44,368		3,394,152
				11,952,487
Life Sciences Tools & Services–2.09%
Agilent Technologies, Inc.		116,560		6,913,174
Movies & Entertainment–1.68%
Viacom Inc.–Class B		166,280		5,582,020
Multi-Utilities–1.09%
CMS Energy Corp.		78,024		3,608,610
Office REIT’s–1.33%
Boston Properties, Inc.		35,926		4,419,617
Oil & Gas Equipment & Services–2.61%
Core Laboratories N.V.		41,386		4,191,160
Tenaris S.A.–ADR (Luxembourg)		143,795		4,477,776
				8,668,936
Oil & Gas Exploration & Production–4.22%
Concho Resources Inc.(b)		35,273		4,286,728
Range Resources Corp.		148,770		3,447,001

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Mid Cap Core Equity Fund

	Shares		Value
Oil & Gas Exploration & Production–(continued)
Seven Generations Energy Ltd.– Class A (Canada)(b)		200,520	$	3,434,128
Vermilion Energy, Inc. (Canada)		89,474		2,838,385
				14,006,242
Paper Packaging–1.24%
Packaging Corp. of America		36,822		4,101,603
Property & Casualty Insurance–3.36%
Arch Capital Group Ltd.(b)		60,834		5,675,204
Progressive Corp. (The)		123,689		5,453,448
				11,128,652
Railroads–0.93%
Genesee & Wyoming Inc.–Class A(b)		45,258		3,095,195
Regional Banks–1.61%
First Republic Bank		53,442		5,349,544
Retail REIT’s–1.40%
GGP Inc.		196,536		4,630,388
Semiconductor Equipment–3.55%
KLA-Tencor Corp.		41,201		3,770,303
Teradyne, Inc.		266,199		7,993,956
				11,764,259
Semiconductors–5.02%
Analog Devices, Inc.		30,571		2,378,424

	Shares		Value
Semiconductors–(continued)
MACOM Technology Solutions Holdings, Inc.(b)		65,840	$	3,671,897
Microchip Technology Inc.		67,665		5,222,384
Xilinx, Inc.		83,285		5,356,891
				16,629,596
Specialty Chemicals–4.79%
Albemarle Corp.		31,266		3,299,814
International Flavors & Fragrances Inc.		28,377		3,830,895
Koninklijke DSM N.V. (Netherlands)		48,562		3,547,821
PPG Industries, Inc.		47,226		5,192,971
				15,871,501
Total Common Stocks & Other Equity Interests (Cost $206,495,978)				275,375,246
Money Market Funds–16.22%
Government & Agency Portfolio–Institutional Class, 0.89%(c)		32,256,134		32,256,134
Treasury Portfolio–Institutional Class, 0.85%(c)		21,504,089		21,504,089
Total Money Market Funds (Cost $53,760,223)				53,760,223
TOTAL INVESTMENTS–99.28% (Cost $260,256,201)				329,135,469
OTHER ASSETS LESS LIABILITIES–0.72%				2,399,515
NET ASSETS–100.00%			$	331,534,984

Investment Abbreviations:

ADR	– American Depositary Receipt
REIT	– Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of June 30, 2017.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2017

Information Technology	17.7	%
Consumer Discretionary	16.1
Industrials	13.4
Financials	12.2
Health Care	7.1
Energy	6.8
Materials	6.0
Real Estate	2.7
Utilities	1.1
Money Market Funds Plus Other Assets Less Liabilities	16.9

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Mid Cap Core Equity Fund

Statement of Assets and Liabilities

June 30, 2017

(Unaudited)

Statement of Operations

For the six months ended June 30, 2017

(Unaudited)

Assets:
Investments, at value (Cost $206,495,978)	$	275,375,246
Investments in affiliated money market funds, at value and cost		53,760,223
Total investments, at value (Cost $260,256,201)		329,135,469
Foreign currencies, at value (Cost $6,513)		6,570
Receivable for:
Investments sold		2,866,800
Fund shares sold		19,956
Dividends		503,617
Investment for trustee deferred compensation and retirement plans		117,774
Total assets		332,650,186
Liabilities:
Payable for:
Investments purchased		468,563
Fund shares reacquired		266,544
Accrued fees to affiliates		206,574
Accrued trustees’ and officers’ fees and benefits		5,389
Accrued other operating expenses		37,394
Trustee deferred compensation and retirement plans		130,738
Total liabilities		1,115,202
Net assets applicable to shares outstanding	$	331,534,984
Net assets consist of:
Shares of beneficial interest	$	224,197,605
Undistributed net investment income		2,098,692
Undistributed net realized gain		36,344,087
Net unrealized appreciation		68,894,600
	$	331,534,984
Net Assets:
Series I	$	194,206,987
Series II	$	137,327,997
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		14,048,930
Series II		10,150,163
Series I:
Net asset value per share	$	13.82
Series II:
Net asset value per share	$	13.53

Investment income:
Dividends (net of foreign withholding taxes of $56,655)	$	2,311,110
Dividends from affiliated money market funds		173,698
Total investment income		2,484,808
Expenses:
Advisory fees		1,193,844
Administrative services fees		286,873
Custodian fees		6,656
Distribution fees — Series II		167,742
Transfer agent fees		14,211
Trustees’ and officers’ fees and benefits		13,075
Reports to shareholders		31,446
Professional services fees		16,437
Other		2,144
Total expenses		1,732,428
Less: Fees waived		(33,145	)
Net expenses		1,699,283
Net investment income		785,525
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (includes net gains from securities sold to affiliates of $148,239)		29,667,149
Foreign currencies		(13,814	)
		29,653,335
Change in net unrealized appreciation (depreciation) of:
Investment securities		(6,936,603	)
Foreign currencies		20,156
		(6,916,447	)
Net realized and unrealized gain		22,736,888
Net increase in net assets resulting from operations	$	23,522,413

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Mid Cap Core Equity Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2017 and the year ended December 31, 2016

(Unaudited)

	June 30, 2017			December 31, 2016
Operations:
Net investment income	$	785,525		$	1,492,494
Net realized gain		29,653,335			6,883,128
Change in net unrealized appreciation (depreciation)		(6,916,447	)		31,767,897
Net increase in net assets resulting from operations		23,522,413			40,143,519
Distributions to shareholders from net investment income:
Series I		—			(150,245	)
Distributions to shareholders from net realized gains:
Series l		—			(12,808,400	)
Series ll		—			(8,160,367	)
Total distributions from net realized gains		—			(20,968,767	)
Share transactions–net:
Series l		(15,349,942	)		(17,870,780	)
Series ll		(2,219,707	)		4,467,820
Net increase (decrease) in net assets resulting from share transactions		(17,569,649	)		(13,402,960	)
Net increase in net assets		5,952,764			5,621,547
Net assets:
Beginning of period		325,582,220			319,960,673
End of period (includes undistributed net investment income of $2,098,692 and $1,313,167, respectively)	$	331,534,984		$	325,582,220

Notes to Financial Statements

June 30, 2017

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Mid Cap Core Equity Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance 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 consisting of twenty-four separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

The Fund’s investment objective is long-term growth of capital.

The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Invesco V.I. Mid Cap Core Equity Fund

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

Invesco V.I. Mid Cap Core Equity Fund

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 and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. 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 date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

J. Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays 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	.725%
Next $500 million		0	.70%
Next $500 million		0	.675%
Over $1.5 billion		0	.65%

For the six months ended June 30, 2017, the effective advisory fees incurred by the Fund was 0.725%.

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 PowerShares Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such

Invesco V.I. Mid Cap Core Equity Fund

Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2018, to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Series I shares to 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2018. During its term, the fee waiver agreement cannot be terminated or amended to increase expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2019, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended June 30, 2017, the Adviser waived advisory fees of $33,145.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2017, Invesco was paid $40,353 for accounting and fund administrative services and was reimbursed $246,520 for fees paid to insurance companies.

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. For the six months ended June 30, 2017, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2017, expenses incurred under the Plan are detailed 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of June 30, 2017. 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.

During the six months ended June 30, 2017, there were transfers from Level 1 to Level 2 of $5,619,569 and from Level 2 to Level 1 of $8,558,335, due to foreign fair value adjustments.

	Level 1		Level 2		Level 3		Total
Common Stocks & Other Equity Interests	$	266,207,856	$	9,167,390	$	—	$	275,375,246
Money Market Funds		53,760,223		—		—		53,760,223
Total Investments	$	319,968,079	$	9,167,390	$	—	$	329,135,469

Invesco V.I. Mid Cap Core Equity Fund

NOTE 4—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco 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 or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended June 30, 2017, the Fund engaged in securities sales of $2,800,230, which resulted in net realized gains of $148,239.

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 State Street Bank and Trust Company, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of December 31, 2016.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2017 was $82,331,332 and $102,153,017, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	75,630,897
Aggregate unrealized (depreciation) of investment securities		(6,753,476	)
Net unrealized appreciation of investment securities	$	68,877,421

Cost of investments for tax purposes is $260,258,048.

Invesco V.I. Mid Cap Core Equity Fund

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended June 30, 2017(a)						Year ended December 31, 2016
	Shares			Amount			Shares			Amount
Sold:
Series I		126,727		$	1,693,935			690,232		$	8,736,328
Series II		661,640			8,719,230			1,380,934			16,624,301
Issued as reinvestment of dividends:
Series I		—			—			1,025,209			12,958,645
Series II		—			—			658,626			8,160,367
Reacquired:
Series I		(1,265,847	)		(17,043,877	)		(3,166,296	)		(39,565,753	)
Series II		(828,902	)		(10,938,937	)		(1,649,202	)		(20,316,848	)
Net increase (decrease) in share activity		(1,306,382	)	$	(17,569,649	)		(1,060,497	)	$	(13,402,960	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 56% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. 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, third party record keeping and account servicing and administrative services. 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 10—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)
Series I
Six months ended 06/30/17	$	12.87	$	0.04		$	0.91		$	0.95		$	—		$	—		$	—		$	13.82		7.38	%	$	194,207		0.93	%(d)		0.95	%(d)		0.58	%(d)		30	%
Year ended 12/31/16		12.12		0.07			1.54			1.61			(0.01	)		(0.85	)		(0.86	)		12.87		13.43			195,464		0.98			1.00			0.57			29
Year ended 12/31/15		14.06		0.02			(0.58	)		(0.56	)		(0.05	)		(1.33	)		(1.38	)		12.12		(4.03	)		201,685		1.01			1.03			0.17			44
Year ended 12/31/14		15.13		0.05			0.64			0.69			(0.01	)		(1.75	)		(1.76	)		14.06		4.43			254,553		1.01			1.04			0.29			38
Year ended 12/31/13		12.71		0.01			3.59			3.60			(0.11	)		(1.07	)		(1.18	)		15.13		28.81			290,550		1.01			1.04			0.09			34
Year ended 12/31/12		11.56		0.09			1.18			1.27			(0.01	)		(0.11	)		(0.12	)		12.71		10.96			286,607		1.02			1.05			0.69			59
Series II
Six months ended 06/30/17		12.61		0.02			0.90			0.92			—			—			—			13.53		7.30			137,328		1.18	(d)		1.20	(d)		0.33	(d)		30
Year ended 12/31/16		11.91		0.04			1.51			1.55			—			(0.85	)		(0.85	)		12.61		13.16			130,118		1.23			1.25			0.32			29
Year ended 12/31/15		13.84		(0.01	)		(0.57	)		(0.58	)		(0.02	)		(1.33	)		(1.35	)		11.91		(4.28	)		118,276		1.26			1.28			(0.08	)		44
Year ended 12/31/14		14.95		0.01			0.63			0.64			—			(1.75	)		(1.75	)		13.84		4.17			128,305		1.26			1.29			0.04			38
Year ended 12/31/13		12.58		(0.02	)		3.54			3.52			(0.08	)		(1.07	)		(1.15	)		14.95		28.46			117,219		1.26			1.29			(0.16	)		34
Year ended 12/31/12		11.47		0.06			1.16			1.22			—			(0.11	)		(0.11	)		12.58		10.62			90,648		1.27			1.30			0.44			59

^(a)  Calculated using average shares outstanding.

^(b)  Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year, if applicable and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.

^(c)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(d)  Ratios are annualized and based on average daily net assets (000’s omitted) of $196,760 and $135,306 for Series I and Series II shares, respectively.

Invesco V.I. Mid Cap Core Equity Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2017 through June 30, 2017.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

Class	Beginning Account Value (01/01/2017)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/2017)1		Expenses Paid During Period2		Ending Account Value (06/30/2017)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,073.80	$	4.78	$	1,020.18	$	4.66		0.93	%
Series II		1,000.00		1,073.00		6.07		1,018.94		5.91		1.18

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2017 through June 30, 2017, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

²  Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Mid Cap Core Equity Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco V.I. Mid Cap Core Equity Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on

June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the 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 PowerShares 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, 2017.

In evaluating the fairness and reasonableness of compensation under the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board determined that continuation of the Fund’s investment advisory agreement and the sub-advisory contracts is in the best interest of the Fund and its shareholders and that the compensation payable to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Board had the benefit of reports from the Sub-Committees and Investments Committee throughout the year in considering approval of the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Board receives comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The

Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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 addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The Trustees recognized that the advisory fee rates for the Invesco Funds are, in most cases, the result of years of review and negotiation. The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these arrangements throughout the year and in prior years. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them 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 discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement 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. This information is current as of June 13, 2017, and does not reflect consideration of factors that became known to the Board after that date.

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 advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers. The Board’s review included consideration of Invesco Advisers’ investment process oversight, credit analysis and investment risk management. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, trading operations, internal audit, valuation and legal and compliance.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the greater uncertainty that may be associated with entering into a new relationship. 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 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 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 in which the Fund may invest, make recommendations regarding securities and assist with security trades. 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 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 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, 2016 to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds Mid-Cap Core Funds Index. The Board noted that performance of Series I shares of the Fund was in the fourth quintile of its performance universe for the one year period and the fifth quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series I shares of the Fund was below the performance of the Index for the one, three and five year periods. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees

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 at a common asset

Invesco V.I. Mid Cap Core Equity Fund

level. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing 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 compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/waivers) to the effective advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, based on asset balances as of December 31, 2016. The Board noted that the Fund’s rate was above the rate of one mutual fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other client accounts with investment strategies comparable to those of the Fund. The Board noted that Invesco Advisers or the Affiliated Sub-Advisers may charge lower fees to large institutional clients. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to certain other types of client accounts. These additional services include provision of administrative services, officers and office space, oversight of service providers, preparation of annual registration statement updates and financial information and regulatory compliance under the Investment Company Act of 1940, as amended.

Invesco Advisers also reviewed generally the higher frequency of shareholder purchases and redemptions in the Invesco Funds relative to the flow of assets for other client accounts. Invesco Advisers advised the Board that advance notice of redemptions is often provided to Invesco Advisers by institutional clients. The Board did note that sub-advisory fee rates charged by the Affiliated Sub-Advisers to manage the Invesco Funds and to manage other client accounts tended to be more comparable, reflecting a similar scope of services.

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 also noted

that the sub-advisory fees are not paid directly by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds advised by Invesco Advisers.

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. 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 and the Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund to be excessive given the nature, quality and extent of the services provided. The Board received and accepted information from Invesco Advisers demonstrating that Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; and 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 periodic reports from the Chief Compliance Officer of the

Invesco Funds demonstrating 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 money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds with respect to certain investments in the affiliated money market funds. The waiver is in 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that the Fund may use an affiliated broker to execute certain trades for the Fund to, among other things, control information leakage, and was advised that such trades would be executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Mid Cap Core Equity Fund

Proxy Results

A Special Joint Meeting (“Meeting”) of Shareholders of Invesco V.I. Mid Cap Core Equity Fund, an investment portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), a Delaware statutory trust (“Trust”), was held on March 9, 2017. The Meeting was held for the following purposes:

(1) Elect 15 trustees to the Board, each of whom will serve until his or her successor is elected and qualified.

(2) Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.

(3) Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities.

(4)(a) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC.

(4)(b) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited.

The results of the voting on the above matters were as follows:

	Matters					Votes For		Votes Withheld
(1)*	David C. Arch						1,256,086,249		71,094,301
	James T. Bunch						1,254,410,156		72,770,397
	Bruce L. Crockett						1,258,363,948		68,816,603
	Jack M. Fields						1,255,101,592		72,078,961
	Martin L. Flanagan						1,257,885,397		69,295,160
	Cynthia Hostetler						1,261,335,247		65,845,303
	Dr. Eli Jones						1,257,497,296		69,683,257
	Dr. Prema Mathai-Davis						1,254,728,756		72,451,795
	Teresa M. Ressel						1,261,829,473		65,351,074
	Dr. Larry Soll						1,254,261,019		72,919,533
	Ann Barnett Stern						1,260,861,373		66,319,176
	Raymond Stickel, Jr.						1,254,379,471		72,801,083
	Philip A. Taylor						1,256,589,912		70,590,639
	Robert C. Troccoli						1,260,867,549		66,313,003
	Christopher L. Wilson						1,260,186,985		66,993,567
		Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(2)*	Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.		1,054,920,918		171,591,974		100,667,642		18
	Matters	Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(3)	Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities		18,556,431		2,641,262		1,917,524		1
(4)(a)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC		19,686,790		1,627,309		1,801,118		1
(4)(b)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited		19,309,742		1,964,907		1,840,569		0

* Each of proposal 1 and 2 required approval by a combined vote of all of the portfolios of AIM Variable Insurance Funds (Invesco Variable Insurance Funds).

Invesco V.I. Mid Cap Core Equity Fund

	Semiannual Report to Shareholders	June 30, 2017
	Invesco V.I. Mid Cap Growth Fund

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

 Invesco Distributors, Inc. VK-VIMCG-SAR-1     08032017 1202

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/16 to 6/30/17, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	13.91	%
Series II Shares	13.66
S&P 500 Index▼ (Broad Market Index)	9.34
Russell Midcap Growth Index▼ (Style-Specific Index)	11.40
Lipper VUF Mid-Cap Growth Funds Index∎ (Peer Group Index)	14.49
Source(s): ▼FactSet Research Systems Inc.; ∎Lipper Inc.

The S&P 500^® Index is an unmanaged index considered representative of the US stock market.

The Russell Midcap^® Growth Index is an unmanaged index considered representative of mid-cap growth stocks. The Russell Midcap Growth Index is a trademark/ service mark of the Frank Russell Co. Russell^® is a trademark of the Frank Russell Co.

The Lipper VUF Mid-Cap Growth Funds Index is an unmanaged index considered representative of mid-cap growth variable insurance underlying funds tracked by Lipper.

The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns As of 6/30/17
Series I Shares
10 Years	6.81	%
5 Years	12.51
1 Year	17.38
Series II Shares
Inception (9/25/00)	1.27	%
10 Years	6.66
5 Years	12.25
1 Year	17.17

Effective June 1, 2010, Class II shares of the predecessor fund, Van Kampen Life Investment Trust Mid Cap Growth Portfolio, advised by Van Kampen Asset Management were reorganized into Series II shares of Invesco Van Kampen V.I. Mid Cap Growth Fund (renamed Invesco V.I. Mid Cap Growth Fund on April 29, 2013). Returns shown above, prior to June 1,2010, for Series II shares are blended returns of the predecessor fund and Invesco V.I. Mid Cap Growth Fund. Share class returns will differ from the predecessor fund because of different expenses.

Series I shares incepted on June 1, 2010. Series I share performance shown prior to that date is that of the predecessor fund’s Class II shares and includes the 12b-1 fees applicable to the predecessor fund’s Class II shares.

The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses,

reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 1.03% and 1.28%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Invesco V.I. Mid Cap Growth Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are

determined by the variable product issuers, will vary and will lower the total return.

The most recent month-end performance at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

Invesco V.I. Mid Cap Growth Fund

Schedule of Investments^(a)

June 30, 2017

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–99.41%
Aerospace & Defense–1.29%
Raytheon Co.		18,560	$	2,997,069
Airlines–1.06%
Alaska Air Group, Inc.		27,446		2,463,553
Alternative Carriers–1.03%
Zayo Group Holdings, Inc.(b)		77,812		2,404,391
Apparel Retail–1.47%
Burlington Stores, Inc.(b)		37,208		3,422,764
Application Software–5.13%
Cadence Design Systems, Inc.(b)		62,293		2,086,193
Guidewire Software Inc.(b)		44,883		3,083,911
SS&C Technologies Holdings, Inc.		89,774		3,448,219
Tyler Technologies, Inc.(b)		18,863		3,313,663
				11,931,986
Auto Parts & Equipment–0.99%
Delphi Automotive PLC		26,395		2,313,522
Automotive Retail–1.05%
O’Reilly Automotive, Inc.(b)		11,210		2,452,075
Biotechnology–2.90%
BioMarin Pharmaceutical Inc.(b)		39,274		3,566,865
Neurocrine Biosciences, Inc.(b)		68,981		3,173,126
				6,739,991
Building Products–4.93%
A.O. Smith Corp.		53,266		3,000,474
Allegion PLC		38,667		3,136,667
Masco Corp.		75,203		2,873,506
Owens Corning		36,766		2,460,381
				11,471,028
Cable & Satellite–0.78%
DISH Network Corp.–Class A(b)		28,878		1,812,383
Casinos & Gaming–1.43%
Wynn Resorts Ltd.		24,779		3,323,359
Communications Equipment–1.16%
F5 Networks, Inc.(b)		21,190		2,692,401
Construction Machinery & Heavy Trucks–0.56%
WABCO Holdings Inc.(b)		10,123		1,290,784
Construction Materials–1.15%
Summit Materials, Inc.–Class A(b)		92,583		2,672,871
Data Processing & Outsourced Services–4.28%
Broadridge Financial Solutions, Inc.		37,550		2,837,278
Fidelity National Information Services, Inc.		48,508		4,142,583

	Shares		Value
Data Processing & Outsourced Services–(continued)
Vantiv, Inc.–Class A(b)		46,971	$	2,975,143
				9,955,004
Distillers & Vintners–2.11%
Constellation Brands, Inc.–Class A		25,322		4,905,631
Diversified Support Services–0.74%
KAR Auction Services, Inc.		41,024		1,721,777
Electrical Components & Equipment–1.25%
Acuity Brands, Inc.		14,327		2,912,393
Electronic Components–1.64%
Amphenol Corp.–Class A		51,685		3,815,387
Electronic Manufacturing Services–0.98%
Flex Ltd.(b)		140,354		2,289,174
Environmental & Facilities Services–0.89%
Republic Services, Inc.		32,571		2,075,750
Financial Exchanges & Data–4.78%
CBOE Holdings Inc.		27,433		2,507,376
Intercontinental Exchange, Inc.		48,816		3,217,951
Nasdaq, Inc.		32,385		2,315,204
S&P Global Inc.		21,052		3,073,381
				11,113,912
General Merchandise Stores–0.73%
Dollar Tree, Inc.(b)		24,370		1,703,950
Health Care Distributors–1.63%
Henry Schein, Inc.(b)		20,705		3,789,429
Health Care Equipment–6.25%
Boston Scientific Corp.(b)		140,673		3,899,456
DexCom Inc.(b)		43,550		3,185,682
Hologic, Inc.(b)		91,298		4,143,103
Penumbra, Inc.(b)		37,729		3,310,720
				14,538,961
Home Entertainment Software–2.05%
Electronic Arts Inc.(b)		45,025		4,760,043
Homebuilding–0.56%
D.R. Horton, Inc.		37,470		1,295,338
Hotels, Resorts & Cruise Lines–0.75%
Royal Caribbean Cruises Ltd.		15,882		1,734,791
Housewares & Specialties–1.42%
Newell Brands, Inc.		61,632		3,304,708
Human Resource & Employment Services–0.95%
Robert Half International, Inc.		46,331		2,220,645

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Mid Cap Growth Fund

	Shares		Value
Industrial Machinery–1.80%
John Bean Technologies Corp.		5,667	$	555,366
Stanley Black & Decker Inc.		25,730		3,620,983
				4,176,349
Internet Software & Services–3.64%
CoStar Group Inc.(b)		15,176		4,000,394
GoDaddy, Inc. Class-A(b)		41,731		1,770,229
LogMeIn, Inc.		25,881		2,704,564
				8,475,187
Investment Banking & Brokerage–3.77%
E*TRADE Financial Corp.(b)		139,498		5,305,109
TD Ameritrade Holding Corp.		80,288		3,451,581
				8,756,690
IT Consulting & Other Services–1.25%
Gartner, Inc.(b)		23,440		2,895,074
Leisure Products–1.18%
Brunswick Corp.		43,659		2,738,729
Life Sciences Tools & Services–1.56%
INC Research Holdings, Inc.–Class A(b)		61,857		3,618,635
Managed Health Care–2.73%
Centene Corp.(b)		41,776		3,337,067
Humana Inc.		12,521		3,012,803
				6,349,870
Metal & Glass Containers–1.10%
Berry Global Group, Inc.(b)		44,770		2,552,338
Movies & Entertainment–1.35%
Cinemark Holdings, Inc.		80,665		3,133,835
Oil & Gas Equipment & Services–1.13%
Halliburton Co.		61,679		2,634,310
Oil & Gas Exploration & Production–3.18%
Concho Resources Inc.(b)		23,088		2,805,884
Diamondback Energy Inc.(b)		26,707		2,371,849
Pioneer Natural Resources Co.		13,960		2,227,737
				7,405,470
Oil & Gas Storage & Transportation–1.11%
Cheniere Energy, Inc.(b)		52,900		2,576,759
Packaged Foods & Meats–1.57%
Pinnacle Foods Inc.		61,399		3,647,101

	Shares		Value
Pharmaceuticals–0.68%
Pacira Pharmaceuticals, Inc.(b)		33,322	$	1,589,459
Railroads–1.00%
Genesee & Wyoming Inc.–Class A(b)		33,842		2,314,454
Regional Banks–0.97%
Zions Bancorp.		51,276		2,251,529
Restaurants–2.37%
Chipotle Mexican Grill, Inc.(b)		4,844		2,015,589
Domino’s Pizza, Inc.		16,521		3,494,687
				5,510,276
Semiconductors–4.36%
Cirrus Logic, Inc.(b)		26,239		1,645,710
Microchip Technology Inc.		39,838		3,074,697
Microsemi Corp.(b)		57,230		2,678,364
Qorvo, Inc.(b)		43,331		2,743,719
				10,142,490
Specialized REIT’s–3.52%
Equinix, Inc.		9,081		3,897,202
SBA Communications Corp.–Class A(b)		31,743		4,282,131
				8,179,333
Specialty Chemicals–1.56%
Sherwin-Williams Co. (The)		10,348		3,631,734
Specialty Stores–1.12%
Ulta Beauty, Inc.(b)		9,040		2,597,554
Systems Software–2.52%
ServiceNow, Inc.(b)		55,374		5,869,644
Total Common Stocks & Other Equity Interests (Cost $176,562,812)				231,171,890
Money Market Funds–1.03%
Government & Agency Portfolio–Institutional Class, 0.89%(c)		1,257,796		1,257,796
Treasury Portfolio–Institutional Class, 0.85%(c)		1,130,524		1,130,524
Total Money Market Funds (Cost $2,388,320)				2,388,320
TOTAL INVESTMENTS–100.44% (Cost $178,951,132)				233,560,210
OTHER ASSETS LESS LIABILITIES–(0.44)%				(1,024,316	)
NET ASSETS–100.00%			$	232,535,894

Investment Abbreviations:

REIT – Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of June 30, 2017.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Mid Cap Growth Fund

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2017

Information Technology	27.0	%
Health Care	15.8
Consumer Discretionary	15.2
Industrials	14.5
Financials	9.5
Energy	5.4
Materials	3.8
Consumer Staples	3.7
Real Estate	3.5
Telecommunication Services	1.0
Money Market Funds Plus Other Assets Less Liabilities	0.6

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Mid Cap Growth Fund

Statement of Assets and Liabilities

June 30, 2017

(Unaudited)

Statement of Operations

For the six months ended June 30, 2017

(Unaudited)

Assets:
Investments, at value (Cost $176,562,812)	$	231,171,890
Investments in affiliated money market funds, at value and cost		2,388,320
Total investments, at value (Cost $178,951,132)		233,560,210
Receivable for:
Investments sold		584,672
Fund shares sold		16,162
Dividends		98,858
Investment for trustee deferred compensation and retirement plans		119,923
Other assets		6,648
Total assets		234,386,473
Liabilities:
Payable for:
Investments purchased		1,266,076
Fund shares reacquired		260,676
Accrued fees to affiliates		158,165
Accrued trustees’ and officers’ fees and benefits		4,557
Accrued other operating expenses		30,792
Trustee deferred compensation and retirement plans		130,313
Total liabilities		1,850,579
Net assets applicable to shares outstanding	$	232,535,894
Net assets consist of:
Shares of beneficial interest	$	150,785,398
Undistributed net investment income (loss)		(575,370	)
Undistributed net realized gain		27,716,788
Net unrealized appreciation		54,609,078
	$	232,535,894
Net Assets:
Series I	$	109,742,510
Series II	$	122,793,384
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		19,692,736
Series II		22,352,678
Series I:
Net asset value per share	$	5.57
Series II:
Net asset value per share	$	5.49

Investment income:
Dividends	$	798,910
Dividends from affiliated money market funds (includes securities lending income of $8,402)		19,609
Total investment income		818,519
Expenses:
Advisory fees		841,621
Administrative services fees		196,165
Custodian fees		4,978
Distribution fees — Series II		150,383
Transfer agent fees		24,058
Trustees’ and officers’ fees and benefits		9,635
Reports to shareholders		24,872
Professional services fees		19,474
Other		2,330
Total expenses		1,273,516
Less: Fees waived		(1,679	)
Net expenses		1,271,837
Net investment income (loss)		(453,318	)
Realized and unrealized gain from:
Net realized gain from investment securities		14,634,033
Change in net unrealized appreciation of investment securities		14,824,938
Net realized and unrealized gain		29,458,971
Net increase in net assets resulting from operations	$	29,005,653

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Mid Cap Growth Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2017 and the year ended December 31, 2016

(Unaudited)

	June 30, 2017			December 31, 2016
Operations:
Net investment income (loss)	$	(453,318	)	$	(1,268,599	)
Net realized gain		14,634,033			13,767,777
Change in net unrealized appreciation (depreciation)		14,824,938			(12,121,567	)
Net increase in net assets resulting from operations		29,005,653			377,611
Distributions to shareholders from net realized gains:
Series l		—			(10,165,462	)
Series ll		—			(14,237,965	)
Total distributions from net realized gains		—			(24,403,427	)
Share transactions–net:
Series l		(1,179,118	)		3,417,783
Series ll		(7,016,896	)		(29,982,096	)
Net increase (decrease) in net assets resulting from share transactions		(8,196,014	)		(26,564,313	)
Net increase (decrease) in net assets		20,809,639			(50,590,129	)
Net assets:
Beginning of period		211,726,255			262,316,384
End of period (includes undistributed net investment income (loss) of $(575,370) and $(122,052), respectively)	$	232,535,894		$	211,726,255

Notes to Financial Statements

June 30, 2017

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Mid Cap Growth Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance 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 consisting of twenty-four separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

The Fund’s investment objective is to seek capital growth.

The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services — Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for

Invesco V.I. Mid Cap Growth Fund

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. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees.

Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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.

Invesco V.I. Mid Cap Growth Fund

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 and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the 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.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets	Rate
First $500 million		0.75%
Next $500 million		0.70%
Over $1 billion		0.65%

For the six months ended June 30, 2017, the effective advisory fees incurred by the Fund was 0.75%.

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 PowerShares Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2018, 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 Series I shares to 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2018. During its term, the fee waiver agreement cannot be terminated or amended to increase expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2019, 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.

Invesco V.I. Mid Cap Growth Fund

For the six months ended June 30, 2017, the Adviser waived advisory fees of $1,679.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2017, Invesco was paid $28,289 for accounting and fund administrative services and was reimbursed $167,876 for fees paid to insurance companies.

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. For the six months ended June 30, 2017, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2017, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2017, the Fund incurred $1,068 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

As of June 30, 2017, all of the securities in this Fund were valued based on Level 1 inputs (see the Schedule of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

NOTE 4—Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 5—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

Invesco V.I. Mid Cap Growth Fund

NOTE 6—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of December 31, 2016.

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2017 was $53,082,054 and $61,141,400, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	56,458,483
Aggregate unrealized (depreciation) of investment securities		(3,041,787	)
Net unrealized appreciation of investment securities	$	53,416,696

Cost of investments for tax purposes is $180,143,514.

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended June 30, 2017(a)						Year ended December 31, 2016
	Shares			Amount			Shares			Amount
Sold:
Series I		1,571,639		$	8,356,575			3,420,749		$	17,586,771
Series II		1,151,023			6,005,461			4,122,162			21,135,860
Issued as reinvestment of dividends:
Series I		—			—			2,033,092			10,165,462
Series II		—			—			2,882,179			14,237,965
Reacquired:
Series I		(1,805,985	)		(9,535,693	)		(4,780,869	)		(24,334,450	)
Series II		(2,476,692	)		(13,022,357	)		(13,091,408	)		(65,355,921	)
Net increase (decrease) in share activity		(1,560,015	)	$	(8,196,014	)		(5,414,095	)	$	(26,564,313	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 55% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. 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, third party record keeping and account servicing and administrative services. 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.

Invesco V.I. Mid Cap Growth Fund

NOTE 9—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 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)
Series I
Six months ended 06/30/17	$	4.89	$	(0.01	)	$	0.69	$	0.68	$	—		$	—		$	—		$	5.57		13.91	%	$	109,743		1.00	%(d)		1.00	%(d)		(0.27	)%(d)		24	%
Year ended 12/31/16		5.38		(0.02	)		0.07		0.05		—			(0.54	)		(0.54	)		4.89		0.76			97,444		1.03			1.03			(0.39	)		60
Year ended 12/31/15		5.78		(0.02	)		0.08		0.06		—			(0.46	)		(0.46	)		5.38		1.21			103,632		1.07			1.07			(0.33	)		62
Year ended 12/31/14		5.35		(0.02	)		0.45		0.43		—			—			—			5.78		8.04			106,390		1.07			1.07			(0.36	)		71
Year ended 12/31/13		3.92		(0.02	)		1.47		1.45		(0.02	)		—			(0.02	)		5.35		37.01			115,319		1.08			1.08			(0.41	)		76
Year ended 12/31/12		3.69		0.02	(e)		0.41		0.43		—			(0.20	)		(0.20	)		3.92		11.60			88,091		1.06			1.12			0.54	(e)		92
Series II
Six months ended 06/30/17		4.83		(0.01	)		0.67		0.66		—			—			—			5.49		13.66			122,793		1.25	(d)		1.25	(d)		(0.52	)(d)		24
Year ended 12/31/16		5.33		(0.03	)		0.07		0.04		—			(0.54	)		(0.54	)		4.83		0.57			114,282		1.28			1.28			(0.64	)		60
Year ended 12/31/15		5.74		(0.03	)		0.08		0.05		—			(0.46	)		(0.46	)		5.33		1.04			158,684		1.32			1.32			(0.58	)		62
Year ended 12/31/14		5.33		(0.03	)		0.44		0.41		—			—			—			5.74		7.69			162,299		1.32			1.32			(0.61	)		71
Year ended 12/31/13		3.91		(0.03	)		1.46		1.43		(0.01	)		—			(0.01	)		5.33		36.60			172,478		1.33			1.33			(0.66	)		76
Year ended 12/31/12		3.68		0.01	(e)		0.42		0.43		—			(0.20	)		(0.20	)		3.91		11.63			143,588		1.31			1.37			0.29	(e)		92

^(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. Total returns are not annualized for periods less than one year, if applicable, and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.

^(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 December 31, 2012, the portfolio turnover calculation excludes the value of securities purchased of $158,450,343 and sold of $99,449,268 in the effort to realign the Fund’s portfolio holdings after the reorganization of Invesco V.I. Capital Development Fund into the Fund.

^(d)  Ratios are annualized and based on average daily net assets (000’s omitted) of $104,989 and $121,303 for Series I and Series II shares, respectively.

^(e)  Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets includes special cash dividends received of $3.92 per share owned of Aveta Inc. on August 16, 2012. Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets excluding the significant dividend are $0.01 and 0.28% and $0.00 and 0.03% for Series I and Series II shares, respectively.

Invesco V.I. Mid Cap Growth Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2017 through June 30, 2017.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

Class	Beginning Account Value (01/01/17)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/17)1		Expenses Paid During Period2		Ending Account Value (06/30/17)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,139.10	$	5.30	$	1,019.84	$	5.01		1.00	%
Series II		1,000.00		1,136.60		6.62		1,018.60		6.26		1.25

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2017 through June 30, 2017, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

²  Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Mid Cap Growth Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco V.I. Mid Cap Growth Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the 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 PowerShares 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, 2017.

In evaluating the fairness and reasonableness of compensation under the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board determined that continuation of the Fund’s investment advisory agreement and the sub-advisory contracts is in the best interest of the Fund and its shareholders and that the compensation payable to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Board had the benefit of reports from the Sub-Committees and Investments Committee throughout the year in considering approval of the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Board receives comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The

Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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 addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The Trustees recognized that the advisory fee rates for the Invesco Funds are, in most cases, the result of years of review and negotiation. The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these arrangements throughout the year and in prior years. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them 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 discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement 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. This information is current as of June 13, 2017, and does not reflect consideration of factors that became known to the Board after that date.

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 advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers. The Board’s review included consideration of Invesco Advisers’ investment process oversight, credit analysis and investment risk management. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, trading operations, internal audit, valuation and legal and compliance.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the greater uncertainty that may be associated with entering into a new relationship. 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 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 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 in which the Fund may invest, make recommendations regarding securities and assist with security trades. 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 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 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, 2016 to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds Mid-Cap Growth Funds Index. The Board noted that performance of Series II shares of the Fund was in the fifth quintile of its performance universe for the one and five year periods and the fourth quintile for the three year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series II shares of the Fund was below the performance of the Index for the one, three year and five year periods. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s

Invesco V.I. Mid Cap Growth Fund

Broadridge expense group at a common asset level. The Board noted that the contractual management fee rate for Series II shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing 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 compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/waivers) to the effective advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, based on asset balances as of December 31, 2016. The Board noted that the Fund’s rate was above the rate of one such mutual fund.

The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other client accounts with investment strategies comparable to those of the Fund.

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 also noted that the sub-advisory fees are not paid directly by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds advised by Invesco Advisers.

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. 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 and the Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund to be excessive given the nature, quality and extent of the services provided. The Board received and accepted information from Invesco Advisers demonstrating that Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; and 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 Adviser’s or the Affiliated Sub-Adviser’s expenses. The Board also considered that it receives periodic reports from the Chief Compliance Officer of the Invesco Funds demonstrating 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 money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds with respect to certain investments in the affiliated money market funds. The waiver is in 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 amount of advisory fees received by Invesco Advisers from the

Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that the Fund may use an affiliated broker to execute certain trades for the Fund to, among other things, control information leakage, and was advised that such trades would be executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Mid Cap Growth Fund

Proxy Results

A Special Joint Meeting (“Meeting”) of Shareholders of Invesco V.I. Mid Cap Growth Fund, an investment portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), a Delaware statutory trust (“Trust”), was held on March 9, 2017. The Meeting was held for the following purposes:

(1) Elect 15 trustees to the Board, each of whom will serve until his or her successor is elected and qualified.

(2) Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.

(3) Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities.

(4)(a) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC.

(4)(b) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited.

The results of the voting on the above matters were as follows:

	Matters					Votes For		Votes Withheld
(1)*	David C. Arch						1,256,086,249		71,094,301
	James T. Bunch						1,254,410,156		72,770,397
	Bruce L. Crockett						1,258,363,948		68,816,603
	Jack M. Fields						1,255,101,592		72,078,961
	Martin L. Flanagan						1,257,885,397		69,295,160
	Cynthia Hostetler						1,261,335,247		65,845,303
	Dr. Eli Jones						1,257,497,296		69,683,257
	Dr. Prema Mathai-Davis						1,254,728,756		72,451,795
	Teresa M. Ressel						1,261,829,473		65,351,074
	Dr. Larry Soll						1,254,261,019		72,919,533
	Ann Barnett Stern						1,260,861,373		66,319,176
	Raymond Stickel, Jr.						1,254,379,471		72,801,083
	Philip A. Taylor						1,256,589,912		70,590,639
	Robert C. Troccoli						1,260,867,549		66,313,003
	Christopher L. Wilson						1,260,186,985		66,993,567
		Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(2)*	Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.		1,054,920,918		171,591,974		100,667,642		18
	Matters	Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(3)	Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities		32,972,148		4,197,769		4,122,288		0
(4)(a)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC		35,053,112		2,250,027		3,989,066		0
(4)(b)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited		33,991,068		2,985,218		4,315,919		0

* Each of proposal 1 and 2 required approval by a combined vote of all of the portfolios of AIM Variable Insurance Funds (Invesco Variable Insurance Funds).

Invesco V.I. Mid Cap Growth Fund

	Semiannual Report to Shareholders	June 30, 2017
	Invesco V.I. S&P 500 Index Fund
	The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.     A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.     Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/ proxysearch. The information is also available on the SEC website, sec.gov.     Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
	This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.
	NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc.                                               MS-VISPI-SAR-1         07182017    1018

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/16 to 6/30/17, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	9.06%
Series II Shares	8.99
S&P 500 Index▼ (Broad Market/Style-Specific Index)	9.34
Lipper VUF S&P 500 Funds Index⬛ (Peer Group Index)	9.89
Source(s): ▼FactSet Research Systems Inc.; ⬛Lipper Inc.
The S&P 500® Index is an unmanaged index considered representative of the US stock market. The Lipper VUF S&P 500 Funds Index is an unmanaged index considered representative of S&P 500 variable insurance underlying funds tracked by Lipper. A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/17
Series I Shares
Inception (5/18/98)	5.83	%
10 Years	6.88
5 Years	14.20
1 Year	17.30
Series II Shares
Inception (6/5/00)	4.42	%
10 Years	6.62
5 Years	13.91
1 Year	17.07

Effective June 1, 2010, Class X and Class Y shares of the predecessor fund, Morgan Stanley Variable Investment S&P 500 Index Portfolio advised by Morgan Stanley Investment Advisors Inc. were reorganized into Series I and Series II shares, respectively, of Invesco V.I. S&P 500 Index Fund. Returns shown above, prior to June 1, 2010, for Series I and Series II shares are blended returns of the predecessor fund and Invesco V.I. S&P 500 Index Fund. Share class returns will differ from the predecessor fund because of different expenses.

    The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.41% and 0.66%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

    Invesco V.I. S&P 500 Index Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

    The most recent month-end performance at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

Invesco V.I. S&P 500 Index Fund

Schedule of Investments^(a)

June 30, 2017

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–99.62%
Advertising–0.14%
Interpublic Group of Cos., Inc. (The)		1,696	$	41,722
Omnicom Group Inc.		991		82,154
				123,876
Aerospace & Defense–2.33%
Arconic Inc.		1,837		41,608
Boeing Co. (The)		2,379		470,447
General Dynamics Corp.		1,202		238,116
L3 Technologies, Inc.		328		54,802
Lockheed Martin Corp.		1,055		292,879
Northrop Grumman Corp.		737		189,195
Raytheon Co.		1,237		199,751
Rockwell Collins, Inc.		685		71,980
Textron Inc.		1,141		53,741
TransDigm Group, Inc.		209		56,194
United Technologies Corp.		3,158		385,623
				2,054,336
Agricultural & Farm Machinery–0.17%
Deere & Co.		1,246		153,993
Agricultural Products–0.11%
Archer-Daniels-Midland Co.		2,414		99,891
Air Freight & Logistics–0.72%
C.H. Robinson Worldwide, Inc.		596		40,933
Expeditors International of Washington, Inc.		760		42,925
FedEx Corp.		1,042		226,458
United Parcel Service, Inc.–Class B		2,914		322,259
				632,575
Airlines–0.64%
Alaska Air Group, Inc.		532		47,752
American Airlines Group Inc.		2,087		105,018
Delta Air Lines, Inc.		3,120		167,669
Southwest Airlines Co.		2,562		159,203
United Continental Holdings Inc.(b)		1,193		89,773
				569,415
Alternative Carriers–0.08%
Level 3 Communications, Inc.(b)		1,234		73,176
Apparel Retail–0.45%
Foot Locker, Inc.		558		27,498
Gap, Inc. (The)		953		20,957
L Brands, Inc.		1,015		54,698
Ross Stores, Inc.		1,666		96,178
TJX Cos., Inc. (The)		2,726		196,736
				396,067
Apparel, Accessories & Luxury Goods–0.32%
Coach, Inc.		1,186		56,145
Hanesbrands, Inc.		1,536		35,574

	Shares		Value
Apparel, Accessories & Luxury Goods–(continued)
Michael Kors Holdings Ltd.(b)		686	$	24,867
PVH Corp.		330		37,785
Ralph Lauren Corp.		237		17,491
Under Armour, Inc.–Class A(b)		820		17,843
Under Armour, Inc.–Class C(b)		824		16,612
VF Corp.		1,357		78,163
				284,480
Application Software–1.02%
Adobe Systems Inc.(b)		2,095		296,317
ANSYS, Inc.(b)		362		44,048
Autodesk, Inc.(b)		827		83,378
Citrix Systems, Inc.(b)		640		50,931
Intuit Inc.		1,026		136,263
salesforce.com, inc.(b)		2,833		245,338
Synopsys, Inc.(b)		635		46,311
				902,586
Asset Management & Custody Banks–1.12%
Affiliated Managers Group, Inc.		238		39,475
Ameriprise Financial, Inc.		650		82,739
Bank of New York Mellon Corp. (The)		4,408		224,896
BlackRock, Inc.		513		216,696
Franklin Resources, Inc.		1,457		65,259
Invesco Ltd.(c)		1,706		60,034
Northern Trust Corp.		908		88,267
State Street Corp.		1,499		134,505
T. Rowe Price Group Inc.		1,028		76,288
				988,159
Auto Parts & Equipment–0.15%
BorgWarner, Inc.		863		36,557
Delphi Automotive PLC		1,139		99,833
				136,390
Automobile Manufacturers–0.44%
Ford Motor Co.		16,621		185,989
General Motors Co.		5,821		203,328
				389,317
Automotive Retail–0.28%
Advance Auto Parts, Inc.		317		36,959
AutoNation, Inc.(b)		287		12,100
AutoZone, Inc.(b)		119		67,885
CarMax, Inc.(b)		790		49,817
O’Reilly Automotive, Inc.(b)		386		84,434
				251,195
Biotechnology–2.93%
AbbVie Inc.		6,741		488,790
Alexion Pharmaceuticals, Inc.(b)		949		115,465
Amgen Inc.		3,114		536,324
Biogen Inc.(b)		904		245,309

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. S&P 500 Index Fund

	Shares		Value
Biotechnology–(continued)
Celgene Corp.(b)		3,309	$	429,740
Gilead Sciences, Inc.		5,527		391,201
Incyte Corp.(b)		714		89,900
Regeneron Pharmaceuticals, Inc.(b)		322		158,147
Vertex Pharmaceuticals Inc.(b)		1,049		135,185
				2,590,061
Brewers–0.08%
Molson Coors Brewing Co.–Class B		778		67,173
Broadcasting–0.19%
CBS Corp.–Class B		1,572		100,262
Discovery Communications, Inc.–Class A(b)		674		17,410
Discovery Communications, Inc.–Class C(b)		911		22,966
Scripps Networks Interactive Inc.–Class A		412		28,144
				168,782
Building Products–0.34%
Allegion PLC		411		33,340
Fortune Brands Home & Security, Inc.		660		43,059
Johnson Controls International PLC		3,956		171,532
Masco Corp.		1,353		51,698
				299,629
Cable & Satellite–1.30%
Charter Communications, Inc.–Class A(b)		913		307,544
Comcast Corp.–Class A		20,063		780,852
DISH Network Corp.–Class A(b)		958		60,124
				1,148,520
Casinos & Gaming–0.05%
Wynn Resorts Ltd.		342		45,869
Commodity Chemicals–0.13%
LyondellBasell Industries N.V.–Class A		1,395		117,724
Communications Equipment–0.97%
Cisco Systems, Inc.		21,182		662,997
F5 Networks, Inc.(b)		273		34,688
Harris Corp.		516		56,285
Juniper Networks, Inc.		1,614		44,998
Motorola Solutions, Inc.		695		60,284
				859,252
Computer & Electronics Retail–0.07%
Best Buy Co., Inc.		1,123		64,382
Construction & Engineering–0.09%
Fluor Corp.		601		27,514
Jacobs Engineering Group, Inc.		522		28,391
Quanta Services, Inc.(b)		638		21,003
				76,908
Construction Machinery & Heavy Trucks–0.53%
Caterpillar Inc.		2,496		268,220
Cummins Inc.		653		105,930
PACCAR Inc.		1,483		97,937
				472,087

	Shares		Value
Construction Materials–0.15%
Martin Marietta Materials, Inc.		265	$	58,984
Vulcan Materials Co.		558		70,687
				129,671
Consumer Electronics–0.03%
Garmin Ltd.		485		24,750
Consumer Finance–0.74%
American Express Co.		3,182		268,052
Capital One Financial Corp.		2,047		169,123
Discover Financial Services		1,611		100,188
Navient Corp.		1,179		19,631
Synchrony Financial		3,265		97,362
				654,356
Copper–0.08%
Freeport-McMoRan Inc.(b)		5,616		67,448
Data Processing & Outsourced Services–2.46%
Alliance Data Systems Corp.		235		60,322
Automatic Data Processing, Inc.		1,897		194,367
Fidelity National Information Services, Inc.		1,400		119,560
Fiserv, Inc.(b)		906		110,840
Global Payments Inc.		643		58,076
Mastercard Inc.–Class A		3,975		482,764
Paychex, Inc.		1,349		76,812
PayPal Holdings, Inc.(b)		4,747		254,771
Total System Services, Inc.		712		41,474
Visa Inc.–Class A		7,826		733,922
Western Union Co. (The)		1,953		37,205
				2,170,113
Department Stores–0.09%
Kohl’s Corp.		745		28,809
Macy’s, Inc.		1,285		29,863
Nordstrom, Inc.		471		22,528
				81,200
Distillers & Vintners–0.20%
Brown-Forman Corp.–Class B		747		36,304
Constellation Brands, Inc.–Class A		729		141,229
				177,533
Distributors–0.12%
Genuine Parts Co.		626		58,068
LKQ Corp.(b)		1,330		43,823
				101,891
Diversified Banks–5.19%
Bank of America Corp.		42,189		1,023,505
Citigroup Inc.		11,671		780,557
JPMorgan Chase & Co.		15,061		1,376,575
U.S. Bancorp		6,715		348,643
Wells Fargo & Co.		19,047		1,055,394
				4,584,674
Diversified Chemicals–0.73%
Dow Chemical Co. (The)		4,764		300,466

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. S&P 500 Index Fund

	Shares		Value
Diversified Chemicals–(continued)
E. I. du Pont de Nemours and Co.		3,675	$	296,609
Eastman Chemical Co.		618		51,906
				648,981
Diversified Support Services–0.05%
Cintas Corp.		371		46,761
Drug Retail–0.71%
CVS Health Corp.		4,319		347,507
Walgreens Boots Alliance, Inc.		3,619		283,404
				630,911
Electric Utilities–1.98%
Alliant Energy Corp.		983		39,487
American Electric Power Co., Inc.		2,078		144,359
Duke Energy Corp.		2,958		247,259
Edison International		1,377		107,667
Entergy Corp.		757		58,115
Eversource Energy		1,339		81,291
Exelon Corp.		3,918		141,322
FirstEnergy Corp.		1,870		54,529
NextEra Energy, Inc.		1,984		278,018
PG&E Corp.		2,164		143,625
Pinnacle West Capital Corp.		480		40,877
PPL Corp.		2,874		111,109
Southern Co. (The)		4,215		201,814
Xcel Energy, Inc.		2,144		98,367
				1,747,839
Electrical Components & Equipment–0.56%
Acuity Brands, Inc.		189		38,420
AMETEK, Inc.		969		58,692
Eaton Corp. PLC		1,901		147,955
Emerson Electric Co.		2,727		162,584
Rockwell Automation, Inc.		542		87,782
				495,433
Electronic Components–0.24%
Amphenol Corp.–Class A		1,300		95,966
Corning Inc.		3,910		117,496
				213,462
Electronic Equipment & Instruments–0.02%
FLIR Systems, Inc.		575		19,930
Electronic Manufacturing Services–0.13%
TE Connectivity Ltd.		1,501		118,099
Environmental & Facilities Services–0.24%
Republic Services, Inc.		974		62,073
Stericycle, Inc.(b)		366		27,933
Waste Management, Inc.		1,710		125,429
				215,435
Fertilizers & Agricultural Chemicals–0.37%
CF Industries Holdings, Inc.		1,006		28,127
FMC Corp.		577		42,150
Monsanto Co.		1,853		219,321

	Shares		Value
Fertilizers & Agricultural Chemicals–(continued)
Mosaic Co. (The)		1,513	$	34,542
				324,140
Financial Exchanges & Data–0.75%
CBOE Holdings Inc.		387		35,372
CME Group Inc.–Class A		1,435		179,719
Intercontinental Exchange, Inc.		2,518		165,986
Moody’s Corp.		701		85,298
Nasdaq, Inc.		485		34,673
S&P Global Inc.		1,092		159,421
				660,469
Food Distributors–0.12%
Sysco Corp.		2,101		105,743
Food Retail–0.17%
Kroger Co. (The)		3,893		90,785
Whole Foods Market, Inc.		1,346		56,680
				147,465
Footwear–0.37%
NIKE, Inc.–Class B		5,604		330,636
General Merchandise Stores–0.31%
Dollar General Corp.		1,074		77,425
Dollar Tree, Inc.(b)		997		69,723
Target Corp.		2,351		122,934
				270,082
Gold–0.08%
Newmont Mining Corp.		2,247		72,780
Health Care Distributors–0.45%
AmerisourceBergen Corp.		697		65,887
Cardinal Health, Inc.		1,333		103,867
Henry Schein, Inc.(b)		334		61,129
McKesson Corp.		895		147,263
Patterson Cos. Inc.		346		16,245
				394,391
Health Care Equipment–2.66%
Abbott Laboratories		7,356		357,575
Baxter International Inc.		2,055		124,410
Becton, Dickinson and Co.		963		187,891
Boston Scientific Corp.(b)		5,805		160,914
C.R. Bard, Inc.		306		96,730
Danaher Corp.		2,579		217,642
Edwards Lifesciences Corp.(b)		888		104,997
Hologic, Inc.(b)		1,180		53,548
IDEXX Laboratories, Inc.(b)		371		59,887
Intuitive Surgical, Inc.(b)		156		145,918
Medtronic PLC		5,789		513,774
Stryker Corp.		1,308		181,524
Varian Medical Systems, Inc.(b)		389		40,141
Zimmer Biomet Holdings, Inc.		849		109,011
				2,353,962

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. S&P 500 Index Fund

	Shares		Value
Health Care Facilities–0.17%
HCA Healthcare, Inc.(b)		1,220	$	106,384
Universal Health Services, Inc.–Class B		376		45,902
				152,286
Health Care REIT’s–0.32%
HCP, Inc.		1,979		63,249
Ventas, Inc.		1,499		104,151
Welltower Inc.		1,552		116,167
				283,567
Health Care Services–0.42%
DaVita Inc.(b)		672		43,519
Envision Healthcare Corp.(b)		506		31,711
Express Scripts Holding Co.(b)		2,515		160,557
Laboratory Corp. of America Holdings(b)		431		66,434
Quest Diagnostics Inc.		580		64,473
				366,694
Health Care Supplies–0.18%
Align Technology, Inc.(b)		319		47,888
Cooper Cos., Inc. (The)		210		50,278
DENTSPLY SIRONA Inc.		970		62,895
				161,061
Health Care Technology–0.09%
Cerner Corp.(b)		1,240		82,423
Home Entertainment Software–0.35%
Activision Blizzard, Inc.		2,924		168,335
Electronic Arts Inc.(b)		1,313		138,810
				307,145
Home Furnishings–0.11%
Leggett & Platt, Inc.		577		30,310
Mohawk Industries, Inc.(b)		265		64,048
				94,358
Home Improvement Retail–1.20%
Home Depot, Inc. (The)		5,067		777,278
Lowe’s Cos., Inc.		3,637		281,976
				1,059,254
Homebuilding–0.14%
D.R. Horton, Inc.		1,436		49,642
Lennar Corp.–Class A		858		45,749
PulteGroup Inc.		1,202		29,485
				124,876
Homefurnishing Retail–0.02%
Bed Bath & Beyond Inc.		634		19,274
Hotel and Resort REIT’s–0.06%
Host Hotels & Resorts Inc.		3,120		57,002
Hotels, Resorts & Cruise Lines–0.48%
Carnival Corp.		1,766		115,797
Hilton Worldwide Holdings Inc.		868		53,686
Marriott International Inc.–Class A		1,316		132,008
Royal Caribbean Cruises Ltd.		707		77,225

	Shares		Value
Hotels, Resorts & Cruise Lines–(continued)
Wyndham Worldwide Corp.		442	$	44,381
				423,097
Household Appliances–0.07%
Whirlpool Corp.		314		60,169
Household Products–1.75%
Church & Dwight Co., Inc.		1,055		54,734
Clorox Co. (The)		541		72,083
Colgate-Palmolive Co.		3,733		276,727
Kimberly-Clark Corp.		1,503		194,052
Procter & Gamble Co. (The)		10,842		944,880
				1,542,476
Housewares & Specialties–0.12%
Newell Brands, Inc.		2,039		109,331
Human Resource & Employment Services–0.03%
Robert Half International, Inc.		539		25,834
Hypermarkets & Super Centers–0.87%
Costco Wholesale Corp.		1,855		296,670
Wal-Mart Stores, Inc.		6,261		473,833
				770,503
Independent Power Producers & Energy Traders–0.06%
AES Corp. (The)		2,747		30,519
NRG Energy, Inc.		1,349		23,230
				53,749
Industrial Conglomerates–2.33%
3M Co.		2,532		527,137
General Electric Co.(d)		36,905		996,804
Honeywell International Inc.		3,231		430,660
Roper Technologies, Inc.		429		99,326
				2,053,927
Industrial Gases–0.33%
Air Products and Chemicals, Inc.		919		131,472
Praxair, Inc.		1,211		160,518
				291,990
Industrial Machinery–0.86%
Dover Corp.		656		52,624
Flowserve Corp.		563		26,140
Fortive Corp.		1,272		80,581
Illinois Tool Works Inc.		1,318		188,804
Ingersoll-Rand PLC		1,084		99,067
Parker-Hannifin Corp.		562		89,819
Pentair PLC (United Kingdom)		706		46,977
Snap-on Inc.		249		39,342
Stanley Black & Decker Inc.		644		90,630
Xylem, Inc.		775		42,958
				756,942
Industrial REIT’s–0.15%
Prologis, Inc.		2,238		131,236

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. S&P 500 Index Fund

	Shares		Value
Insurance Brokers–0.50%
Aon PLC		1,109	$	147,441
Arthur J. Gallagher & Co.		771		44,140
Marsh & McLennan Cos., Inc.		2,177		169,719
Willis Towers Watson PLC		537		78,112
				439,412
Integrated Oil & Gas–2.81%
Chevron Corp.		8,031		837,874
Exxon Mobil Corp.		17,962		1,450,072
Occidental Petroleum Corp.		3,232		193,500
				2,481,446
Integrated Telecommunication Services–2.05%
AT&T Inc.		26,078		983,923
CenturyLink Inc.		2,311		55,187
Verizon Communications Inc.		17,293		772,305
				1,811,415
Internet & Direct Marketing Retail–2.70%
Amazon.com, Inc.(b)		1,681		1,627,208
Expedia, Inc.		509		75,816
Netflix Inc.(b)		1,826		272,823
Priceline Group Inc. (The)(b)		208		389,068
TripAdvisor Inc.(b)		487		18,603
				2,383,518
Internet Software & Services–4.59%
Akamai Technologies, Inc.(b)		731		36,411
Alphabet Inc.–Class A(b)		1,260		1,171,397
Alphabet Inc.–Class C(b)		1,264		1,148,635
eBay Inc.(b)		4,253		148,515
Facebook, Inc.–Class A(b)		10,020		1,512,819
VeriSign, Inc.(b)		383		35,604
				4,053,381
Investment Banking & Brokerage–1.04%
Charles Schwab Corp. (The)		5,137		220,685
E*TRADE Financial Corp.(b)		1,160		44,115
Goldman Sachs Group, Inc. (The)		1,551		344,167
Morgan Stanley		6,038		269,053
Raymond James Financial, Inc.		539		43,239
				921,259
IT Consulting & Other Services–1.37%
Accenture PLC–Class A		2,632		325,526
Cognizant Technology Solutions Corp.–Class A		2,496		165,735
CSRA Inc.		613		19,463
DXC Technology Co.		1,199		91,987
Gartner, Inc.(b)		379		46,810
International Business Machines Corp.		3,629		558,249
				1,207,770
Leisure Products–0.10%
Hasbro, Inc.		472		52,633
Mattel, Inc.		1,479		31,843
				84,476

	Shares		Value
Life & Health Insurance–0.90%
Aflac, Inc.		1,682	$	130,658
Lincoln National Corp.		951		64,268
MetLife, Inc.		4,589		252,120
Principal Financial Group, Inc.		1,129		72,335
Prudential Financial, Inc.		1,817		196,490
Torchmark Corp.		462		35,343
Unum Group		968		45,138
				796,352
Life Sciences Tools & Services–0.72%
Agilent Technologies, Inc.		1,361		80,721
Illumina, Inc.(b)		617		107,062
Mettler-Toledo International Inc.(b)		108		63,562
PerkinElmer, Inc.		463		31,549
Thermo Fisher Scientific, Inc.		1,658		289,271
Waters Corp.(b)		337		61,954
				634,119
Managed Health Care–1.78%
Aetna Inc.		1,402		212,866
Anthem, Inc.		1,122		211,082
Centene Corp.(b)		726		57,993
Cigna Corp.		1,086		181,785
Humana Inc.		611		147,019
UnitedHealth Group Inc.		4,084		757,255
				1,568,000
Metal & Glass Containers–0.07%
Ball Corp.		1,480		62,471
Motorcycle Manufacturers–0.05%
Harley-Davidson, Inc.		744		40,191
Movies & Entertainment–1.38%
Time Warner Inc.		3,287		330,048
Twenty-First Century Fox, Inc.–Class A		4,447		126,028
Twenty-First Century Fox, Inc.–Class B		2,059		57,384
Viacom Inc.–Class B		1,468		49,281
Walt Disney Co. (The)		6,166		655,137
				1,217,878
Multi-Line Insurance–0.45%
American International Group, Inc.		3,719		232,512
Assurant, Inc.		234		24,263
Hartford Financial Services Group, Inc. (The)		1,557		81,852
Loews Corp.		1,166		54,580
				393,207
Multi-Sector Holdings–1.58%
Berkshire Hathaway Inc.–Class B(b)		8,052		1,363,767
Leucadia National Corp.		1,368		35,787
				1,399,554
Multi-Utilities–1.04%
Ameren Corp.		1,025		56,037
CenterPoint Energy, Inc.		1,820		49,832
CMS Energy Corp.		1,183		54,714

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. S&P 500 Index Fund

	Shares		Value
Multi-Utilities–(continued)
Consolidated Edison, Inc.		1,289	$	104,177
Dominion Energy, Inc.		2,655		203,453
DTE Energy Co.		758		80,189
NiSource Inc.		1,367		34,667
Public Service Enterprise Group Inc.		2,140		92,041
SCANA Corp.		616		41,278
Sempra Energy		1,058		119,289
WEC Energy Group, Inc.		1,333		81,819
				917,496
Office REIT’s–0.27%
Alexandria Real Estate Equities, Inc.		385		46,381
Boston Properties, Inc.		649		79,840
SL Green Realty Corp.		433		45,812
Vornado Realty Trust		727		68,265
				240,298
Oil & Gas Drilling–0.04%
Helmerich & Payne, Inc.		468		25,431
Transocean Ltd.(b)		1,648		13,563
				38,994
Oil & Gas Equipment & Services–0.85%
Baker Hughes Inc.		1,798		98,009
Halliburton Co.		3,666		156,575
National Oilwell Varco Inc.		1,601		52,737
Schlumberger Ltd.		5,896		388,193
TechnipFMC PLC (United Kingdom)(b)		1,972		53,638
				749,152
Oil & Gas Exploration & Production–1.42%
Anadarko Petroleum Corp.		2,363		107,138
Apache Corp.		1,605		76,928
Cabot Oil & Gas Corp.		2,008		50,361
Chesapeake Energy Corp.(b)		3,256		16,182
Cimarex Energy Co.		410		38,544
Concho Resources Inc.(b)		625		75,956
ConocoPhillips		5,226		229,735
Devon Energy Corp.		2,218		70,910
EOG Resources, Inc.		2,439		220,778
EQT Corp.		748		43,825
Hess Corp.		1,137		49,880
Marathon Oil Corp.		3,582		42,447
Murphy Oil Corp.		709		18,172
Newfield Exploration Co.(b)		858		24,419
Noble Energy, Inc.		1,924		54,449
Pioneer Natural Resources Co.		717		114,419
Range Resources Corp.		794		18,397
				1,252,540
Oil & Gas Refining & Marketing–0.52%
Marathon Petroleum Corp.		2,198		115,021
Phillips 66		1,865		154,217
Tesoro Corp.		637		59,623
Valero Energy Corp.		1,906		128,579
				457,440

	Shares		Value
Oil & Gas Storage & Transportation–0.39%
Kinder Morgan, Inc.		8,120	$	155,579
ONEOK, Inc.		1,603		83,612
Williams Cos., Inc. (The)		3,502		106,041
				345,232
Packaged Foods & Meats–1.24%
Campbell Soup Co.		817		42,607
Conagra Brands, Inc.		1,713		61,257
General Mills, Inc.		2,452		135,841
Hershey Co. (The)		589		63,241
Hormel Foods Corp.		1,165		39,738
JM Smucker Co. (The)		491		58,100
Kellogg Co.		1,068		74,183
Kraft Heinz Co. (The)		2,521		215,898
McCormick & Co., Inc.		479		46,707
Mondelez International, Inc.–Class A		6,431		277,755
Tyson Foods, Inc.–Class A		1,212		75,908
				1,091,235
Paper Packaging–0.26%
Avery Dennison Corp.		377		33,316
International Paper Co.		1,738		98,388
Sealed Air Corp.		817		36,569
WestRock Co.		1,058		59,946
				228,219
Personal Products–0.15%
Coty, Inc.–Class A		1,997		37,464
Estee Lauder Cos. Inc. (The)–Class A		948		90,989
				128,453
Pharmaceuticals–5.03%
Allergan PLC		1,422		345,674
Bristol-Myers Squibb Co.		6,974		388,591
Eli Lilly and Co.		4,115		338,665
Johnson & Johnson		11,419		1,510,620
Mallinckrodt PLC(b)		420		18,820
Merck & Co., Inc.		11,595		743,124
Mylan N.V.(b)		1,947		75,583
Perrigo Co. PLC		618		46,671
Pfizer Inc.		25,299		849,793
Zoetis Inc.		2,080		129,750
				4,447,291
Property & Casualty Insurance–0.88%
Allstate Corp. (The)		1,543		136,463
Chubb Ltd.		1,979		287,707
Cincinnati Financial Corp.		633		45,861
Progressive Corp. (The)		2,455		108,241
Travelers Cos., Inc. (The)		1,182		149,558
XL Group Ltd. (Bermuda)		1,119		49,012
				776,842
Publishing–0.03%
News Corp.–Class A		1,602		21,947

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. S&P 500 Index Fund

	Shares		Value
Publishing–(continued)
News Corp.–Class B		543	$	7,684
				29,631
Railroads–0.89%
CSX Corp.		3,903		212,948
Kansas City Southern		450		47,092
Norfolk Southern Corp.		1,228		149,448
Union Pacific Corp.		3,422		372,690
				782,178
Real Estate Services–0.05%
CBRE Group, Inc.–Class A(b)		1,270		46,228
Regional Banks–1.29%
BB&T Corp.		3,418		155,212
Citizens Financial Group, Inc.		2,152		76,783
Comerica Inc.		742		54,344
Fifth Third Bancorp		3,180		82,553
Huntington Bancshares Inc.		4,658		62,976
KeyCorp		4,646		87,066
M&T Bank Corp.		651		105,430
People’s United Financial Inc.		1,485		26,225
PNC Financial Services Group, Inc. (The)		2,055		256,608
Regions Financial Corp.		5,097		74,620
SunTrust Banks, Inc.		2,049		116,219
Zions Bancorp.		855		37,543
				1,135,579
Reinsurance–0.05%
Everest Re Group, Ltd.		173		44,044
Research & Consulting Services–0.27%
Equifax Inc.		506		69,534
IHS Markit Ltd.(b)		1,342		59,102
Nielsen Holdings PLC		1,420		54,897
Verisk Analytics, Inc.–Class A(b)		653		55,094
				238,627
Residential REIT’s–0.46%
Apartment Investment & Management Co.–Class A		677		29,091
AvalonBay Communities, Inc.		579		111,266
Equity Residential		1,551		102,102
Essex Property Trust, Inc.		276		71,007
Mid-America Apartment Communities, Inc.		479		50,477
UDR, Inc.		1,154		44,971
				408,914
Restaurants–1.23%
Chipotle Mexican Grill, Inc.(b)		120		49,932
Darden Restaurants, Inc.		524		47,390
McDonald’s Corp.		3,454		529,015
Starbucks Corp.		6,138		357,907
Yum! Brands, Inc.		1,401		103,338
				1,087,582
Retail REIT’s–0.54%
Federal Realty Investment Trust		304		38,423
GGP Inc.		2,462		58,005

	Shares		Value
Retail REIT’s–(continued)
Kimco Realty Corp.		1,764	$	32,369
Macerich Co. (The)		504		29,262
Realty Income Corp.		1,145		63,181
Regency Centers Corp.		616		38,586
Simon Property Group, Inc.		1,322		213,847
				473,673
Semiconductor Equipment–0.39%
Applied Materials, Inc.		4,566		188,622
KLA-Tencor Corp.		661		60,488
Lam Research Corp.		687		97,162
				346,272
Semiconductors–3.00%
Advanced Micro Devices, Inc.(b)		3,298		41,159
Analog Devices, Inc.		1,555		120,979
Broadcom Ltd.		1,701		396,418
Intel Corp.		19,962		673,518
Microchip Technology Inc.		971		74,942
Micron Technology, Inc.(b)		4,408		131,623
NVIDIA Corp.		2,521		364,436
Qorvo, Inc.(b)		533		33,749
QUALCOMM Inc.		6,246		344,904
Skyworks Solutions, Inc.		781		74,937
Texas Instruments Inc.		4,220		324,644
Xilinx, Inc.		1,052		67,665
				2,648,974
Soft Drinks–1.79%
Coca-Cola Co. (The)		16,301		731,100
Dr Pepper Snapple Group, Inc.		773		70,428
Monster Beverage Corp.(b)		1,700		84,456
PepsiCo, Inc.		6,055		699,292
				1,585,276
Specialized Consumer Services–0.03%
H&R Block, Inc.		877		27,108
Specialized REIT’s–1.05%
American Tower Corp.–Class A		1,806		238,970
Crown Castle International Corp.		1,551		155,379
Digital Realty Trust, Inc.		672		75,902
Equinix, Inc.		330		141,623
Extra Space Storage Inc.		543		42,354
Iron Mountain Inc.		1,059		36,387
Public Storage		630		131,374
Weyerhaeuser Co.		3,167		106,095
				928,084
Specialty Chemicals–0.55%
Albemarle Corp.		475		50,131
Ecolab Inc.		1,109		147,220
International Flavors & Fragrances Inc.		333		44,955
PPG Industries, Inc.		1,086		119,417
Sherwin-Williams Co. (The)		342		120,028
				481,751

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. S&P 500 Index Fund

	Shares		Value
Specialty Stores–0.22%
Signet Jewelers Ltd.		293	$	18,529
Staples, Inc.		2,810		28,297
Tiffany & Co.		461		43,274
Tractor Supply Co.		551		29,870
Ulta Beauty, Inc.(b)		246		70,685
				190,655
Steel–0.09%
Nucor Corp.		1,347		77,951
Systems Software–3.49%
CA, Inc.		1,325		45,673
Microsoft Corp.		32,729		2,256,010
Oracle Corp.		12,733		638,432
Red Hat, Inc.(b)		753		72,100
Symantec Corp.		2,577		72,800
				3,085,015
Technology Hardware, Storage & Peripherals–4.14%
Apple Inc.		22,103		3,183,274
Hewlett Packard Enterprise Co.		7,041		116,810
HP Inc.		7,162		125,192
NetApp, Inc.		1,145		45,857
Seagate Technology PLC		1,247		48,322
Western Digital Corp.		1,233		109,244
Xerox Corp.		897		25,773
				3,654,472
Tires & Rubber–0.04%
Goodyear Tire & Rubber Co. (The)		1,063		37,162

	Shares		Value
Tobacco–1.82%
Altria Group, Inc.		8,188	$	609,761
Philip Morris International Inc.		6,583		773,173
Reynolds American Inc.		3,497		227,445
				1,610,379
Trading Companies & Distributors–0.15%
Fastenal Co.		1,222		53,194
United Rentals, Inc.(b)		355		40,012
W.W. Grainger, Inc.		227		40,980
				134,186
Trucking–0.04%
J.B. Hunt Transport Services, Inc.		366		33,445
Water Utilities–0.07%
American Water Works Co., Inc.		752		58,618
Total Common Stocks & Other Equity Interests (Cost $29,800,960)				87,994,637
Money Market Funds–0.41%
Government & Agency Portfolio–Institutional Class, 0.89%(e)		216,529		216,529
Treasury Portfolio–Institutional Class, 0.85%(e)		144,353		144,353
Total Money Market Funds (Cost $360,882)				360,882
TOTAL INVESTMENTS–100.03% (Cost $30,161,842)				88,355,519
OTHER ASSETS LESS LIABILITIES–(0.03)%				(27,771	)
NET ASSETS–100.00%			$	88,327,748

Investment Abbreviations:

REIT – Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The Fund’s Adviser is a subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. See Note 5.

^(d)  All or a portion of the value was pledged as collateral to cover margin requirements for open futures contracts. See Note 1I and Note 4.

^(e)  The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of June 30, 2017.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2017

Information Technology	22.2	%
Financials	14.5
Health Care	14.4
Consumer Discretionary	12.2
Industrials	10.3
Consumer Staples	9.0
Energy	6.0
Utilities	3.2
Real Estate	2.9
Materials	2.8
Telecommunication Services	2.1
Money Market Funds Plus Other Assets Less Liabilities	0.4

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. S&P 500 Index Fund

Statement of Assets and Liabilities

June 30, 2017

(Unaudited)

Statement of Operations

For the six months ended June 30, 2017

(Unaudited)

Assets:
Investments, at value (Cost $29,759,906)	$	87,934,603
Investments in affiliates, at value (Cost $401,936)		420,916
Total investments, at value (Cost $30,161,842)		88,355,519
Receivable for:
Variation margin — futures		135
Fund shares sold		21,004
Dividends		88,397
Investment for trustee deferred compensation and retirement plans		32,075
Other assets		452
Total assets		88,497,582
Liabilities:
Payable for:
Investments purchased		37,187
Fund shares reacquired		3,276
Accrued fees to affiliates		66,468
Accrued trustees’ and officers’ fees and benefits		5,288
Accrued other operating expenses		19,034
Trustee deferred compensation and retirement plans		38,581
Total liabilities		169,834
Net assets applicable to shares outstanding	$	88,327,748
Net assets consist of:
Shares of beneficial interest	$	20,583,172
Undistributed net investment income		1,945,058
Undistributed net realized gain		7,607,455
Net unrealized appreciation		58,192,063
	$	88,327,748
Net Assets:
Series I	$	36,382,575
Series II	$	51,945,173
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		1,987,594
Series II		2,856,051
Series I:
Net asset value per share	$	18.30
Series II:
Net asset value per share	$	18.19

Investment income:
Dividends (net of foreign withholding taxes of $87)	$	906,753
Dividends from affiliates		3,580
Total investment income		910,333
Expenses:
Advisory fees		53,344
Administrative services fees		100,274
Custodian fees		8,345
Distribution fees — Series II		66,089
Transfer agent fees		2,036
Trustees’ and officers’ fees and benefits		11,478
Licensing Fees		8,965
Reports to shareholders		12,147
Professional services fees		19,519
Other		4,236
Total expenses		286,433
Less: Fees waived		(491	)
Net expenses		285,942
Net investment income		624,391
Realized and unrealized gain from:
Net realized gain from:
Investment securities		3,648,204
Futures contracts		102,752
		3,750,956
Change in net unrealized appreciation of:
Investment securities		3,324,377
Futures contracts		3,333
		3,327,710
Net realized and unrealized gain		7,078,666
Net increase in net assets resulting from operations	$	7,703,057

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. S&P 500 Index Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2017 and the year ended December 31, 2016

(Unaudited)

	June 30, 2017			December 31, 2016
Operations:
Net investment income	$	624,391		$	1,467,704
Net realized gain		3,750,956			7,393,025
Change in net unrealized appreciation		3,327,710			278,400
Net increase in net assets resulting from operations		7,703,057			9,139,129
Distributions to shareholders from net investment income:
Series I		—			(593,221	)
Series ll		—			(788,172	)
Total distributions from net investment income		—			(1,381,393	)
Distributions to shareholders from net realized gains:
Series l		—			(2,594,662	)
Series ll		—			(4,107,826	)
Total distributions from net realized gains		—			(6,702,488	)
Share transactions–net:
Series l		(1,582,755	)		(1,302,813	)
Series ll		(4,817,321	)		(6,582,220	)
Net increase (decrease) in net assets resulting from share transactions		(6,400,076	)		(7,885,033	)
Net increase (decrease) in net assets		1,302,981			(6,829,785	)
Net assets:
Beginning of period		87,024,767			93,854,552
End of period (includes undistributed net investment income of $1,945,058 and $1,320,667, respectively)	$	88,327,748		$	87,024,767

Notes to Financial Statements

June 30, 2017

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. S&P 500 Index Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance 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 consisting of twenty-four separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

The Fund’s investment objective is to provide investment results that, before expenses, correspond to the total return (i.e., the combination of capital changes and income) of the Standard & Poor’s 500^® Composite Stock Price Index.

The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services — Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Invesco V.I. S&P 500 Index Fund

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

Invesco V.I. S&P 500 Index Fund

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 and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties (“Counterparties”) to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.

J. Collateral — To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays 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		0.12%
Over $2 billion		0.10%

For the six months ended June 30, 2017, the effective advisory fees incurred by the Fund was 0.12%.

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 PowerShares Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2018, 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 Series I shares to 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2018. During its term, the fee waiver agreement cannot be terminated or amended to increase expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Invesco V.I. S&P 500 Index Fund

Further, the Adviser has contractually agreed, through at least June 30, 2019, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended June 30, 2017, the Adviser waived advisory fees of $491.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2017, Invesco was paid $24,795 for accounting and fund administrative services and was reimbursed $75,479 for fees paid to insurance companies.

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. For the six months ended June 30, 2017, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2017, expenses incurred under the Plan are detailed 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of June 30, 2017. 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
Common Stocks & Other Equity Interests	$	87,994,637		$	—	$	—	$	87,994,637
Money Market Funds		360,882			—		—		360,882
		88,355,519			—		—		88,355,519
Futures Contracts*		(1,614	)						(1,614	)
Total Investments	$	88,353,905		$	—	$	—	$	88,353,905

* Unrealized appreciation (depreciation).

NOTE 4—Derivative Investments

The Fund may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a Fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement,

among other factors.

For financial reporting purposes, the Fund does not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statement of Assets and Liabilities.

Invesco V.I. S&P 500 Index Fund

Open Futures Contracts — Equity Risk
Futures Contracts	Type of Contract		Number of Contracts		Expiration Month		Notional Value		Unrealized Appreciation (Depreciation)
E-Mini S&P 500 Index		Long		3		September-2017	$	363,135	$	(1,614	)

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 June 30, 2017:

	Value
Derivative Liabilities	Equity Risk
Unrealized depreciation on futures contracts — Exchange-Traded(a)	$	(1,614	)
Derivatives not subject to master netting agreements		1,614
Total Derivative Liabilities subject to master netting agreements	$	—

^(a)  Only current day’s variation margin receivable is reported within the Statement of Assets and Liabilities.

Effect of Derivative Investments for the six months ended June 30, 2017

The table below summarizes the gains on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:

	Location of Gain on Statement of  Operations
	Equity Risk
Realized Gain:
Futures contracts	$	102,752
Change in Net Unrealized Appreciation:
Futures contracts		3,333
Total	$	106,085

The table below summarizes the average notional value of futures contracts outstanding during the period.

	Futures Contracts
Average notional value	$	1,108,522

NOTE 5—Investments in Affiliates

The Fund’s Adviser is a subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. The following is a summary of the transactions in, and earnings from, investments in Invesco Ltd. for the six months ended June 30, 2017.

	Value 12/31/16		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain		Value 06/30/17		Dividend Income
Invesco Ltd.	$	55,643	$	—	$	(4,046	)	$	7,686	$	751	$	60,034	$	1,019

NOTE 6—Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 7—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

Invesco V.I. S&P 500 Index Fund

NOTE 8—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of December 31, 2016.

NOTE 9—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2017 was $1,397,920 and $6,871,277, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	56,099,875
Aggregate unrealized (depreciation) of investment securities		(662,718	)
Net unrealized appreciation of investment securities	$	55,437,157

Cost of investments for tax purposes is $32,918,362.

NOTE 10—Share Information

	Summary of Share Activity
	Six months ended June 30, 2017(a)						Year ended December 31, 2016
	Shares			Amount			Shares			Amount
Sold:
Series I		64,697		$	1,125,591			48,001		$	796,342
Series II		33,016			586,804			177,111			2,959,359
Issued as reinvestment of dividends:
Series I		—			—			196,239			3,186,916
Series II		—			—			302,783			4,895,999
Reacquired:
Series I		(151,930	)		(2,708,346	)		(316,145	)		(5,286,071	)
Series II		(304,970	)		(5,404,125	)		(884,680	)		(14,437,578	)
Net increase (decrease) in share activity		(359,187	)	$	(6,400,076	)		(476,691	)	$	(7,885,033	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 92% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. 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, third party record keeping and account servicing and administrative services. 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.

Invesco V.I. S&P 500 Index Fund

NOTE 11—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)
Series I
Six months ended 06/30/17	$	16.78	$	0.14	$	1.38		$	1.52	$	—		$	—		$	—		$	18.30		9.06	%	$	36,383		0.50	%(d)		0.50	%(d)		1.55	%(d)		2	%
Year ended 12/31/16		16.58		0.30		1.55			1.85		(0.31	)		(1.34	)		(1.65	)		16.78		11.45			34,812		0.41			0.41			1.81			4
Year ended 12/31/15		18.52		0.30		(0.24	)		0.06		(0.33	)		(1.67	)		(2.00	)		16.58		1.03			35,586		0.41			0.41			1.66			7
Year ended 12/31/14		16.66		0.28		1.92			2.20		(0.34	)		—			(0.34	)		18.52		13.32			37,685		0.41			0.41			1.62			3
Year ended 12/31/13		12.89		0.24		3.84			4.08		(0.31	)		—			(0.31	)		16.66		31.91			36,853		0.41			0.41			1.63			4
Year ended 12/31/12		11.36		0.25		1.54			1.79		(0.26	)		—			(0.26	)		12.89		15.77			32,634		0.33			0.39			1.97			4
Series II
Six months ended 06/30/17		16.69		0.11		1.39			1.50		—			—			—			18.19		8.99			51,945		0.75	(d)		0.75	(d)		1.30	(d)		2
Year ended 12/31/16		16.49		0.26		1.54			1.80		(0.26	)		(1.34	)		(1.60	)		16.69		11.20			52,212		0.66			0.66			1.56			4
Year ended 12/31/15		18.43		0.25		(0.24	)		0.01		(0.28	)		(1.67	)		(1.95	)		16.49		0.72			58,268		0.66			0.66			1.41			7
Year ended 12/31/14		16.58		0.24		1.90			2.14		(0.29	)		—			(0.29	)		18.43		13.02			63,667		0.66			0.66			1.37			3
Year ended 12/31/13		12.83		0.20		3.82			4.02		(0.27	)		—			(0.27	)		16.58		31.55			67,793		0.66			0.66			1.38			4
Year ended 12/31/12		11.30		0.22		1.54			1.76		(0.23	)		—			(0.23	)		12.83		15.52			64,657		0.58			0.64			1.72			4

^(a)  Calculated using average shares outstanding.

^(b)  Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year, if applicable, and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.

^(c)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(d)  Ratios are annualized and based on average daily net assets (000’s omitted) of $36,334 and $53,309 for Series I and Series II shares, respectively.

Invesco V.I. S&P 500 Index Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2017 through June 30, 2017.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

Class	Beginning Account Value (01/01/17)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/17)1		Expenses Paid During Period2		Ending Account Value (06/30/17)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,090.60	$	2.59	$	1,022.32	$	2.51		0.50	%
Series II		1,000.00		1,089.90		3.89		1,021.08		3.76		0.75

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2017 through June 30, 2017, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

²  Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. S&P 500 Index Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco V.I. S&P 500 Index Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the 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 PowerShares 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, 2017.

In evaluating the fairness and reasonableness of compensation under the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board determined that continuation of the Fund’s investment advisory agreement and the sub-advisory contracts is in the best interest of the Fund and its shareholders and that the compensation payable to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Board had the benefit of reports from the Sub-Committees and Investments Committee throughout the year in considering approval of the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Board receives comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The

Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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 addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The Trustees recognized that the advisory fee rates for the Invesco Funds are, in most cases, the result of years of review and negotiation. The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these arrangements throughout the year and in prior years. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them 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 discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement 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. This information is current as of June 13, 2017, and does not reflect consideration of factors that became known to the Board after that date.

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 advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers. The Board’s review included consideration of Invesco Advisers’ investment process oversight, credit analysis and investment risk management. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, trading operations, internal audit, valuation and legal and compliance.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the greater uncertainty that may be associated with entering into a new relationship. 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 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 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 in which the Fund may invest, make recommendations regarding securities and assist with security trades. 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 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 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, 2016 to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds S&P 500 Funds Index. The Board noted that performance of Series I shares of the Fund was in the fourth 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 Series I shares of the Fund was below the performance of the Index for the one, three and five year periods. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees

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 at a common asset

Invesco V.I. S&P 500 Index Fund

level. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing 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 compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/waivers) to the effective advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, based on asset balances as of December 31, 2016. The Board noted that the Fund’s rate was the same as the rate of one such mutual fund.

The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other client accounts with investment strategies comparable to those of the Fund.

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 also noted that the sub-advisory fees are not paid directly by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds advised by Invesco Advisers.

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. 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. The Board noted that although Invesco

Advisers received a minimal amount of revenues from advising the Fund, Invesco Advisers and its subsidiaries did not make a profit from managing the Fund. The Board received and accepted information from Invesco Advisers demonstrating that Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; and 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 Adviser’s or the Affiliated Sub-Adviser’s expenses. The Board also considered that it receives periodic reports from the Chief Compliance Officer of the Invesco Funds demonstrating 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 money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds with respect to certain investments in the affiliated money market funds. The waiver is in 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any

securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that the Fund may use an affiliated broker to execute certain trades for the Fund to, among other things, control information leakage, and was advised that such trades would be executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. S&P 500 Index Fund

Proxy Results

A Special Joint Meeting (“Meeting”) of Shareholders of Invesco V.I. S&P 500 Index Fund, an investment portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), a Delaware statutory trust (“Trust”), was held on March 9, 2017. The Meeting was held for the following purposes:

(1) Elect 15 trustees to the Board, each of whom will serve until his or her successor is elected and qualified.

(2) Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.

(3) Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities.

(4)(a) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC.

(4)(b) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited.

The results of the voting on the above matters were as follows:

	Matters					Votes For		Votes Withheld
(1)*	David C. Arch						1,256,086,249		71,094,301
	James T. Bunch						1,254,410,156		72,770,397
	Bruce L. Crockett						1,258,363,948		68,816,603
	Jack M. Fields						1,255,101,592		72,078,961
	Martin L. Flanagan						1,257,885,397		69,295,160
	Cynthia Hostetler						1,261,335,247		65,845,303
	Dr. Eli Jones						1,257,497,296		69,683,257
	Dr. Prema Mathai-Davis						1,254,728,756		72,451,795
	Teresa M. Ressel						1,261,829,473		65,351,074
	Dr. Larry Soll						1,254,261,019		72,919,533
	Ann Barnett Stern						1,260,861,373		66,319,176
	Raymond Stickel, Jr.						1,254,379,471		72,801,083
	Philip A. Taylor						1,256,589,912		70,590,639
	Robert C. Troccoli						1,260,867,549		66,313,003
	Christopher L. Wilson						1,260,186,985		66,993,567
		Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(2)*	Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.		1,054,920,918		171,591,974		100,667,642		18
	Matters	Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(3)	Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities		3,925,928		867,869		368,215		0
(4)(a)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC		4,187,496		675,560		298,956		0
(4)(b)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited		4,061,599		765,675		334,738		0

* Each of proposal 1 and 2 required approval by a combined vote of all of the portfolios of AIM Variable Insurance Funds (Invesco Variable Insurance Funds).

Invesco V.I. S&P 500 Index Fund

	Semiannual Report to Shareholders	June 30, 2017
	Invesco V.I. Small Cap Equity Fund

    

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/proxysearch. The information is also available on the SEC website, sec.gov.

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.

NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc.                                                                                           VISCE-SAR-1              07172017            1555

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/16 to 6/30/17, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	5.06	%
Series II Shares	4.89
S&P 500 Index▼ (Broad Market Index)	9.34
Russell 2000 Index▼ (Style-Specific Index)	4.99
Lipper VUF Small-Cap Core Funds Index∎ (Peer Group Index)	4.56
Source(s): ▼FactSet Research Systems Inc.; ∎Lipper Inc.

The S&P 500^® Index is an unmanaged index considered representative of the US stock market.

The Russell 2000^® Index is an unmanaged index considered representative of small-cap stocks. The Russell 2000 Index is a trademark/ service mark of the Frank Russell Co. Russell^® is a trademark of the Frank Russell Co.

The Lipper VUF Small-Cap Core Funds Index is an unmanaged index considered representative of small-cap core variable insurance underlying funds tracked by Lipper.

The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).

A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns As of 6/30/17
Series I Shares
Inception (8/29/03)	8.66	%
10 Years	6.23
5 Years	11.26
1 Year	16.48
Series II Shares
Inception (8/29/03)	8.40	%
10 Years	5.97
5 Years	10.98
1 Year	16.21

The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.96% and 1.21%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

Invesco V.I. Small Cap Equity Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

The most recent month-end performance at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

Invesco V.I. Small Cap Equity Fund

Schedule of Investments^(a)

June 30, 2017

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–98.36%
Aerospace & Defense–2.37%
BWX Technologies, Inc.		74,139	$	3,614,276
Orbital ATK, Inc.		35,860		3,527,190
				7,141,466
Air Freight & Logistics–1.04%
Forward Air Corp.		58,782		3,131,905
Alternative Carriers–1.23%
Iridium Communications Inc.(b)(c)		334,245		3,693,407
Apparel Retail–0.64%
American Eagle Outfitters, Inc.		161,097		1,941,219
Application Software–2.12%
Blackbaud, Inc.		49,346		4,231,419
Verint Systems Inc.(c)		52,958		2,155,391
				6,386,810
Auto Parts & Equipment–1.09%
Visteon Corp.(c)		32,059		3,271,942
Biotechnology–1.50%
Neurocrine Biosciences, Inc.(c)		58,929		2,710,734
Retrophin, Inc.(c)		93,259		1,808,292
				4,519,026
Building Products–2.12%
Apogee Enterprises, Inc.		61,880		3,517,259
Trex Co., Inc.(c)		42,270		2,859,988
				6,377,247
Casinos & Gaming–2.35%
Boyd Gaming Corp.		161,109		3,997,114
Penn National Gaming, Inc.(c)		143,924		3,079,974
				7,077,088
Construction & Engineering–1.79%
Dycom Industries, Inc.(c)		30,903		2,766,437
Primoris Services Corp.		104,877		2,615,632
				5,382,069
Construction Materials–0.88%
Eagle Materials Inc.		28,598		2,643,027
Consumer Finance–0.99%
SLM Corp.(c)		259,388		2,982,962
Data Processing & Outsourced Services–3.19%
Euronet Worldwide, Inc.(c)		33,085		2,890,637
Genpact Ltd.		103,116		2,869,718
Jack Henry & Associates, Inc.		36,875		3,830,206
				9,590,561

	Shares		Value
Diversified Support Services–0.78%
Mobile Mini, Inc.		78,182	$	2,333,733
Electrical Components & Equipment–1.89%
EnerSys		41,095		2,977,333
Generac Holdings, Inc.(c)		75,325		2,721,492
				5,698,825
Electronic Components–0.95%
Belden Inc.		38,122		2,875,542
Electronic Equipment & Instruments–4.24%
Coherent, Inc.(c)		24,410		5,492,006
FLIR Systems, Inc.		83,868		2,906,865
Zebra Technologies Corp.–Class A(c)		43,418		4,364,377
				12,763,248
Environmental & Facilities Services–2.86%
ABM Industries Inc.		73,078		3,034,198
Team, Inc.(c)		66,851		1,567,656
Waste Connections, Inc. (Canada)		62,300		4,013,334
				8,615,188
Gas Utilities–1.35%
UGI Corp.		84,089		4,070,748
Health Care Equipment–3.18%
Hill-Rom Holdings, Inc.		42,435		3,378,250
Nevro Corp.(c)		32,859		2,445,696
Wright Medical Group N.V.(c)		136,549		3,753,732
				9,577,678
Health Care Facilities–0.85%
Acadia Healthcare Co., Inc.(b)(c)		51,570		2,546,527
Health Care REIT’s–0.91%
Healthcare Trust of America, Inc.–Class A		88,315		2,747,480
Health Care Services–0.97%
Tivity Health, Inc.(c)		72,995		2,908,851
Health Care Supplies–0.41%
Lantheus Holdings, Inc.(c)		70,734		1,248,455
Health Care Technology–0.47%
HMS Holdings Corp.(c)		76,639		1,417,822
Home Entertainment Software–1.91%
Take-Two Interactive Software, Inc.(c)		78,495		5,759,963
Home Furnishings–1.11%
La-Z-Boy Inc.		102,792		3,340,740
Homebuilding–0.65%
Beazer Homes USA, Inc.(c)		142,565		1,955,992

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Small Cap Equity Fund

	Shares		Value
Household Appliances–1.07%
Helen of Troy Ltd.(c)		34,354	$	3,232,711
Industrial Machinery–3.74%
Albany International Corp.–Class A		83,377		4,452,332
SPX Corp.(c)		157,041		3,951,151
Watts Water Technologies, Inc.–Class A		45,200		2,856,640
				11,260,123
Investment Banking & Brokerage–3.20%
E*TRADE Financial Corp.(c)		106,680		4,057,041
Lazard Ltd.–Class A		70,058		3,245,787
Piper Jaffray Cos.		38,715		2,320,964
				9,623,792
IT Consulting & Other Services–0.74%
Luxoft Holding, Inc.(c)		36,589		2,226,441
Life & Health Insurance–1.14%
CNO Financial Group, Inc.		164,972		3,444,615
Life Sciences Tools & Services–1.05%
Cambrex Corp.(c)		52,950		3,163,762
Managed Health Care–0.00%
HealthEquity, Inc.(c)		11		548
Multi-Line Insurance–2.26%
American Financial Group, Inc.		40,485		4,022,994
Horace Mann Educators Corp.		73,345		2,772,441
				6,795,435
Office REIT’s–0.97%
Highwoods Properties, Inc.		57,482		2,914,912
Office Services & Supplies–0.63%
Pitney Bowes Inc.		126,361		1,908,051
Oil & Gas Equipment & Services–1.31%
Forum Energy Technologies Inc.(c)		148,578		2,317,817
Superior Energy Services, Inc.(c)		154,930		1,615,920
				3,933,737
Oil & Gas Exploration & Production–3.45%
Energen Corp.(c)		60,113		2,967,779
Newfield Exploration Co.(c)		76,952		2,190,054
Parsley Energy, Inc.–Class A(c)		79,836		2,215,449
RSP Permian Inc.(c)		92,993		3,000,884
				10,374,166
Packaged Foods & Meats–1.75%
Pinnacle Foods Inc.		49,310		2,929,014
TreeHouse Foods, Inc.(c)		28,746		2,348,261
				5,277,275
Paper Packaging–1.52%
Graphic Packaging Holding Co.		331,213		4,564,115

	Shares		Value
Pharmaceuticals–2.63%
Phibro Animal Health Corp.–Class A		83,302	$	3,086,339
Supernus Pharmaceuticals Inc.(c)		112,347		4,842,156
				7,928,495
Property & Casualty Insurance–2.09%
Aspen Insurance Holdings Ltd. (Bermuda)		60,556		3,018,717
Hanover Insurance Group Inc. (The)		36,937		3,273,726
				6,292,443
Real Estate Operating Companies–0.74%
Kennedy-Wilson Holdings Inc.		117,014		2,229,117
Regional Banks–9.45%
Bank of the Ozarks, Inc.		70,166		3,288,681
BankUnited, Inc.		80,614		2,717,498
Great Western Bancorp, Inc.		92,138		3,760,152
IBERIABANK Corp.		44,831		3,653,727
Pinnacle Financial Partners, Inc.		51,743		3,249,460
Synovus Financial Corp.		90,414		3,999,915
Webster Financial Corp.		75,920		3,964,542
Western Alliance Bancorp(c)		77,612		3,818,510
				28,452,485
Restaurants–1.96%
Papa John’s International, Inc.		40,311		2,892,717
Wendy’s Co. (The)		194,601		3,018,262
				5,910,979
Semiconductor Equipment–0.72%
Xperi Corp.		72,423		2,158,205
Semiconductors–3.06%
MACOM Technology Solutions Holdings, Inc.(c)		63,365		3,533,866
Microsemi Corp.(c)		86,038		4,026,579
Power Integrations, Inc.		22,549		1,643,822
				9,204,267
Specialized Consumer Services–1.02%
ServiceMaster Global Holdings, Inc.(c)		78,120		3,061,523
Specialized REIT’s–0.95%
CubeSmart		119,144		2,864,222
Specialty Chemicals–3.11%
Minerals Technologies Inc.		44,339		3,245,615
PolyOne Corp.		81,085		3,141,233
Sensient Technologies Corp.		37,091		2,986,938
				9,373,786
Specialty Stores–1.40%
Michaels Cos., Inc. (The)(c)		132,812		2,459,678
Sally Beauty Holdings, Inc.(c)		86,535		1,752,334
				4,212,012
Technology Distributors–1.14%
Tech Data Corp.(c)		34,068		3,440,868

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Small Cap Equity Fund

	Shares		Value
Technology Hardware, Storage & Peripherals–0.41%
Cray, Inc.(c)		67,826	$	1,247,998
Tires & Rubber–0.91%
Cooper Tire & Rubber Co.		75,934		2,741,217
Trucking–2.10%
Old Dominion Freight Line, Inc.		33,859		3,224,731
Swift Transportation Co.(b)(c)		116,880		3,097,320
				6,322,051
Total Common Stocks & Other Equity Interests (Cost $235,601,788)				296,158,872
Money Market Funds–1.30%
Government & Agency Portfolio–Institutional Class, 0.89%(d)		2,351,009		2,351,009
Treasury Portfolio–Institutional Class, 0.85%(d)		1,567,339		1,567,339
Total Money Market Funds (Cost $3,918,348)				3,918,348
TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on loan)–99.66% (Cost $239,520,136)				300,077,220

	Shares		Value
Investments Purchased with Cash Collateral from Securities on Loan
Money Market Funds–2.16%
Government & Agency Portfolio– Institutional Class, 0.89% (Cost $6,503,005)(d)(e)		6,503,005	$	6,503,005
TOTAL INVESTMENTS–101.82% (Cost $246,023,141)				306,580,225
OTHER ASSETS LESS LIABILITIES–(1.82)%				(5,466,400	)
NET ASSETS–100.00%			$	301,113,825

Investment Abbreviations:

REIT-Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  All or a portion of this security was out on loan at June 30, 2017.

^(c)  Non-income producing security.

^(d)  The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of June 30, 2017.

^(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I.

Portfolio Composition

By sector, based on Net Assets as of June 30, 2017

Industrials	19.3	%
Financials	19.1
Information Technology	18.5
Consumer Discretionary	12.2
Health Care	11.1
Materials	5.5
Energy	4.7
Real Estate	3.6
Consumer Staples	1.8
Utilities	1.4
Telecommunication Services	1.2
Money Market Funds Plus Other Assets Less Liabilities	1.6

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Small Cap Equity Fund

Statement of Assets and Liabilities

June 30, 2017

(Unaudited)

Statement of Operations

For the six months ended June 30, 2017

(Unaudited)

Assets:
Investments, at value (Cost $235,601,788)*	$	296,158,872
Investments in affiliated money market funds, at value and cost		10,421,353
Total investments, at value (Cost $246,023,141)		306,580,225
Receivable for:
Investments sold		1,184,771
Fund shares sold		111,068
Dividends		225,005
Investment for trustee deferred compensation and retirement plans		76,255
Total assets		308,177,324
Liabilities:
Payable for:
Investments purchased		132,880
Fund shares reacquired		82,358
Collateral upon return of securities loaned		6,503,005
Accrued fees to affiliates		207,097
Accrued trustees’ and officers’ fees and benefits		4,762
Accrued other operating expenses		47,643
Trustee deferred compensation and retirement plans		85,754
Total liabilities		7,063,499
Net assets applicable to shares outstanding	$	301,113,825
Net assets consist of:
Shares of beneficial interest	$	216,051,883
Undistributed net investment income (loss)		(283,351	)
Undistributed net realized gain		24,788,209
Net unrealized appreciation		60,557,084
	$	301,113,825
Net Assets:
Series I	$	152,227,487
Series II	$	148,886,338
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		7,883,549
Series II		8,074,848
Series I:
Net asset value per share	$	19.31
Series II:
Net asset value per share	$	18.44

* At June 30, 2017, securities with an aggregate value of $6,368,205 were on loan to brokers.

Investment income:
Dividends (net of foreign withholding taxes of $2,295)	$	1,447,718
Dividends from affiliated money market funds (includes securities lending income of $4,581)		20,767
Total investment income		1,468,485
Expenses:
Advisory fees		1,128,847
Administrative services fees		256,916
Custodian fees		8,472
Distribution fees — Series II		183,577
Transfer agent fees		22,869
Trustees’ and officers’ fees and benefits		12,671
Reports to shareholders		31,809
Professional services fees		25,640
Other		3,659
Total expenses		1,674,460
Less: Fees waived		(3,072	)
Net expenses		1,671,388
Net investment income (loss)		(202,903	)
Realized and unrealized gain from:
Net realized gain from investment securities (includes net gains from securities sold to affiliates of $458,642)		11,341,368
Change in net unrealized appreciation of investment securities		3,901,140
Net realized and unrealized gain		15,242,508
Net increase in net assets resulting from operations	$	15,039,605

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Small Cap Equity Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2017 and the year ended December 31, 2016

(Unaudited)

	June 30, 2017			December 31, 2016
Operations:
Net investment income (loss)	$	(202,903	)	$	(207,323	)
Net realized gain		11,341,368			13,816,268
Change in net unrealized appreciation		3,901,140			20,760,134
Net increase in net assets resulting from operations		15,039,605			34,369,079
Distributions to shareholders from net realized gains:
Series l		—			(11,226,305	)
Series ll		—			(10,517,748	)
Total distributions from net realized gains		—			(21,744,053	)
Share transactions–net:
Series l		(17,409,787	)		(11,957,409	)
Series ll		(7,125,881	)		14,920,964
Net increase (decrease) in net assets resulting from share transactions		(24,535,668	)		2,963,555
Net increase (decrease) in net assets		(9,496,063	)		15,588,581
Net assets:
Beginning of period		310,609,888			295,021,307
End of period (includes undistributed net investment income (loss) of $(283,351) and $(80,448), respectively)	$	301,113,825		$	310,609,888

Notes to Financial Statements

June 30, 2017

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Small Cap Equity Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance 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 consisting of twenty-four separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

The Fund’s investment objective is long-term growth of capital.

The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services — Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for

Invesco V.I. Small Cap Equity Fund

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. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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.

Invesco V.I. Small Cap Equity Fund

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 and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. Securities Lending — The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. The Fund bears the risk of loss with respect to the investment of collateral. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, the Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or the Fund. Upon termination, the borrower will return to the Fund the securities loaned and the Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to the Fund. Some of these losses may be indemnified by the 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.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets	Rate
First $250 million		0	.745%
Next $250 million		0	.73%
Next $500 million		0	.715%
Next $1.5 billion		0	.70%
Next $2.5 billion		0	.685%
Next $2.5 billion		0	.67%
Next $2.5 billion		0	.655%
Over $10 billion		0	.64%

For the six months ended June 30, 2017, the effective advisory fees incurred by the Fund was 0.74%.

Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate sub-advisory agreements with Invesco PowerShares Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2018, 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 Series I shares to 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2018. During its term,

Invesco V.I. Small Cap Equity Fund

the fee waiver agreement cannot be terminated or amended to increase expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2019, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

For the six months ended June 30, 2017, the Adviser waived advisory fees of $3,072.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2017, Invesco was paid $37,460 for accounting and fund administrative services and was reimbursed $219,456 for fees paid to insurance companies.

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. For the six months ended June 30, 2017, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2017, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2017, the Fund incurred $1,809 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

As of June 30, 2017, all of the securities in this Fund were valued based on Level 1 inputs (see the Schedule of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

NOTE 4—Security Transactions with Affiliated Funds

The Fund is permitted to purchase or sell securities from or to certain other Invesco 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 or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended June 30, 2017, the Fund engaged in securities sales of $3,386,957, which resulted in net realized gains of $458,642.

Invesco V.I. Small Cap Equity Fund

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 State Street Bank and Trust Company, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 7—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of December 31, 2016.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2017 was $29,511,766 and $56,798,441, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	75,045,543
Aggregate unrealized (depreciation) of investment securities		(14,622,618	)
Net unrealized appreciation of investment securities	$	60,422,925

Cost of investments for tax purposes is $246,157,300.

Invesco V.I. Small Cap Equity Fund

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended June 30, 2017(a)						Year ended December 31, 2016
	Shares			Amount			Shares			Amount
Sold:
Series I		476,734		$	9,024,883			1,273,851		$	21,861,494
Series II		299,141			5,413,213			1,640,615			27,600,516
Issued as reinvestment of dividends:
Series I		—			—			639,312			11,226,305
Series II		—			—			626,056			10,517,748
Reacquired:
Series I		(1,390,339	)		(26,434,670	)		(2,550,489	)		(45,045,208	)
Series II		(694,859	)		(12,539,094	)		(1,379,733	)		(23,197,300	)
Net increase (decrease) in share activity		(1,309,323	)	$	(24,535,668	)		249,612		$	2,963,555

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 68% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. 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, third party record keeping and account servicing and administrative services. 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 10—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)
Series I
Six months ended 06/30/17	$	18.38	$	(0.00	)	$	0.93		$	0.93		$	—		$	—		$	—		$	19.31		5.06	%	$	152,227		0.98	%(d)		0.98	%(d)		(0.01	)%(d)		10	%
Year ended 12/31/16		17.64		0.01			2.06			2.07			—			(1.33	)		(1.33	)		18.38		12.06			161,727		1.01			1.01			0.04			37
Year ended 12/31/15		23.64		0.00			(1.27	)		(1.27	)		—			(4.73	)		(4.73	)		17.64		(5.52	)		166,407		1.04			1.04			0.02			31
Year ended 12/31/14		25.44		(0.04	)		0.47			0.43			—			(2.23	)		(2.23	)		23.64		2.36			203,963		1.05			1.05			(0.17	)		45
Year ended 12/31/13		18.69		(0.04	)		7.02			6.98			(0.00	)		(0.23	)		(0.23	)		25.44		37.47			262,261		1.05			1.05			(0.17	)		35
Year ended 12/31/12		16.41		0.01			2.27			2.28			—			—			—			18.69		13.89			205,566		1.06			1.06			0.05			36
Series II
Six months ended 06/30/17		17.58		(0.02	)		0.88			0.86			—			—			—			18.44		4.89			148,886		1.23	(d)		1.23	(d)		(0.26	)(d)		10
Year ended 12/31/16		16.96		(0.03	)		1.98			1.95			—			(1.33	)		(1.33	)		17.58		11.84			148,883		1.26			1.26			(0.21	)		37
Year ended 12/31/15		22.97		(0.05	)		(1.23	)		(1.28	)		—			(4.73	)		(4.73	)		16.96		(5.74	)		128,614		1.29			1.29			(0.23	)		31
Year ended 12/31/14		24.85		(0.10	)		0.45			0.35			—			(2.23	)		(2.23	)		22.97		2.08			145,505		1.30			1.30			(0.42	)		45
Year ended 12/31/13		18.31		(0.09	)		6.86			6.77			—			(0.23	)		(0.23	)		24.85		37.08			134,526		1.30			1.30			(0.42	)		35
Year ended 12/31/12		16.11		(0.03	)		2.23			2.20			—			—			—			18.31		13.66			83,096		1.31			1.31			(0.20	)		36

^(a)  Calculated using average shares outstanding.

^(b)  Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year, if applicable and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.

^(c)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(d)  Ratios are annualized and based on average daily net assets (000’s omitted) of $158,621 and $148,078 for Series I and Series II shares, respectively.

Invesco V.I. Small Cap Equity Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2017 through June 30, 2017.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

Class	Beginning Account Value (01/01/2017)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/2017)1		Expenses Paid During Period2		Ending Account Value (06/30/2017)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,050.60	$	4.98	$	1,019.93	$	4.91		0.98	%
Series II		1,000.00		1,048.90		6.25		1,018.70		6.16		1.23

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2017 through June 30, 2017, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

²  Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Small Cap Equity Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco V.I. Small Cap Equity Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the 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 PowerShares 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, 2017.

In evaluating the fairness and reasonableness of compensation under the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board determined that continuation of the Fund’s investment advisory agreement and the sub-advisory contracts is in the best interest of the Fund and its shareholders and that the compensation payable to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Board had the benefit of reports from the Sub-Committees and Investments Committee throughout the year in considering approval of the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Board receives comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The

Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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 addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The Trustees recognized that the advisory fee rates for the Invesco Funds are, in most cases, the result of years of review and negotiation. The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these arrangements throughout the year and in prior years. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them 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 discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement 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. This information is current as of June 13, 2017, and does not reflect consideration of factors that became known to the Board after that date.

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 advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers. The Board’s review included consideration of Invesco Advisers’ investment process oversight, credit analysis and investment risk management. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, trading operations, internal audit, valuation and legal and compliance.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the greater uncertainty that may be associated with entering into a new relationship. 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 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 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 in which the Fund may invest, make recommendations regarding securities and assist with security trades. 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 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 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, 2016 to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds Small-Cap Core Funds Index. The Board noted that performance of Series I 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 Series I shares of the Fund was below the performance of the Index for the one, three and five year periods. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees

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 at a common asset level. The Board noted that the contractual

Invesco V.I. Small Cap Equity Fund

management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing 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 compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/waivers) to the effective advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, based on asset balances as of December 31, 2016. The Board noted that the Fund’s rate was above the rate of one such mutual fund. The Board also noted how the Fund’s rate compared to the effective sub-adviser fee rate of three mutual funds sub-advised by Invesco Advisers.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other client accounts with investment strategies comparable to those of the Fund. The Board noted that Invesco Advisers or the Affiliated Sub-Advisers may charge lower fees to large institutional clients. Invesco Advisers reviewed with the Board the significantly greater scope of services it provides to the Invesco Funds relative to certain other types of client accounts. These additional services include provision of administrative services, officers and office space, oversight of service providers, preparation of annual registration statement updates and financial information and regulatory compliance under the Investment Company Act of 1940, as amended.

Invesco Advisers also reviewed generally the higher frequency of shareholder purchases and redemptions in the Invesco Funds relative to the flow of assets for other client accounts. Invesco Advisers advised the Board that advance notice of redemptions is often provided to Invesco Advisers by institutional clients. The Board did note that sub-advisory fee rates charged by the Affiliated Sub-Advisers to manage the Invesco Funds and to manage other client accounts tended to be more comparable, reflecting a similar scope of services.

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 also noted that the sub-advisory fees are not paid directly by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds advised by Invesco Advisers.

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. 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 and the Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund to be excessive given the nature, quality and extent of the services provided. The Board received and accepted information from Invesco Advisers demonstrating that Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; and 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 Adviser’s or the Affiliated Sub-Adviser’s expenses. The

Board also considered that it receives periodic reports from the Chief Compliance Officer of the Invesco Funds demonstrating 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 money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds with respect to certain investments in the affiliated money market funds. The waiver is in 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that the Fund may use an affiliated broker to execute certain trades for the Fund to, among other things, control information leakage, and was advised that such trades would be executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Small Cap Equity Fund

Proxy Results

A Special Joint Meeting (“Meeting”) of Shareholders of Invesco V.I. Small Cap Equity Fund, an investment portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), a Delaware statutory trust (“Trust”), was held on March 9, 2017. The Meeting was held for the following purposes:

(1) Elect 15 trustees to the Board, each of whom will serve until his or her successor is elected and qualified.

(2) Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.

(3) Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities.

(4)(a) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC.

(4)(b) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited.

The results of the voting on the above matters were as follows:

	Matters					Votes For		Votes Withheld
(1)*	David C. Arch						1,256,086,249		71,094,301
	James T. Bunch						1,254,410,156		72,770,397
	Bruce L. Crockett						1,258,363,948		68,816,603
	Jack M. Fields						1,255,101,592		72,078,961
	Martin L. Flanagan						1,257,885,397		69,295,160
	Cynthia Hostetler						1,261,335,247		65,845,303
	Dr. Eli Jones						1,257,497,296		69,683,257
	Dr. Prema Mathai-Davis						1,254,728,756		72,451,795
	Teresa M. Ressel						1,261,829,473		65,351,074
	Dr. Larry Soll						1,254,261,019		72,919,533
	Ann Barnett Stern						1,260,861,373		66,319,176
	Raymond Stickel, Jr.						1,254,379,471		72,801,083
	Philip A. Taylor						1,256,589,912		70,590,639
	Robert C. Troccoli						1,260,867,549		66,313,003
	Christopher L. Wilson						1,260,186,985		66,993,567
		Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(2)*	Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.		1,054,920,918		171,591,974		100,667,642		18
	Matters	Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(3)	Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities		13,217,283		1,319,545		1,096,237		0
(4)(a)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC		13,845,527		805,389		982,149		0
(4)(b)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited		13,584,501		1,020,468		1,028,096		0

* Each of proposal 1 and 2 required approval by a combined vote of all of the portfolios of AIM Variable Insurance Funds (Invesco Variable Insurance Funds).

Invesco V.I. Small Cap Equity Fund

	Semiannual Report to Shareholders	June 30, 2017
	Invesco V.I. Technology Fund
	The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.     A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.     Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/ proxysearch. The information is also available on the SEC website, sec.gov.     Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
	This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.
	NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc.                                               I-VITEC-SAR-1         07182017    1226

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/16 to 6/30/17, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	22.53%
Series II Shares	22.35
NASDAQ Composite Index▼ (Broad Market/Style-Specific Index)	14.71
Lipper VUF Science & Technology Funds Classification Average⬛ (Peer Group)	17.02
Source(s): ▼FactSet Research Systems Inc.; ⬛Lipper Inc.
The NASDAQ Composite Index is a broad-based, market index of the common stocks and similar securities listed on the Nasdaq stock market. The Lipper VUF Science & Technology Funds Classification Average represents an average of all variable insurance underlying funds in the Lipper Science & Technology Funds classification. The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/17
Series I Shares
Inception (5/20/97)	5.75	%
10 Years	7.38
5 Years	13.00
1 Year	33.51
Series II Shares
Inception (4/30/04)	7.71	%
10 Years	7.10
5 Years	12.71
1 Year	33.17

The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

    The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

    The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 1.05% and 1.30%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

    Invesco V.I. Technology Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

    The most recent month-end performance at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

Invesco V.I. Technology Fund

Schedule of Investments^(a)

June 30, 2017

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–98.47%
Aerospace & Defense–2.57%
Raytheon Co.		18,353	$	2,963,642
Application Software–2.29%
salesforce.com, inc.(b)		30,466		2,638,356
Biotechnology–6.37%
Alexion Pharmaceuticals, Inc.(b)		10,299		1,253,079
BioMarin Pharmaceutical Inc.(b)		13,495		1,225,616
Celgene Corp.(b)		27,329		3,549,217
Incyte Corp.(b)		10,468		1,318,026
				7,345,938
Cable & Satellite–4.25%
Charter Communications, Inc.–Class A(b)		3,156		1,063,098
DISH Network Corp.–Class A(b)		61,005		3,828,674
				4,891,772
Communications Equipment–0.55%
Palo Alto Networks, Inc.(b)		4,731		633,055
Consumer Electronics–4.15%
Sony Corp. (Japan)		125,600		4,786,357
Data Processing & Outsourced Services–6.37%
First Data Corp.–Class A(b)		87,644		1,595,121
Mastercard Inc.–Class A		16,924		2,055,420
Visa Inc.–Class A		39,295		3,685,085
				7,335,626
Health Care Equipment–1.86%
Intuitive Surgical, Inc.(b)		1,000		935,370
Stryker Corp.		8,743		1,213,353
				2,148,723
Home Entertainment Software–12.58%
Activision Blizzard, Inc.		45,325		2,609,360
Electronic Arts Inc.(b)		24,673		2,608,429
Nintendo Co., Ltd. (Japan)		13,700		4,589,811
Take-Two Interactive Software, Inc.(b)		34,069		2,499,983
UbiSoft Entertainment S.A. (France)(b)		38,669		2,194,157
				14,501,740
Internet & Direct Marketing Retail–9.00%
Amazon.com, Inc.(b)		8,967		8,680,056
Priceline Group Inc. (The)(b)		906		1,694,691
				10,374,747
Internet Software & Services–16.76%
Alibaba Group Holding Ltd.–ADR (China)(b)		33,412		4,707,751
Alphabet Inc.–Class A(b)		6,970		6,479,869
Alphabet Inc.–Class C(b)		2,056		1,868,349
Baidu, Inc.–ADR (China)(b)		5,931		1,060,819

	Shares		Value
Internet Software & Services–(continued)
Facebook, Inc.–Class A (b)		34,404	$	5,194,316
				19,311,104
Life Sciences Tools & Services–1.15%
Thermo Fisher Scientific, Inc.		7,624		1,330,159
Managed Health Care–2.04%
UnitedHealth Group Inc.		12,680		2,351,126
Pharmaceuticals–3.38%
Allergan PLC		8,432		2,049,735
Eli Lilly and Co.		12,746		1,048,996
Merck & Co., Inc.		12,422		796,126
				3,894,857
Regional Banks–0.46%
SVB Financial Group(b)		2,996		526,667
Semiconductor Equipment–1.19%
Applied Materials, Inc.		33,120		1,368,187
Semiconductors–7.87%
Broadcom Ltd.		18,987		4,424,921
Integrated Device Technology, Inc.(b)		103,319		2,664,597
NVIDIA Corp.		13,704		1,981,050
				9,070,568
Systems Software–4.54%
Microsoft Corp.		64,273		4,430,338
ServiceNow, Inc.(b)		7,592		804,752
				5,235,090
Technology Hardware, Storage & Peripherals–7.45%
Apple Inc.		59,581		8,580,856
Tobacco–1.05%
Philip Morris International Inc.		10,297		1,209,383
Wireless Telecommunication Services–2.59%
Sprint Corp.(b)		363,510		2,984,417
Total Common Stocks & Other Equity Interests (Cost $66,169,022)				113,482,370
Money Market Funds–1.11%
Government & Agency Portfolio–Institutional Class, 0.89%(c)		767,370		767,370
Treasury Portfolio–Institutional Class, 0.85%(c)		511,580		511,580
Total Money Market Funds (Cost $1,278,950)				1,278,950
TOTAL INVESTMENTS–99.58% (Cost $67,447,972)				114,761,320
OTHER ASSETS LESS LIABILITIES–0.42%				480,070
NET ASSETS–100.00%			$	115,241,390

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Technology Fund

Investment Abbreviations:

ADR – American Depositary Receipt

Note to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of June 30, 2017.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2017

Information Technology	59.6	%
Consumer Discretionary	17.4
Health Care	14.8
Industrials	2.6
Telecommunication Services	2.6
Consumer Staples	1.0
Financials	0.5
Money Market Funds Plus Other Assets Less Liabilities	1.5

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Technology Fund

Statement of Assets and Liabilities

June 30, 2017

(Unaudited)

Statement of Operations

For the six months ended June 30, 2017

(Unaudited)

Assets:
Investments, at value (Cost $66,169,022)	$	113,482,370
Investments in affiliated money market funds, at value and cost		1,278,950
Total investments, at value (Cost $67,447,972)		114,761,320
Foreign currencies, at value (Cost $18,207)		18,128
Receivable for:
Investments sold		380,347
Fund shares sold		727,954
Dividends		78,692
Investment for trustee deferred compensation and retirement plans		65,994
Total assets		116,032,435
Liabilities:
Payable for:
Investments purchased		404,362
Fund shares reacquired		226,691
Accrued fees to affiliates		48,868
Accrued trustees’ and officers’ fees and benefits		4,282
Accrued other operating expenses		34,528
Trustee deferred compensation and retirement plans		72,314
Total liabilities		791,045
Net assets applicable to shares outstanding	$	115,241,390
Net assets consist of:
Shares of beneficial interest	$	60,405,749
Undistributed net investment income (loss)		(225,632	)
Undistributed net realized gain		7,748,501
Net unrealized appreciation		47,312,772
	$	115,241,390
Net Assets:
Series I	$	106,956,518
Series II	$	8,284,872
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		4,879,347
Series II		395,098
Series I:
Net asset value per share	$	21.92
Series II:
Net asset value per share	$	20.97

Investment income:
Dividends (net of foreign withholding taxes of $5,570)	$	419,864
Dividends from affiliated money market funds		3,708
Total investment income		423,572
Expenses:
Advisory fees		399,141
Administrative services fees		103,422
Custodian fees		6,373
Distribution fees — Series II		9,636
Transfer agent fees		14,701
Trustees’ and officers’ fees and benefits		11,080
Reports to shareholders		12,671
Professional services fees		24,040
Other		1,562
Total expenses		582,626
Less: Fees waived		(671	)
Net expenses		581,955
Net investment income (loss)		(158,383	)
Realized and unrealized gain (loss) from:
Net realized gain from:
Investment securities		2,011,321
Foreign currencies		4,652
		2,015,973
Change in net unrealized appreciation (depreciation) of:
Investment securities		19,364,566
Foreign currencies		(627	)
		19,363,939
Net realized and unrealized gain		21,379,912
Net increase in net assets resulting from operations	$	21,221,529

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Technology Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2017 and the year ended December 31, 2016

(Unaudited)

	June 30, 2017			December 31, 2016
Operations:
Net investment income (loss)	$	(158,383	)	$	(347,526	)
Net realized gain		2,015,973			5,928,606
Change in net unrealized appreciation (depreciation)		19,363,939			(7,410,264	)
Net increase (decrease) in net assets resulting from operations		21,221,529			(1,829,184	)
Distributions to shareholders from net realized gains:
Series l		—			(4,059,433	)
Series ll		—			(343,483	)
Total distributions from net realized gains		—			(4,402,916	)
Share transactions–net:
Series l		(367,271	)		(13,847,236	)
Series ll		(44,322	)		(789,246	)
Net increase (decrease) in net assets resulting from share transactions		(411,593	)		(14,636,482	)
Net increase (decrease) in net assets		20,809,936			(20,868,582	)
Net assets:
Beginning of period		94,431,454			115,300,036
End of period (includes undistributed net investment income (loss) of $(225,632) and $(67,249), respectively)	$	115,241,390		$	94,431,454

Notes to Financial Statements

June 30, 2017

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Technology Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance 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 consisting of twenty-four separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

The Fund’s investment objective is long-term growth of capital.

The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend

Invesco V.I. Technology Fund

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. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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.

Invesco V.I. Technology Fund

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 and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. 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 date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

J. Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

K. Other Risks — The Fund’s investments are concentrated in a comparatively narrow segment of the economy, which may make the Fund more volatile.

Many products and services offered in technology-related industries are subject to rapid obsolescence, which may lower the value of the issuers in this sector.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays 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		0.75%
Next $250 million		0.74%
Next $500 million		0.73%
Next $1.5 billion		0.72%
Next $2.5 billion		0.71%
Next $2.5 billion		0.70%
Next $2.5 billion		0.69%
Over $10 billion		0.68%

Invesco V.I. Technology Fund

For the six months ended June 30, 2017, the effective advisory fees incurred by the Fund was 0.75%.

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 PowerShares Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2018, 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 Series I shares to 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2018. During its term, the fee waiver agreement cannot be terminated or amended to increase expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2019, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash in such affiliated money market funds.

For the six months ended June 30, 2017, the Adviser waived advisory fees of $671.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2017, Invesco was paid $24,795 for accounting and fund administrative services and was reimbursed $78,627 for fees paid to insurance companies.

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. For the six months ended June 30, 2017, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2017, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2017, the Fund incurred $170 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 or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

Invesco V.I. Technology Fund

The following is a summary of the tiered valuation input levels, as of June 30, 2017. 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. During the six months ended June 30, 2017, there were transfers from Level 2 to Level 1 of $9,376,168, due to foreign fair value adjustments.

	Level 1		Level 2		Level 3		Total
Common Stocks & Other Equity Interests	$	113,482,370	$	—	$	—	$	113,482,370
Money Market Funds		1,278,950		—		—		1,278,950
Total Investments	$	114,761,320	$	—	$	—	$	114,761,320

NOTE 4—Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 5—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 6—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund did not have a capital loss carryforward as of December 31, 2016.

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2017 was $18,949,950 and $21,015,875, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	47,190,476
Aggregate unrealized (depreciation) of investment securities		(189,783	)
Net unrealized appreciation of investment securities	$	47,000,693

Cost of investments for tax purposes is $67,760,627.

Invesco V.I. Technology Fund

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended June 30, 2017(a)						Year ended December 31,  2016
	Shares			Amount			Shares			Amount
Sold:
Series I		516,038		$	10,583,462			459,692		$	7,989,025
Series II		27,056			524,506			28,944			482,623
Issued as reinvestment of dividends:
Series I		—			—			220,142			4,059,433
Series II		—			—			19,439			343,483
Reacquired:
Series I		(534,517	)		(10,950,733	)		(1,477,788	)		(25,895,694	)
Series II		(28,701	)		(568,828	)		(95,643	)		(1,615,352	)
Net increase (decrease) in share activity		(20,124	)	$	(411,593	)		(845,214	)	$	(14,636,482	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 61% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or advisor, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. 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 and administrative services. 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 9—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)
Series I
Six months ended 06/30/17	$	17.89	$	(0.03	)	$	4.06		$	4.03		$	—		$	21.92		22.53	%	$	106,957		1.08	%(d)		1.08	%(d)		(0.28	)%(d)		18	%
Year ended 12/31/16		18.83		(0.06	)		(0.06	)		(0.12	)		(0.82	)		17.89		(0.76	)		87,632		1.10			1.10			(0.33	)		52
Year ended 12/31/15		19.75		(0.11	)		1.29			1.18			(2.10	)		18.83		6.82			107,257		1.15			1.15			(0.53	)		61
Year ended 12/31/14		19.42		(0.13	)		2.20			2.07			(1.74	)		19.75		11.05			104,556		1.16			1.16			(0.65	)		77
Year ended 12/31/13		16.87		(0.07	)		4.19			4.12			(1.57	)		19.42		25.14			103,151		1.17			1.17			(0.40	)		45
Year ended 12/31/12		15.16		(0.07	)		1.78			1.71			—			16.87		11.28			95,371		1.16			1.16			(0.42	)		42
Series II
Six months ended 06/30/17		17.14		(0.05	)		3.88			3.83			—			20.97		22.35			8,285		1.33	(d)		1.33	(d)		(0.53	)(d)		18
Year ended 12/31/16		18.12		(0.10	)		(0.06	)		(0.16	)		(0.82	)		17.14		(1.01	)		6,799		1.35			1.35			(0.58	)		52
Year ended 12/31/15		19.13		(0.15	)		1.24			1.09			(2.10	)		18.12		6.56			8,043		1.40			1.40			(0.78	)		61
Year ended 12/31/14		18.90		(0.17	)		2.14			1.97			(1.74	)		19.13		10.82			4,775		1.41			1.41			(0.90	)		77
Year ended 12/31/13		16.50		(0.12	)		4.09			3.97			(1.57	)		18. 90		24.79			3,200		1.42			1.42			(0.65	)		45
Year ended 12/31/12		14.86		(0.11	)		1.75			1.64			—			16.50		11.04			2,118		1.41			1.41			(0.67	)		42

^(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. Total returns are not annualized for periods less than one year, if applicable, and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.

^(c)  Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(d)  Ratios are annualized and based on average daily net assets (000’s omitted) of $99,547 and $7,772 for Series I and Series II shares, respectively.

Invesco V.I. Technology Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2017 through June 30, 2017.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

Class	Beginning Account Value (01/01/17)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/17) 1		Expenses Paid During Period2		Ending Account Value (06/30/17)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,225.30	$	5.96	$	1,019.44	$	5.41		1.08	%
Series II		1,000.00		1,223.50		7.33		1,018.20		6.66		1.33

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2017 through June 30, 2017, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

²  Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Technology Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco V.I. Technology Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the 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 PowerShares 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, 2017.

In evaluating the fairness and reasonableness of compensation under the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board determined that continuation of the Fund’s investment advisory agreement and the sub-advisory contracts is in the best interest of the Fund and its shareholders and that the compensation payable to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Board had the benefit of reports from the Sub-Committees and Investments Committee throughout the year in considering approval of the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Board receives comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The

Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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 addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The Trustees recognized that the advisory fee rates for the Invesco Funds are, in most cases, the result of years of review and negotiation. The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these arrangements throughout the year and in prior years. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them 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 discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement 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. This information is current as of June 13, 2017, and does not reflect consideration of factors that became known to the Board after that date.

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 advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers. The Board’s review included consideration of Invesco Advisers’ investment process oversight, credit analysis and investment risk management. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, trading operations, internal audit, valuation and legal and compliance.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the greater uncertainty that may be associated with entering into a new relationship. 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 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 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 in which the Fund may invest, make recommendations regarding securities and assist with security trades. 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 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 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, 2016 to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds Science & Technology Funds Index. The Board noted that performance of Series I 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 Series I shares of the Fund was below the performance of the Index for the one, three and five year periods. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees

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 at a common asset

Invesco V.I. Technology Fund

level. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing 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 compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/waivers) to the effective advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, based on asset balances as of December 31, 2016. The Board noted that the Fund’s rate was above the rates of two such mutual funds. The Board also noted how the Fund’s rate compared to the effective sub-adviser fee rate of one fund sub-advised by Invesco Advisers.

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 also noted that the sub-advisory fees are not paid directly by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds advised by Invesco Advisers.

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. 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 and the Fund. The Board did not deem the level of profits realized by Invesco Advisers and

its affiliates from providing services to the Fund to be excessive given the nature, quality and extent of the services provided. The Board received and accepted information from Invesco Advisers demonstrating that Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; and 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 Adviser’s or the Affiliated Sub-Adviser’s expenses. The Board also considered that it receives periodic reports from the Chief Compliance Officer of the Invesco Funds demonstrating 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 money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds with respect to certain investments in the affiliated money market funds. The waiver is in 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 amount of advisory fees received by Invesco Advisers from the Fund’s investment of cash collateral from any

securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that the Fund may use an affiliated broker to execute certain trades for the Fund to, among other things, control information leakage, and was advised that such trades would be executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Technology Fund

Proxy Results

A Special Joint Meeting (“Meeting”) of Shareholders of Invesco V.I. Technology Fund, an investment portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), a Delaware statutory trust (“Trust”), was held on March 9, 2017. The Meeting was held for the following purposes:

(1) Elect 15 trustees to the Board, each of whom will serve until his or her successor is elected and qualified.

(2) Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.

(3) Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities.

(4)(a) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC.

(4)(b) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited.

The results of the voting on the above matters were as follows:

	Matters					Votes For		Votes Withheld
(1)*	David C. Arch						1,256,086,249		71,094,301
	James T. Bunch						1,254,410,156		72,770,397
	Bruce L. Crockett						1,258,363,948		68,816,603
	Jack M. Fields						1,255,101,592		72,078,961
	Martin L. Flanagan						1,257,885,397		69,295,160
	Cynthia Hostetler						1,261,335,247		65,845,303
	Dr. Eli Jones						1,257,497,296		69,683,257
	Dr. Prema Mathai-Davis						1,254,728,756		72,451,795
	Teresa M. Ressel						1,261,829,473		65,351,074
	Dr. Larry Soll						1,254,261,019		72,919,533
	Ann Barnett Stern						1,260,861,373		66,319,176
	Raymond Stickel, Jr.						1,254,379,471		72,801,083
	Philip A. Taylor						1,256,589,912		70,590,639
	Robert C. Troccoli						1,260,867,549		66,313,003
	Christopher L. Wilson						1,260,186,985		66,993,567
		Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(2)*	Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions		1,054,920,918		171,591,974		100,667,642		18
	Matters	Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(3)	Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities		3,473,185		346,671		232,452		0
(4)(a)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC		3,558,647		227,022		266,639		0
(4)(b)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited		3,549,529		276,566		226,213		0

* Each of proposal 1 and 2 required approval by a combined vote of all of the portfolios of AIM Variable Insurance Funds (Invesco Variable Insurance Funds).

Invesco V.I. Technology Fund

	Semiannual Report to Shareholders	June 30, 2017
	Invesco V.I. Value Opportunities Fund
	The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The Fund’s Form N-Q filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07452 and 033-57340. The Fund’s most recent portfolio holdings, as filed on Form N-Q, have also been made available to insurance companies issuing variable annuity contracts and variable life insurance policies (“variable products”) that invest in the Fund.     A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 959 4246 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.     Information regarding how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 is available at invesco.com/ proxysearch. The information is also available on the SEC website, sec.gov.     Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.
	This report must be accompanied or preceded by a currently effective Fund prospectus and variable product prospectus, which contain more complete information, including sales charges and expenses. Investors should read each carefully before investing.
	NOT FDIC INSURED  |  MAY LOSE VALUE  |  NO BANK GUARANTEE

Invesco Distributors, Inc.                                               VK-VIVOPP-SAR-1         07182017    1540

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/16 to 6/30/17, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	6.48%
Series II Shares	6.51
S&P 500 Index▼ (Broad Market Index)	9.34
S&P 1500 Value Index▼ (Style-Specific Index)	4.59
Lipper VUF Multi-Cap Value Funds Index⬛ (Peer Group Index)	5.32
Source(s): ▼FactSet Research Systems Inc.; ⬛Lipper Inc.
The S&P 500® Index is an unmanaged index considered representative of the US stock market. The S&P 1500 Value Index combines the value stocks of the S&P 500 Index, S&P MidCap 400 Index and S&P SmallCap 600 Index. The Lipper VUF Multi-Cap Value Funds Index is an unmanaged index considered representative of multi-cap value variable insurance underlying funds tracked by Lipper. The S&P MidCap 400® Index is an unmanaged index considered representative of mid-sized US companies. The S&P SmallCap 600® Index is a market-value weighted index considered representative of small-cap US stocks. The Fund is not managed to track the performance of any particular index, including the index(es) described here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es). A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses; performance of a market index does not.

Average Annual Total Returns
As of 6/30/17
Series I Shares
Inception (9/10/01)	4.58	%
10 Years	2.87
5 Years	11.70
1 Year	32.62
Series II Shares
Inception (9/10/01)	4.32	%
10 Years	2.62
5 Years	11.41
1 Year	32.22

The performance of the Fund’s Series I and Series II share classes will differ primarily due to different class expenses.

    The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please contact your variable product issuer or financial adviser for the most recent month-end variable product performance. Performance figures reflect Fund expenses, reinvested distributions and changes in net asset value. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

     The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.98% and 1.23%, respectively.¹ The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.99% and 1.24%, respectively. The expense ratios presented above may vary from the expense ratios

presented in other sections of this report that are based on expenses incurred during the period covered by this report.

    Invesco V.I. Value Opportunities Fund, a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), is currently offered through insurance companies issuing variable products. You cannot purchase shares of the Fund directly. Performance figures given represent the Fund and are not intended to reflect actual variable product values. They do not reflect sales charges, expenses and fees assessed in connection with a variable product. Sales charges, expenses and fees, which are determined by the variable product issuers, will vary and will lower the total return.

    The most recent month-end performance at the Fund level, excluding variable product charges, is available at 800 451 4246. As mentioned above, for the most recent month-end performance including variable product charges, please contact your variable product issuer or financial adviser.

    Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information.

1 Total annual Fund operating expenses after any contractual fee waivers and/or expense reimbursements by the adviser in effect through at least June 30, 2019. See current prospectus for more information.

Invesco V.I. Value Opportunities Fund

Schedule of Investments^(a)

June 30, 2017

(Unaudited)

	Shares		Value
Common Stocks–95.97%
Advertising–1.59%
Omnicom Group Inc.		26,415	$	2,189,803
Agricultural & Farm Machinery–0.53%
AGCO Corp.		10,889		733,810
Asset Management & Custody Banks–5.45%
Affiliated Managers Group, Inc.		36,040		5,977,594
SEI Investments Co.		28,300		1,521,974
				7,499,568
Auto Parts & Equipment–4.02%
Dana Inc.		248,000		5,537,840
Construction & Engineering–3.99%
AECOM(b)		170,004		5,496,229
Consumer Finance–4.66%
SLM Corp.(b)		124,200		1,428,300
Synchrony Financial		166,932		4,977,912
				6,406,212
Diversified Banks–12.31%
Bank of America Corp.		205,902		4,995,183
Citigroup Inc.		78,772		5,268,271
JPMorgan Chase & Co.		69,760		6,376,064
Wells Fargo & Co.		5,385		298,383
				16,937,901
Electronic Components–2.77%
Belden Inc.		50,556		3,813,439
Electronic Equipment & Instruments–2.23%
FLIR Systems, Inc.		88,700		3,074,342
Electronic Manufacturing Services–0.66%
Flex Ltd.(b)		55,365		903,003
Health Care Distributors–6.67%
Cardinal Health, Inc.		65,300		5,088,176
McKesson Corp.		24,900		4,097,046
				9,185,222
Health Care Facilities–2.73%
Acadia Healthcare Co., Inc.(b)		19,700		972,786
Brookdale Senior Living Inc.(b)		189,198		2,783,103
				3,755,889
Homebuilding–1.41%
CalAtlantic Group, Inc.		20,200		714,070
D.R. Horton, Inc.		35,600		1,230,692
				1,944,762

	Shares		Value
Hotels, Resorts & Cruise Lines–4.84%
Carnival Corp.		41,100	$	2,694,927
Norwegian Cruise Line Holdings Ltd.(b)		73,100		3,968,599
				6,663,526
Human Resource & Employment Services–2.04%
ManpowerGroup Inc.		25,200		2,813,580
Industrial Machinery–1.99%
ITT Inc.		68,300		2,744,294
Investment Banking & Brokerage–7.61%
E*TRADE Financial Corp.(b)		62,800		2,388,284
LPL Financial Holdings, Inc.		94,293		4,003,681
TD Ameritrade Holding Corp.		94,900		4,079,751
				10,471,716
Life & Health Insurance–3.90%
Aflac, Inc.		17,534		1,362,041
MetLife, Inc.		73,017		4,011,554
				5,373,595
Managed Health Care–4.02%
Anthem, Inc.		20,600		3,875,478
Cigna Corp.		9,900		1,657,161
				5,532,639
Oil & Gas Equipment & Services–1.39%
Weatherford International PLC(b)		494,250		1,912,748
Oil & Gas Exploration & Production–1.31%
Apache Corp.		37,700		1,806,961
Pharmaceuticals–2.38%
Mylan N.V.(b)		36,000		1,397,520
Novartis AG (Switzerland)		22,452		1,874,846
				3,272,366
Property & Casualty Insurance–3.93%
AmTrust Financial Services, Inc.		357,117		5,406,751
Real Estate Services–2.95%
Realogy Holdings Corp.		124,913		4,053,427
Regional Banks–1.64%
SVB Financial Group(b)		12,800		2,250,112
Semiconductors–0.95%
ON Semiconductor Corp.(b)		92,800		1,302,912
Steel–2.13%
Allegheny Technologies, Inc.		172,400		2,932,524
Systems Software–3.03%
Oracle Corp.		83,095		4,166,383

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Value Opportunities Fund

	Shares		Value
Thrifts & Mortgage Finance–2.84%
MGIC Investment Corp.(b)		169,621	$	1,899,755
Radian Group Inc.		122,976		2,010,658
				3,910,413
Total Common Stocks (Cost $109,374,343)				132,091,967
Money Market Funds–1.62%
Government & Agency Portfolio–Institutional Class, 0.89%(c)		1,336,732		1,336,732

	Shares		Value
Treasury Portfolio–Institutional Class, 0.85%(c)		891,155	$	891,155
Total Money Market Funds (Cost $2,227,887)				2,227,887
TOTAL INVESTMENTS–97.59% (Cost $111,602,230)				134,319,854
OTHER ASSETS LESS LIABILITIES–2.41%				3,314,320
NET ASSETS–100.00%			$	137,634,174

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of June 30, 2017.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2017

Financials	42.3	%
Health Care	15.8
Consumer Discretionary	11.9
Information Technology	9.6
Industrials	8.6
Real Estate	3.0
Energy	2.7
Materials	2.1
Money Market Funds Plus Other Assets Less Liabilities	4.0

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Value Opportunities Fund

Statement of Assets and Liabilities

June 30, 2017

(Unaudited)

Statement of Operations

For the six months ended June 30, 2017

(Unaudited)

Assets:
Investments, at value (Cost $109,374,343)	$	132,091,967
Investments in affiliated money market funds, at value and cost		2,227,887
Total investments, at value (Cost $111,602,230)		134,319,854
Foreign currencies, at value (Cost $3,422)		3,581
Receivable for:
Investments sold		3,594,496
Fund shares sold		14,644
Dividends		177,313
Investment for trustee deferred compensation and retirement plans		110,917
Total assets		138,220,805
Liabilities:
Payable for:
Fund shares reacquired		340,676
Accrued fees to affiliates		84,826
Accrued trustees’ and officers’ fees and benefits		5,069
Accrued other operating expenses		33,723
Trustee deferred compensation and retirement plans		122,337
Total liabilities		586,631
Net assets applicable to shares outstanding	$	137,634,174
Net assets consist of:
Shares of beneficial interest	$	109,979,322
Undistributed net investment income		361,721
Undistributed net realized gain		4,576,133
Net unrealized appreciation		22,716,998
	$	137,634,174
Net Assets:
Series I	$	83,832,879
Series II	$	53,801,295
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		12,156,581
Series II		7,836,864
Series I:
Net asset value per share	$	6.90
Series II:
Net asset value per share	$	6.87

Investment income:
Dividends (net of foreign withholding taxes of $9,465)	$	909,153
Dividends from affiliated money market funds		10,602
Total investment income		919,755
Expenses:
Advisory fees		480,027
Administrative services fees		127,774
Custodian fees		6,995
Distribution fees — Series II		67,087
Transfer agent fees		13,904
Trustees’ and officers’ fees and benefits		11,875
Reports to shareholders		14,960
Professional services fees		23,014
Other		1,034
Total expenses		746,670
Less: Fees waived		(2,009	)
Net expenses		744,661
Net investment income		175,094
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		6,707,327
Foreign currencies		(890	)
		6,706,437
Change in net unrealized appreciation of:
Investment securities		1,814,710
Foreign currencies		4,167
		1,818,877
Net realized and unrealized gain		8,525,314
Net increase in net assets resulting from operations	$	8,700,408

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco V.I. Value Opportunities Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2017 and the year ended December 31, 2016

(Unaudited)

	June 30, 2017			December 31, 2016
Operations:
Net investment income	$	175,094		$	416,610
Net realized gain (loss)		6,706,437			(1,597,460	)
Change in net unrealized appreciation		1,818,877			22,968,571
Net increase in net assets resulting from operations		8,700,408			21,787,721
Distributions to shareholders from net investment income:
Series I		—			(313,905	)
Series ll		—			(39,335	)
Total distributions from net investment income		—			(353,240	)
Distributions to shareholders from net realized gains:
Series l		—			(23,395,971	)
Series ll		—			(15,462,579	)
Total distributions from net realized gains		—			(38,858,550	)
Share transactions–net:
Series l		(7,231,198	)		12,374,483
Series ll		(3,995,018	)		6,433,390
Net increase (decrease) in net assets resulting from share transactions		(11,226,216	)		18,807,873
Net increase (decrease) in net assets		(2,525,808	)		1,383,804
Net assets:
Beginning of period		140,159,982			138,776,178
End of period (includes undistributed net investment income of $361,721 and $186,627, respectively)	$	137,634,174		$	140,159,982

Notes to Financial Statements

June 30, 2017

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Value Opportunities Fund (the “Fund”) is a series portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance 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 consisting of twenty-four separate portfolios, (each constituting a “Fund”). The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each Fund or class will be voted on exclusively by the shareholders of such Fund or class. Current Securities and Exchange Commission (“SEC”) guidance, however, requires participating insurance companies offering separate accounts to vote shares proportionally in accordance with the instructions of the contract owners whose investments are funded by shares of each Fund or class.

The Fund’s investment objective is long-term growth of capital.

The Fund currently offers two classes of shares, Series I and Series II, both of which are offered to insurance company separate accounts funding variable annuity contracts and variable life insurance policies (“variable products”).

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services — Investment Companies.

The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements.

A. Security Valuations — Securities, including restricted securities, are valued according to the following policy.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Invesco V.I. Value Opportunities Fund

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end-of-day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the Adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and the Statement of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Fund and the investment adviser.

The Fund allocates income and realized and unrealized capital gains and losses to a class based on the relative net assets of each class.

C. Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid to separate accounts of participating insurance companies annually and recorded on the ex-dividend date.

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

Invesco V.I. Value Opportunities Fund

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 and which are directly attributable to that class are charged to the operations of such class. All other expenses are allocated among the classes based on relative net assets.

G. Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

H. Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements, that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.

I. 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 date of valuation. Purchases and sales of portfolio securities (net of foreign taxes withheld on disposition) and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not separately account for the portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

The Fund may invest in foreign securities, which may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Fund invests and are shown in the Statement of Operations.

J. Forward Foreign Currency Contracts — The Fund may engage in foreign currency transactions either on a spot (i.e. for prompt delivery and settlement) basis, or through forward foreign currency contracts, to manage or minimize currency or exchange rate risk.

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to the daily mark-to-market obligation for forward foreign currency contracts.

A forward foreign currency contract is an obligation between two parties (“Counterparties”) to purchase or sell a specific currency for an agreed-upon price at a future date. The use of forward foreign currency contracts does not eliminate fluctuations in the price of the underlying securities the Fund owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the contract date and reporting date exchange rates and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized and unrealized gains (losses) on the contracts are included in the Statement of Operations. The primary risks associated with forward foreign currency contracts include failure of the Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

Invesco V.I. Value Opportunities Fund

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund pays 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	.695%
Next $250 million		0	.67%
Next $500 million		0	.645%
Next $1.5 billion		0	.62%
Next $2.5 billion		0	.595%
Next $2.5 billion		0	.57%
Next $2.5 billion		0	.545%
Over $10 billion		0	.52%

For the six months ended June 30, 2017, the effective advisory fees incurred by the Fund was 0.695%.

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 PowerShares Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2018, 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 Series I shares to 2.00% and Series II shares to 2.25% of average daily net assets (the “expense limits”). In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items, including litigation expenses; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless Invesco continues the fee waiver agreement, it will terminate on June 30, 2018. During its term, the fee waiver agreement cannot be terminated or amended to increase expense limits or reduce the advisory fee waiver without approval of the Board of Trustees. The Adviser did not waive fees and/or reimburse expenses during the period under these expense limits.

Further, the Adviser has contractually agreed, through at least June 30, 2019, to waive the advisory fee payable by the Fund in an amount equal to 100% of the net advisory fees the Adviser receives from the affiliated money market funds on investments by the Fund of uninvested cash (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

For the six months ended June 30, 2017, the Adviser waived advisory fees of $2,009.

The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco a fee for costs incurred in providing accounting services and fund administrative services to the Fund and to reimburse Invesco for fees paid to insurance companies that have agreed to provide certain administrative services to the Fund. These administrative services provided by the insurance companies may include, among other things: maintenance of master accounts with the Fund; tracking, recording and transmitting net purchase and redemption orders for Fund shares; maintaining and preserving records related to the purchase, redemption and other account activity of variable product owners; distributing copies of Fund documents such as prospectuses, proxy materials and periodic reports, to variable product owners, and responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2017, Invesco was paid $24,795 for accounting and fund administrative services and was reimbursed $102,979 for fees paid to insurance companies.

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. For the six months ended June 30, 2017, expenses incurred under the agreement are shown in the Statement of Operations as Transfer agent fees.

The Trust has entered into a master distribution agreement with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Fund. The Trust has adopted a plan pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Series II shares (the “Plan”). The Fund, pursuant to the Plan, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Series II shares. Of the Plan payments, up to 0.25% of the average daily net assets of the Series II shares may be paid to insurance companies who furnish continuing personal shareholder services to customers who purchase and own Series II shares of the Fund. For the six months ended June 30, 2017, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2017, the Fund incurred $3,397 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.

Invesco V.I. Value Opportunities Fund

NOTE 3—Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 — Prices are determined using quoted prices in an active market for identical assets.

Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of June 30, 2017. 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
Common Stocks	$	130,217,121	$	1,874,846	$	—	$	132,091,967
Money Market Funds		2,227,887		—		—		2,227,887
Total Investments	$	132,445,008	$	1,874,846	$	—	$	134,319,854

NOTE 4—Trustees’ and Officers’ Fees and Benefits

Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to pay remuneration to certain Trustees and Officers of the Fund. Trustees have the option to defer compensation payable by the Fund, and Trustees’ and Officers’ Fees and Benefits also include amounts accrued by the Fund to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Funds in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees were eligible to participate in a retirement plan that provided for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Fund may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. Trustees’ and Officers’ Fees and Benefits include amounts accrued by the Fund to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Fund.

NOTE 5—Cash Balances

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with State Street Bank and Trust Company, the custodian bank. Such balances, if any at period-end, are shown in the Statement of Assets and Liabilities under the payable caption Amount due custodian. To compensate the custodian bank for such overdrafts, the overdrawn Fund may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

NOTE 6—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year-end.

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

Invesco V.I. Value Opportunities Fund

The Fund had a capital loss carryforward as of December 31, 2016, which expires as follows:

Capital Loss Carryforward*
Expiration	Short-Term		Long-Term		Total
Not subject to expiration	$	1,721,447	$	—	$	1,721,447

* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2017 was $14,739,414 and $27,292,267, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	29,711,166
Aggregate unrealized (depreciation) of investment securities		(7,173,228	)
Net unrealized appreciation of investment securities	$	22,537,938

Cost of investments for tax purposes is $111,781,916.

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended June 30, 2017(a)						Year ended December 31, 2016
	Shares			Amount			Shares			Amount
Sold:
Series I		361,302		$	2,437,818			639,701		$	4,362,558
Series II		169,674			1,138,444			159,359			1,120,628
Issued as reinvestment of dividends:
Series I		—			—			4,109,164			23,709,875
Series II		—			—			2,691,304			15,501,915
Reacquired:
Series I		(1,443,008	)		(9,669,016	)		(2,235,453	)		(15,697,950	)
Series II		(767,125	)		(5,133,462	)		(1,457,745	)		(10,189,153	)
Net increase (decrease) in share activity		(1,679,157	)	$	(11,226,216	)		3,906,330		$	18,807,873

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 62% of the outstanding shares of the Fund. The Fund and the Fund’s principal underwriter or adviser, are parties to participation agreements with these entities whereby these entities sell units of interest in separate accounts funding variable products that are invested in the Fund. 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, third party record keeping and account servicing and administrative services. 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.

Invesco V.I. Value Opportunities Fund

NOTE 9—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)
Series I
Six months ended 06/30/17	$	6.48	$	0.01		$	0.41		$	0.42		$	—		$	—		$	—		$	6.90		6.48	%	$	83,833		0.98	%(d)		0.98	%(d)		0.35	%(d)		10	%
Year ended 12/31/16		7.82		0.03			1.10			1.13			(0.03	)		(2.44	)		(2.47	)		6.48		18.34			85,722		1.01			1.02			0.43			36
Year ended 12/31/15		9.84		0.05			(1.09	)		(1.04	)		(0.26	)		(0.72	)		(0.98	)		7.82		(10.40	)		83,889		1.04			1.04			0.51			82
Year ended 12/31/14		9.36		0.18	(e)		0.44			0.62			(0.14	)		—			(0.14	)		9.84		6.62			110,865		1.03			1.04			1.87	(e)		15
Year ended 12/31/13		7.10		0.10			2.28			2.38			(0.12	)		—			(0.12	)		9.36		33.75			130,146		1.01			1.02			1.24			17
Year ended 12/31/12		6.12		0.09			0.99			1.08			(0.10	)		—			(0.10	)		7.10		17.70			130,383		1.01			1.02			1.37			9
Series II
Six months ended 06/30/17		6.45		0.00			0.42			0.42			—			—			—			6.87		6.51			53,801		1.23	(d)		1.23	(d)		0.10	(d)		10
Year ended 12/31/16		7.79		0.01			1.10			1.11			(0.01	)		(2.44	)		(2.45	)		6.45		17.92			54,438		1.26			1.27			0.18			36
Year ended 12/31/15		9.79		0.02			(1.08	)		(1.06	)		(0.22	)		(0.72	)		(0.94	)		7.79		(10.65	)		54,887		1.29			1.29			0.26			82
Year ended 12/31/14		9.31		0.15	(e)		0.44			0.59			(0.11	)		—			(0.11	)		9.79		6.39			80,217		1.28			1.29			1.62	(e)		15
Year ended 12/31/13		7.07		0.08			2.26			2.34			(0.10	)		—			(0.10	)		9.31		33.27			103,800		1.26			1.27			0.99			17
Year ended 12/31/12		6.08		0.07			1.00			1.07			(0.08	)		—			(0.08	)		7.07		17.66			98,014		1.26			1.27			1.12			9

^(a)  Calculated using average shares outstanding.

^(b)  Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Total returns are not annualized for periods less than one year, if applicable, and do not reflect charges assessed in connection with a variable product, which if included would reduce total returns.

^(c) Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.

^(d) Ratios are annualized and based on average daily net assets (000’s omitted) of $85,168 and $54,114 for Series I and Series II shares, respectively.

^(e) Net investment income per share and the ratio of net investment income to average net assets includes significant dividends received during the period. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.12 and 1.23%, $0.09 and 0.98%, for Series I and Series II shares, respectively.

Invesco V.I. Value Opportunities Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur ongoing costs, including management fees; distribution and/or service fees (12b-1); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2017 through June 30, 2017.

The actual and hypothetical expenses in the examples below do not represent the effect of any fees or other expenses assessed in connection with a variable product; if they did, the expenses shown would be higher while the ending account values shown would be lower.

Actual expenses

The table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Actual Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.

The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the hypothetical information is useful in comparing ongoing costs, and will not help you determine the relative total costs of owning different funds.

Class	Beginning Account Value (01/01/17)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/17)1		Expenses Paid During Period2		Ending Account Value (06/30/17)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,064.80	$	5.02	$	1,019.93	$	4.91		0.98	%
Series II		1,000.00		1,065.10		6.30		1,018.70		6.16		1.23

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2017 through June 30, 2017, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.

²  Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

Invesco V.I. Value Opportunities Fund

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of Invesco V.I. Value Opportunities Fund’s (the Fund) investment advisory agreements. During contract renewal meetings held on June 12-13, 2017, the Board as a whole, and the disinterested or “independent” Trustees, who comprise over 75% of the Board, voting separately, approved the continuance for the Fund of the 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 PowerShares 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, 2017.

In evaluating the fairness and reasonableness of compensation under the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Board determined that continuation of the Fund’s investment advisory agreement and the sub-advisory contracts is in the best interest of the Fund and its shareholders and that the compensation payable to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, which meet throughout the year to review the performance of funds advised by Invesco Advisers (the Invesco Funds). Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Board had the benefit of reports from the Sub-Committees and Investments Committee throughout the year in considering approval of the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

During the contract renewal process, the Board receives comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The

Board also receives an independent written evaluation from the Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. 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 addition to meetings with Invesco Advisers and fund counsel, the independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in separate sessions with the Senior Officer and with independent legal counsel.

The Trustees recognized that the advisory fee rates for the Invesco Funds are, in most cases, the result of years of review and negotiation. The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these arrangements throughout the year and in prior years. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them 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 discussion below is a summary of the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement 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. This information is current as of June 13, 2017, and does not reflect consideration of factors that became known to the Board after that date.

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 advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers. The Board’s review included consideration of Invesco Advisers’ investment process oversight, credit analysis and investment risk management. The Board also considered non-advisory services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, trading operations, internal audit, valuation and legal and compliance.

In determining whether to continue the Fund’s investment advisory agreement, the Board considered the benefits of reapproving an existing relationship as contrasted with the greater uncertainty that may be associated with entering into a new relationship. 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 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 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 in which the Fund may invest, make recommendations regarding securities and assist with security trades. 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 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 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 during the past one, three and five calendar years to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds Multi-Cap Value Funds Index. The Board noted that performance of Series I shares of the Fund was in the second quintile of its performance universe for the one year period and the fifth quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series I shares of the Fund was above the performance of the Index for the one year period and below the performance of the Index for the three and five year periods. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees

The Board compared the Fund’s contractual management fee rate to the contractual

Invesco V.I. Value Opportunities Fund

management fee rates of funds in the Fund’s Broadridge expense group at a common asset level. The Board noted that the contractual management fee rate for Series I shares of the Fund was above the median contractual management fee rate of funds in its expense group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. The Board noted that Invesco Advisers does not separately charge the Invesco Funds for the administrative services included in the term as defined by Broadridge. The Board also reviewed the methodology used by Broadridge in providing 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 compared the Fund’s effective advisory fee rate (the advisory fee rate after advisory fee waivers and before other expense limitations/waivers) to the effective advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund, based on asset balances as of December 31, 2016. The Board noted that the Fund’s rate was above the rate of one mutual fund advised by Invesco Advisers using a similar investment process. The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other client accounts with investment strategies comparable to those of the Fund.

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 also noted that the sub-advisory fees are not paid directly by the Fund, but rather, are payable by Invesco Advisers to the Affiliated Sub-Advisers.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there are economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds advised by Invesco Advisers.

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. 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 and the Fund. The Board did not deem the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund to be excessive given the nature, quality and extent of the services provided. The Board received and accepted information from Invesco Advisers demonstrating that Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts.

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 transfer agency and distribution services to the Fund. The Board considered comparative information regarding fees charged for these services, including information provided by Broadridge and other independent sources. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; and 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 also noted how the Fund’s rate compared to the effective sub-adviser fee rate of one fund sub-advised by Invesco Advisers. The Board also considered that it receives periodic reports from the Chief Compliance Officer of the Invesco Funds demonstrating 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 money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds with respect to certain investments in the affiliated money market funds. The waiver is in 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 amount of advisory fees received by Invesco Advisers from the

Fund’s investment of cash collateral from any securities lending arrangements in the affiliated money market funds is fair and reasonable.

The Board also considered that the Fund may use an affiliated broker to execute certain trades for the Fund to, among other things, control information leakage, and was advised that such trades would be executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Value Opportunities Fund

Proxy Results

A Special Joint Meeting (“Meeting”) of Shareholders of Invesco V.I. Value Opportunities Fund, an investment portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance Funds), a Delaware statutory trust (“Trust”), was held on March 9, 2017. The Meeting was held for the following purposes:

(1) Elect 15 trustees to the Board, each of whom will serve until his or her successor is elected and qualified.

(2) Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.

(3) Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities.

(4)(a) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC.

(4)(b) Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited.

The results of the voting on the above matters were as follows:

	Matters					Votes For		Votes Withheld
(1)*	David C. Arch						1,256,086,249		71,094,301
	James T. Bunch						1,254,410,156		72,770,397
	Bruce L. Crockett						1,258,363,948		68,816,603
	Jack M. Fields						1,255,101,592		72,078,961
	Martin L. Flanagan						1,257,885,397		69,295,160
	Cynthia Hostetler						1,261,335,247		65,845,303
	Dr. Eli Jones						1,257,497,296		69,683,257
	Dr. Prema Mathai-Davis						1,254,728,756		72,451,795
	Teresa M. Ressel						1,261,829,473		65,351,074
	Dr. Larry Soll						1,254,261,019		72,919,533
	Ann Barnett Stern						1,260,861,373		66,319,176
	Raymond Stickel, Jr.						1,254,379,471		72,801,083
	Philip A. Taylor						1,256,589,912		70,590,639
	Robert C. Troccoli						1,260,867,549		66,313,003
	Christopher L. Wilson						1,260,186,985		66,993,567
		Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(2)*	Approve an amendment to the Trust’s Agreement and Declaration of Trust that would permit fund mergers and other significant transactions upon the Board’s approval but without shareholder approval of such transactions.		1,054,920,918		171,591,974		100,667,642		18
	Matters	Votes For		Votes Against		Votes Abstain		Broker Non-Votes
(3)	Approve changing the fundamental investment restriction regarding the purchase or sale of physical commodities		17,083,778		2,259,854		1,540,715		0
(4)(a)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco PowerShares Capital Management LLC		18,175,062		1,176,261		1,533,024		0
(4)(b)	Approve an amendment to the current Master Intergroup Sub-Advisory Contract to add Invesco Asset Management (India) Private Limited		17,604,573		1,440,910		1,838,864		0

* Each of proposal 1 and 2 required approval by a combined vote of all of the portfolios of AIM Variable Insurance Funds (Invesco Variable Insurance Funds).

Invesco V.I. Value Opportunities Fund

ITEM 2. CODE OF ETHICS.

There were no amendments to the Code of Ethics (the “Code”) that applies to the Registrant’s Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”) during the period covered by the report. The Registrant did not grant any waivers, including implicit waivers, from any provisions of the Code to the PEO or PFO during the period covered by this report.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

PricewaterhouseCoopers LLP informed the Trust that it has identified an issue related to its independence under Rule 2-01(c)(1)(ii)(A) of Regulation S-X (referred to as the Loan Rule). The Loan Rule prohibits accounting firms, such as PricewaterhouseCoopers LLP, from being deemed independent if they have certain financial relationships with their audit clients or certain affiliates of those clients. The Trust is required under various securities laws to have its financial statements audited by an independent accounting firm.

The Loan Rule specifically provides that an accounting firm would not be independent if it or certain affiliates and covered persons receives a loan from a lender that is a record or beneficial owner of more than ten percent of an audit client’s equity securities (referred to as a “more than ten percent owner”). For purposes of the Loan Rule, audit clients include the Funds as well as all registered investment companies advised by the Adviser and its affiliates, including other subsidiaries of the Adviser’s parent company, Invesco Ltd. (collectively, the Invesco Fund Complex). PricewaterhouseCoopers LLP informed the Trust it and certain affiliates and covered persons have relationships with lenders who hold, as record owner, more than ten percent of the shares of certain funds within the Invesco Fund Complex, which may implicate the Loan Rule.

On June 20, 2016, the SEC Staff issued a “no-action” letter to another mutual fund complex (see Fidelity Management & Research Company et al., No-Action Letter) related to the audit independence issue described above. In that letter, the SEC confirmed that it would not recommend enforcement action against a fund that relied on audit services performed by an audit firm that was not in compliance with the Loan Rule in certain specified circumstances. In connection with prior independence determinations, PricewaterhouseCoopers LLP communicated, as contemplated by the no-action letter, that it believes that it remains objective and impartial and that a reasonable investor possessing all the facts would conclude that PricewaterhouseCoopers LLP is able to exhibit the requisite objectivity and impartiality to report on the Funds’ financial statements as the independent registered public accounting firm. PricewaterhouseCoopers LLP also represented that it has complied with PCAOB Rule 3526(b)(1) and (2), which are conditions to the Funds relying on the no action letter, and affirmed that it is an independent accountant within the meaning of PCAOB Rule 3520. Therefore, the Adviser, the Funds and PricewaterhouseCoopers LLP concluded that PricewaterhouseCoopers LLP could continue as the Funds’ independent registered public accounting firm. The Invesco Fund Complex relied upon the no-action letter in reaching this conclusion.

If in the future the independence of PricewaterhouseCoopers LLP is called into question under the Loan Rule by circumstances that are not addressed in the SEC’s no-action letter, the Funds will need to take other action in order for the Funds’ filings with the SEC containing financial statements to be deemed compliant with applicable securities laws. Such additional actions could result in additional costs, impair the ability of the Funds to issue new shares or have other material adverse effects on the Funds. In addition, the SEC has indicated that the no-action relief will expire 18 months from its issuance after which the Invesco Funds will no longer be able to rely on the letter unless its term is extended or made permanent by the SEC Staff.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. SCHEDULE OF INVESTMENTS.

Investments in securities of unaffiliated issuers is included as part of the reports to stockholders filed under Item 1 of this Form.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None.

ITEM 11. CONTROLS AND PROCEDURES.

(a) As of August 11, 2017 an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”), to assess the effectiveness of the Registrant’s disclosure controls and procedures, as that term is defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”), as amended. Based on that evaluation, the Registrant’s officers, including the PEO and PFO, concluded that, as of August 11, 2017, 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 second fiscal quarter of the period covered by the report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS.

12(a) (1) Not applicable.

12(a) (2) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.

12(a) (3) Not applicable.

12(b) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant:        AIM Variable Insurance Funds (Invesco Variable Insurance Funds)

By:	/s/ Sheri Morris
	Sheri Morris
	Principal Executive Officer
Date:	August 25, 2017

Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:	/s/ Sheri Morris
	Sheri Morris
	Principal Executive Officer
Date:	August 25, 2017

By:	/s/ Kelli Gallegos
	Kelli Gallegos
	Principal Financial Officer
Date:	August 25, 2017

EXHIBIT INDEX

12(a) (1)	Not applicable.
12(a) (2)	Certifications of principal executive officer and Principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.
12(a) (3)	Not applicable.
12(b)	Certifications of principal executive officer and Principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940.