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

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: 06/30/18

Item 1. Report to Stockholders.

	Semiannual Report to Shareholders	June 30, 2018
	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 (or any successor Form). The Fund’s Form N-Q (or any successor Form) filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q (or any successor Form) 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 (or any successor Form), 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            07122018      1555

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/17 to 6/30/18, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	10.23	%
Series II Shares	10.06
S&P 500 Index▼ (Broad Market Index)	2.65
Russell 1000 Growth Index▼ (Style-Specific Index)	7.25
Lipper VUF Large-Cap Growth Funds Index∎ (Peer Group Index)	8.99
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.

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.

Average Annual Total Returns
As of 6/30/18
Series I Shares
Inception (7/3/95)	9.72	%
10 Years	10.62
5 Years	16.00
1 Year	18.96
Series II Shares
Inception (9/18/00)	2.34	%
10 Years	10.35
5 Years	15.71
1 Year	18.67

    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, 2018

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–99.95%
Aerospace & Defense–3.59%
Airbus S.E. (France)		41,863	$	4,892,466
BAE Systems PLC (United Kingdom)		1,009,816		8,620,260
Boeing Co. (The)		11,452		3,842,260
Raytheon Co.		32,088		6,198,760
				23,553,746
Agricultural & Farm Machinery–0.33%
Deere & Co.		15,502		2,167,180
Application Software–3.93%
Adobe Systems Inc.(b)		31,393		7,653,927
salesforce.com, inc.(b)		133,022		18,144,201
				25,798,128
Biotechnology–1.66%
Alexion Pharmaceuticals, Inc.(b)		52,100		6,468,215
BioMarin Pharmaceutical Inc.(b)		10,716		1,009,447
Celgene Corp.(b)		43,236		3,433,803
				10,911,465
Cable & Satellite–1.17%
Altice USA, Inc.–Class A		71,077		1,212,574
Charter Communications, Inc.–Class A(b)		21,969		6,441,530
				7,654,104
Commodity Chemicals–0.56%
LyondellBasell Industries N.V.–Class A		33,190		3,645,922
Communications Equipment–1.27%
Palo Alto Networks, Inc.(b)		40,476		8,316,604
Consumer Electronics–2.17%
Sony Corp. (Japan)		277,300		14,229,088
Data Processing & Outsourced Services–7.09%
Mastercard Inc.–Class A		114,866		22,573,466
PayPal Holdings, Inc.(b)		100,384		8,358,976
Visa Inc.–Class A		117,651		15,582,875
				46,515,317
Diversified Banks–0.51%
Wells Fargo & Co.		60,180		3,336,379
Diversified Support Services–0.79%
Cintas Corp.		27,880		5,159,752
Environmental & Facilities Services–1.15%
Republic Services, Inc.		110,683		7,566,290
Financial Exchanges & Data–1.58%
London Stock Exchange Group PLC (United Kingdom)		91,620		5,398,162
S&P Global Inc.		24,237		4,941,682
				10,339,844

	Shares		Value
Health Care Equipment–2.48%
Boston Scientific Corp.(b)		88,379	$	2,889,993
Intuitive Surgical, Inc.(b)		13,532		6,474,791
Stryker Corp.		40,938		6,912,791
				16,277,575
Home Entertainment Software–8.35%
Activision Blizzard, Inc.		254,526		19,425,424
Electronic Arts Inc.(b)		155,232		21,890,817
Nintendo Co., Ltd. (Japan)		41,200		13,448,006
				54,764,247
Home Improvement Retail–3.41%
Home Depot, Inc. (The)		22,870		4,461,937
Lowe’s Cos., Inc.		187,261		17,896,534
				22,358,471
Hotels, Resorts & Cruise Lines–2.19%
Norwegian Cruise Line Holdings Ltd.(b)		70,827		3,346,576
Royal Caribbean Cruises Ltd.		106,597		11,043,449
				14,390,025
Industrial Gases–0.51%
Air Products and Chemicals, Inc.		21,347		3,324,368
Industrial Machinery–0.98%
Stanley Black & Decker Inc.		48,218		6,403,833
Integrated Oil & Gas–1.25%
Occidental Petroleum Corp.		97,989		8,199,720
Internet & Direct Marketing Retail–12.57%
Amazon.com, Inc.(b)		37,624		63,953,275
Booking Holdings Inc.(b)		3,656		7,411,041
Netflix, Inc.(b)		28,331		11,089,604
				82,453,920
Internet Software & Services–17.06%
Alibaba Group Holding Ltd.–ADR (China)(b)		137,272		25,468,074
Alphabet Inc.–Class A(b)		42,514		48,006,384
Facebook, Inc.–Class A(b)		197,496		38,377,423
				111,851,881
Investment Banking & Brokerage–0.71%
Charles Schwab Corp. (The)		30,668		1,567,135
Morgan Stanley		64,614		3,062,703
				4,629,838
Life Sciences Tools & Services–2.26%
Illumina, Inc.(b)		12,019		3,356,787
IQVIA Holdings Inc.(b)		45,189		4,510,766
Thermo Fisher Scientific, Inc.		33,709		6,982,482
				14,850,035

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

Invesco V.I. American Franchise Fund

	Shares		Value
Managed Health Care–4.03%
Anthem, Inc.		13,781	$	3,280,292
UnitedHealth Group Inc.		94,213		23,114,217
				26,394,509
Movies & Entertainment–0.54%
Vivendi S.A. (France)		145,835		3,567,375
Oil & Gas Exploration & Production–0.90%
Noble Energy, Inc.		55,122		1,944,704
Parsley Energy, Inc.–Class A(b)		131,068		3,968,739
				5,913,443
Oil & Gas Refining & Marketing–1.28%
Andeavor		63,957		8,389,879
Packaged Foods & Meats–1.32%
Mondelez International, Inc.–Class A		86,502		3,546,582
Tyson Foods, Inc.–Class A		74,328		5,117,483
				8,664,065
Pharmaceuticals–1.07%
Allergan PLC		4,367		728,066
Zoetis Inc.		73,796		6,286,681
				7,014,747
Railroads–0.45%
Canadian Pacific Railway Ltd. (Canada)		16,263		2,976,454
Semiconductor Equipment–2.31%
Applied Materials, Inc.		111,417		5,146,351

	Shares		Value
Semiconductor Equipment–(continued)
ASML Holding N.V.–New York Shares (Netherlands)		50,659	$	10,028,962
				15,175,313
Semiconductors–1.47%
Broadcom Inc.		29,846		7,241,833
NVIDIA Corp.		10,125		2,398,613
				9,640,446
Specialized REITs–0.13%
American Tower Corp.–Class A		5,773		832,293
Specialty Chemicals–1.00%
Sherwin-Williams Co. (The)		16,030		6,533,347
Systems Software–3.53%
Microsoft Corp.		200,006		19,722,592
ServiceNow, Inc.(b)		19,811		3,416,803
				23,139,395
Technology Hardware, Storage & Peripherals–3.02%
Apple Inc.		107,054		19,816,766
Tobacco–1.33%
Philip Morris International Inc.		108,253		8,740,347
TOTAL INVESTMENTS IN SECURITIES–99.95% (Cost $349,947,817)				655,496,111
OTHER ASSETS LESS LIABILITIES–0.05%				317,601
NET ASSETS–100.00%			$	655,813,712

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, 2018.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2018

Information Technology	48.0	%
Consumer Discretionary	22.1
Health Care	11.5
Industrials	7.3
Energy	3.4
Financials	2.8
Consumer Staples	2.6
Materials	2.1
Real Estate	0.1
Other Assets Less Liabilities	0.1

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, 2018

(Unaudited)

Statement of Operations

For the six months ended June 30, 2018

(Unaudited)

Assets:
Investments in securities, at value (Cost $349,947,817)	$	655,496,111
Foreign currencies, at value (Cost $168,268)		166,935
Receivable for:
Investments sold		3,279,467
Fund shares sold		129,682
Dividends		378,627
Investment for trustee deferred compensation and retirement plans		365,730
Other assets		387
Total assets		659,816,939
Liabilities:
Payable for:
Investments purchased		1,552,774
Fund shares reacquired		822,919
Amount due custodian		843,983
Accrued fees to affiliates		353,122
Accrued trustees’ and officers’ fees and benefits		5,340
Accrued other operating expenses		31,924
Trustee deferred compensation and retirement plans		393,165
Total liabilities		4,003,227
Net assets applicable to shares outstanding	$	655,813,712
Net assets consist of:
Shares of beneficial interest	$	265,218,408
Undistributed net investment income (loss)		(300,796	)
Undistributed net realized gain		85,369,287
Net unrealized appreciation		305,526,813
	$	655,813,712
Net Assets:
Series I	$	492,621,473
Series II	$	163,192,239
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		7,097,845
Series II		2,438,605
Series I:
Net asset value per share	$	69.40
Series II:
Net asset value per share	$	66.92

Investment income:
Dividends (net of foreign withholding taxes of $63,883)	$	3,146,981
Dividends from affiliated money market funds (includes securities lending income of $27,451)		35,053
Total investment income		3,182,034
Expenses:
Advisory fees		2,240,477
Administrative services fees		577,683
Custodian fees		30,046
Distribution fees — Series II		212,229
Transfer agent fees		35,501
Trustees’ and officers’ fees and benefits		14,947
Reports to shareholders		2,281
Professional services fees		22,965
Other		6,131
Total expenses		3,142,260
Less: Fees waived		(574	)
Net expenses		3,141,686
Net investment income		40,348
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (includes net gains from securities sold to affiliates of $9,304)		51,093,293
Foreign currencies		(40,974	)
		51,052,319
Change in net unrealized appreciation (depreciation) of:
Investment securities		13,988,999
Foreign currencies		(21,409	)
		13,967,590
Net realized and unrealized gain		65,019,909
Net increase in net assets resulting from operations	$	65,060,257

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, 2018 and the year ended December 31, 2017

(Unaudited)

	June 30, 2018			December 31, 2017
Operations:
Net investment income (loss)	$	40,348		$	(832,957	)
Net realized gain		51,052,319			40,086,602
Change in net unrealized appreciation		13,967,590			111,505,076
Net increase in net assets resulting from operations		65,060,257			150,758,721
Distributions to shareholders from net investment income:
Series I		—			(384,589	)
Distributions to shareholders from net realized gains:
Series l		—			(37,510,459	)
Series ll		—			(13,392,445	)
Total distributions from net realized gains		—			(50,902,904	)
Share transactions–net:
Series l		(47,809,420	)		(2,950,365	)
Series ll		(23,664,460	)		(6,716,707	)
Net increase (decrease) in net assets resulting from share transactions		(71,473,880	)		(9,667,072	)
Net increase (decrease) in net assets		(6,413,623	)		89,804,156
Net assets:
Beginning of period		662,227,335			572,423,179
End of period (includes undistributed net investment income (loss) of $(300,796) and $(341,144), respectively)	$	655,813,712		$	662,227,335

Notes to Financial Statements

June 30, 2018

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

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

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

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

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

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid 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. American Franchise 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. 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

Invesco V.I. American Franchise Fund

Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $250 million		0	.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, 2018, the effective advisory fees incurred by the Fund was 0.67%.

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

The Adviser has contractually agreed, through at least June 30, 2019, 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, 2019. 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, 2020, 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, 2018, the Adviser waived advisory fees of $574.

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, 2018, Invesco was paid $79,057 for accounting and fund administrative services and was reimbursed $498,626 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, 2018, 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. The fees are accrued daily and paid monthly. 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, 2018, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2018, the Fund incurred $2,365 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, 2018. 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.

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period. During the six months ended June 30, 2018, there were no material transfers between valuation levels.

	Level 1		Level 2		Level 3		Total
Investments in Securities
Common Stocks & Other Equity Interests	$	613,961,014	$	41,535,097	$	—	$	655,496,111

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, 2018, the Fund engaged in securities purchases of $315,563 and securities sales of $267,208, which resulted in net realized gains of $9,304.

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

Invesco V.I. American Franchise Fund

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, 2017.

NOTE 8—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2018 was $152,716,452 and $223,630,229, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	306,101,975
Aggregate unrealized (depreciation) of investments		(4,362,949	)
Net unrealized appreciation of investments	$	301,739,026

Cost of investments for tax purposes is $353,757,085.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended June 30, 2018(a)						Year ended December 31, 2017
	Shares			Amount			Shares			Amount
Sold:
Series I		175,524		$	11,919,449			632,683		$	39,590,013
Series II		94,783			6,169,027			193,178			11,491,194
Issued as reinvestment of dividends:
Series I		—			—			623,684			37,895,048
Series II		—			—			228,151			13,392,445
Reacquired:
Series I		(879,203	)		(59,728,869	)		(1,308,965	)		(80,435,426	)
Series II		(468,296	)		(29,833,487	)		(527,169	)		(31,600,346	)
Net increase (decrease) in share activity		(1,077,192	)	$	(71,473,880	)		(158,438	)	$	(9,667,072	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 34% of the outstanding shares of the Fund. 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 Franchise 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 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 06/30/18	$	62.97	$	0.03		$	6.40	$	6.43	$	—		$	—		$	—		$	69.40		10.21	%	$	492,621		0.88	%(d)		0.88	%(d)		0.08	%(d)		23	%
Year ended 12/31/17		53.58		(0.04	)		14.50		14.46		(0.05	)		(5.02	)		(5.07	)		62.97		27.34			491,271		0.89			0.89			(0.06	)		45
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
Series II
Six months ended 06/30/18		60.79		(0.06	)		6.19		6.13		—			—			—			66.92		10.08			163,192		1.13	(d)		1.13	(d)		(0.17	)(d)		23
Year ended 12/31/17		51.95		(0.19	)		14.05		13.86		—			(5.02	)		(5.02	)		60.79		27.03			170,956		1.14			1.14			(0.31	)		45
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

^(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 $500,219 and $171,190 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, 2018 through June 30, 2018.

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 (01/01/18)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/18)1		Expenses Paid During Period2		Ending Account Value (06/30/18)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,102.30	$	4.59	$	1,020.43	$	4.41		0.88	%
Series II		1,000.00		1,100.60		5.89		1,019.19		5.66		1.13

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2018 through June 30, 2018, 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

At meetings held on June 5-6, 2018, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. American Franchise Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc., Invesco Canada Ltd. and separate Sub-Advisory Contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2018. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’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 detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider. 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 throughout the year, 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 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 6, 2018.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, 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, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also reviewed and considered the benefits to shareholders of investing in a fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by

Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries 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 investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2017 to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds Large-Cap Growth 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 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 and three year periods, and reasonably comparable to the performance of the Index for the five year period. The Board noted that the Fund’s holdings in and overweight exposure to certain sectors detracted from the Fund’s performance. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

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

Invesco V.I. American Franchise Fund

management fee rates of funds in the Fund’s Broadridge expense group. 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 non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. 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 considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. 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 differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including management of cash flows as a result of redemptions and purchases, necessary infrastructure such as officers, office space, technology, legal and distribution, oversight of service providers, costs and business risks associated with launching new funds and sponsoring and maintaining the product line, preparation of annual registration statement updates and financial information and compliance with federal and state laws and regulations.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds. The Board

noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements.

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 considered the methodology used for calculating profitability and noted the periodic review of such methodology by an independent consultant. 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, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers 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 administrative, 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 Invesco representing 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 an affiliated broker receives commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. American Franchise Fund

	Semiannual Report to Shareholders	June 30, 2018
	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 (or any successor Form). The Fund’s Form N-Q (or any successor Form) filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q (or any successor Form) 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 (or any successor Form), 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            07122018      1602

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/17 to 6/30/18, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	5.22	%
Series II Shares	5.11
S&P 500 Index▼ (Broad Market Index)	2.65
Russell Midcap Value Index▼ (Style-Specific Index)	-0.16
Lipper VUF Mid-Cap Value Funds Index∎ (Peer Group Index)	0.97
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 6/30/18
Series I Shares
Inception (1/2/97)	9.90	%
10 Years	9.40
5 Years	9.06
1 Year	13.51
Series II Shares
Inception (5/5/03)	10.58	%
10 Years	9.19
5 Years	8.80
1 Year	13.28

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 0.94% and 1.19%, 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, 2018

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–97.61%
Aerospace & Defense–2.06%
Textron Inc.		107,694	$	7,098,112
Apparel, Accessories & Luxury Goods–4.27%
Hanesbrands, Inc.		288,964		6,362,987
Tapestry, Inc.		178,473		8,336,474
				14,699,461
Automotive Retail–1.50%
Advance Auto Parts, Inc.		38,074		5,166,642
Building Products–2.25%
Johnson Controls International PLC		231,938		7,758,326
Communications Equipment–4.55%
ARRIS International PLC(b)		320,983		7,846,429
Ciena Corp.(b)		294,946		7,819,019
				15,665,448
Consumer Finance–2.20%
Santander Consumer USA Holdings Inc.		397,491		7,588,103
Copper–2.18%
Freeport-McMoRan Inc.		434,257		7,495,276
Distributors–0.78%
LKQ Corp.(b)		84,213		2,686,395
Diversified Chemicals–2.38%
Eastman Chemical Co.		81,796		8,176,328
Diversified REITs–3.73%
Forest City Realty Trust, Inc.–Class A		248,468		5,667,555
Liberty Property Trust		161,942		7,178,889
				12,846,444
Electric Utilities–2.52%
FirstEnergy Corp.		241,492		8,671,978
Electronic Equipment & Instruments–2.32%
Keysight Technologies, Inc.(b)		135,009		7,969,581
Health Care Distributors–1.80%
AmerisourceBergen Corp.		72,563		6,187,447
Health Care Facilities–2.12%
Encompass Health Corp.		107,746		7,296,559
Health Care Services–2.71%
DaVita Inc.(b)		134,173		9,316,973
Hotels, Resorts & Cruise Lines–4.48%
Norwegian Cruise Line Holdings Ltd.(b)		112,009		5,292,425
Royal Caribbean Cruises Ltd.		97,695		10,121,202
				15,413,627

	Shares		Value
Insurance Brokers–5.27%
Arthur J. Gallagher & Co.		131,902	$	8,610,563
Willis Towers Watson PLC		62,915		9,537,914
				18,148,477
Investment Banking & Brokerage–2.39%
Stifel Financial Corp.		157,237		8,215,633
IT Consulting & Other Services–1.48%
Teradata Corp.(b)		126,509		5,079,336
Life & Health Insurance–1.44%
Athene Holding Ltd.–Class A(b)		113,408		4,971,807
Marine–1.92%
Kirby Corp.(b)		78,989		6,603,480
Oil & Gas Equipment & Services–2.65%
TechnipFMC PLC (United Kingdom)		287,449		9,123,631
Oil & Gas Exploration & Production–10.65%
Anadarko Petroleum Corp.		126,439		9,261,657
Devon Energy Corp.		244,403		10,743,956
Marathon Oil Corp.		474,408		9,896,151
Noble Energy, Inc.		49,084		1,731,683
QEP Resources, Inc.(b)		410,473		5,032,399
				36,665,846
Oil & Gas Storage & Transportation–1.36%
Plains GP Holdings LP–Class A(b)		195,639		4,677,729
Other Diversified Financial Services–2.05%
Voya Financial, Inc.		150,460		7,071,620
Pharmaceuticals–2.54%
Mylan N.V.(b)		241,988		8,745,446
Regional Banks–14.28%
Comerica Inc.		112,883		10,263,322
First Horizon National Corp.		481,777		8,594,902
KeyCorp		567,755		11,093,933
Wintrust Financial Corp.		98,343		8,560,758
Zions Bancorp.		201,632		10,623,990
				49,136,905
Research & Consulting Services–2.02%
Dun & Bradstreet Corp. (The)		56,673		6,950,944
Specialized REITs–1.67%
Life Storage, Inc.		58,971		5,738,468
Specialty Chemicals–2.74%
W.R. Grace & Co.		128,501		9,420,408
Systems Software–1.15%
Symantec Corp.		191,240		3,949,106

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

Invesco V.I. American Value Fund

	Shares		Value
Trucking–2.15%
Ryder System, Inc.		102,875	$	7,392,598
Total Common Stocks & Other Equity Interests (Cost $270,719,829)				335,928,134
Money Market Funds–2.15%
Invesco Government & Agency Portfolio–Institutional Class, 1.80%(c)		3,683,979		3,683,979
Invesco Liquid Assets Portfolio–Institutional Class, 2.02%(c)		2,630,884		2,631,674
Invesco Treasury Portfolio–Institutional Class, 1.76%(c)		1,075,125		1,075,125
Total Money Market Funds (Cost $7,389,861)				7,390,778
TOTAL INVESTMENTS IN SECURITIES–99.76% (Cost $278,109,690)				343,318,912
OTHER ASSETS LESS LIABILITIES–0.24%				810,771
NET ASSETS–100.00%			$	344,129,683

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, 2018.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2018

Financials	27.6	%
Energy	14.7
Consumer Discretionary	11.0
Industrials	10.4
Information Technology	9.5
Health Care	9.2
Materials	7.3
Real Estate	5.4
Utilities	2.5
Money Market Funds Plus Other Assets Less Liabilities	2.4

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, 2018

(Unaudited)

Statement of Operations

For the six months ended June 30, 2018

(Unaudited)

Assets:
Investments in securities, at value (Cost $270,719,829)	$	335,928,134
Investments in affiliated money market funds, at value (Cost $7,389,861)		7,390,778
Receivable for:
Investments sold		3,724,975
Fund shares sold		9,241
Dividends		466,941
Investment for trustee deferred compensation and retirement plans		56,715
Other assets		1,226
Total assets		347,578,010
Liabilities:
Payable for:
Investments purchased		2,708,941
Fund shares reacquired		359,318
Accrued fees to affiliates		288,930
Accrued trustees’ and officers’ fees and benefits		6,082
Accrued other operating expenses		19,745
Trustee deferred compensation and retirement plans		65,311
Total liabilities		3,448,327
Net assets applicable to shares outstanding	$	344,129,683
Net assets consist of:
Shares of beneficial interest	$	221,645,511
Undistributed net investment income		1,483,554
Undistributed net realized gain		55,791,396
Net unrealized appreciation		65,209,222
	$	344,129,683
Net Assets:
Series I	$	99,948,538
Series II	$	244,181,145
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		5,168,016
Series II		12,767,121
Series I:
Net asset value per share	$	19.34
Series II:
Net asset value per share	$	19.13

Investment income:
Dividends	$	2,622,314
Dividends from affiliated money market funds		75,062
Total investment income		2,697,376
Expenses:
Advisory fees		1,359,285
Administrative services fees		328,989
Custodian fees		8,481
Distribution fees — Series II		342,543
Transfer agent fees		10,721
Trustees’ and officers’ fees and benefits		14,561
Reports to shareholders		4,177
Professional services fees		18,434
Other		2,375
Total expenses		2,089,566
Less: Fees waived		(5,627	)
Net expenses		2,083,939
Net investment income		613,437
Realized and unrealized gain from:
Net realized gain from investment securities		14,490,337
Change in net unrealized appreciation of investment securities		2,442,710
Net realized and unrealized gain		16,933,047
Net increase in net assets resulting from operations	$	17,546,484

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, 2018 and the year ended December 31, 2017

(Unaudited)

	June 30, 2018			December 31, 2017
Operations:
Net investment income	$	613,437		$	1,181,060
Net realized gain		14,490,337			43,350,554
Change in net unrealized appreciation (depreciation)		2,442,710			(9,438,439	)
Net increase in net assets resulting from operations		17,546,484			35,093,175
Distributions to shareholders from net investment income:
Series I		—			(854,814	)
Series ll		—			(1,557,213	)
Total distributions from net investment income		—			(2,412,027	)
Distributions to shareholders from net realized gains:
Series l		—			(1,223,615	)
Series ll		—			(3,080,153	)
Total distributions from net realized gains		—			(4,303,768	)
Share transactions–net:
Series l		(9,900,352	)		(20,241,160	)
Series ll		(62,624,097	)		(9,832,937	)
Net increase (decrease) in net assets resulting from share transactions		(72,524,449	)		(30,074,097	)
Net increase (decrease) in net assets		(54,977,965	)		(1,696,717	)
Net assets:
Beginning of period		399,107,648			400,804,365
End of period (includes undistributed net investment income of $1,483,554 and $870,117, respectively)	$	344,129,683		$	399,107,648

Notes to Financial Statements

June 30, 2018

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

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

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

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

C. 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.

Invesco V.I. American Value 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.

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.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $1 billion		0.72%
Over $1 billion		0.65%

For the six months ended June 30, 2018, 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 Capital Management LLC, formerly Invesco PowerShares Capital Management LLC, and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2019, 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, 2019. 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. American Value Fund

Further, the Adviser has contractually agreed, through at least June 30, 2020, 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, 2018, the Adviser waived advisory fees of $5,627.

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, 2018, Invesco was paid $45,901 for accounting and fund administrative services and was reimbursed $283,088 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, 2018, 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. The fees are accrued daily and paid monthly. 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, 2018, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2018, the Fund incurred $3,166 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, 2018 all 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.

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period. During the six months ended June 30, 2018, there were no material transfers between valuation levels.

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. American Value 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, 2017.

NOTE 7—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2018 was $74,587,926 and $145,837,168, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	68,314,361
Aggregate unrealized (depreciation) of investments		(6,257,546	)
Net unrealized appreciation of investments	$	62,056,815

Cost of investments for tax purposes is $281,262,097.

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended June 30, 2018(a)						Year ended December 31, 2017
	Shares			Amount			Shares			Amount
Sold:
Series I		86,560		$	1,659,161			303,660		$	5,290,582
Series II		677,641			12,957,434			3,186,094			54,783,210
Issued as reinvestment of dividends:
Series I		—			—			122,260			2,078,429
Series II		—			—			275,215			4,637,366
Reacquired:
Series I		(606,122	)		(11,559,513	)		(1,582,312	)		(27,610,171	)
Series II		(4,102,372	)		(75,581,531	)		(4,078,148	)		(69,253,513	)
Net increase (decrease) in share activity		(3,944,293	)	$	(72,524,449	)		(1,773,231	)	$	(30,074,097	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 67% 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 06/30/18	$	18.38	$	0.05	$	0.91		$	0.96		$	—		$	—		$	—		$	19.34		5.22	%	$	99,949		0.93	%(d)		0.93	%(d)		0.50	%(d)		20	%
Year ended 12/31/17		17.06		0.08		1.59			1.67			(0.14	)		(0.21	)		(0.35	)		18.38		9.96			104,510		0.94			0.94			0.48			56
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
Series II
Six months ended 06/30/18		18.19		0.02		0.92			0.94			—			—			—			19.13		5.17			244,181		1.18	(d)		1.18	(d)		0.25	(d)		20
Year ended 12/31/17		16.90		0.04		1.56			1.60			(0.10	)		(0.21	)		(0.31	)		18.19		9.62			294,598		1.19			1.19			0.23			56
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

^(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 $104,403 and $276,305 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, 2018 through June 30, 2018.

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 (01/01/18)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/18)1		Expenses Paid During Period2		Ending Account Value (06/30/18)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,052.20	$	4.73	$	1,020.18	$	4.66		0.93	%
Series II		1,000.00		1,051.10		6.00		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, 2018 through June 30, 2018, 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

At meetings held on June 5-6, 2018, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. American Value Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate Sub-Advisory Contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2018. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’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 detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider. 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 throughout the year, 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 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 6, 2018.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, 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, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also reviewed and considered the benefits to shareholders of investing in a fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by

Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries 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 investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2017 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 Board noted that the Fund’s offensive positioning relative to its peer group and stock selection in various sectors detracted from Fund performance. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted

Invesco V.I. American Value Fund

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 non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. 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 considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. 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 differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including management of cash flows as a result of redemptions and purchases, necessary infrastructure such as officers, office space, technology, legal and distribution, oversight of service providers, costs and business risks associated with launching new funds and sponsoring and maintaining the product line, preparation of annual registration statement updates and financial information and compliance with federal and state laws and regulations.

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 similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2017.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule,

which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements.

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 considered the methodology used for calculating profitability and noted the periodic review of such methodology by an independent consultant. 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, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers 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 administrative, 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 Invesco representing 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 an affiliated broker receives commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. American Value Fund

	Semiannual Report to Shareholders	June 30, 2018
	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 (or any successor Form). The Fund’s Form N-Q (or any successor Form) filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q (or any successor Form) 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 (or any successor Form), 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             08102018      0854

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/17 to 6/30/18, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-0.27	%
Series II Shares	-0.45
MSCI World Index▼ (Broad Market Index)	0.43
Custom Invesco V.I. Balanced-Risk Allocation Index∎ (Style-Specific Index)	-0.29
Lipper VUF Absolute Return Funds Classification Averaget (Peer Group)	-3.47
Source(s): ▼FactSet Research Systems Inc.; ∎Invesco, FactSet Research Systems Inc.; tLipper 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 Bond 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 FTSE US 3-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 Bond Index is an unmanaged index considered representative of the US investment grade, fixed-rate bond market.

    The J.P. Morgan GBI Global Index tracks fixed-rate issuances from high-income, developed-market countries.

    The FTSE US 3-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 6/30/18
Series I Shares
Inception (1/23/09)	8.67	%
5 Years	5.62
1 Year	7.50
Series II Shares
Inception (1/23/09)	8.39	%
5 Years	5.36
1 Year	7.24

Series II shares was 1.26% and 1.51%, 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 0.15%.

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, 2019. 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, 2020. See current prospectus for more information.

Invesco V.I. Balanced-Risk Allocation Fund

Consolidated Schedule of Investments

June 30, 2018

(Unaudited)

	Interest Rate			Maturity Date		Principal Amount		Value
U.S. Treasury Bills–12.01%(a)
U.S. Treasury Bills(b)		1.56	%		07/05/2018	$	15,500,000	$	15,497,876
U.S. Treasury Bills		1.56	%		07/12/2018		53,000,000		52,975,339
U.S. Treasury Bills		1.67	%		08/09/2018		14,300,000		14,272,510
U.S. Treasury Bills(b)		2.08	%		12/06/2018		54,000,000		53,523,407
Total U.S. Treasury Bills (Cost $136,254,159)									136,269,132
				Expiration Date
Commodity-Linked Securities–1.80%
Canadian Imperial Bank of Commerce EMTN, U.S. Federal Funds Effective Rate minus 0.03% (linked to the Canadian Imperial Bank of Commerce Custom 6 Agriculture Commodity Index, multiplied by 2)(c)(*)					03/29/2019		9,470,000		7,879,729
Cargill, Inc., Commodity-Linked Notes, one month USD LIBOR minus 0.10% (linked to the Monthly Rebalance Commodity Excess Return Index, multiplied by 2)(c)(*)					02/25/2019		14,950,000		12,514,838
Total Commodity-Linked Securities (Cost $24,420,000)									20,394,567
						Shares
Money Market Funds–84.74%
Invesco Government & Agency Portfolio–Institutional Class, 1.80%(d)							360,747,548		360,747,548
Invesco Government Money Market Fund–Cash Reserve Shares, 1.39%(d)							11,399,488		11,399,488
Invesco Premier U.S. Government Money Portfolio–Institutional Class, 1.78%(d)							141,092,602		141,092,602
Invesco Treasury Obligations Portfolio–Institutional Class, 1.71%(d)							186,716,866		186,716,866
Invesco Treasury Portfolio–Institutional Class, 1.76%(d)							186,178,268		186,178,268
Invesco V.I. Government Money Market Fund–Series I, 1.61%(d)							16,640,310		16,640,310
STIC (Global Series) PLC–U.S. Dollar Liquidity Portfolio–Institutional Class (Ireland), 2.04%(d)							58,635,465		58,635,465
Total Money Market Funds (Cost $961,410,547)									961,410,547
TOTAL INVESTMENTS IN SECURITIES–98.55% (Cost $1,122,084,706)									1,118,074,246
OTHER ASSETS LESS LIABILITIES–1.45%									16,484,049
NET ASSETS–100.00%								$	1,134,558,295

Open Futures Contracts
Long Futures Contracts	Number of Contracts		Expiration Month		Notional Value		Value			Unrealized Appreciation (Depreciation)
Brent Crude		268		November-2018	$	21,046,040	$	697,052		$	697,052
Gasoline Reformulated Blendstock Oxygenate Blending		395		August-2018		35,688,408		767,861			767,861
New York Harbor Ultra-Low Sulfur Diesel		125		November-2018		11,695,950		241,287			241,287
Silver		233		September-2018		18,870,670		(291,847	)		(291,847	)
WTI Crude		209		October-2018		14,822,280		1,049,567			1,049,567
Subtotal — Commodity Risk								2,463,920			2,463,920
Dow Jones EURO STOXX 50 Index		2,165		September-2018		85,726,871		(1,723,699	)		(1,723,699	)
E-Mini Russell 2000 Index		925		September-2018		76,196,875		(1,384,301	)		(1,384,301	)
E-Mini S&P 500 Index		578		September-2018		78,654,240		(1,698,438	)		(1,698,438	)
FTSE 100 Index		1,017		September-2018		102,030,115		(655,866	)		(655,866	)
Hang Seng Index		358		July-2018		65,539,334		338,881			338,881
Tokyo Stock Price Index		706		September-2018		110,364,318		(2,679,319	)		(2,679,319	)
Subtotal — Equity Risk								(7,802,742	)		(7,802,742	)
Australia 10 Year Bonds		2,730		September-2018		261,407,077		3,474,475			3,474,475
Canada 10 Year Bonds		2,135		September-2018		222,009,470		4,203,129			4,203,129
Euro Bonds		753		September-2018		142,926,655		1,313,641			1,313,641
Long Gilt		1,021		September-2018		165,825,294		1,271,703			1,271,703
U.S. Treasury Long Bonds		704		September-2018		102,080,000		1,528,409			1,528,409
Subtotal — Interest Rate Risk								11,791,357			11,791,357
Total Futures Contracts							$	6,452,535		$	6,452,535

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(e)(f)
Counterparty	Pay/ Receive		Reference Entity(*)	Fixed Rate			Payment Frequency		Number of Contracts		Maturity Date		Notional Value		Upfront Payments Paid (Received)		Value			Unrealized Appreciation (Depreciation)
J.P. Morgan Chase Bank, N.A.		Receive	J.P. Morgan Contag Beta Gas Oil Excess Return Index		0.25	%		Monthly		45,500		April-2019	$	12,509,219	$	—	$	604,194		$	604,194
Subtotal — Commodity Risk																—		604,194			604,194
Goldman Sachs International		Receive	Hang Seng Index Futures		—			Monthly		81		July-2018		14,828,732		—		90,917			90,917
Subtotal — Equity Risk																—		90,917			90,917
Subtotal — Appreciation																—		695,111			695,111
Barclays Bank PLC		Receive	Barclays Commodity Strategy 1452 Excess Return Index		0.33			Monthly		42,100		October-2018		23,812,657		—		(1,378,375	)		(1,378,375	)
Barclays Bank PLC		Receive	Barclays Commodity Strategy 1727 Excess Return Index		0.45			Monthly		137,700		February-2019		36,981,759		—		(1,456,081	)		(1,456,081	)
Canadian Imperial Bank of Commerce		Receive	Canadian Imperial Bank of Commerce Custom 6 Agriculture Commodity Index		0.47			Monthly		1,000		February-2019		88,415		—		(5,775	)		(5,775	)
Canadian Imperial Bank of Commerce		Receive	Canadian Imperial Bank of Commerce Dynamic Roll LME Copper Excess Return Index 2		0.30			Monthly		271,000		April-2019		24,604,334		—		(2,169,518	)		(2,169,518	)
Cargill, Inc.		Receive	Monthly Rebalance Commodity Excess Return Index		0.47			Monthly		35,100		February-2019		27,101,717		—		0			0
Goldman Sachs International		Receive	Goldman Sachs Commodity Strategy 1057		0.40			Monthly		344,500		February-2019		29,122,494		—		(1,986,587	)		(1,986,587	)
J.P. Morgan Chase Bank, N.A.		Receive	S&P GSCI Gold Index Excess Return		0.09			Monthly		153,500		October-2018		15,627,912		—		(199,243	)		(199,243	)
Macquarie Bank Ltd.		Receive	Macquarie Aluminum Dynamic Selection Index		0.30			Monthly		271,000		December-2018		15,371,798		—		(157,830	)		(157,830	)
Merrill Lynch International		Receive	Merrill Lynch Gold Excess Return Index		0.14			Monthly		106,200		June-2019		16,801,031		—		(72,010	)		(72,010	)
Merrill Lynch International		Receive	MLCX Aluminum Annual Excess Return Index		0.28			Monthly		36,000		September-2018		4,187,671		—		0			0
Merrill Lynch International		Receive	MLCX Dynamic Enhanced Copper Excess Return Index		0.25			Monthly		6,400		September-2018		4,083,463		—		0			0
Merrill Lynch International		Receive	MLCX Natural Gas Annual Excess Return Index		0.25			Monthly		246,000		November-2018		10,668,489		—		0			0
Morgan Stanley Capital Services LLC		Receive	S&P GSCI Aluminum Dynamic Roll Index Excess Return		0.38			Monthly		138,000		October-2018		15,812,040		—		(636,773	)		(636,773	)
Subtotal — Depreciation — Commodity Risk																—		(8,062,192	)		(8,062,192	)
Total — Over-The-Counter Total Return Swap Agreements															$	—	$	(7,367,081	)	$	(7,367,081	)

Investments Abbreviations:

EMTN	– European Medium-Term Notes
LIBOR	– London Interbank Offered Rate
USD	– U.S. Dollar

Notes to Consolidated Schedule of Investments:

^(a)  Securities traded on a discount basis. The interest rates shown represent the discount rates 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)  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, 2018, was $20,394,567, which represented 1.80% of the Fund’s Net Assets.

^(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, 2018.

^(e)  The Fund receives or pays payments based on any positive or negative return on the Reference Entity, respectively.

^(f)  Open Over-The-Counter Total Return swap agreements are collateralized by cash held with the swap Counterparties in the amount of $24,744,596.

^(*)  The table below includes additional information regarding the underlying components of certain reference entities that are not publicly available.

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

Invesco V.I. Balanced-Risk Allocation Fund

Reference Entity Components
Reference Entity	Underlying Components	Percentage
Canadian Imperial Bank of Commerce Custom 6 Agriculture Commodity Index
	Long Futures Contracts
	Cocoa		0.17	%
	Coffee ‘C’		4.77
	Corn		4.94
	Cotton No. 2		20.60
	Lean Hogs		0.54
	Live Cattle		0.44
	Soybean Meal		19.74
	Soybean Oil		4.57
	Soybeans		19.36
	Sugar No. 11		20.15
	Wheat		4.72
	Total		100.00	%
Monthly Rebalance Commodity Excess Return Index
	Long Futures Contracts
	Cocoa		0.17	%
	Coffee ‘C’		4.77
	Corn		4.94
	Cotton No. 2		20.60
	Lean Hogs		0.54
	Live Cattle		0.44
	Soybean Meal		19.74
	Soybean Oil		4.57
	Soybeans		19.36
	Sugar No. 11		20.15
	Wheat		4.72
	Total		100.00	%
J.P. Morgan Contag Beta Gas Oil Excess Return Index
	Long Futures Contracts
	Gas Oil		100.00	%
Barclays Commodity Strategy 1452 Excess Return Index
	Long Futures Contracts
	Copper		100.00	%
Barclays Commodity Strategy 1727 Excess Return Index
	Long Futures Contracts
	Cocoa		0.17	%
	Coffee ‘C’		4.77
	Corn		4.94
	Cotton No. 2		20.60
	Lean Hogs		0.54
	Live Cattle		0.44
	Soybean Meal		19.74
	Soybean Oil		4.57
	Soybeans		19.36
	Sugar No. 11		20.15
	Wheat		4.72
	Total		100.00	%

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

Invesco V.I. Balanced-Risk Allocation Fund

Reference Entity Components—(continued)
Reference Entity	Underlying Components	Percentage
Canadian Imperial Bank of Commerce Dynamic Roll LME Copper Excess Return Index 2
	Long Futures Contracts
	Copper		100.00	%
Goldman Sachs Commodity Strategy 1057
	Long Futures Contracts
	Cocoa		0.17	%
	Coffee ‘C’		4.77
	Corn		4.94
	Cotton No. 2		20.60
	Lean Hogs		0.54
	Live Cattle		0.44
	Soybean Meal		19.74
	Soybean Oil		4.57
	Soybeans		19.36
	Sugar No. 11		20.15
	Wheat		4.72
	Total		100.00	%
S&P GSCI Gold Index Excess Return
	Long Futures Contracts
	Gold		100.00	%
Macquarie Aluminum Dynamic Selection Index
	Long Futures Contracts
	Aluminum		100.00	%
Merrill Lynch Gold Excess Return Index
	Long Futures Contracts
	Gold		100.00	%
MLCX Aluminum Annual Excess Return Index
	Long Futures Contracts
	Aluminum		100.00	%
MLCX Dynamic Enhanced Copper Excess Return Index
	Long Futures Contracts
	Copper		100.00	%
MLCX Natural Gas Annual Excess Return Index
	Long Futures Contracts
	Natural Gas		100.00	%
S&P GSCI Aluminum Dynamic Roll Index Excess Return
	Long Futures Contracts
	Aluminum		100.00	%

Target Risk Allocation and Notional Asset Weights

By asset class

Asset Class	Risk Allocation*			% of Net Assets as of 06/30/18**
Equities		45.88	%		46.76	%
Fixed Income		26.69			76.88
Commodities		27.43			33.97

* 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, 2018

(Unaudited)

Consolidated Statement of Operations

For the six months ended June 30, 2018

(Unaudited)

Assets:
Investments in securities, at value (Cost $160,674,159)	$	156,663,699
Investments in affiliated money market funds, at value and cost		961,410,547
Other investments:
Variation margin receivable — futures contracts		3,617,756
Swaps receivable — OTC		2,695
Unrealized appreciation on swap agreements — OTC		695,111
Deposits with brokers:
Cash collateral — OTC Derivatives		24,744,596
Foreign currencies, at value (Cost $1,438)		1,447
Receivable for:
Fund shares sold		12,506,711
Dividends and interest		1,525,374
Fund expenses absorbed		100,618
Investment for trustee deferred compensation and retirement plans		104,646
Total assets		1,161,373,200
Liabilities:
Other investments:
Swaps payable — OTC		4,647,899
Unrealized depreciation on swap agreements — OTC		8,062,192
Payable for:
Investments purchased		12,800,000
Accrued fees to affiliates		1,130,820
Accrued trustees’ and officers’ fees and benefits		6,969
Accrued other operating expenses		48,894
Trustee deferred compensation and retirement plans		118,131
Total liabilities		26,814,905
Net assets applicable to shares outstanding	$	1,134,558,295
Net assets consist of:
Shares of beneficial interest	$	1,030,248,070
Undistributed net investment income		9,889,906
Undistributed net realized gain		99,345,316
Net unrealized appreciation (depreciation)		(4,924,997	)
	$	1,134,558,295
Net Assets:
Series I	$	38,751,136
Series II	$	1,095,807,159
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		3,436,475
Series II		98,534,283
Series I:
Net asset value and offering price per share	$	11.28
Series II:
Net asset value per share	$	11.12

Investment income:
Dividends from affiliated money market funds	$	7,270,817
Interest		1,177,923
Total investment income		8,448,740
Expenses:
Advisory fees		5,276,775
Administrative services fees		1,002,775
Custodian fees		9,242
Distribution fees — Series II		1,397,323
Transfer agent fees		12,075
Trustees’ and officers’ fees and benefits		18,364
Reports to shareholders		5,717
Professional services fees		43,549
Other		8,279
Total expenses		7,774,099
Less: Fees waived		(2,525,117	)
Net expenses		5,248,982
Net investment income		3,199,758
Realized and unrealized gain (loss) from:
Net realized gain from:
Investment securities		1,108,249
Foreign currencies		940,839
Futures contracts		9,504,773
Swap agreements		1,154,850
		12,708,711
Change in net unrealized appreciation (depreciation) of:
Investment securities		(4,023,675	)
Foreign currencies		(39	)
Futures contracts		(1,376,053	)
Swap agreements		(15,484,190	)
		(20,883,957	)
Net realized and unrealized gain (loss)		(8,175,246	)
Net increase (decrease) in net assets resulting from operations	$	(4,975,488	)

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, 2018 and the year ended December 31, 2017

(Unaudited)

	June 30, 2018			December 31, 2017
Operations:
Net investment income (loss)	$	3,199,758		$	(1,675,961	)
Net realized gain		12,708,711			101,494,421
Change in net unrealized appreciation (depreciation)		(20,883,957	)		10,795,576
Net increase (decrease) in net assets resulting from operations		(4,975,488	)		110,614,036
Distributions to shareholders from net investment income:
Series I		—			(1,508,787	)
Series ll		—			(43,695,120	)
Total distributions from net investment income		—			(45,203,907	)
Distributions to shareholders from net realized gains:
Series l		—			(2,046,037	)
Series ll		—			(62,678,695	)
Total distributions from net realized gains		—			(64,724,732	)
Share transactions–net:
Series l		(477,687	)		4,606,109
Series ll		(57,405,475	)		43,872,788
Net increase (decrease) in net assets resulting from share transactions		(57,883,162	)		48,478,897
Net increase (decrease) in net assets		(62,858,650	)		49,164,294
Net assets:
Beginning of period		1,197,416,945			1,148,252,651
End of period (includes undistributed net investment income (loss) of $9,889,906 and $6,690,148, respectively)	$	1,134,558,295		$	1,197,416,945

Notes to Consolidated Financial Statements

June 30, 2018

(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. Information presented in these consolidated financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 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. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than

Invesco V.I. Balanced-Risk Allocation Fund

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

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

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

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

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

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

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

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

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

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

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

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

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

Invesco V.I. Balanced-Risk Allocation Fund

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.

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

Invesco V.I. Balanced-Risk Allocation Fund

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

M. Swap Agreements — The Fund may enter into various swap transactions, including interest rate, total return, index, currency and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency, commodity or credit risk. Such transactions are agreements between Counterparties. These agreements may contain among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s NAV over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any.

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

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

A total return swap is an agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income generated and capital gains, if any. The unrealized appreciation (depreciation) on total return swaps includes dividends on the underlying securities and financing rate payable from the Counterparty. At the maturity date, a net cash flow is exchanged where the total return is equivalent to the return of the underlying reference less a financing rate, if any. As a receiver, the Fund would receive payments based on any positive total return and would owe payments in the event of a negative total return. As the payer, the Fund would owe payments on any net positive total return, and would receive payment in the event of a negative total return.

Changes in the value of 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,

Invesco V.I. Balanced-Risk Allocation Fund

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 and commodity-linked notes, that may provide leveraged and non-leveraged exposure to commodity markets. The Fund is indirectly exposed to the risks associated with the Subsidiary’s investments.

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

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $250 million		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, 2018, 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 Capital Management LLC, formerly Invesco PowerShares Capital Management LLC, and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least April 30, 2019, 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 0.15% 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, 2019. 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, 2020, 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, 2018, the Adviser waived advisory fees of $2,525,117.

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, 2018, Invesco was paid $135,481 for accounting and fund administrative services and was reimbursed $867,294 for fees paid to insurance companies.

Invesco V.I. Balanced-Risk Allocation Fund

The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. For the six months ended June 30, 2018, 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. The fees are accrued daily and paid monthly. 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, 2018, 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.

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, 2018. 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.

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period. During the six months ended June 30, 2018, there were no material transfers between valuation levels.

	Level 1			Level 2			Level 3		Total
Investments in Securities
U.S. Treasury Securities	$	—		$	136,269,132		$	—	$	136,269,132
Commodity Linked Securities		—			20,394,567			—		20,394,567
Money Market Funds		961,410,547			—			—		961,410,547
Total Investments in Securities		961,410,547			156,663,699			—		1,118,074,246
Other Investments — Assets*
Futures Contracts		14,886,005			—			—		14,886,005
Swap Agreements		—			695,111			—		695,111
		14,886,005			695,111			—		15,581,116
Other Investments — Liabilities*
Futures Contracts		(8,433,470	)		—			—		(8,433,470	)
Swap Agreements		—			(8,062,192	)		—		(8,062,192	)
		(8,433,470	)		(8,062,192	)		—		(16,495,662	)
Total Other Investments		6,452,535			(7,367,081	)		—		(914,546	)
Total Investments	$	967,863,082		$	149,296,618		$	—	$	1,117,159,700

* Unrealized appreciation (depreciation).

NOTE 4—Derivative Investments

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

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

Invesco V.I. Balanced-Risk Allocation 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, 2018:

	Value
Derivative Assets	Commodity Risk			Equity Risk			Interest Rate Risk			Total
Unrealized appreciation on futures contracts — Exchange-Traded(a)	$	2,755,767		$	338,881		$	11,791,357		$	14,886,005
Unrealized appreciation on swap agreements — OTC		604,194			90,917			—			695,111
Total Derivative Assets		3,359,961			429,798			11,791,357			15,581,116
Derivatives not subject to master netting agreements		(2,755,767	)		(338,881	)		(11,791,357	)		(14,886,005	)
Total Derivative Assets subject to master netting agreements	$	604,194		$	90,917		$	—		$	695,111
	Value
Derivative Liabilities	Commodity Risk			Equity Risk			Interest Rate Risk			Total
Unrealized depreciation on futures contracts — Exchange-Traded(a)	$	(291,847	)	$	(8,141,623	)	$	—		$	(8,433,470	)
Unrealized depreciation on swap agreements — OTC		(8,062,192	)		—			—			(8,062,192	)
Total Derivative Liabilities		(8,354,039	)		(8,141,623	)		—			(16,495,662	)
Derivatives not subject to master netting agreements		291,847			8,141,623			—			8,433,470
Total Derivative Liabilities subject to master netting agreements	$	(8,062,192	)	$	—		$	—		$	(8,062,192	)

^(a)  The daily variation margin receivable at period-end is recorded in the Consolidated Statement of Assets and Liabilities.

Offsetting Assets and Liabilities

The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of June 30, 2018.

	Financial Derivative Assets		Financial Derivative Liabilities			Net Value of Derivatives			Collateral (Received)/Pledged
Counterparty	Swap Agreements		Swap Agreements						Non-Cash		Cash		Net Amount(b)
Fund
Goldman Sachs International	$	90,917	$	(989,459	)	$	(898,542	)	$	—	$	620,000	$	(278,542	)
Subtotal — Fund		90,917		(989,459	)		(898,542	)		—		620,000		(278,542	)
Subsidiary
Barclays Bank PLC		—		(2,845,196	)		(2,845,196	)		—		2,845,196		—
Cargill, Inc.		—		(3,008,822	)		(3,008,822	)		—		3,008,822		—
Canadian Imperial Bank of Commerce		—		(2,179,969	)		(2,179,969	)		—		2,179,969		—
Goldman Sachs International		—		(1,994,246	)		(1,994,246	)		—		1,994,246		—
J.P. Morgan Chase Bank, N.A.		604,194		(200,245	)		403,949			—		—		403,949
Macquarie Bank Ltd.		—		(158,588	)		(158,588	)		—		158,588		—
Merrill Lynch International		2,695		(694,652	)		(691,957	)		—		691,957		—
Morgan Stanley Capital Services LLC		—		(638,914	)		(638,914	)		—		390,000		(248,914	)
Subtotal — Subsidiary	$	606,889	$	(11,720,632	)	$	(11,113,743	)	$	—	$	11,268,778	$	155,035
Total	$	697,806	$	(12,710,091	)	$	(12,012,285	)	$	—	$	11,888,778	$	(123,507	)

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

Invesco V.I. Balanced-Risk Allocation Fund

Effect of Derivative Investments for the six months ended June 30, 2018

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	$	13,636,043		$	13,820,567		$	(17,951,837	)	$	9,504,773
Swap agreements		1,067,028			213,045			(125,223	)		1,154,850
Change in Net Unrealized Appreciation (Depreciation):
Futures contracts		(3,409,012	)		(14,189,755	)		16,222,714			(1,376,053	)
Swap agreements		(15,315,475	)		(242,799	)		74,084			(15,484,190	)
Total	$	(4,021,416	)	$	(398,942	)	$	(1,780,262	)	$	(6,200,620	)

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	$	1,325,756,756	$	278,577,225

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 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, 2017.

NOTE 8—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2018 was $24,420,000 and $25,157,287, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	58,114,495
Aggregate unrealized (depreciation) of investments		(79,243,894	)
Net unrealized appreciation (depreciation) of investments	$	(21,129,399	)

Cost of investments for tax purposes is $1,138,289,099.

Invesco V.I. Balanced-Risk Allocation Fund

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended June 30, 2018(a)						Year ended December 31, 2017
	Shares			Amount			Shares			Amount
Sold:
Series I		148,632		$	1,673,353			353,444		$	4,089,594
Series II		3,363,604			37,290,047			11,147,285			127,157,678
Issued as reinvestment of dividends:
Series I		—			—			330,067			3,554,824
Series II		—			—			9,988,152			106,373,815
Reacquired:
Series I		(190,483	)		(2,151,040	)		(264,404	)		(3,038,309	)
Series II		(8,523,558	)		(94,695,522	)		(16,688,062	)		(189,658,705	)
Net increase (decrease) in share activity		(5,201,805	)	$	(57,883,162	)		4,866,482		$	48,478,897

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 83% 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 06/30/18	$	11.31	$	0.04		$	(0.07	)	$	(0.03	)	$	—		$	—		$	—		$	11.28		(0.27	)%	$	38,751		0.66	%(d)(e)		1.10	%(d)		0.80	%(d)		102	%
Year ended 12/31/17		11.35		0.01			1.08			1.09			(0.48	)		(0.65	)		(1.13	)		11.31		10.06			39,340		0.68	(e)		1.11			0.10			52
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
Series II
Six months ended 06/30/18		11.17		0.03			(0.08	)		(0.05	)		—			—			—			11.12		(0.45	)		1,095,807		0.91	(d)(e)		1.35	(d)		0.55	(d)		102
Year ended 12/31/17		11.22		(0.02	)		1.07			1.05			(0.45	)		(0.65	)		(1.10	)		11.17		9.83			1,158,077		0.93	(e)		1.36			(0.15	)		52
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

^(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 $38,993 and $1,127,122 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 0.15%, 0.15%, 0.12% and 0.09% for the six months ended June 30, 2018 and the years ended December 31, 2017, 2016 and 2014, 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, 2018 through June 30, 2018.

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 (01/01/18)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/18)1		Expenses Paid During Period2		Ending Account Value (06/30/18)		Expenses Paid During Period2
Series I	$	1,000.00	$	997.30	$	3.27	$	1,021.52	$	3.31		0.66	%
Series II		1,000.00		995.50		4.50		1,020.28		4.56		0.91

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2018 through June 30, 2018, 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

At meetings held on June 5-6, 2018, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Balanced-Risk Allocation Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate Sub-Advisory Contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2018. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’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 detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider. 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 throughout the year, 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 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 6, 2018.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, 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, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also reviewed and considered the benefits to shareholders of investing in a fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by

Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries 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 investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2017 to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds Alternative Other 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 second quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series I shares of the Fund was reasonably comparable to the performance of the Index for the one and five year periods and above 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 and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was above the

Invesco V.I. Balanced-Risk Allocation Fund

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 non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. 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 considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that there were only five funds (including the Fund) in the expense group.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. 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 differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including management of cash flows as a result of redemptions and purchases, necessary infrastructure such as officers, office space, technology, legal and distribution, oversight of service providers, costs and business risks associated with launching new funds and sponsoring and maintaining the product line, preparation of annual registration statement updates and financial information and compliance with federal and state laws and regulations.

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 similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2017.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule,

which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements.

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 considered the methodology used for calculating profitability and noted the periodic review of such methodology by an independent consultant. 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, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers 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 administrative, 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

	Semiannual Report to Shareholders	June 30, 2018
	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 (or any successor Form). The Fund’s Form N-Q (or any successor Form) filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q (or any successor Form) 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 (or any successor Form), 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            07132018      0945

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/17 to 6/30/18, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	0.10	%
Series II Shares	-0.05
S&P 500 Index▼ (Broad Market Index)	2.65
Russell 1000 Value Index▼ (Style-Specific Index)	-1.69
Lipper VUF Large-Cap Value Funds Index∎ (Peer Group Index)	-1.48
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.

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 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 0.76% and 1.01%, 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

Average Annual Total Returns
As of 6/30/18
Series I Shares
Inception (4/30/99)	7.29	%
10 Years	9.99
5 Years	10.48
1 Year	14.06
Series II Shares
Inception (9/18/00)	7.33	%
10 Years	9.71
5 Years	10.21
1 Year	13.79

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. Comstock Fund

Schedule of Investments^(a)

June 30, 2018

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–95.43%
Aerospace & Defense–1.88%
Arconic Inc.		687,813	$	11,699,699
Textron Inc.		281,993		18,586,159
				30,285,858
Agricultural Products–0.81%
Archer-Daniels-Midland Co.		286,393		13,125,391
Asset Management & Custody Banks–2.61%
Bank of New York Mellon Corp. (The)		425,535		22,949,102
State Street Corp.		206,187		19,193,948
				42,143,050
Automobile Manufacturers–1.88%
General Motors Co.		770,885		30,372,869
Automotive Retail–1.03%
Advance Auto Parts, Inc.		122,158		16,576,841
Biotechnology–2.82%
Biogen Inc.(b)		48,276		14,011,626
Gilead Sciences, Inc.		157,559		11,161,480
Shire PLC		360,431		20,288,470
				45,461,576
Broadcasting–0.47%
CBS Corp.–Class B		133,885		7,527,015
Building Products–1.62%
Johnson Controls International PLC		781,865		26,153,384
Cable & Satellite–0.89%
Charter Communications, Inc.–Class A(b)		20,539		6,022,240
Comcast Corp.–Class A		255,359		8,378,329
				14,400,569
Communications Equipment–2.74%
Cisco Systems, Inc.		1,028,272		44,246,544
Construction Machinery & Heavy Trucks–0.54%
Caterpillar Inc.		63,632		8,632,953
Consumer Finance–0.81%
Ally Financial Inc.		499,553		13,123,257
Diversified Banks–14.54%
Bank of America Corp.		2,541,802		71,653,398
Citigroup Inc.		1,222,969		81,841,086
JPMorgan Chase & Co.		533,847		55,626,857
Wells Fargo & Co.		457,914		25,386,752
				234,508,093
Electrical Components & Equipment–2.02%
Eaton Corp. PLC		309,205		23,109,982
Emerson Electric Co.		137,031		9,474,323
				32,584,305

	Shares		Value
Fertilizers & Agricultural Chemicals–0.94%
CF Industries Holdings, Inc.		340,330	$	15,110,652
Health Care Distributors–1.55%
Cardinal Health, Inc.		250,805		12,246,808
McKesson Corp.		95,641		12,758,510
				25,005,318
Health Care Equipment–0.85%
Medtronic PLC		159,214		13,630,310
Health Care Services–0.68%
CVS Health Corp.		171,460		11,033,451
Hotels, Resorts & Cruise Lines–1.50%
Carnival Corp.		421,735		24,169,633
Household Products–2.06%
Kimberly-Clark Corp.		186,642		19,660,868
Reckitt Benckiser Group PLC (United Kingdom)		165,486		13,626,502
				33,287,370
Industrial Conglomerates–0.50%
General Electric Co.		592,212		8,060,005
Industrial Machinery–0.56%
Ingersoll-Rand PLC		101,475		9,105,352
Integrated Oil & Gas–10.26%
BP PLC–ADR (United Kingdom)		742,066		33,882,734
Chevron Corp.		261,376		33,045,768
Occidental Petroleum Corp.		206,966		17,318,915
Royal Dutch Shell PLC–Class A–ADR (United Kingdom)		564,715		39,095,219
Suncor Energy, Inc. (Canada)		1,032,615		42,006,778
				165,349,414
Internet Software & Services–1.44%
Altaba Inc.(b)		104,680		7,663,623
eBay Inc.(b)		427,503		15,501,259
				23,164,882
Investment Banking & Brokerage–2.85%
Goldman Sachs Group, Inc. (The)		75,324		16,614,215
Morgan Stanley		617,260		29,258,124
				45,872,339
IT Consulting & Other Services–0.92%
Cognizant Technology Solutions Corp.–Class A		186,914		14,764,337
Life & Health Insurance–1.99%
Aflac, Inc.		203,540		8,756,291
MetLife, Inc.		534,092		23,286,411
				32,042,702

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

Invesco V.I. Comstock Fund

	Shares		Value
Managed Health Care–1.55%
Anthem, Inc.		104,869	$	24,961,968
Multi-Line Insurance–1.80%
American International Group, Inc.		547,695		29,038,789
Oil & Gas Equipment & Services–0.91%
Halliburton Co.		326,444		14,709,567
Oil & Gas Exploration & Production–8.73%
Anadarko Petroleum Corp.		139,832		10,242,694
Canadian Natural Resources Ltd. (Canada)		525,517		18,966,899
Devon Energy Corp.		709,712		31,198,940
Hess Corp.		398,043		26,625,096
Marathon Oil Corp.		1,702,912		35,522,744
Noble Energy, Inc.		339,928		11,992,660
QEP Resources, Inc.(b)		511,196		6,267,263
				140,816,296
Packaged Foods & Meats–1.14%
Danone S.A. (France)		251,424		18,429,514
Paper Packaging–1.04%
International Paper Co.		321,745		16,756,480
Pharmaceuticals–7.45%
Allergan PLC		150,305		25,058,849
Merck & Co., Inc.		271,921		16,505,605
Mylan N.V.(b)		455,929		16,477,274
Novartis AG (Switzerland)		161,786		12,254,406
Pfizer Inc.		817,785		29,669,240
Sanofi–ADR (France)		504,179		20,172,202
				120,137,576
Property & Casualty Insurance–0.97%
Allstate Corp. (The)		171,290		15,633,638

	Shares		Value
Regional Banks–4.69%
Citizens Financial Group, Inc.		511,896	$	19,912,754
Fifth Third Bancorp		882,602		25,330,677
KeyCorp		328,694		6,422,681
PNC Financial Services Group, Inc. (The)		177,017		23,914,997
				75,581,109
Semiconductors–3.48%
Intel Corp.		567,696		28,220,168
QUALCOMM Inc.		495,748		27,821,378
				56,041,546
Systems Software–1.44%
Microsoft Corp.		235,176		23,190,705
Technology Hardware, Storage & Peripherals–0.77%
NetApp, Inc.		158,076		12,413,708
Wireless Telecommunication Services–0.70%
Vodafone Group PLC (United Kingdom)		4,671,599		11,333,562
Total Common Stocks & Other Equity Interests (Cost $1,302,333,145)				1,538,781,928
Money Market Funds–4.71%
Invesco Government & Agency Portfolio–Institutional Class, 1.80%(c)		26,555,209		26,555,209
Invesco Liquid Assets Portfolio–Institutional Class, 2.02%(c)		18,965,143		18,970,833
Invesco Treasury Portfolio–Institutional Class, 1.76%(c)		30,348,811		30,348,811
Total Money Market Funds (Cost $75,873,047)				75,874,853
TOTAL INVESTMENTS IN SECURITIES–100.14% (Cost $1,378,206,192)				1,614,656,781
OTHER ASSETS LESS LIABILITIES–(0.14)%				(2,267,756	)
NET ASSETS–100.00%			$	1,612,389,025

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, 2018.

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, 2018

Financials	30.2	%
Energy	19.9
Health Care	14.9
Information Technology	10.8
Industrials	7.1
Consumer Discretionary	5.8
Consumer Staples	4.0
Materials	2.0
Telecommunication Services	0.7
Money Market Funds Plus Other Assets Less Liabilities	4.6

Open Forward Foreign Currency Contracts
Settlement Date	Counterparty	Contract to						Unrealized Appreciation (Depreciation)
		Deliver			Receive
07/27/2018	Barclays Bank PLC		CHF	3,003,915		USD	3,049,660	$	8,994
07/27/2018	Barclays Bank PLC		GBP	7,740,083		USD	10,286,571		58,169
07/27/2018	CIBC World Markets Corp.		EUR	8,403,651		USD	9,848,684		15,230
07/27/2018	Goldman Sachs International		EUR	8,403,650		USD	9,846,599		13,146
07/27/2018	Goldman Sachs International		GBP	7,740,083		USD	10,286,339		57,937
07/27/2018	Goldman Sachs International		USD	216,563		GBP	165,189		1,732
07/27/2018	JPMorgan Chase Bank, N.A.		CHF	3,033,938		USD	3,080,797		9,740
07/27/2018	JPMorgan Chase Bank, N.A.		EUR	8,403,651		USD	9,848,995		15,541
07/27/2018	JPMorgan Chase Bank, N.A.		GBP	7,740,083		USD	10,286,726		58,324
07/27/2018	JPMorgan Chase Bank, N.A.		USD	408,033		GBP	310,043		1,684
07/27/2018	RBC Capital Markets Corp.		EUR	8,403,651		USD	9,849,836		16,382
07/27/2018	RBC Capital Markets Corp.		GBP	7,740,183		USD	10,287,151		58,619
Subtotal — Appreciation									315,498
07/27/2018	Barclays Bank PLC		USD	940,936		GBP	711,836		(256	)
07/27/2018	CIBC World Markets Corp.		CAD	13,055,986		USD	9,811,072		(125,103	)
07/27/2018	Goldman Sachs International		CAD	13,055,986		USD	9,811,883		(124,292	)
07/27/2018	RBC Capital Markets Corp.		CAD	13,055,950		USD	9,810,219		(125,928	)
Subtotal — Depreciation									(375,579	)
Total Forward Foreign Currency Contracts — Currency Risk								$	(60,081	)

Abbreviations:

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

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, 2018

(Unaudited)

Statement of Operations

For the six months ended June 30, 2018

(Unaudited)

Assets:
Investments in securities, at value (Cost $1,302,333,145)	$	1,538,781,928
Investments in affiliated money market funds, at value (Cost $75,873,047)		75,874,853
Other investments:
Unrealized appreciation on forward foreign currency contracts outstanding		315,498
Cash		46,456
Foreign currencies, at value (Cost $413)		415
Receivable for:
Investments sold		2,629,928
Fund shares sold		20,244
Dividends		2,353,765
Investment for trustee deferred compensation and retirement plans		207,251
Total assets		1,620,230,338
Liabilities:
Other investments:
Unrealized depreciation on forward foreign currency contracts outstanding		375,579
Payable for:
Investments purchased		1,784,863
Fund shares reacquired		3,918,535
Accrued fees to affiliates		1,490,762
Accrued trustees’ and officers’ fees and benefits		8,425
Accrued other operating expenses		29,860
Trustee deferred compensation and retirement plans		233,289
Total liabilities		7,841,313
Net assets applicable to shares outstanding	$	1,612,389,025
Net assets consist of:
Shares of beneficial interest	$	1,050,568,352
Undistributed net investment income		36,064,916
Undistributed net realized gain		289,378,813
Net unrealized appreciation		236,376,944
	$	1,612,389,025
Net Assets:
Series I	$	253,173,334
Series II	$	1,359,215,691
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		12,263,868
Series II		66,195,675
Series I:
Net asset value per share	$	20.64
Series II:
Net asset value per share	$	20.53

Investment income:
Dividends (net of foreign withholding taxes of $618,991)	$	20,585,276
Dividends from affiliated money market funds		585,255
Total investment income		21,170,531
Expenses:
Advisory fees		5,001,536
Administrative services fees		1,490,535
Custodian fees		43,214
Distribution fees — Series II		1,888,748
Transfer agent fees		19,655
Trustees’ and officers’ fees and benefits		22,832
Reports to shareholders		4,805
Professional services fees		27,802
Other		13,426
Total expenses		8,512,553
Less: Fees waived		(45,073	)
Net expenses		8,467,480
Net investment income		12,703,051
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		139,499,411
Foreign currencies		(5,852	)
Forward foreign currency contracts		(2,394,068	)
		137,099,491
Change in net unrealized appreciation (depreciation) of:
Investment securities		(157,147,991	)
Foreign currencies		(26,125	)
Forward foreign currency contracts		3,069,005
		(154,105,111	)
Net realized and unrealized gain (loss)		(17,005,620	)
Net increase (decrease) in net assets resulting from operations	$	(4,302,569	)

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, 2018 and the year ended December 31, 2017

(Unaudited)

	June 30, 2018			December 31, 2017
Operations:
Net investment income	$	12,703,051		$	23,545,726
Net realized gain		137,099,491			156,183,437
Change in net unrealized appreciation (depreciation)		(154,105,111	)		123,678,223
Net increase (decrease) in net assets resulting from operations		(4,302,569	)		303,407,386
Distributions to shareholders from net investment income:
Series I		—			(5,551,772	)
Series ll		—			(31,132,801	)
Total distributions from net investment income		—			(36,684,573	)
Distributions to shareholders from net realized gains:
Series l		—			(10,812,478	)
Series ll		—			(68,204,783	)
Total distributions from net realized gains		—			(79,017,261	)
Share transactions-net:
Series l		(17,914,024	)		(11,573,352	)
Series ll		(279,326,219	)		(198,048,701	)
Net increase (decrease) in net assets resulting from share transactions		(297,240,243	)		(209,622,053	)
Net increase (decrease) in net assets		(301,542,812	)		(21,916,501	)
Net assets:
Beginning of period		1,913,931,837			1,935,848,338
End of period (includes undistributed net investment income of $36,064,916 and $23,361,865, respectively)	$	1,612,389,025		$	1,913,931,837

Notes to Financial Statements

June 30, 2018

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

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

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

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

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

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

Invesco V.I. Comstock 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 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 accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets	Rate
First $500 million		0.60%
Over $500 million		0.55%

Invesco V.I. Comstock Fund

For the six months ended June 30, 2018, 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 Capital Management LLC, formerly Invesco PowerShares Capital Management LLC, and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least April 30, 2019, 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, 2019. 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, 2020, 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, 2018, the Adviser waived advisory fees of $45,073.

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, 2018, Invesco was paid $192,151 for accounting and fund administrative services and was reimbursed $1,298,384 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, 2018, 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. The fees are accrued daily and paid monthly. 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, 2018, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2018, the Fund incurred $5,193 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, 2018. 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. Comstock Fund

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period. During the six months ended June 30, 2018, there were no material transfers between valuation levels.

	Level 1		Level 2			Level 3		Total
Investments in Securities
Common Stocks & Other Equity Interests	$	1,508,098,008	$	30,683,920		$	—	$	1,538,781,928
Money Market Funds		75,874,853		—			—		75,874,853
Total Investments in Securities		1,583,972,861		30,683,920			—		1,614,656,781
Other Investments – Assets*
Forward Foreign Currency Contracts		—		315,498			—		315,498
Other Investments – Liabilities*
Forward Foreign Currency Contracts		—		(375,579	)		—		(375,579	)
Total Other Investments		—		(60,081	)		—		(60,081	)
Total Investments	$	1,583,972,861	$	30,623,839		$	—	$	1,614,596,700

* 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, 2018:

	Value
Derivative Assets	Currency Risk
Unrealized appreciation on forward foreign currency contracts outstanding	$	315,498
Derivatives not subject to master netting agreements		—
Total Derivative Assets subject to master netting agreements	$	315,498

	Value
Derivative Liabilities	Currency Risk
Unrealized depreciation on forward foreign currency contracts outstanding	$	(375,579	)
Derivatives not subject to master netting agreements		—
Total Derivative Liabilities subject to master netting agreements	$	(375,579	)

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, 2018.

	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	$	67,163	$	(256	)	$	66,907		$	—	$	—	$	66,907
CIBC World Markets Corp.		15,230		(125,103	)		(109,873	)		—		—		(109,873	)
Goldman Sachs International		72,815		(124,292	)		(51,477	)		—		—		(51,477	)
JPMorgan Chase Bank, N.A.		85,289		—			85,289			—		—		85,289
RBC Capital Markets Corp.		75,001		(125,928	)		(50,927	)		—		—		(50,927	)
Total	$	315,498	$	(375,579	)	$	(60,081	)	$	—	$	—	$	(60,081	)

Invesco V.I. Comstock Fund

Effect of Derivative Investments for the six months ended June 30, 2018

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	$	(2,394,068	)
Change in Net Unrealized Appreciation:
Forward foreign currency contracts		3,069,005
Total	$	674,937

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

	Forward Foreign Currency Contracts
Average notional value	$	153,957,405

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, 2017.

NOTE 8—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2018 was $157,599,346 and $435,793,409, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	325,462,972
Aggregate unrealized (depreciation) of investments		(91,856,841	)
Net unrealized appreciation of investments	$	233,606,131

Cost of investments for tax purposes is $1,380,990,569.

Invesco V.I. Comstock Fund

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended June 30, 2018(a)						Year ended December 31, 2017
	Shares			Amount			Shares			Amount
Sold:
Series I		373,729		$	7,723,662			618,922		$	11,976,966
Series II		964,267			19,816,222			2,755,173			52,626,539
Issued as reinvestment of dividends:
Series I		—			—			863,093			16,364,250
Series II		—			—			5,255,957			99,337,584
Reacquired:
Series I		(1,233,593	)		(25,637,686	)		(2,062,592	)		(39,914,568	)
Series II		(14,776,329	)		(299,142,441	)		(18,238,937	)		(350,012,824	)
Net increase (decrease) in share activity		(14,671,926	)	$	(297,240,243	)		(10,808,384	)	$	(209,622,053	)

^(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 (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 06/30/18	$	20.62	$	0.17	$	(0.15	)	$	0.02		$	—		$	—		$	—		$	20.64		0.10	%	$	253,173		0.74	%(d)		0.75	%(d)		1.65	%(d)		9	%
Year ended 12/31/17		18.69		0.28		2.94			3.22			(0.44	)		(0.85	)		(1.29	)		20.62		17.85			270,651		0.75			0.75			1.47			13
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
Series II
Six months ended 06/30/18		20.54		0.14		(0.15	)		(0.01	)		—			—			—			20.53		(0.05	)		1,359,216		0.99	(d)		1.00	(d)		1.40	(d)		9
Year ended 12/31/17		18.62		0.23		2.93			3.16			(0.39	)		(0.85	)		(1.24	)		20.54		17.58			1,643,281		1.00			1.00			1.22			13
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

^(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 $264,838 and $1,523,520 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, 2018 through June 30, 2018.

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 (01/01/18)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/18)1		Expenses Paid During Period2		Ending Account Value (06/30/18)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,001.00	$	3.67	$	1,021.12	$	3.71		0.74	%
Series II		1,000.00		999.50		4.91		1,019.89		4.96		0.99

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2018 through June 30, 2018, 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

At meetings held on June 5-6, 2018, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Comstock Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate Sub-Advisory Contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2018. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’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 detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider. 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 throughout the year, 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 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 6, 2018.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, 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, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also reviewed and considered the benefits to shareholders of investing in a fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by

Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries 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 investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2017 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 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 above the performance of the Index for the one year period and reasonably comparable to 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 and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for

Invesco V.I. Comstock Fund

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 non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. 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 considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. 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 differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including management of cash flows as a result of redemptions and purchases, necessary infrastructure such as officers, office space, technology, legal and distribution, oversight of service providers, costs and business risks associated with launching new funds and sponsoring and maintaining the product line, preparation of annual registration statement updates and financial information and compliance with federal and state laws and regulations.    

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 similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2017.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s

expense ratio as it grows in size. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements.

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 considered the methodology used for calculating profitability and noted the periodic review of such methodology by an independent consultant. 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, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers 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 administrative, 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 Invesco representing 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 an affiliated broker receives commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Comstock Fund

	Semiannual Report to Shareholders	June 30, 2018
	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 (or any successor Form). The Fund’s Form N-Q (or any successor Form) filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q (or any successor Form) 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 (or any successor Form), 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            07132018      1010

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/17 to 6/30/18, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-0.35	%
Series II Shares	-0.47
S&P 500 Index▼ (Broad Market Index)	2.65
Russell 1000 Index▼ (Style-Specific Index)	2.85
Lipper VUF Large-Cap Core Funds Index∎ (Peer Group Index)	1.90
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.

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 0.81% and 1.06%, 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 0.82% and 1.07%, 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.

Average Annual Total Returns As of 6/30/18
Series I Shares
Inception (5/2/94)	7.95	%
10 Years	6.97
5 Years	7.64
1 Year	4.63
Series II Shares
Inception (10/24/01)	6.47	%
10 Years	6.70
5 Years	7.37
1 Year	4.39

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, 2020. See current prospectus for more information.

Invesco V.I. Core Equity Fund

Schedule of Investments^(a)

June 30, 2018

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–91.31%
Aerospace & Defense–2.63%
General Dynamics Corp.		53,172	$	9,911,792
United Technologies Corp.		130,157		16,273,530
				26,185,322
Air Freight & Logistics–1.43%
FedEx Corp.		62,521		14,196,018
Airlines–1.04%
Delta Air Lines, Inc.		208,745		10,341,227
Auto Parts & Equipment–1.08%
Aptiv PLC		117,371		10,754,705
Biotechnology–4.33%
Biogen Inc.(b)		55,704		16,167,529
BioMarin Pharmaceutical Inc.(b)		81,588		7,685,590
Celgene Corp.(b)		134,319		10,667,615
Vertex Pharmaceuticals Inc.(b)		50,336		8,555,106
				43,075,840
Cable & Satellite–2.48%
Comcast Corp.–Class A		751,092		24,643,328
Casinos & Gaming–1.43%
Wynn Resorts Ltd.		85,192		14,256,029
Consumer Finance–2.79%
American Express Co.		282,782		27,712,636
Data Processing & Outsourced Services–1.83%
Mastercard Inc.–Class A		92,378		18,154,125
Distillers & Vintners–1.02%
Diageo PLC (United Kingdom)		281,168		10,093,100
Diversified Banks–2.95%
Toronto-Dominion Bank (The) (Canada)		228,475		13,223,293
U.S. Bancorp		322,054		16,109,141
				29,332,434
Electronic Manufacturing Services–1.23%
TE Connectivity Ltd.		136,059		12,253,473
Footwear–2.00%
NIKE, Inc.–Class B		250,100		19,927,968
General Merchandise Stores–1.56%
Dollar General Corp.		157,631		15,542,417
Health Care Equipment–1.05%
Zimmer Biomet Holdings, Inc.		93,955		10,470,345
Health Care Facilities–1.36%
HCA Healthcare, Inc.		131,498		13,491,695

	Shares		Value
Health Care Supplies–1.06%
DENTSPLY SIRONA Inc.		239,492	$	10,482,565
Home Entertainment Software–0.66%
Activision Blizzard, Inc.		86,438		6,596,948
Home Improvement Retail–1.40%
Home Depot, Inc. (The)		71,283		13,907,313
Homebuilding–0.95%
D.R. Horton, Inc.		229,923		9,426,843
Hotels, Resorts & Cruise Lines–1.72%
Carnival Corp.		298,609		17,113,282
Household Appliances–0.73%
Whirlpool Corp.		49,694		7,266,754
Industrial Conglomerates–2.89%
Honeywell International Inc.		102,283		14,733,866
Siemens AG (Germany)		105,561		13,955,903
				28,689,769
Industrial Machinery–3.17%
Parker-Hannifin Corp.		103,774		16,173,178
Stanley Black & Decker Inc.		115,577		15,349,781
				31,522,959
Insurance Brokers–1.90%
Marsh & McLennan Cos., Inc.		230,867		18,924,168
Integrated Oil & Gas–2.87%
Chevron Corp.		101,836		12,875,125
Suncor Energy, Inc. (Canada)		385,666		15,688,893
				28,564,018
Internet & Direct Marketing Retail–1.74%
Booking Holdings Inc.(b)		8,550		17,331,620
Internet Software & Services–10.33%
Alibaba Group Holding Ltd.–ADR (China)(b)		64,465		11,960,192
Alphabet Inc.–Class C(b)		34,038		37,974,495
eBay Inc.(b)		569,868		20,663,414
Facebook, Inc.–Class A(b)		165,337		32,128,286
				102,726,387
IT Consulting & Other Services–2.49%
Cognizant Technology Solutions Corp.–Class A		312,901		24,716,050
Life Sciences Tools & Services–2.38%
Thermo Fisher Scientific, Inc.		114,275		23,670,923
Managed Health Care–2.16%
UnitedHealth Group Inc.		87,537		21,476,328

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

Invesco V.I. Core Equity Fund

	Shares		Value
Multi-Sector Holdings–1.25%
Berkshire Hathaway Inc.–Class A(b)		44	$	12,409,760
Multi-Utilities–1.02%
WEC Energy Group, Inc.		157,454		10,179,401
Oil & Gas Equipment & Services–1.22%
Halliburton Co.		269,749		12,154,890
Oil & Gas Exploration & Production–1.69%
Concho Resources Inc.(b)		121,339		16,787,251
Pharmaceuticals–2.32%
Allergan PLC		82,941		13,827,924
Novo Nordisk A/S–Class B (Denmark)		200,027		9,237,714
				23,065,638
Property & Casualty Insurance–2.98%
Chubb Ltd.		97,568		12,393,087
Progressive Corp. (The)		291,897		17,265,708
				29,658,795
Railroads–1.44%
Norfolk Southern Corp.		94,820		14,305,493
Regional Banks–3.74%
First Republic Bank		212,957		20,612,108
PNC Financial Services Group, Inc. (The)		122,795		16,589,604
				37,201,712

	Shares		Value
Semiconductors–2.75%
Analog Devices, Inc.		184,027	$	17,651,870
QUALCOMM Inc.		172,086		9,657,466
				27,309,336
Soft Drinks–1.43%
PepsiCo, Inc.		130,895		14,250,539
Systems Software–4.81%
Microsoft Corp.		294,418		29,032,559
Oracle Corp.		426,342		18,784,628
				47,817,187
Total Common Stocks & Other Equity Interests (Cost $701,511,025)				907,986,591
Money Market Funds–9.50%
Invesco Government & Agency Portfolio– Institutional Class, 1.80%(c)		33,048,488		33,048,488
Invesco Liquid Assets Portfolio– Institutional Class, 2.02%(c)		23,595,654		23,602,733
Invesco Treasury Portfolio– Institutional Class, 1.76%(c)		37,769,700		37,769,700
Total Money Market Funds (Cost $94,414,886)				94,420,921
TOTAL INVESTMENTS IN SECURITIES–100.81% (Cost $795,925,911)				1,002,407,512
OTHER ASSETS LESS LIABILITIES–(0.81)%				(8,015,169	)
NET ASSETS–100.00%			$	994,392,343

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, 2018.

Portfolio Composition

By sector, based on Net Assets
as of June 30, 2018

Information Technology	24.1	%
Financials	15.6
Consumer Discretionary	15.1
Health Care	14.7
Industrials	12.6
Energy	5.8
Consumer Staples	2.4
Utilities	1.0
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. Core Equity Fund

Statement of Assets and Liabilities

June 30, 2018

(Unaudited)

Statement of Operations

For the six months ended June 30, 2018

(Unaudited)

Assets:
Investments in securities, at value (Cost $701,511,025)	$	907,986,591
Investments in affiliated money market funds, at value (Cost $94,414,886)		94,420,921
Foreign currencies, at value (Cost $132,364)		132,465
Receivable for:
Fund shares sold		20,156
Dividends		1,126,828
Investment for trustee deferred compensation and retirement plans		443,988
Other assets		191
Total assets		1,004,131,140
Liabilities:
Payable for:
Investments purchased		8,041,808
Fund shares reacquired		784,120
Accrued fees to affiliates		381,517
Accrued trustees’ and officers’ fees and benefits		6,652
Accrued other operating expenses		34,358
Trustee deferred compensation and retirement plans		490,342
Total liabilities		9,738,797
Net assets applicable to shares outstanding	$	994,392,343
Net assets consist of:
Shares of beneficial interest	$	627,617,755
Undistributed net investment income		12,887,697
Undistributed net realized gain		147,410,213
Net unrealized appreciation		206,476,678
	$	994,392,343
Net Assets:
Series I	$	970,868,173
Series II	$	23,524,170
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		26,533,196
Series II		653,197
Series I:
Net asset value per share	$	36.59
Series II:
Net asset value per share	$	36.01

Investment income:
Dividends (net of foreign withholding taxes of $110,367)	$	8,104,122
Dividends from affiliated money market funds		872,052
Total investment income		8,976,174
Expenses:
Advisory fees		3,449,456
Administrative services fees		907,193
Custodian fees		53,861
Distribution fees — Series II		140,529
Transfer agent fees		37,316
Trustees’ and officers’ fees and benefits		18,545
Reports to shareholders		4,952
Professional services fees		35,358
Other		11,677
Total expenses		4,658,887
Less: Fees waived		(72,283	)
Net expenses		4,586,604
Net investment income		4,389,570
Realized and unrealized gain (loss) from:
Net realized gain from:
Investment securities		87,544,936
Foreign currencies		503,975
		88,048,911
Change in net unrealized appreciation (depreciation) of:
Investment securities		(97,899,055	)
Foreign currencies		(940,656	)
		(98,839,711	)
Net realized and unrealized gain (loss)		(10,790,800	)
Net increase (decrease) in net assets resulting from operations	$	(6,401,230	)

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, 2018 and the year ended December 31, 2017

(Unaudited)

	June 30, 2018			December 31, 2017
Operations:
Net investment income	$	4,389,570		$	8,746,855
Net realized gain		88,048,911			63,198,866
Change in net unrealized appreciation (depreciation)		(98,839,711	)		80,767,444
Net increase (decrease) in net assets resulting from operations		(6,401,230	)		152,713,165
Distributions to shareholders from net investment income:
Series I		—			(10,820,715	)
Series ll		—			(1,482,765	)
Total distributions from net investment income		—			(12,303,480	)
Distributions to shareholders from net realized gains:
Series l		—			(54,200,882	)
Series ll		—			(9,654,814	)
Total distributions from net realized gains		—			(63,855,696	)
Share transactions–net:
Series l		(81,629,879	)		(44,176,644	)
Series ll		(162,361,326	)		(888,493	)
Net increase (decrease) in net assets resulting from share transactions		(243,991,205	)		(45,065,137	)
Net increase (decrease) in net assets		(250,392,435	)		31,488,852
Net assets:
Beginning of period		1,244,784,778			1,213,295,926
End of period (includes undistributed net investment income of $12,887,697 and $8,498,127, respectively)	$	994,392,343		$	1,244,784,778

Notes to Financial Statements

June 30, 2018

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

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

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

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

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

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

Invesco V.I. Core Equity 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 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 accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

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

Invesco V.I. Core Equity Fund

For the six months ended June 30, 2018, 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 Canada Ltd. and separate sub-advisory agreements with Invesco Capital Management LLC, formerly Invesco PowerShares Capital Management LLC, and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2019, 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, 2019. 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, 2020, 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, 2018, the Adviser waived advisory fees of $72,283.

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, 2018, Invesco was paid $132,333 for accounting and fund administrative services and was reimbursed $774,860 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, 2018, 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. The fees are accrued daily and paid monthly. 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, 2018, 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, 2018. 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

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period. During the six months ended June 30, 2018, there were no material transfers between valuation levels.

	Level 1		Level 2		Level 3		Total
Investments in Securities
Common Stocks & Other Equity Interests	$	888,655,777	$	19,330,814	$	—	$	907,986,591
Money Market Funds		94,420,921		—		—		94,420,921
Total Investments	$	983,076,698	$	19,330,814	$	—	$	1,002,407,512

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, 2017.

NOTE 7—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2018 was $263,724,383 and $426,978,395, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$228,663,521
Aggregate unrealized (depreciation) of investments	(25,196,754	)
Net unrealized appreciation of investments	$203,466,767

Cost of investments for tax purposes is $798,940,745.

Invesco V.I. Core Equity Fund

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended June 30, 2018(a)						Year ended December 31, 2017
	Shares			Amount			Shares			Amount
Sold:
Series I		281,015		$	10,403,002			1,051,421		$	37,861,752
Series II		64,232			2,368,274			212,324			7,514,897
Issued as reinvestment of dividends:
Series I		—			—			1,829,018			65,021,597
Series II		—			—			317,853			11,137,579
Reacquired:
Series I		(2,474,754	)		(92,032,881	)		(4,043,650	)		(147,059,993	)
Series II		(4,662,749	)		(164,729,600	)		(544,318	)		(19,540,969	)
Net increase (decrease) in share activity		(6,792,256	)	$	(243,991,205	)		(1,177,352	)	$	(45,065,137	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 60% 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 06/30/18	$	36.72	$	0.15	$	(0.28	)	$	(0.13	)	$	—		$	—		$	—		$	36.59		(0.35	)%	$	970,868		0.79	%(d)		0.80	%(d)		0.80	%(d)		26	%
Year ended 12/31/17		34.58		0.27		4.21			4.48			(0.39	)		(1.95	)		(2.34	)		36.72		13.17			1,054,802		0.79			0.80			0.74			30
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
Series II
Six Months Ended 06/30/18		36.18		0.10		(0.27	)		(0.17	)		—			—			—			36.01		(0.47	)		23,524		1.04	(d)		1.05	(d)		0.55	(d)		26
Year ended 12/31/17		34.11		0.18		4.14			4.32			(0.30	)		(1.95	)		(2.25	)		36.18		12.87			189,982		1.04			1.05			0.49			30
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

^(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 $1,025,160 and $113,354 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, 2018 through June 30, 2018.

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 (01/01/18)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/18)1		Expenses Paid During Period2		Ending Account Value (06/30/18)		Expenses Paid During Period2
Series I	$	1,000.00	$	996.50	$	3.91	$	1,020.88	$	3.96		0.79	%
Series II		1,000.00		995.30		5.15		1,019.64		5.21		1.04

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2018 through June 30, 2018, 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

At meetings held on June 5-6, 2018, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Core Equity Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate Sub-Advisory Contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2018. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’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 detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider. 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 throughout the year, 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 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 6, 2018.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, 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, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also reviewed and considered the benefits to shareholders of investing in a fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by

Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries 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 investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2017 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 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 Board noted that the Fund’s defensive positioning, including its underweight exposure to certain securities and sectors and its cash position, contributed to the Fund’s relative underperformance. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s

Invesco V.I. Core Equity Fund

Broadridge expense group. 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 non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. 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 considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. 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 differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including management of cash flows as a result of redemptions and purchases, necessary infrastructure such as officers, office space, technology, legal and distribution, oversight of service providers, costs and business risks associated with launching new funds and sponsoring and maintaining the product line, preparation of annual registration statement updates and financial information and compliance with federal and state laws and regulations.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds. The Board noted that the Fund may also benefit from

economies of scale through initial fee setting, fee waivers and expense reimbursements.

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 considered the methodology used for calculating profitability and noted the periodic review of such methodology by an independent consultant. 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, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers 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 administrative, 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 Invesco representing 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 an affiliated broker receives commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Core Equity Fund

	Semiannual Report to Shareholders	June 30, 2018
	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 (or any successor Form). The Fund’s Form N-Q (or any successor Form) filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q (or any successor Form) 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 (or any successor Form), 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            07192018      0756

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/17 to 6/30/18, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-2.51	%
Series II Shares	-2.68
Bloomberg Barclays U.S. Aggregate Bond Index▼ (Broad Market/Style-Specific Index)	-1.62
Lipper VUF Core Plus Bond Funds Index∎ (Peer Group Index)	-1.84
Source(s): ▼FactSet Research Systems Inc.; ∎Lipper Inc.

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

    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.

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 0.62% and 0.87%, 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 1.60% and 1.85%, 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.

Average Annual Total Returns As of 6/30/18
Series I Shares
Inception (5/5/93)	4.26	%
10 Years	4.05
5 Years	4.10
1 Year	-0.80
Series II Shares
Inception (3/14/02)	3.74	%
10 Years	3.78
5 Years	3.80
1 Year	-1.25

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, 2019. 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, 2020. See current prospectus for more information.

Invesco V.I. Core Plus Bond Fund

Schedule of Investments^(a)

June 30, 2018

(Unaudited)

	Principal Amount		Value
Bonds & Notes–63.19%
Advertising–0.02%
Lamar Media Corp., Sr. Unsec. Gtd. Global Notes, 5.75%, 02/01/2026	$	4,000	$	4,055
Aerospace & Defense–0.35%
BBA U.S. Holdings, Inc., Sr. Unsec. Notes, 5.38%, 05/01/2026(b)		2,000		2,013
Bombardier Inc. (Canada), Sr. Unsec. Notes,
6.13%, 01/15/2023(b)		2,000		2,015
7.50%, 03/15/2025(b)		4,000		4,185
Moog Inc., Sr. Unsec. Gtd. Notes, 5.25%, 12/01/2022(b)		2,000		2,045
Spirit AeroSystems, Inc., Sr. Unsec. Gtd. Global Notes,
3.95%, 06/15/2023		19,000		19,112
4.60%, 06/15/2028		26,000		26,208
TransDigm Inc., Sr. Unsec. Gtd. Sub. Global Notes,
6.50%, 07/15/2024		2,000		2,040
6.50%, 05/15/2025		3,000		3,041
				60,659
Agricultural & Farm Machinery–0.03%
Titan International, Inc., Sr. Sec. Gtd. First Lien Notes, 6.50%, 11/30/2023(b)		5,000		5,000
Air Freight & Logistics–0.01%
XPO Logistics, Inc., Sr. Unsec. Gtd. Notes, 6.50%, 06/15/2022(b)		2,000		2,058
Airlines–4.76%
Air Canada Pass Through Trust (Canada),
Series 2017-1, Class A, Sec. Pass Through Ctfs., 3.55%, 07/15/2031(b)		37,000		35,526
Series 2017-1, Class B, Sec. Pass Through Ctfs., 3.70%, 07/15/2027(b)		39,000		37,228
Series 2017-1, Class AA, Sec. Pass Through Ctfs., 3.30%, 07/15/2031(b)		38,000		36,666
American Airlines Pass Through Trust,
Series 2015-2, Class B, Sec. Third Lien Pass Through Ctfs., 4.40%, 03/22/2025		27,566		27,367
Series 2016-1, Class AA, Sr. Sec. First Lien Pass Through Ctfs., 3.58%, 01/15/2028		29,700		28,912
Series 2016-3, Class B, Sec. Third Lien Pass Through Ctfs., 3.75%, 04/15/2027		33,453		32,398
Series 2017-1, Class A, Sec. Second Lien Pass Through Ctfs., 4.00%, 08/15/2030		24,986		24,674
Series 2017-1, Class B, Sec. Third Lien Pass Through Ctfs., 4.95%, 08/15/2026		33,615		34,150
Series 2017-1, Class AA, Sr. Sec. First Lien Pass Through Ctfs., 3.65%, 08/15/2030		40,362		39,387
Series 2017-2, Class A, Sec. Second Lien Pass Through Ctfs., 3.60%, 04/15/2031		46,000		44,909
Series 2017-2, Class B, Sec. Third Lien Pass Through Ctfs., 3.70%, 04/15/2027		36,000		34,789

	Principal Amount		Value
Airlines–(continued)
Delta Air Lines, Inc., Sr. Unsec. Global Notes,
2.88%, 03/13/2020	$	27,000	$	26,832
3.63%, 03/15/2022		45,000		44,518
3.80%, 04/19/2023		24,000		23,735
4.38%, 04/19/2028		38,000		36,695
LATAM Airlines Group S.A. Pass Through Trust (Chile), Series 2015-1, Class A, Sec. Global Pass Through Ctfs., 4.20%, 08/15/2029		101,765		96,758
United Airlines Pass Through Trust,
Series 2014-2, Class B, Sec. Second Lien Pass Through Ctfs., 4.63%, 09/03/2022		38,240		38,360
Series 2016-1, Class B, Sec. Third Lien Pass Through Ctfs., 3.65%, 07/07/2027		37,000		36,044
Series 2016-2, Class B, Sec. Third Lien Pass Through Ctfs., 3.65%, 04/07/2027		41,159		39,443
Series 2018-1, Class A, Sec. Second Lien Pass Through Ctfs., 3.70%, 09/01/2031		62,000		60,614
Series 2018-1, Class AA, Sr. Sec. First Lien Pass Through Ctfs., 3.50%, 09/01/2031		58,000		56,413
US Airways Pass Through Trust, Series��2012-1, Class B, Sec. Second Lien Pass Through Ctfs., 8.00%, 04/01/2021		667		702
				836,120
Alternative Carriers–0.05%
CenturyLink, Inc.,
Series S, Sr. Unsec. Notes, 6.45%, 06/15/2021		2,000		2,066
Series Y, Sr. Unsec. Global Notes, 7.50%, 04/01/2024		1,000		1,030
Level 3 Financing, Inc., Sr. Unsec. Gtd. Global Notes, 5.38%, 05/01/2025		5,000		4,825
				7,921
Aluminum–0.02%
Novelis Corp., Sr. Unsec. Gtd. Notes,
5.88%, 09/30/2026(b)		2,000		1,920
6.25%, 08/15/2024(b)		2,000		2,005
				3,925
Apparel Retail–0.24%
L Brands, Inc., Sr. Unsec. Gtd. Global Notes,
5.63%, 02/15/2022		39,000		39,780
6.88%, 11/01/2035		2,000		1,790
				41,570
Apparel, Accessories & Luxury Goods–0.02%
Hanesbrands Inc., Sr. Unsec. Gtd. Notes, 4.88%, 05/15/2026(b)		3,000		2,910

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
Asset Management & Custody Banks–1.01%
Blackstone Holdings Finance Co. LLC, Sr. Unsec. Gtd. Notes, 5.00%, 06/15/2044(b)	$	90,000	$	95,097
Carlyle Holdings II Finance LLC, Sr. Unsec. Gtd. Notes, 5.63%, 03/30/2043(b)		75,000		77,549
Prime Security Services Borrower, LLC/Prime Finance, Inc., Sec. Gtd. Second Lien Notes, 9.25%, 05/15/2023(b)		5,000		5,350
				177,996
Auto Parts & Equipment–0.07%
Dana Inc., Sr. Unsec. Notes, 5.50%, 12/15/2024		5,000		4,963
Delphi Technologies PLC, Sr. Unsec. Gtd. Notes, 5.00%, 10/01/2025(b)		1,000		956
Flexi-Van Leasing, Inc., Sec. Second Lien Notes, 10.00%, 02/15/2023(b)		4,000		3,790
Hertz Corp. (The), Sec. Gtd. Second Lien Notes, 7.63%, 06/01/2022(b)		2,000		1,925
				11,634
Automobile Manufacturers–0.25%
General Motors Financial Co., Inc., Sr. Unsec. Gtd. Notes, 3.15%, 01/15/2020		39,000		38,947
J.B. Poindexter & Co., Inc., Sr. Unsec. Bonds, 7.13%, 04/15/2026(b)		4,000		4,120
				43,067
Automotive Retail–0.29%
Advance Auto Parts, Inc., Sr. Unsec. Gtd. Notes, 5.75%, 05/01/2020		12,000		12,523
Lithia Motors, Inc., Sr. Unsec. Gtd. Notes, 5.25%, 08/01/2025(b)		2,000		1,955
Murphy Oil USA, Inc., Sr. Unsec. Gtd. Global Notes, 5.63%, 05/01/2027		2,000		1,962
O’Reilly Automotive, Inc., Sr. Unsec. Global Notes, 4.35%, 06/01/2028		33,000		32,880
Penske Automotive Group Inc., Sr. Unsec. Sub. Gtd. Notes, 5.50%, 05/15/2026		2,000		1,965
				51,285
Brewers–1.28%
Anheuser-Busch InBev Finance, Inc. (Belgium), Sr. Unsec. Gtd. Global Notes, 3.65%, 02/01/2026		55,000		53,914
Anheuser-Busch InBev Worldwide Inc. (Belgium), Sr. Unsec. Gtd. Global Notes,
4.38%, 04/15/2038		28,000		27,253
4.60%, 04/15/2048		23,000		22,642
Maple Escrow Subsidiary, Inc., Sr. Unsec. Gtd. Notes,
3.55%, 05/25/2021(b)		53,000		53,079
4.06%, 05/25/2023(b)		38,000		38,183
4.42%, 05/25/2025(b)		10,000		10,063
4.99%, 05/25/2038(b)		20,000		20,177
				225,311

	Principal Amount		Value
Broadcasting–0.10%
Clear Channel Worldwide Holdings, Inc., Series B, Sr. Unsec. Gtd. Sub. Global Notes, 7.63%, 03/15/2020	$	6,000	$	5,987
Netflix, Inc.,
Sr. Unsec. Global Notes, 5.75%, 03/01/2024		3,000		3,090
Sr. Unsec. Notes, 5.88%, 11/15/2028(b)		2,000		2,029
Nexstar Broadcasting, Inc., Sr. Unsec. Gtd. Notes, 5.63%, 08/01/2024(b)		4,000		3,865
Tribune Media Co., Sr. Unsec. Gtd. Global Notes, 5.88%, 07/15/2022		3,000		3,043
				18,014
Building Products–0.51%
Gibraltar Industries Inc., Sr. Unsec. Gtd. Sub. Global Notes, 6.25%, 02/01/2021		2,000		2,020
Standard Industries Inc., Sr. Unsec. Notes,
4.75%, 01/15/2028(b)		43,000		39,668
5.00%, 02/15/2027(b)		3,000		2,805
Toll Brothers Finance Corp., Sr. Unsec. Gtd. Notes, 4.35%, 02/15/2028		48,000		43,140
William Lyon Homes Inc., Sr. Unsec. Notes, 6.00%, 09/01/2023(b)		2,000		1,984
				89,617
Cable & Satellite–0.73%
CCO Holdings LLC/CCO Holdings Capital Corp.,
Sr. Unsec. Global Notes, 5.75%, 09/01/2023		2,000		2,020
Sr. Unsec. Notes, 5.75%, 02/15/2026(b)		6,000		5,910
Charter Communications Operating, LLC/Charter Communications Operating Capital Corp., Sr. Sec. Gtd. First Lien Global Notes,
5.38%, 04/01/2038		25,000		23,672
5.75%, 04/01/2048		30,000		29,124
6.83%, 10/23/2055		27,000		29,028
CSC Holdings LLC, Sr. Unsec. Global Notes, 6.75%, 11/15/2021		7,000		7,350
Discovery Communications LLC, Sr. Unsec. Gtd. Global Notes, 5.20%, 09/20/2047		15,000		14,592
DISH DBS Corp., Sr. Unsec. Gtd. Global Notes, 5.88%, 11/15/2024		8,000		6,800
Intelsat Jackson Holdings S.A. (Luxembourg),
Sr. Unsec. Gtd. Global Bonds, 5.50%, 08/01/2023		6,000		5,398
Sr. Unsec. Gtd. Global Notes, 7.50%, 04/01/2021		2,000		1,995
Sirius XM Radio Inc., Sr. Unsec. Gtd. Notes, 6.00%, 07/15/2024(b)		2,000		2,042
				127,931

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
Casinos & Gaming–0.12%
Boyd Gaming Corp.,
Sr. Unsec. Gtd. Global Notes, 6.88%, 05/15/2023	$	4,000	$	4,205
Sr. Unsec. Gtd. Notes, 6.00%, 08/15/2026(b)		2,000		1,983
MGM Resorts International, Sr. Unsec. Gtd. Notes, 7.75%, 03/15/2022		5,000		5,462
Pinnacle Entertainment, Inc., Sr. Unsec. Global Notes, 5.63%, 05/01/2024		3,000		3,129
Scientific Games International Inc., Sr. Unsec. Gtd. Global Notes, 10.00%, 12/01/2022		2,000		2,138
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., Sr. Unsec. Gtd. Notes, 5.50%, 03/01/2025(b)		5,000		4,925
				21,842
Coal & Consumable Fuels–0.01%
SunCoke Energy Partners, L.P./ SunCoke Energy Partners Finance Corp., Sr. Unsec. Gtd. Notes, 7.50%, 06/15/2025(b)		2,000		2,045
Commodity Chemicals–0.03%
Nufarm Australia Ltd./Nufarm Americas Inc. (Australia), Sr. Unsec. Gtd. Notes, 5.75%, 04/30/2026(b)		2,000		1,942
Valvoline Inc., Sr. Unsec. Gtd. Global Notes, 5.50%, 07/15/2024		4,000		4,050
				5,992
Communications Equipment–0.08%
CommScope Technologies LLC, Sr. Unsec. Gtd. Notes, 6.00%, 06/15/2025(b)		6,000		6,157
Hughes Satellite Systems Corp.,
Sr. Sec. Gtd. First Lien Global Notes, 5.25%, 08/01/2026		2,000		1,883
Sr. Unsec. Gtd. Global Notes, 7.63%, 06/15/2021		5,000		5,337
				13,377
Construction Machinery & Heavy Trucks–0.06%
Meritor Inc., Sr. Unsec. Gtd. Notes, 6.25%, 02/15/2024		3,000		3,037
Oshkosh Corp., Sr. Unsec. Gtd. Global Notes, 5.38%, 03/01/2025		3,000		3,090
Terex Corp., Sr. Unsec. Gtd. Notes, 5.63%, 02/01/2025(b)		4,000		3,985
				10,112
Construction Materials–0.13%
Martin Marietta Materials, Inc., Sr. Unsec. Global Notes, 4.25%, 12/15/2047		27,000		23,473
Consumer Finance–0.27%
Ally Financial Inc., Sr. Unsec. Global Notes,
4.63%, 03/30/2025		2,000		1,978
5.13%, 09/30/2024		3,000		3,060
Sr. Unsec. Gtd. Global Notes, 8.00%, 03/15/2020		2,000		2,142

	Principal Amount		Value
Consumer Finance–(continued)
Capital One Financial Corp., Sr. Unsec. Global Notes, 3.05%, 03/09/2022	$	35,000	$	34,323
Discover Financial Services, Inc., Series C, Jr. Unsec. Sub. Global Notes, 5.50%(c)		2,000		1,955
Navient Corp., Sr. Unsec. Medium-Term Notes,
7.25%, 01/25/2022		2,000		2,100
8.00%, 03/25/2020		2,000		2,115
				47,673
Copper–0.34%
First Quantum Minerals Ltd. (Zambia), Sr. Unsec. Gtd. Notes, 7.00%, 02/15/2021(b)		2,000		2,024
Freeport-McMoRan Inc., Sr. Unsec. Gtd. Global Notes, 5.40%, 11/14/2034		4,000		3,650
Lundin Mining Corp. (Chile), Sr. Sec. Gtd. First Lien Notes, 7.88%, 11/01/2022(b)		33,000		34,716
Southern Copper Corp. (Peru), Sr. Unsec. Global Notes, 5.88%, 04/23/2045		18,000		19,207
				59,597
Data Processing & Outsourced Services–0.02%
First Data Corp., Sr. Unsec. Gtd. Notes, 7.00%, 12/01/2023(b)		4,000		4,176
Distillers & Vintners–0.04%
Constellation Brands, Inc., Sr. Unsec. Gtd. Global Notes, 3.60%, 02/15/2028		7,000		6,627
Diversified Banks–7.43%
Bank of America Corp.,
Sr. Unsec. Global Notes, 3.71%, 04/24/2028		25,000		24,129
Sr. Unsec. Medium-Term Global Notes, 3.59%, 07/21/2028		50,000		47,773
Series Z, Jr. Unsec. Sub. Notes, 6.50%(c)		85,000		90,419
Series DD, Jr. Unsec. Sub. Notes, 6.30%(c)		30,000		31,794
Series FF, Jr. Unsec. Sub. Notes, 5.88%(c)		20,000		19,575
BBVA Bancomer S.A. (Mexico), Unsec. Sub. Notes, 6.75%, 09/30/2022(b)		150,000		160,239
BNP Paribas S.A. (France), Unsec. Sub. Notes, 4.38%, 03/01/2033(b)		58,000		54,467
Citigroup Inc., Sr. Unsec. Global Notes,
2.88%, 07/24/2023		20,000		19,298
3.67%, 07/24/2028		75,000		71,383
Series Q, Jr. Unsec. Sub. Global Notes, 5.95%(c)		40,000		41,275
Series T, Jr. Unsec. Sub. Global Notes, 6.25%(c)		30,000		31,163
Corp. Andina de Fomento (Supranational), Sr. Unsec. Global Notes, 4.38%, 06/15/2022		50,000		51,849
HSBC Holdings PLC (United Kingdom),
Jr. Unsec. Sub. Global Bonds, 6.00%(c)		200,000		186,000
Sr. Unsec. Global Notes, 4.00%, 03/30/2022		45,000		45,669

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 Banks–(continued)
JPMorgan Chase & Co., Sr. Unsec. Global Notes,
3.54%, 05/01/2028	$	17,000	$	16,288
3.78%, 02/01/2028		35,000		34,125
Sr. Unsec. Medium-Term Global Bonds, 2.30%, 08/15/2021		65,000		62,820
Unsec. Sub. Global Notes, 3.63%, 12/01/2027		35,000		32,977
Series I, Jr. Unsec. Sub. Global Variable Rate Notes, 5.83% (3 mo. USD LIBOR + 3.47%)(c)(d)		30,000		30,324
Series V, Jr. Unsec. Sub. Global Notes, 5.00%(c)		40,000		40,250
Series W, Jr. Unsec. Sub. Global Floating Rate Notes, 3.34% (3 mo. USD LIBOR + 1.00%), 05/15/2047(d)		65,000		57,606
Series CC, Jr. Unsec. Sub. Global Notes, 4.63%(c)		50,000		46,000
Royal Bank of Scotland Group PLC (United Kingdom), Unsec. Sub. Global Notes, 6.00%, 12/19/2023		5,000		5,251
Wells Fargo & Co.,
Unsec. Sub. Medium-Term Notes, 4.75%, 12/07/2046		25,000		24,228
Series U, Jr. Unsec. Sub. Global Notes, 5.88%(c)		45,000		46,462
Westpac Banking Corp. (Australia), Jr. Unsec. Sub. Global Bonds, 5.00%(c)		40,000		34,551
				1,305,915
Diversified Chemicals–0.05%
Chemours Co. (The), Sr. Unsec. Gtd. Global Notes,
6.63%, 05/15/2023		5,000		5,250
7.00%, 05/15/2025		2,000		2,155
Trinseo Materials Operating S.C.A./Trinseo Materials Finance, Inc., Sr. Unsec. Gtd. Notes, 5.38%, 09/01/2025(b)		2,000		1,987
				9,392
Diversified Metals & Mining–0.04%
HudBay Minerals, Inc. (Canada), Sr. Unsec. Gtd. Notes, 7.63%, 01/15/2025(b)		4,000		4,210
Teck Resources Ltd. (Canada), Sr. Unsec. Notes, 6.13%, 10/01/2035		2,000		2,020
				6,230
Diversified REITs–1.12%
CyrusOne L.P./CyrusOne Finance Corp., Sr. Unsec. Gtd. Global Notes, 5.00%, 03/15/2024		2,000		2,005
Trust F/1401 (Mexico), Sr. Unsec. Notes, 5.25%, 01/30/2026(b)		200,000		195,500
				197,505
Diversified Support Services–0.01%
Jaguar Holding Co. II/Pharmaceutical Product Development, LLC, Sr. Unsec. Gtd. Notes, 6.38%, 08/01/2023(b)		2,000		1,995

	Principal Amount		Value
Drug Retail–0.84%
CVS Pass Through Trust, Sr. Sec. First Lien Mortgage Pass Through Ctfs., 5.77%, 01/10/2033(b)	$	138,220	$	147,606
Electric Utilities–0.32%
Duke Energy Florida, LLC, Sr. Sec. First Mortgage Global Bonds, 4.20%, 07/15/2048		23,000		23,214
Southern Co. (The), Series B, Jr. Unsec. Sub. Global Notes, 5.50%, 03/15/2057		32,000		32,979
				56,193
Electronic Equipment & Instruments–0.20%
Itron, Inc., Sr. Unsec. Gtd. Notes, 5.00%, 01/15/2026(b)		6,000		5,713
Trimble Inc., Sr. Unsec. Global Notes, 4.90%, 06/15/2028		30,000		29,994
				35,707
Electronic Manufacturing Services–0.08%
Jabil, Inc., Sr. Unsec. Global Notes, 3.95%, 01/12/2028		15,000		14,188
Environmental & Facilities Services–0.06%
Advanced Disposal Services, Inc., Sr. Unsec. Gtd. Notes, 5.63%, 11/15/2024(b)		2,000		1,995
Core & Main LP, Sr. Unsec. Notes, 6.13%, 08/15/2025(b)		3,000		2,857
Hulk Finance Corp. (Canada), Sr. Unsec. Notes, 7.00%, 06/01/2026(b)		2,000		1,920
Waste Pro USA, Inc., Sr. Unsec. Notes, 5.50%, 02/15/2026(b)		2,000		1,928
Wrangler Buyer Corp., Sr. Unsec. Notes, 6.00%, 10/01/2025(b)		2,000		1,900
				10,600
Financial Exchanges & Data–1.98%
Moody’s Corp.,
Sr. Unsec. Global Bonds, 5.50%, 09/01/2020		110,000		115,151
Sr. Unsec. Global Notes,
2.75%, 07/15/2019		45,000		44,904
4.88%, 02/15/2024		138,000	��	144,995
5.25%, 07/15/2044		35,000		39,663
MSCI Inc., Sr. Unsec. Gtd. Notes, 5.75%, 08/15/2025(b)		3,000		3,105
				347,818
Food Distributors–0.02%
US Foods, Inc., Sr. Unsec. Gtd. Notes, 5.88%, 06/15/2024(b)		4,000		4,090
Food Retail–0.04%
Albertsons Cos. LLC/ Safeway Inc./New Albertson’s L.P./Albertson’s LLC, Sr. Unsec. Gtd. Global Notes, 6.63%, 06/15/2024		6,000		5,685
Ingles Markets, Inc., Sr. Unsec. Global Notes, 5.75%, 06/15/2023		2,000		1,980
				7,665

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
Gas Utilities–0.05%
AmeriGas Partners, L.P./AmeriGas Finance Corp., Sr. Unsec. Global Notes,
5.63%, 05/20/2024	$	4,000	$	3,955
5.88%, 08/20/2026		2,000		1,960
Suburban Propane Partners, L.P./Suburban Energy Finance Corp., Sr. Unsec. Global Notes, 5.50%, 06/01/2024		2,000		1,950
				7,865
General Merchandise Stores–0.12%
Dollar Tree, Inc., Sr. Unsec. Global Notes, 4.00%, 05/15/2025		21,000		20,550
Health Care Distributors–0.25%
AmerisourceBergen Corp., Sr. Unsec. Global Notes, 4.30%, 12/15/2047		49,000		43,508
Health Care Equipment–0.32%
Hill-Rom Holdings, Inc., Sr. Unsec. Gtd. Notes, 5.00%, 02/15/2025(b)		2,000		1,950
Teleflex Inc., Sr. Unsec. Gtd. Global Notes, 4.63%, 11/15/2027		17,000		16,129
Zimmer Biomet Holdings, Inc., Sr. Unsec. Global Floating Rate Notes, 3.08% (3 mo. USD LIBOR + 0.75%), 03/19/2021(d)		38,000		38,068
				56,147
Health Care Facilities–0.61%
Acadia Healthcare Co., Inc., Sr. Unsec. Gtd. Global Notes, 6.50%, 03/01/2024		2,000		2,060
Community Health Systems, Inc., Sr. Sec. Gtd. First Lien Notes, 6.25%, 03/31/2023		6,000		5,520
Encompass Health Corp., Sr. Unsec. Gtd. Global Notes, 5.75%, 09/15/2025		2,000		2,030
HCA, Inc.,
Sr. Sec. Gtd. First Lien Global Notes, 6.50%, 02/15/2020		19,000		19,831
Sr. Sec. Gtd. First Lien Notes,
5.25%, 04/15/2025		4,000		4,010
5.50%, 06/15/2047		62,000		57,040
Sr. Unsec. Gtd. Notes, 5.88%, 02/15/2026		8,000		8,090
LifePoint Health, Inc., Sr. Unsec. Gtd. Global Notes, 5.38%, 05/01/2024		2,000		1,933
Tenet Healthcare Corp.,
Sec. Gtd. Second Lien Notes, 7.50%, 01/01/2022(b)		2,000		2,087
Sr. Unsec. Global Notes,
6.75%, 06/15/2023		2,000		1,998
8.13%, 04/01/2022		2,000		2,095
				106,694
Health Care REITs–0.78%
HCP, Inc., Sr. Unsec. Global Notes, 4.00%, 12/01/2022		71,000		71,366
MPT Operating Partnership L.P./MPT Finance Corp., Sr. Unsec. Gtd. Global Notes, 5.00%, 10/15/2027		4,000		3,830

	Principal Amount		Value
Health Care REITs–(continued)
Physicians Realty L.P., Sr. Unsec. Gtd. Global Notes, 4.30%, 03/15/2027	$	20,000	$	19,344
Senior Housing Properties Trust, Sr. Unsec. Notes, 6.75%, 12/15/2021		40,000		42,872
				137,412
Health Care Services–1.21%
AMN Healthcare, Inc., Sr. Unsec. Gtd. Notes, 5.13%, 10/01/2024(b)		2,000		1,945
CVS Health Corp., Sr. Unsec. Global Notes,
3.70%, 03/09/2023		35,000		34,681
4.30%,��03/25/2028		107,000		105,712
4.78%, 03/25/2038		53,000		52,554
DaVita Inc., Sr. Unsec. Gtd. Global Notes, 5.00%, 05/01/2025		2,000		1,888
Eagle Holding Co. II, LLC, Sr. Unsec. PIK Notes, 8.38% PIK Rate, 7.63% Cash Rate, 05/15/2022(b)(e)		2,000		2,025
Envision Healthcare Corp., Sr. Unsec. Gtd. Notes, 6.25%, 12/01/2024(b)		2,000		2,140
Heartland Dental, LLC, Sr. Unsec. Notes, 8.50%, 05/01/2026(b)		4,000		3,900
MPH Acquisition Holdings LLC, Sr. Unsec. Gtd. Notes, 7.13%, 06/01/2024(b)		4,000		4,110
Surgery Center Holdings, Inc., Sr. Unsec. Gtd. Notes,
6.75%, 07/01/2025(b)		2,000		1,907
8.88%, 04/15/2021(b)		1,000		1,034
				211,896
Home Entertainment Software–0.23%
Electronic Arts Inc., Sr. Unsec. Global Notes, 3.70%, 03/01/2021		40,000		40,398
Homebuilding–0.98%
Ashton Woods USA LLC/Ashton Woods Finance Co., Sr. Unsec. Notes, 6.88%, 02/15/2021(b)		2,000		2,020
Beazer Homes USA, Inc., Sr. Unsec. Gtd. Global Notes,
6.75%, 03/15/2025		3,000		2,880
8.75%, 03/15/2022		3,000		3,195
KB Home, Sr. Unsec. Gtd. Notes, 7.50%, 09/15/2022		3,000		3,250
Lennar Corp., Sr. Unsec. Gtd. Global Notes, 8.38%, 01/15/2021		2,000		2,195
MDC Holdings, Inc., Sr. Unsec. Gtd. Notes, 6.00%, 01/15/2043		174,000		152,319
Meritage Homes Corp., Sr. Unsec. Gtd. Global Notes, 7.15%, 04/15/2020		2,000		2,120
SRS Distribution Inc., Sr. Unsec. Gtd. Notes, 8.25%, 07/01/2026(b)		2,000		1,990
Taylor Morrison Communities Inc./ Taylor Morrison Holdings II, Inc., Sr. Unsec. Gtd. Notes, 5.88%, 04/15/2023(b)		3,000		3,000
				172,969

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
Hotel & Resort REITs–0.20%
Host Hotels & Resorts L.P., Series F, Sr. Unsec. Global Notes, 4.50%, 02/01/2026	$	35,000	$	35,018
Hotels, Resorts & Cruise Lines–0.30%
Royal Caribbean Cruises Ltd., Sr. Unsec. Global Notes, 3.70%, 03/15/2028		57,000		52,727
Household Products–0.25%
Reynolds Group Issuer Inc./LLC,
Sr. Sec. Gtd. First Lien Global Notes, 5.75%, 10/15/2020		35,857		36,036
Sr. Unsec. Gtd. Notes, 7.00%, 07/15/2024(b)		6,000		6,139
Spectrum Brands, Inc., Sr. Unsec. Gtd. Global Notes, 5.75%, 07/15/2025		2,000		1,985
				44,160
Hypermarkets & Super Centers–0.12%
Walmart Inc., Sr. Unsec. Global Notes,
3.95%, 06/28/2038		10,000		10,013
4.05%, 06/29/2048		11,000		11,036
				21,049
Independent Power Producers & Energy Traders–0.05%
AES Corp. (The), Sr. Unsec. Notes, 5.50%, 04/15/2025		5,000		5,062
NRG Energy, Inc., Sr. Unsec. Gtd. Global Notes, 6.25%, 05/01/2024		2,000		2,060
Vistra Energy Corp., Sr. Unsec. Gtd. Global Notes, 7.38%, 11/01/2022		2,000		2,095
				9,217
Industrial Machinery–0.12%
Cleaver-Brooks, Inc., Sr. Sec. Notes, 7.88%, 03/01/2023(b)		8,000		8,260
Mueller Industries, Inc., Unsec. Sub. Deb., 6.00%, 03/01/2027		1,000		985
Mueller Water Products Inc., Sr. Unsec. Notes, 5.50%, 06/15/2026(b)		12,000		12,120
				21,365
Insurance Brokers–0.01%
HUB International Ltd., Sr. Unsec. Notes, 7.00%, 05/01/2026(b)		2,000		1,980
Integrated Oil & Gas–0.51%
Petrobras Global Finance B.V. (Brazil), Sr. Unsec. Gtd. Global Notes, 5.75%, 02/01/2029		4,000		3,522
Petróleos Mexicanos (Mexico),
Sr. Unsec. Gtd. Global Bonds, 6.63%, 06/15/2035		23,000		22,569
Sr. Unsec. Gtd. Global Notes, 6.50%, 03/13/2027		23,000		23,558
Sr. Unsec. Notes, 6.35%, 02/12/2048(b)		43,000		39,130
				88,779

	Principal Amount		Value
Integrated Telecommunication Services–1.60%
AT&T Inc., Sr. Unsec. Global Notes,
5.25%, 03/01/2037	$	35,000	$	34,583
5.70%, 03/01/2057		35,000		34,927
Sr. Unsec. Notes,
4.45%, 04/01/2024		30,000		30,312
5.15%, 02/15/2050(b)		141,000		131,957
Cincinnati Bell Inc., Sr. Unsec. Gtd. Notes, 7.00%, 07/15/2024(b)		2,000		1,835
Telecom Italia Capital S.A. (Italy), Sr. Unsec. Gtd. Global Notes, 7.20%, 07/18/2036		2,000		2,082
Verizon Communications Inc., Sr. Unsec. Global Notes,
4.13%, 08/15/2046		22,000		18,851
4.81%, 03/15/2039		27,000		26,175
				280,722
Internet & Direct Marketing Retail–0.32%
QVC, Inc., Sr. Sec. Gtd. First Lien Global Notes, 5.45%, 08/15/2034		61,000		56,461
Internet Software & Services–0.01%
Rackspace Hosting, Inc., Sr. Unsec. Gtd. Notes, 8.63%, 11/15/2024(b)		2,000		2,015
Investment Banking & Brokerage–1.94%
Cantor Fitzgerald, L.P., Unsec. Notes, 6.50%, 06/17/2022(b)		34,000		36,115
E*TRADE Financial Corp., Series B, Jr. Unsec. Sub. Global Notes, 5.30%(c)		50,000		48,938
Goldman Sachs Group, Inc. (The),
Sr. Unsec. Notes, 3.27%, 09/29/2025		50,000		47,540
Series L, Jr. Unsec. Sub. Notes, 5.70%(c)		55,000		55,839
Series P, Jr. Unsec. Sub. Notes, 5.00%(c)		40,000		37,624
Jefferies Group LLC/Jefferies Group Capital Finance Inc., Sr. Unsec. Global Notes, 4.15%, 01/23/2030		49,000		43,315
Morgan Stanley, Sr. Unsec. Global Notes, 3.59%, 07/22/2028		75,000		71,338
				340,709
Leisure Facilities–0.01%
Six Flags Entertainment Corp., Sr. Unsec. Gtd. Notes, 4.88%, 07/31/2024(b)		2,000		1,948
Leisure Products–0.32%
Mattel, Inc., Sr. Unsec. Global Notes,
2.35%, 05/06/2019		49,000		49,004
5.45%, 11/01/2041		2,000		1,625
Sr. Unsec. Gtd. Notes, 6.75%, 12/31/2025(b)		4,000		3,905
Sr. Unsec. Notes, 6.20%, 10/01/2040		2,000		1,715
				56,249
Life & Health Insurance–3.79%
American Equity Investment Life Holding Co., Sr. Unsec. Global Notes, 5.00%, 06/15/2027		40,000		39,094

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
Life & Health Insurance–(continued)
Athene Holding Ltd., Sr. Unsec. Notes, 4.13%, 01/12/2028	$	90,000	$	83,122
Dai-ichi Life Insurance Co., Ltd. (The) (Japan), Jr. Unsec. Sub. Notes, 4.00%(b)(c)		200,000		187,000
Great-West Lifeco Finance 2018 L.P. (Canada), Sr. Unsec. Gtd. Notes, 4.58%, 05/17/2048(b)		25,000		25,345
MetLife, Inc.,
Series C, Jr. Unsec. Sub. Global Notes, 5.25%(c)		65,000		66,287
Series D, Jr. Unsec. Sub. Global Notes, 5.88%(c)		55,000		55,995
Nationwide Financial Services, Inc., Sr. Unsec. Notes, 5.38%, 03/25/2021(b)		165,000		172,128
Pacific Life Insurance Co., Unsec. Sub. Notes, 4.30%, 10/24/2067(b)		40,000		36,418
				665,389
Life Sciences Tools & Services–0.01%
Charles River Laboratories International, Inc., Sr. Unsec. Gtd. Notes, 5.50%, 04/01/2026(b)		2,000		2,009
Managed Health Care–0.51%
Centene Corp., Sr. Unsec. Notes, 4.75%, 01/15/2025		2,000		1,995
Cigna Corp., Sr. Unsec. Notes, 4.50%, 03/15/2021		45,000		45,975
Molina Healthcare, Inc., Sr. Unsec. Gtd. Notes, 4.88%, 06/15/2025(b)		1,000		975
UnitedHealth Group Inc., Sr. Unsec. Global Notes, 3.75%, 07/15/2025		35,000		35,027
WellCare Health Plans Inc., Sr. Unsec. Notes, 5.25%, 04/01/2025		5,000		4,988
				88,960
Metal & Glass Containers–0.06%
Ball Corp., Sr. Unsec. Gtd. Global Notes, 5.25%, 07/01/2025		3,000		3,071
Berry Global, Inc., Sec. Gtd. Second Lien Global Notes, 6.00%, 10/15/2022		2,000		2,066
Flex Acquisition Co., Inc., Sr. Unsec. Notes, 7.88%, 07/15/2026(b)		4,000		3,995
OI European Group B.V., Sr. Unsec. Gtd. Notes, 4.00%, 03/15/2023(b)		2,000		1,870
				11,002
Movies & Entertainment–0.33%
AMC Entertainment Holdings, Inc., Sr. Unsec. Gtd. Sub. Global Notes, 5.75%, 06/15/2025		3,000		2,951
Time Warner Cable, Inc., Sr. Sec. Gtd. First Lien Global Deb., 6.75%, 07/01/2018		55,000		55,000
				57,951

	Principal Amount		Value
Multi-Line Insurance–1.22%
AIG Global Funding, Sr. Sec. First Lien Notes, 2.70%, 12/15/2021(b)	$	42,000	$	40,936
American Financial Group, Inc., Sr. Unsec. Notes, 3.50%, 08/15/2026		20,000		18,793
Fairfax Financial Holdings Ltd. (Canada), Sr. Unsec. Notes, 4.85%, 04/17/2028(b)		35,000		34,746
Massachusetts Mutual Life Insurance Co., Unsec. Sub. Notes, 4.90%, 04/01/2077(b)		15,000		14,819
Nationwide Mutual Insurance Co., Unsec. Sub. Notes, 4.95%, 04/22/2044(b)		100,000		104,122
				213,416
Multi-Utilities–0.19%
Sempra Energy, Sr. Unsec. Global Notes, 3.80%, 02/01/2038		37,000		33,683
Office REITs–0.36%
Alexandria Real Estate Equities, Inc., Sr. Unsec. Gtd. Global Notes, 3.95%, 01/15/2027		40,000		38,671
Hudson Pacific Properties, L.P., Sr. Unsec. Gtd. Notes, 3.95%, 11/01/2027		27,000		25,284
				63,955
Office Services & Supplies–0.50%
Pitney Bowes Inc., Sr. Unsec. Global Notes,
3.63%, 10/01/2021		55,000		51,978
4.70%, 04/01/2023		39,000		35,197
				87,175
Oil & Gas Drilling–0.06%
Ensco PLC, Sr. Unsec. Global Notes, 7.75%, 02/01/2026		2,000		1,897
Noble Holding International Ltd. (United Kingdom), Sr. Unsec. Gtd. Global Notes, 7.75%, 01/15/2024		2,000		1,905
Precision Drilling Corp. (Canada), Sr. Unsec. Gtd. Global Notes,
5.25%, 11/15/2024		2,000		1,900
6.50%, 12/15/2021		2,000		2,052
Transocean Inc., Sr. Unsec. Gtd. Global Notes, 7.50%, 04/15/2031		2,000		1,865
				9,619
Oil & Gas Equipment & Services–0.04%
Archrock Partners, L.P./Archrock Partners Finance Corp., Sr. Unsec. Gtd. Global Notes, 6.00%, 10/01/2022		2,000		1,990
SESI, L.L.C., Sr. Unsec. Gtd. Global Notes, 7.13%, 12/15/2021		2,000		2,038
Weatherford International Ltd., Sr. Unsec. Gtd. Notes,
6.50%, 08/01/2036		2,000		1,575
8.25%, 06/15/2023		2,000		1,989
				7,592

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 Exploration & Production–0.55%
Antero Resources Corp., Sr. Unsec. Gtd. Global Notes, 5.63%, 06/01/2023	$	2,000	$	2,035
Ascent Resources Utica Holdings, LLC /ARU Finance Corp., Sr. Unsec. Notes, 10.00%, 04/01/2022(b)		2,000		2,210
Callon Petroleum Co., Sr. Unsec. Gtd. Global Notes, 6.13%, 10/01/2024		2,000		2,035
Concho Resources Inc., Sr. Unsec. Gtd. Global Notes, 4.38%, 01/15/2025		52,000		52,262
EP Energy LLC/Everest Acquisition Finance Inc., Sr. Sec. Gtd. First Lien Notes, 8.00%, 11/29/2024(b)		2,000		2,030
Gulfport Energy Corp., Sr. Unsec. Gtd. Global Notes, 6.00%, 10/15/2024		4,000		3,870
Jagged Peak Energy LLC, Sr. Unsec. Gtd. Notes, 5.88%, 05/01/2026(b)		2,000		1,965
Newfield Exploration Co., Sr. Unsec. Global Notes, 5.63%, 07/01/2024		3,000		3,176
Oasis Petroleum Inc., Sr. Unsec. Gtd. Global Notes, 6.88%, 01/15/2023		2,000		2,037
Parsley Energy LLC/Parsley Finance Corp., Sr. Unsec. Gtd. Notes, 6.25%, 06/01/2024(b)		2,000		2,080
QEP Resources, Inc., Sr. Unsec. Global Notes,
5.25%, 05/01/2023		2,000		1,965
5.63%, 03/01/2026		2,000		1,918
Sr. Unsec. Notes, 6.88%, 03/01/2021		2,000		2,135
Range Resources Corp., Sr. Unsec. Gtd. Global Notes, 5.88%, 07/01/2022		2,000		2,035
RSP Permian, Inc., Sr. Unsec. Gtd. Global Notes, 5.25%, 01/15/2025		2,000		2,148
SM Energy Co., Sr. Unsec. Global Notes, 6.13%, 11/15/2022		2,000		2,060
Southwestern Energy Co., Sr. Unsec. Gtd. Global Notes, 7.50%, 04/01/2026		2,000		2,080
Whiting Petroleum Corp., Sr. Unsec. Gtd. Global Notes, 6.25%, 04/01/2023		4,000		4,110
WildHorse Resource Development Corp., Sr. Unsec. Gtd. Global Notes, 6.88%, 02/01/2025		3,000		3,075
WPX Energy Inc., Sr. Unsec. Notes, 5.25%, 09/15/2024		2,000		1,978
				97,204
Oil & Gas Refining & Marketing–0.02%
Parkland Fuel Corp. (Canada), Sr. Unsec. Notes, 6.00%, 04/01/2026(b)		2,000		1,975
Sunoco LP/Sunoco Finance Corp., Sr. Unsec. Gtd. Notes, 4.88%, 01/15/2023(b)		2,000		1,925
				3,900
Oil & Gas Storage & Transportation–7.32%
Abu Dhabi Crude Oil Pipeline LLC (United Arab Emirates), Sr. Sec. Notes, 3.65%, 11/02/2029(b)		200,000		185,545
Antero Midstream Partners LP/Antero Midstream Finance Corp., Sr. Unsec. Gtd. Global Notes, 5.38%, 09/15/2024		2,000		2,025

	Principal Amount		Value
Oil & Gas Storage & Transportation–(continued)
Energy Transfer Equity, L.P., Sr. Sec. First Lien Notes, 5.88%, 01/15/2024	$	4,000	$	4,110
Energy Transfer Partners, L.P.,
Sr. Unsec. Gtd. Global Notes, 4.65%, 06/01/2021		26,000		26,640
Series A, Jr. Unsec. Sub. Global Notes, 6.25%(c)		225,000		208,828
Series B, Jr. Unsec. Sub. Global Notes, 6.63%(c)		106,000		96,924
Enterprise Products Operating LLC,
Series A, Jr. Unsec. Gtd. Sub. Variable Rate Notes, 6.07% (3 mo. USD LIBOR + 3.71%), 08/01/2066(d)		79,000		79,296
Series D, Jr. Unsec. Gtd. Sub. Deb., 4.88%, 08/16/2077		42,000		39,375
EQT Midstream Partners L.P., Sr. Unsec. Global Notes,
4.75%, 07/15/2023		29,000		28,975
5.50%, 07/15/2028		70,000		70,095
Holly Energy Partners L.P./Holly Energy Finance Corp., Sr. Unsec. Gtd. Notes, 6.00%, 08/01/2024(b)		2,000		2,030
MPLX LP,
Sr. Unsec. Global Bonds, 4.50%, 07/15/2023		32,000		32,701
Sr. Unsec. Global Notes,
4.90%, 04/15/2058		20,000		17,823
5.50%, 02/15/2023		92,000		93,854
NGPL PipeCo. LLC,
Sr. Unsec. Bonds, 4.88%, 08/15/2027(b)		23,000		22,799
Sr. Unsec. Notes, 4.38%, 08/15/2022(b)		13,000		12,919
Plains All American Pipeline, L.P., Series B, Jr. Unsec. Sub. Notes, 6.13%(c)		181,000		170,592
SemGroup Corp./ Rose Rock Finance Corp., Sr. Unsec. Gtd. Global Notes, 5.63%, 11/15/2023		2,000		1,895
Targa Resources Partners L.P./Targa Resources Partners Finance Corp.,
Sr. Unsec. Gtd. Global Bonds,
5.13%, 02/01/2025		2,000		1,980
5.25%, 05/01/2023		69,000		69,173
Sr. Unsec. Gtd. Notes, 5.88%, 04/15/2026(b)		2,000		2,018
Western Gas Partners, LP, Sr. Unsec. Notes, 5.30%, 03/01/2048		30,000		27,645
Williams Cos., Inc. (The), Sr. Unsec. Global Notes, 4.55%, 06/24/2024		4,000		4,020
Williams Partners L.P., Sr. Unsec. Notes, 4.13%, 11/15/2020		83,000		84,081
				1,285,343
Other Diversified Financial Services–0.63%
Football Trust V, Sec. Pass Through Ctfs., 5.35%, 10/05/2020(b)		100,000		104,303
Lions Gate Capital Holdings LLC, Sr. Unsec. Gtd. Notes, 5.88%, 11/01/2024(b)		2,000		2,034

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
Other Diversified Financial Services–(continued)
LPL Holdings Inc., Sr. Unsec. Gtd. Notes, 5.75%, 09/15/2025(b)	$	2,000	$	1,950
VFH Parent LLC/Orchestra Co-Issuer Inc., Sec. Gtd. Second Lien Notes, 6.75%, 06/15/2022(b)		2,000		2,077
				110,364
Packaged Foods & Meats–0.42%
B&G Foods, Inc., Sr. Unsec. Gtd. Notes, 5.25%, 04/01/2025		2,000		1,890
JBS USA Lux S.A./JBS USA Finance Inc. (Brazil), Sr. Unsec. Gtd. Notes, 5.75%, 06/15/2025(b)		2,000		1,870
Kraft Heinz Foods Co. (The), Sr. Unsec. Gtd. Global Notes,
4.00%, 06/15/2023		49,000		48,892
4.38%, 06/01/2046		20,000		17,354
Lamb Weston Holdings, Inc., Sr. Unsec. Gtd. Notes, 4.63%, 11/01/2024(b)		4,000		3,910
				73,916
Paper Packaging–0.01%
Plastipak Holdings Inc., Sr. Unsec. Notes, 6.25%, 10/15/2025(b)		2,000		1,850
Paper Products–0.01%
Mercer International Inc. (Canada), Sr. Unsec. Global Notes, 6.50%, 02/01/2024		2,000		2,030
Pharmaceuticals–0.09%
Teva Pharmaceutical Finance IV, B.V. (Israel), Sr. Unsec. Gtd. Global Notes, 3.65%, 11/10/2021		2,000		1,917
Teva Pharmaceutical Finance Netherlands III B.V. (Israel), Sr. Unsec. Gtd. Global Notes, 6.00%, 04/15/2024		1,000		1,000
Valeant Pharmaceuticals International, Inc.,
Sr. Sec. Gtd. First Lien Notes, 5.50%, 11/01/2025(b)		4,000		3,957
Sr. Unsec. Gtd. Notes, 5.63%, 12/01/2021(b)		9,000		8,887
				15,761
Property & Casualty Insurance–0.79%
Allstate Corp. (The), Sr. Unsec. Notes, 4.20%, 12/15/2046		20,000		19,814
Arch Capital Finance LLC, Sr. Unsec. Gtd. Notes, 5.03%, 12/15/2046		22,000		23,080
Liberty Mutual Group Inc., Jr. Unsec. Gtd. Sub. Bonds, 7.80%, 03/07/2087(b)		45,000		53,213
W.R. Berkley Corp., Sr. Unsec. Notes, 7.38%, 09/15/2019		40,000		41,923
				138,030
Publishing–0.28%
Meredith Corp., Sr. Unsec. Gtd. Notes, 6.88%, 02/01/2026(b)		50,000		49,437

	Principal Amount		Value
Railroads–0.21%
CSX Corp., Sr. Unsec. Global Notes, 4.30%, 03/01/2048	$	37,000	$	35,372
Kenan Advantage Group Inc. (The), Sr. Unsec. Notes, 7.88%, 07/31/2023(b)		2,000		2,050
				37,422
Regional Banks–0.91%
CIT Group Inc., Sr. Unsec. Global Notes, 5.00%, 08/01/2023		2,000		2,028
Fifth Third Bancorp, Unsec. Sub. Notes, 4.30%, 01/16/2024		55,000		55,774
First Niagara Financial Group Inc., Unsec. Sub. Notes, 7.25%, 12/15/2021		35,000		38,950
Huntington Bancshares, Inc., Series E, Jr. Unsec. Sub. Global Notes, 5.70%(c)		31,000		30,671
Synovus Financial Corp., Sr. Unsec. Global Notes, 3.13%, 11/01/2022		33,000		31,556
				158,979
Reinsurance–0.18%
Reinsurance Group of America, Inc., Sr. Unsec. Medium-Term Notes, 4.70%, 09/15/2023		30,000		31,040
Residential REITs–0.65%
Essex Portfolio L.P., Sr. Unsec. Gtd. Global Notes, 3.63%, 08/15/2022		115,000		114,518
Restaurants–0.65%
1011778 BC ULC/ New Red Finance, Inc. (Canada),
Sec. Gtd. Second Lien Notes, 5.00%, 10/15/2025(b)		6,000		5,707
Sr. Sec. Gtd. First Lien Notes, 4.63%, 01/15/2022(b)		41,000		41,103
Aramark Services, Inc., Sr. Unsec. Gtd. Notes, 5.00%, 04/01/2025(b)		2,000		1,995
Carrols Restaurant Group, Inc., Sec. Gtd. Second Lien Global Notes, 8.00%, 05/01/2022		2,000		2,090
Darden Restaurants, Inc., Sr. Unsec. Global Notes, 4.55%, 02/15/2048		15,000		13,974
IRB Holding Corp., Sr. Unsec. Gtd. Notes, 6.75%, 02/15/2026(b)		50,000		47,875
KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC, Sr. Unsec. Gtd. Notes, 4.75%, 06/01/2027(b)		2,000		1,895
				114,639
Retail REITs–0.07%
Brixmor Operating Partnership LP, Sr. Unsec. Global Notes, 3.25%, 09/15/2023		13,000		12,466
Security & Alarm Services–0.01%
Brink’s Co. (The), Sr. Unsec. Gtd. Notes, 4.63%, 10/15/2027(b)		2,000		1,855

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
Semiconductors–0.40%
Analog Devices, Inc., Sr. Unsec. Global Notes, 3.13%, 12/05/2023	$	30,000	$	29,153
Marvell Technology Group Ltd., Sr. Unsec. Global Notes, 4.88%, 06/22/2028		40,000		39,764
Micron Technology, Inc., Sr. Unsec. Global Notes, 5.50%, 02/01/2025		2,000		2,093
				71,010
Sovereign Debt–0.71%
Argentine Republic Government International Bond (Argentina), Sr. Unsec. Global Notes,
4.63%, 01/11/2023		59,000		52,135
7.13%, 06/28/2117		1,000		765
Hungary Government International Bond (Hungary), Sr. Unsec. Global Notes, 5.38%, 03/25/2024		28,000		29,794
Mexico Government International Bond (Mexico), Sr. Unsec. Global Notes, 4.00%, 10/02/2023		14,000		14,068
Peruvian Government International Bond (Peru), Sr. Unsec. Global Bonds, 4.13%, 08/25/2027		8,000		8,200
Uruguay Government International Bond (Uruguay), Sr. Unsec. Global Notes, 4.38%, 10/27/2027		20,000		20,313
				125,275
Specialized Consumer Services–0.03%
ServiceMaster Co., LLC (The),
Sr. Unsec. Gtd. Notes, 5.13%, 11/15/2024(b)		2,000		1,945
Sr. Unsec. Notes, 7.45%, 08/15/2027		3,000		3,203
				5,148
Specialized Finance–2.76%
AerCap Global Aviation Trust (Ireland), Jr. Unsec. Gtd. Sub. Notes, 6.50%, 06/15/2045(b)		235,000		243,225
Air Lease Corp., Sr. Unsec. Global Notes,
3.00%, 09/15/2023		64,000		60,657
3.38%, 06/01/2021		60,000		59,714
3.63%, 12/01/2027		35,000		32,001
3.88%, 04/01/2021		85,000		85,671
Aircastle Ltd., Sr. Unsec. Notes,
5.00%, 04/01/2023		2,000		2,017
5.50%, 02/15/2022		2,000		2,062
				485,347
Specialized REITs–1.24%
Crown Castle International Corp., Sr. Unsec. Global Bonds, 3.80%, 02/15/2028		57,000		53,417
Crown Castle Towers LLC, Sr. Sec. Gtd. First Lien Notes, 4.88%, 08/15/2020(b)		120,000		123,134
Equinix Inc., Sr. Unsec. Notes, 5.88%, 01/15/2026		5,000		5,078

	Principal Amount		Value
Specialized REITs–(continued)
GLP Capital L.P./GLP Financing II Inc., Sr. Unsec. Gtd. Notes, 5.38%, 04/15/2026	$	2,000	$	1,985
Iron Mountain Inc., Sr. Unsec. Gtd. Notes, 6.00%, 08/15/2023		2,000		2,050
Iron Mountain US Holdings, Inc., Sr. Unsec. Gtd. Notes, 5.38%, 06/01/2026(b)		2,000		1,910
Rayonier A.M. Products Inc., Sr. Unsec. Gtd. Notes, 5.50%, 06/01/2024(b)		4,000		3,780
Regency Centers, L.P., Sr. Unsec. Gtd. Notes, 4.13%, 03/15/2028		25,000		24,752
SBA Communications Corp., Sr. Unsec. Global Notes, 4.88%, 09/01/2024		2,000		1,918
				218,024
Specialty Chemicals–0.03%
Ashland LLC, Sr. Unsec. Gtd. Global Notes, 4.75%, 08/15/2022		2,000		2,017
Platform Specialty Products Corp., Sr. Unsec. Gtd. Notes, 5.88%, 12/01/2025(b)		4,000		3,915
				5,932
Steel–0.13%
ArcelorMittal (Luxembourg), Sr. Unsec. Global Notes, 7.00%, 10/15/2039		2,000		2,307
Cleveland-Cliffs Inc., Sr. Unsec. Gtd. Global Notes, 5.75%, 03/01/2025		2,000		1,903
Steel Dynamics, Inc., Sr. Unsec. Gtd. Global Notes, 5.13%, 10/01/2021		15,000		15,169
United States Steel Corp., Sr. Unsec. Global Notes, 6.88%, 08/15/2025		3,000		3,033
				22,412
Systems Software–0.40%
Microsoft Corp., Sr. Unsec. Global Notes, 4.25%, 02/06/2047		24,000		25,500
VMware, Inc., Sr. Unsec. Global Notes, 2.30%, 08/21/2020		45,000		44,050
				69,550
Technology Distributors–0.20%
Avnet, Inc., Sr. Unsec. Global Notes, 4.63%, 04/15/2026		35,000		34,533
Technology Hardware, Storage & Peripherals–1.13%
Apple Inc., Sr. Unsec. Global Notes, 4.25%, 02/09/2047		20,000		20,318
Dell International LLC/ EMC Corp.,
Sr. Sec. Gtd. First Lien Notes,
6.02%, 06/15/2026(b)		92,000		96,866
8.35%, 07/15/2046(b)		61,000		73,639
Sr. Unsec. Gtd. Notes, 7.13%, 06/15/2024(b)		6,000		6,362
Diebold Nixdorf, Inc., Sr. Unsec. Gtd. Global Notes, 8.50%, 04/15/2024		2,000		1,923
				199,108

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
Trading Companies & Distributors–0.06%
BMC East, LLC, Sr. Sec. Gtd. First Lien Notes, 5.50%, 10/01/2024(b)	$	4,000	$	3,890
H&E Equipment Services, Inc., Sr. Unsec. Gtd. Global Notes, 5.63%, 09/01/2025		2,000		1,970
Herc Rentals Inc., Sec. Gtd. Second Lien Notes, 7.75%, 06/01/2024(b)		2,000		2,145
United Rentals North America, Inc., Sr. Unsec. Gtd. Notes, 5.50%, 05/15/2027		2,000		1,945
				9,950
Trucking–0.38%
DAE Funding LLC (United Arab Emirates), Sr. Unsec. Gtd. Notes,
4.00%, 08/01/2020(b)		12,000		11,895
4.50%, 08/01/2022(b)		17,000		16,533
Penske Truck Leasing Co., L.P./PTL Finance Corp., Sr. Unsec. Notes, 3.90%, 02/01/2024(b)		39,000		38,607
				67,035
Wireless Telecommunication Services–2.51%
Sprint Communications Inc., Sr. Unsec. Gtd. Notes, 7.00%, 03/01/2020(b)		8,000		8,320
Sprint Corp., Sr. Unsec. Gtd. Global Notes,
7.25%, 09/15/2021		3,000		3,128
7.88%, 09/15/2023		4,000		4,157
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC, Sr. Sec. Gtd. First Lien Notes,
4.74%, 03/20/2025(b)		200,000		198,960
5.15%, 03/20/2028(b)		209,000		205,342
T-Mobile USA, Inc.,
Sr. Unsec. Gtd. Global Notes, 6.38%, 03/01/2025		6,000		6,240
Sr. Unsec. Gtd. Notes, 4.50%, 02/01/2026		16,000		14,960
				441,107
Total Bonds & Notes (Cost $11,315,885)				11,102,665
U.S. Government Sponsored Agency Mortgage-Backed Securities–19.09%
Collateralized Mortgage Obligations–0.17%
Freddie Mac Whole Loan Securities Trust, 3.50%, 05/25/2047		29,653		29,658
Federal Home Loan Mortgage Corp. (FHLMC)–3.58%
Pass Through Ctfs., 6.50%, 07/01/2031 to 08/01/2032		1,438		1,601
Pass Through Ctfs., TBA,
3.50%, 08/01/2048(f)		488,000		484,765
4.00%, 08/01/2048(f)		140,000		142,456
				628,822
Federal National Mortgage Association (FNMA)–12.15%
Pass Through Ctfs.,
5.00%, 11/01/2018		343		349
7.50%, 04/01/2029		1,084		1,157
3.50%, 12/01/2030		50,708		51,438
6.50%, 09/01/2031		831		921
7.00%, 09/01/2032		5,159		5,410

	Principal Amount		Value
Federal National Mortgage Association (FNMA)–(continued)
Pass Through Ctfs., TBA,
2.50%, 08/01/2033(f)	$	291,000	$	282,614
3.00%, 08/01/2033 to 08/01/2048(f)		829,000		811,623
3.50%, 08/01/2033 to 08/01/2048(f)		657,000		655,662
4.00%, 08/01/2048(f)		320,000		325,775
				2,134,949
Government National Mortgage Association (GNMA)–3.19%
Pass Through Ctfs.,
7.50%, 06/15/2023		1,632		1,712
8.50%, 11/15/2024		924		926
7.00%, 07/15/2031 to 08/15/2031		1,022		1,146
6.50%, 11/15/2031 to 03/15/2032		2,391		2,638
6.00%, 11/15/2032		1,182		1,319
Pass Through Ctfs., TBA,
3.00%, 08/01/2048(f)		345,000		337,109
4.00%, 08/01/2048(f)		212,000		216,932
				561,782
Total U.S. Government Sponsored Agency Mortgage-Backed Securities (Cost $3,354,635)				3,355,211
Asset-Backed Securities–11.78%
Adjustable Rate Mortgage Trust, Series 2004-2, Class 6A1, Variable Rate Pass Through Ctfs., 3.89%, 02/25/2035(g)		17,129		17,308
Angel Oak Mortgage Trust LLC, Series 2017-3, Class A1, Variable Rate Pass Through Ctfs., 2.71%, 11/25/2047(b)(g)		37,011		36,857
Banc of America Commercial Mortgage Trust, Series 2015-UBS7, Class AS, Variable Rate Pass Through Ctfs., 3.99%, 09/15/2048(g)		70,000		70,444
CGDBB Commercial Mortgage Trust,
Series 2017-BIOC, Class A, Floating Rate Pass Through Ctfs., 2.86% (1 mo. USD LIBOR + 0.79%), 07/15/2032(b)(d)		100,000		100,125
Series 2017-BIOC, Class C, Floating Rate Pass Through Ctfs., 3.12% (1 mo. USD LIBOR + 1.05%), 07/15/2032(b)(d)		100,000		100,157
Series 2017-BIOC, Class D, Floating Rate Pass Through Ctfs., 3.67% (1 mo. USD LIBOR + 1.60%), 07/15/2032(b)(d)		100,000		100,228
Chase Mortgage Trust,
Series 2016-1, Class M3, Variable Rate Pass Through Ctfs., 3.75%, 04/25/2045(b)(g)		69,107		68,082
Series 2016-2, Class M3, Variable Rate Pass Through Ctfs., 3.75%, 12/25/2045(b)(g)		76,105		74,798
Commercial Mortgage Trust, Series 2015-CR23, Class CMB, Variable Rate Pass Through Ctfs., 3.81%, 05/10/2048(b)(g)		150,000		150,247
Series 2015-CR25, Class B, Variable Rate Pass Through Ctfs., 4.70%, 08/10/2048(g)		72,000		74,824
Series 2016-GCT, Class B, Pass Through Ctfs., 3.09%, 08/10/2029(b)		100,000		98,249

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
Credit Suisse First Boston Mortgage Securities Corp., Series 2004-AR5, Class 3A1, Variable Rate Pass Through Ctfs., 3.86%, 06/25/2034(g)	$	27,216	$	27,552
DB Master Finance LLC, Series 2015-1A, Class A2II, Pass Through Ctfs., 3.98%, 02/20/2045(b)		66,758		67,012
GMACM Mortgage Loan Trust, Series 2006-AR1, Class 1A1, Variable Rate Pass Through Ctfs., 3.83%, 04/19/2036(g)		75,368		70,893
HMH Trust, Series 2017-NSS, Class A, Pass Through Ctfs., 3.06%, 07/05/2031(b)		100,000		97,139
Invitation Homes Trust, Series 2017-SFR2, Class C, Floating Rate Pass Through Ctfs., 3.54% (1 mo. USD LIBOR + 1.45%), 12/17/2036(b)(d)		100,000		100,584
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2013-LC11, Class C, Variable Rate Pass Through Ctfs., 3.96%, 04/15/2046(g)		50,000		49,035
Merrill Lynch Mortgage Investors Trust, Series 2005-3, Class 3A, Variable Rate Pass Through Ctfs., 3.75%, 11/25/2035(g)		19,055		19,230
Morgan Stanley Capital I Trust,
Series 2006-HQ10, Class AJ, Variable Rate Pass Through Ctfs., 5.39%, 11/12/2041(g)		14,875		14,850
Series 2017-CLS, Class A, Floating Rate Pass Through Ctfs., 2.77% (1 mo. USD LIBOR + 0.70%), 11/15/2034(b)(d)		99,000		98,940
Series 2017-CLS, Class B, Floating Rate Pass Through Ctfs., 2.92% (1 mo. USD LIBOR + 0.85%), 11/15/2034(b)(d)		49,000		48,986
Series 2017-CLS, Class C, Floating Rate Pass Through Ctfs., 3.07% (1 mo. USD LIBOR + 1.00%), 11/15/2034(b)(d)		33,000		32,990
Starwood Waypoint Homes Trust, Series 2017-1, Class D, Floating Rate Pass Through Ctfs., 4.04% (1 mo. USD LIBOR + 1.95%), 01/17/2035(b)(d)		100,000		100,744
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-12, Class 3A2, Variable Rate Pass Through Ctfs., 3.74%, 09/25/2034(g)		20,505		20,340
Structured Asset Securities Corp., Series 2003-34A, Class 5A5, Variable Rate Pass Through Ctfs., 3.99%, 11/25/2033(g)		82,086		82,736
Thornburg Mortgage Securities Trust,
Series 2005-1, Class A3, Variable Rate Pass Through Ctfs., 3.38%, 04/25/2045(g)		72,235		72,845
Series 2005-2, Class A1, Variable Rate Pass Through Ctfs., 3.42%, 07/25/2045(g)		32,640		31,913
Towd Point Mortgage Trust, Series 2017-2, Class A1, Variable Rate Pass Through Ctfs., 2.75%, 04/25/2057(b)(g)		74,709		73,578

	Principal Amount		Value
Wells Fargo Mortgage Backed Securities Trust, Series 2004-Z, Class 2A1, Variable Rate Pass Through Ctfs., 3.74%, 12/25/2034(g)	$	27,758	$	28,372
Wendys Funding LLC, Series 2018-1A, Class A2II, Pass Through Ctfs., 3.88%, 03/15/2048(b)		59,700		58,488
WFRBS Commercial Mortgage Trust, Series 2012-C6, Class B, Pass Through Ctfs., 4.70%, 04/15/2045		80,000		82,325
Total Asset-Backed Securities (Cost $2,080,921)				2,069,871
U.S. Treasury Securities–3.61%
U.S. Treasury Bills–0.14%
1.59%, 07/26/2018(h)(i)		25,000		24,971
U.S. Treasury Notes–2.59%
2.63%, 06/15/2021		12,900		12,902
2.75%, 05/31/2023		116,000		116,118
2.88%, 05/31/2025		103,300		103,689
2.88%, 05/15/2028		220,900		221,275
				453,984
U.S. Treasury Bonds–0.88%
3.00%, 02/15/2048		154,600		154,993
Total U.S. Treasury Securities (Cost $632,513)				633,948
	Shares
Preferred Stocks–1.15%
Diversified Banks–0.02%
Wells Fargo & Co., Class A, Series L, $75.00 Conv. Pfd.		3		3,778
Investment Banking & Brokerage–0.78%
Morgan Stanley, Series F, 6.88% Pfd.		5,000		136,900
Regional Banks–0.04%
SunTrust Banks, Inc., Series G, 5.05% Pfd.		7,000		6,886
Reinsurance–0.31%
Reinsurance Group of America, Inc., 6.20% Pfd.		2,000		54,600
Total Preferred Stocks (Cost $185,862)				202,164
	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		63,393

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
Variable Rate Senior Loan Interests–0.34%(j)
Food Retail–0.34%
Albertson’s LLC, Term Loan B-4, 4.73% (1 mo. USD LIBOR + 2.75%), 08/25/2021 (Cost $58,286)	$	60,390	$	59,896
	Shares
Common Stocks & Other Equity Interests–0.00%
Broadcasting–0.00%
Adelphia Recovery Trust–Series ACC-1(k)		87,412		44
Diversified Support Services–0.00%
ACC Claims Holdings, LLC(l)		73,980		666
Total Common Stocks & Other Equity Interests (Cost $22,180)				710

	Shares		Value
Money Market Funds–17.41%
Invesco Government & Agency Portfolio–Institutional Class, 1.80%(m)		1,070,523	$	1,070,523
Invesco Liquid Assets Portfolio–Institutional Class, 2.02%(m)		764,511		764,740
Invesco Treasury Portfolio–Institutional Class, 1.76%(m)		1,223,454		1,223,454
Total Money Market Funds (Cost $3,058,644)				3,058,717
TOTAL INVESTMENTS IN SECURITIES–116.93% (Cost $20,758,926)				20,546,575
OTHER ASSETS LESS LIABILITIES–(16.93)%				(2,974,965	)
NET ASSETS–100.00%			$	17,571,610

Investment Abbreviations:

Conv.	– Convertible
Ctfs.	– Certificates
Deb.	– Debentures
Gtd.	– Guaranteed
Jr.	– Junior
LIBOR	– London Interbank Offered Rate
mo.	– month
Pfd.	– Preferred
PIK	– Pay-in-Kind

RB	– Revenue Bonds
REIT	– Real Estate Investment Trust
Sec.	– Secured
Sr.	– Senior
Sub.	– Subordinated
TBA	– To Be Announced
Unsec.	– Unsecured
USD	– U.S. Dollar

Notes to Schedule of Investments:

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

^(b)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2018 was $5,074,594, which represented 28.88% of the Fund’s Net Assets.

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

^(d)  Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2018.

^(e)  All or a portion of this security is Pay-in-Kind. Pay-in-Kind securities pay interest income in the form of securities.

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

^(g)  Interest rate is redetermined periodically based on the cash flows generated by the pool of assets backing the security, less any applicable fees. The rate shown is the rate in effect on June 30, 2018.

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

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

^(j)  Variable rate senior loan interests are, at present, not readily marketable, not registered under the 1933 Act, and may be subject to contractual and legal restrictions on sale. Variable rate senior loan interests in the Fund’s portfolio generally have variable rates which adjust to a base, such as the 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.

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

^(l)  Non-income producing security.

^(m)  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, 2018.

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

Invesco V.I. Core Plus Bond Fund

Portfolio Composition

By security type, based on Net Assets

as of June 30, 2018

Bonds & Notes	63.2	%
U.S. Government Sponsored Agency Mortgage-Backed Securities	19.1
Asset-Backed Securities	11.8
U.S. Treasury Securities	3.6
Preferred Stocks	1.1
Security Types Each Less Than 1% of Portfolio	0.7
Money Market Funds Plus Other Assets Less Liabilities	0.5

Open Futures Contracts
	Number of Contracts		Expiration Month		Notional Value			Value			Unrealized Appreciation (Depreciation)
Long Futures Contracts
U.S. Treasury 2 Year Notes		4		September-2018	$	847,313		$	241		$	241
U.S. Treasury 5 Year Notes		3		September-2018		340,852			563			563
U.S. Treasury 10 Year Notes		9		September-2018		1,081,687			(435	)		(435	)
U.S. Treasury Long Bonds		3		September-2018		435,000			9,274			9,274
U.S. Treasury Ultra Bonds		3		September-2018		478,687			12,087			12,087
Subtotal — Long Futures Contracts									21,730			21,730
Short Futures Contracts
U.S. Treasury 10 Year Ultra Bonds		9		September-2018		(1,154,109	)		(10,008	)		(10,008	)
Total Futures Contracts — Interest Rate Risk								$	11,722		$	11,722

Open Forward Foreign Currency Contracts — Currency Risk
Settlement Date	Counterparty	Contract to						Unrealized Appreciation
		Deliver			Receive
08/31/2018	Barclays Bank PLC		EUR	101,288		USD	119,324	$	474

Abbreviations:

EUR	– Euro
USD	– U.S. Dollar

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, 2018

(Unaudited)

Statement of Operations

For the six months ended June 30, 2018

(Unaudited)

Assets:
Investments in securities, at value (Cost $17,700,282)	$	17,487,858
Investments in affiliated money market funds, at value (Cost $3,058,644)		3,058,717
Other investments:
Unrealized appreciation on forward foreign currency contracts outstanding		474
Foreign currencies, at value (Cost $121,113)		119,217
Receivable for:
Investments sold		3,426,968
Dividends and interest		162,809
Fund expenses absorbed		5,929
Principal paydowns		153
Investment for trustee deferred compensation and retirement plans		61,806
Other assets		16,465
Total assets		24,340,396
Liabilities:
Other investments:
Variation margin payable — futures contracts		202
Payable for:
Investments purchased		6,665,236
Fund shares reacquired		1,506
Accrued fees to affiliates		948
Accrued trustees’ and officers’ fees and benefits		4,112
Accrued other operating expenses		32,862
Trustee deferred compensation and retirement plans		63,920
Total liabilities		6,768,786
Net assets applicable to shares outstanding	$	17,571,610
Net assets consist of:
Shares of beneficial interest	$	17,092,423
Undistributed net investment income		890,335
Undistributed net realized gain (loss)		(209,097	)
Net unrealized appreciation (depreciation)		(202,051	)
	$	17,571,610
Net Assets:
Series I	$	17,453,086
Series II	$	118,524
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		2,806,195
Series II		19,165
Series I:
Net asset value and offering price per share	$	6.22
Series II:
Net asset value per share	$	6.18

Investment income:
Interest	$	353,001
Dividends		5,950
Dividends from affiliated money market funds		22,798
Total investment income		381,749
Expenses:
Advisory fees		41,099
Administrative services fees		38,449
Custodian fees		7,209
Distribution fees — Series II		149
Transfer agent fees		4,654
Trustees’ and officers’ fees and benefits		10,904
Reports to shareholders		5,490
Professional services fees		25,361
Other		16,500
Total expenses		149,815
Less: Fees waived and expenses reimbursed		(95,771	)
Net expenses		54,044
Net investment income		327,705
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		(125,018	)
Foreign currencies		(323	)
Forward foreign currency contracts		2,003
Futures contracts		(86,130	)
		(209,468	)
Change in net unrealized appreciation (depreciation) of:
Investment securities		(615,354	)
Foreign currencies		(2,950	)
Forward foreign currency contracts		2,796
Futures contracts		15,532
		(599,976	)
Net realized and unrealized gain (loss)		(809,444	)
Net increase (decrease) in net assets resulting from operations	$	(481,739	)

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, 2018 and the year ended December 31, 2017

(Unaudited)

	June 30, 2018			December 31, 2017
Operations:
Net investment income	$	327,705		$	609,394
Net realized gain (loss)		(209,468	)		195,564
Change in net unrealized appreciation (depreciation)		(599,976	)		201,684
Net increase (decrease) in net assets resulting from operations		(481,739	)		1,006,642
Distributions to shareholders from net investment income:
Series I		—			(647,374	)
Series ll		—			(3,900	)
Total distributions from net investment income		—			(651,274	)
Share transactions–net:
Series l		(2,394,606	)		4,488,700
Series ll		(972	)		(6,224	)
Net increase (decrease) in net assets resulting from share transactions		(2,395,578	)		4,482,476
Net increase (decrease) in net assets		(2,877,317	)		4,837,844
Net assets:
Beginning of period		20,448,927			15,611,083
End of period (includes undistributed net investment income of $890,335 and $562,630, respectively)	$	17,571,610		$	20,448,927

Notes to Financial Statements

June 30, 2018

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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 investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

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

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

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

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

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

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

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

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

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. 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.

L. Futures Contracts — The Fund may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between Counterparties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Fund currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Fund recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss)

Invesco V.I. Core Plus Bond Fund

on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.

M. 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.

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

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $500 million		0	.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, 2018, 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 Capital Management LLC, formerly Invesco PowerShares Capital Management LLC, and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least April 30, 2019, 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, 2019. 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, 2020, 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, 2018, the Adviser waived advisory fees of $41,099 and reimbursed Fund expenses of $54,672.

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

Invesco V.I. Core Plus Bond Fund

responding to inquiries from variable product owners about the Fund. Pursuant to such agreement, for the six months ended June 30, 2018, Invesco was paid $24,795 for accounting and fund administrative services and was reimbursed $13,654 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, 2018, 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. The fees are accrued daily and paid monthly. 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, 2018, 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, 2018. 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.

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period. During the six months ended June 30, 2018, there were no material transfers between valuation levels.

	Level 1			Level 2		Level 3		Total
Investments in Securities
Bonds & Notes	$	—		$	11,102,665	$	—	$	11,102,665
U.S. Government Sponsored Agency Mortgage-Backed Securities		—			3,355,211		—		3,355,211
Asset-Backed Securities		—			2,069,871		—		2,069,871
U.S. Treasury Securities		—			633,948		—		633,948
Preferred Stocks		195,278			6,886		—		202,164
Municipal Obligations		—			63,393		—		63,393
Variable Rate Senior Loan Interests		—			59,896		—		59,896
Common Stocks & Other Equity Interests		44			666		—		710
Money Market Funds		3,058,717			—		—		3,058,717
Total Investments in Securities		3,254,039			17,292,536		—		20,546,575
Other Investments — Assets*
Forward Foreign Currency Contracts		—			474		—		474
Futures Contracts		22,165			—		—		22,165
		22,165			474		—		22,639
Other Investments — Liabilities*
Futures Contracts		(10,443	)		—		—		(10,443	)
		(10,443	)		—		—		(10,443	)
Total Other Investments		11,722			474		—		12,196
Total Investments	$	3,265,761		$	17,293,010	$	—	$	20,558,771

* Unrealized appreciation (depreciation).

Invesco V.I. Core Plus Bond Fund

NOTE 4—Derivative Investments

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

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

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of June 30, 2018:

Derivative Assets	Currency Risk		Interest Rate Risk			Total
Unrealized appreciation on futures contracts — Exchange-Traded(a)	$	—	$	22,165		$	22,165
Unrealized appreciation on forward foreign currency contracts outstanding		474		—			474
Total Derivative Assets		474		22,165			22,639
Derivatives not subject to master netting agreements		—		(22,165	)		(22,165	)
Total Derivative Assets subject to master netting agreements	$	474	$	—		$	474
Derivative Liabilities	Currency Risk		Interest Rate Risk			Total
Unrealized depreciation on futures contracts — Exchange-Traded(a)	$	—	$	(10,443	)	$	(10,443	)
Derivatives not subject to master netting agreements		—		10,443			10,443
Total Derivative Liabilities subject to master netting agreements	$	—	$	—		$	—

^(a)  The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities.

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, 2018.

	Financial Derivative Assets		Financial Derivative Liabilities				Collateral (Received)/Pledged
Counterparty	Forward Foreign Currency Contracts		Forward Foreign Currency Contracts		Net Value of Derivatives		Non-Cash		Cash		Net Amount
Barclays Bank PLC	$	474	$	—	$	474	$	—	$	—	$	474

Effect of Derivative Investments for the six months ended June 30, 2018

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

	Location of Gain (Loss) on Statement of Operations
	Currency Risk		Interest Rate Risk			Total
Realized Gain (Loss):
Forward foreign currency contracts	$	2,003	$	—		$	2,003
Futures contracts		—		(86,130	)		(86,130	)
Change in Net Unrealized Appreciation:
Forward foreign currency contracts		2,796		—			2,796
Futures contracts		—		15,532			15,532
Total	$	4,799	$	(70,598	)	$	(65,799	)

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	$	162,196	$	3,426,917

Invesco V.I. Core Plus Bond 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 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 did not have a capital loss carryforward as of December 31, 2017.

NOTE 8—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2018 was $26,433,969 and $26,784,416, respectively. During the same period, purchases and sales of U.S. Treasury obligations were $6,044,297 and $6,597,953, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	189,423
Aggregate unrealized (depreciation) of investments		(386,885	)
Net unrealized appreciation (depreciation) of investments	$	(197,462	)

Cost of investments for tax purposes is $20,756,233.

Invesco V.I. Core Plus Bond Fund

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended June 30, 2018(a)						Year ended December 31, 2017
	Shares			Amount			Shares			Amount
Sold:
Series I		239,172		$	1,504,136			1,139,378		$	7,342,799
Series II		—			—			2			14
Issued as reinvestment of dividends:
Series I		—			—			101,948			647,374
Series II		—			—			568			3,588
Reacquired:
Series I		(620,819	)		(3,898,742	)		(545,804	)		(3,501,473	)
Series II		(157	)		(972	)		(1,551	)		(9,826	)
Net increase (decrease) in share activity		(381,804	)	$	(2,395,578	)		694,541		$	4,482,476

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 82% 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 06/30/18	$	6.38	$	0.11	$	(0.27	)	$	(0.16	)	$	—		$	6.22		(2.51	)%	$	17,453		0.59	%(d)		1.64	%(d)		3.59	%(d)		178	%
Year ended 12/31/17		6.21		0.22		0.17			0.39			(0.22	)		6.38		6.34			20,326		0.60			1.58			3.46			407
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
Series II
Six months ended 06/30/18		6.35		0.10		(0.27	)		(0.17	)		—			6.18		(2.68	)		119		0.84	(d)		1.89	(d)		3.34	(d)		178
Year ended 12/31/17		6.19		0.20		0.16			0.36			(0.20	)		6.35		5.89			123		0.85			1.83			3.21			407
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

^(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 $18,298 and $120 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, 2018 through June 30, 2018.

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 (01/01/18)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/18)1		Expenses Paid During Period2		Ending Account Value (06/30/18)		Expenses Paid During Period2
Series I	$	1,000.00	$	974.90	$	2.89	$	1,021.87	$	2.96		0.59	%
Series II		1,000.00		973.20		4.11		1,020.63		4.21		0.84

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2018 through June 30, 2018, 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

At meetings held on June 5-6, 2018, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Core Plus Bond Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate Sub-Advisory Contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2018. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’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 detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider. 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 throughout the year, 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 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 6, 2018.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, 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, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also reviewed and considered the benefits to shareholders of investing in a fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by

Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries 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 investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2017 to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds 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 and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was reasonably comparable to the median contractual management fee rate of funds in its expense

Invesco V.I. Core Plus Bond Fund

group. The Board noted that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. 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 considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. 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 differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including management of cash flows as a result of redemptions and purchases, necessary infrastructure such as officers, office space, technology, legal and distribution, oversight of service providers, costs and business risks associated with launching new funds and sponsoring and maintaining the product line, preparation of annual registration statement updates and financial information and compliance with federal and state laws and regulations.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements.

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 considered the methodology used for calculating profitability and noted the periodic review of such methodology by an independent consultant. 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 received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers 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 administrative, 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

	Semiannual Report to Shareholders	June 30, 2018
	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 (or any successor Form). The Fund’s Form N-Q (or any successor Form) filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q (or any successor Form) 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 (or any successor Form), 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             07132018      1256

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/17 to 6/30/18, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-2.13	%
Series II Shares	-2.30
S&P 500 Index▼ (Broad Market Index)	2.65
Russell 1000 Value Index▼ (Style-Specific Index)	-1.69
Lipper VUF Large-Cap Value Funds Index∎ (Peer Group Index)	-1.48
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.

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 0.66% and 0.91%, respectively.¹ The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Series I and Series II shares was 0.67% and 0.92%, 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.

Average Annual Total Returns As of 6/30/18
Series I Shares
Inception (3/1/90)	8.01	%
10 Years	8.01
5 Years	9.71
1 Year	2.75
Series II Shares
Inception (6/5/00)	5.43	%
10 Years	7.74
5 Years	9.44
1 Year	2.50

    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 reim- bursements by the adviser in effect through at least June 30, 2020. See current prospectus for more information.

Invesco V.I. Diversified Dividend Fund

Schedule of Investments^(a)

June 30, 2018

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–90.98%
Aerospace & Defense–1.51%
General Dynamics Corp.		34,535	$	6,437,669
Raytheon Co.		14,525		2,805,940
				9,243,609
Air Freight & Logistics–1.22%
United Parcel Service, Inc.–Class B		70,208		7,458,196
Apparel Retail–1.16%
TJX Cos., Inc. (The)		74,288		7,070,732
Apparel, Accessories & Luxury Goods–0.81%
Columbia Sportswear Co.		40,035		3,662,002
Tapestry, Inc.		27,241		1,272,427
				4,934,429
Asset Management & Custody Banks–0.43%
Federated Investors, Inc.–Class B		112,843		2,631,499
Brewers–1.67%
Heineken N.V. (Netherlands)		101,957		10,221,444
Consumer Finance–1.72%
American Express Co.		107,113		10,497,074
Data Processing & Outsourced Services–1.35%
Automatic Data Processing, Inc.		61,731		8,280,596
Electric Utilities–10.88%
American Electric Power Co., Inc.		126,688		8,773,144
Duke Energy Corp.		116,190		9,188,305
Entergy Corp.		154,722		12,499,990
Exelon Corp.		387,690		16,515,594
PPL Corp.		434,451		12,403,576
SSE PLC (United Kingdom)		403,491		7,209,130
				66,589,739
Electrical Components & Equipment–2.50%
ABB Ltd. (Switzerland)		314,931		6,872,004
Emerson Electric Co.		100,951		6,979,752
nVent Electric PLC (United Kingdom)(b)		57,230		1,436,473
				15,288,229
Fertilizers & Agricultural Chemicals–0.78%
Nutrien Ltd. (Canada)		88,269		4,801,855
Food Distributors–1.56%
Sysco Corp.		139,968		9,558,415
General Merchandise Stores–1.63%
Target Corp.		130,663		9,946,068
Health Care Equipment–0.64%
Stryker Corp.		23,146		3,908,434

	Shares		Value
Household Products–3.39%
Kimberly-Clark Corp.		85,708	$	9,028,481
Procter & Gamble Co. (The)		150,148		11,720,553
				20,749,034
Housewares & Specialties–0.05%
Newell Brands, Inc.		11,709		301,975
Human Resource & Employment Services–0.39%
Robert Half International, Inc.		37,003		2,408,895
Industrial Conglomerates–1.04%
Siemens AG (Germany)		48,190		6,371,055
Industrial Machinery–1.89%
Flowserve Corp.		225,408		9,106,483
Pentair PLC (United Kingdom)		58,692		2,469,760
				11,576,243
Integrated Oil & Gas–5.59%
Royal Dutch Shell PLC–Class B (United Kingdom)		127,558		4,562,733
Suncor Energy, Inc. (Canada)		380,806		15,496,403
TOTAL S.A. (France)		232,539		14,139,797
				34,198,933
Integrated Telecommunication Services–5.59%
AT&T Inc.		603,178		19,368,043
BT Group PLC (United Kingdom)		2,485,773		7,145,415
Deutsche Telekom AG (Germany)		497,608		7,721,874
				34,235,332
Motorcycle Manufacturers–0.94%
Harley-Davidson, Inc.		136,891		5,760,373
Multi-Line Insurance–2.71%
Hartford Financial Services Group, Inc. (The)		323,908		16,561,416
Multi-Utilities–5.05%
Consolidated Edison, Inc.		121,727		9,492,271
Dominion Energy, Inc.		172,382		11,753,005
Sempra Energy		82,983		9,635,156
				30,880,432
Oil & Gas Equipment & Services–0.95%
Baker Hughes, a GE Co.		175,897		5,809,878
Oil & Gas Exploration & Production–2.24%
ConocoPhillips		196,507		13,680,817
Packaged Foods & Meats–7.89%
Campbell Soup Co.		213,077		8,638,142
Danone S.A. (France)		55,392		4,060,263
General Mills, Inc.		366,417		16,217,616
Kraft Heinz Co. (The)		110,101		6,916,545

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–(continued)
Mondelez International, Inc.–Class A		195,006	$	7,995,246
Nestle S.A. (Switzerland)		57,812		4,475,619
				48,303,431
Paper Packaging–2.24%
Avery Dennison Corp.		27,399		2,797,438
International Paper Co.		130,953		6,820,032
Sonoco Products Co.		78,344		4,113,060
				13,730,530
Personal Products–1.23%
L’Oreal S.A. (France)		30,634		7,557,554
Pharmaceuticals–6.68%
Bayer AG (Germany)		59,379		6,541,933
Bristol-Myers Squibb Co.		195,597		10,824,338
Eli Lilly and Co.		120,933		10,319,213
Johnson & Johnson		43,592		5,289,453
Merck & Co., Inc.		129,920		7,886,144
				40,861,081
Property & Casualty Insurance–1.19%
Travelers Cos., Inc. (The)		59,685		7,301,863
Regional Banks–7.30%
Cullen/Frost Bankers, Inc.		36,496		3,950,327
Fifth Third Bancorp		236,370		6,783,819
KeyCorp		233,653		4,565,579
M&T Bank Corp.		66,096		11,246,234
PNC Financial Services Group, Inc. (The)		57,697		7,794,865
Zions Bancorp.		196,214		10,338,516
				44,679,340

	Shares		Value
Restaurants–0.76%
Darden Restaurants, Inc.		43,662	$	4,674,454
Soft Drinks–2.63%
Coca-Cola Co. (The)		366,565		16,077,541
Specialized REITs–1.72%
Weyerhaeuser Co.		288,820		10,530,377
Tobacco–1.65%
Altria Group, Inc.		76,122		4,322,968
Philip Morris International Inc.		71,242		5,752,079
				10,075,047
Total Common Stocks & Other Equity Interests (Cost $441,067,718)				556,755,920
Money Market Funds–9.15%
Invesco Government & Agency Portfolio–Institutional Class, 1.80%(c)		20,717,199		20,717,199
Invesco Liquid Assets Portfolio–Institutional Class, 2.02%(c)		14,850,863		14,855,318
Invesco Treasury Portfolio–Institutional Class, 1.76%(c)		20,400,733		20,400,733
Total Money Market Funds (Cost $55,971,078)				55,973,250
TOTAL INVESTMENTS IN SECURITIES–100.13% (Cost $497,038,796)				612,729,170
OTHER ASSETS LESS LIABILITIES–(0.13)%				(815,746	)
NET ASSETS–100.00%			$	611,913,424

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, 2018.

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

Invesco V.I. Diversified Dividend Fund

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2018

Consumer Staples	20.0	%
Utilities	15.9
Financials	13.4
Energy	8.8
Industrials	8.6
Health Care	7.3
Telecommunication Services	5.6
Consumer Discretionary	5.3
Materials	3.0
Real Estate	1.7
Information Technology	1.4
Money Market Funds Plus Other Assets Less Liabilities	9.0

Open Forward Foreign Currency Contracts
Settlement Date	Counterparty	Contract to						Unrealized Appreciation (Depreciation)
		Deliver			Receive
08/24/2018	RBC Capital Markets Corp.		USD	165,087		EUR	141,549	$	914
Subtotal — Appreciation									914
08/24/2018	CIBC World Markets Corp.		EUR	6,452,319		USD	7,551,730		(15,179	)
08/24/2018	Merrill Lynch International		EUR	6,505,274		USD	7,613,434		(15,578	)
08/24/2018	RBC Capital Markets Corp.		EUR	27,454		USD	31,937		(260	)
08/24/2018	State Street Bank and Trust Co.		EUR	6,452,319		USD	7,554,710		(12,198	)
Subtotal — Depreciation									(43,215	)
Total Forward Foreign Currency Contracts — Currency Risk								$	(42,301	)

Currency Abbreviations:

EUR	– Euro
USD	– U.S. Dollar

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, 2018

(Unaudited)

Statement of Operations

For the six months ended June 30, 2018

(Unaudited)

Assets:
Investments in securities, at value (Cost $441,067,718)	$	556,755,920
Investments in affiliated money market funds, at value (Cost $55,971,078)		55,973,250
Other investments:
Unrealized appreciation on forward foreign currency contracts outstanding		914
Foreign currencies, at value (Cost $296,281)		301,231
Receivable for:
Investments sold		1,406,742
Fund shares sold		29,402
Dividends		1,205,965
Investment for trustee deferred compensation and retirement plans		87,636
Other assets		2,233
Total assets		615,763,293
Liabilities:
Other investments:
Unrealized depreciation on forward foreign currency contracts outstanding		43,215
Payable for:
Investments purchased		2,799,316
Fund shares reacquired		516,538
Accrued fees to affiliates		336,623
Accrued trustees’ and officers’ fees and benefits		5,214
Accrued other operating expenses		24,757
Trustee deferred compensation and retirement plans		124,206
Total liabilities		3,849,869
Net assets applicable to shares outstanding	$	611,913,424
Net assets consist of:
Shares of beneficial interest	$	441,561,478
Undistributed net investment income		20,353,667
Undistributed net realized gain		34,349,563
Net unrealized appreciation		115,648,716
	$	611,913,424
Net Assets:
Series I	$	382,774,697
Series II	$	229,138,727
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		14,392,185
Series II		8,683,531
Series I:
Net asset value per share	$	26.60
Series II:
Net asset value per share	$	26.39

Investment income:
Dividends (net of foreign withholding taxes of $256,073)	$	8,988,362
Dividends from affiliated money market funds		470,652
Total investment income		9,459,014
Expenses:
Advisory fees		1,487,645
Administrative services fees		469,473
Custodian fees		30,733
Distribution fees — Series II		291,095
Transfer agent fees		14,964
Trustees’ and officers’ fees and benefits		14,778
Reports to shareholders		3,793
Professional services fees		26,388
Other		4,112
Total expenses		2,342,981
Less: Fees waived		(37,043	)
Net expenses		2,305,938
Net investment income		7,153,076
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		14,114,098
Foreign currencies		(19,200	)
Forward foreign currency contracts		414,722
		14,509,620
Change in net unrealized appreciation (depreciation) of:
Investment securities		(36,901,499	)
Foreign currencies		(1,758	)
Forward foreign currency contracts		459,697
		(36,443,560	)
Net realized and unrealized gain (loss)		(21,933,940	)
Net increase (decrease) in net assets resulting from operations	$	(14,780,864	)

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, 2018 and the year ended December 31, 2017

(Unaudited)

	June 30, 2018			December 31, 2017
Operations:
Net investment income	$	7,153,076		$	13,317,506
Net realized gain		14,509,620			23,965,217
Change in net unrealized appreciation (depreciation)		(36,443,560	)		17,403,668
Net increase (decrease) in net assets resulting from operations		(14,780,864	)		54,686,391
Distributions to shareholders from net investment income:
Series I		—			(7,270,269	)
Series ll		—			(3,521,736	)
Total distributions from net investment income		—			(10,792,005	)
Distributions to shareholders from net realized gains:
Series l		—			(14,902,165	)
Series ll		—			(8,103,670	)
Total distributions from net realized gains		—			(23,005,835	)
Share transactions–net:
Series l		(45,071,729	)		(16,772,830	)
Series ll		(7,951,182	)		20,130,628
Net increase (decrease) in net assets resulting from share transactions		(53,022,911	)		3,357,798
Net increase (decrease) in net assets		(67,803,775	)		24,246,349
Net assets:
Beginning of period		679,717,199			655,470,850
End of period (includes undistributed net investment income of $20,353,667 and $13,200,591, respectively)	$	611,913,424		$	679,717,199

Notes to Financial Statements

June 30, 2018

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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”).

Invesco V.I. Diversified Dividend 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. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

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

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

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

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

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

Invesco V.I. Diversified Dividend 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 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 accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets	Rate
First $250 million		0	.545%
Next $750 million		0	.42%
Next $1 billion		0	.395%
Over $2 billion		0	.37%

Invesco V.I. Diversified Dividend Fund

For the six months ended June 30, 2018, 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 Capital Management LLC, formerly Invesco PowerShares Capital Management LLC, and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2019, 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, 2019. 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, 2020, 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, 2018, the Adviser waived advisory fees of $37,043.

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, 2018, Invesco was paid $75,460 for accounting and fund administrative services and was reimbursed $394,013 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, 2018, 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. The fees are accrued daily and paid monthly. 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, 2018, 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.

Invesco V.I. Diversified Dividend Fund

The following is a summary of the tiered valuation input levels, as of June 30, 2018. 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.

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period. During the six months ended June 30, 2018, there were transfers from Level 1 to Level 2 of $17,430,573 and from Level 2 to Level 1 of $20,058,403, due to foreign fair value adjustments.

	Level 1		Level 2			Level 3		Total
Investments in Securities
Common Stocks & Other Equity Interests	$	489,935,501	$	66,820,419		$	—	$	556,755,920
Money Market Funds		55,973,250		—			—		55,973,250
Total Investments in Securities		545,908,751		66,820,419			—		612,729,170
Other Investments - Assets*
Forward Foreign Currency Contracts		—		914			—		914
Other Investments - Liabilities*
Forward Foreign Currency Contracts		—		(43,215	)		—		(43,215	)
Total Other Investments		—		(42,301	)		—		(42,301	)
Total Investments	$	545,908,751	$	66,778,118		$	—	$	612,686,869

* 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, 2018:

	Value
Derivative Assets	Currency Risk
Unrealized appreciation on forward foreign currency contracts outstanding	$	914
Derivatives not subject to master netting agreements		—
Total Derivative Assets subject to master netting agreements	$	914
	Value
Derivative Liabilities	Currency Risk
Unrealized depreciation on forward foreign currency contracts outstanding	$	(43,215	)
Derivatives not subject to master netting agreements		—
Total Derivative Liabilities subject to master netting agreements	$	(43,215	)

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, 2018.

	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
CIBC World Markets Corp.	$	—	$	(15,179	)	$	(15,179	)	$	—	$	—	$	(15,179	)
Merrill Lynch International		—		(15,578	)		(15,578	)		—		—		(15,578	)
RBC Capital Markets Corp.		914		(260	)		654			—		—		654
State Street Bank and Trust Co.		—		(12,198	)		(12,198	)		—		—		(12,198	)
Total	$	914	$	(43,215	)	$	(42,301	)	$	—	$	—	$	(42,301	)

Invesco V.I. Diversified Dividend Fund

Effect of Derivative Investments for the six months ended June 30, 2018

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
	Currency Risk
Realized Gain:
Forward foreign currency contracts	$	414,722
Change in Net Unrealized Appreciation:
Forward foreign currency contracts		459,697
Total	$	874,419

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

	Forward Foreign Currency Contracts
Average notional value	$	26,381,831

NOTE 5—Trustees’ and Officers’ Fees and Benefits

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

NOTE 6—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, 2017.

NOTE 8—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2018 was $31,625,639 and $65,103,557, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	127,761,918
Aggregate unrealized (depreciation) of investments		(12,181,482	)
Net unrealized appreciation of investments	$	115,580,436

Cost of investments for tax purposes is $497,106,433.

Invesco V.I. Diversified Dividend Fund

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended June 30, 2018(a)						Year ended December 31, 2017
	Shares			Amount			Shares			Amount
Sold:
Series I		558,792		$	14,811,065			1,525,555		$	41,126,302
Series II		395,980			10,499,489			1,317,421			35,352,684
Issued as reinvestment of dividends:
Series I		—			—			845,631			22,172,434
Series II		—			—			446,102			11,625,406
Reacquired:
Series I		(2,246,552	)		(59,882,794	)		(2,963,737	)		(80,071,566	)
Series II		(696,689	)		(18,450,671	)		(998,279	)		(26,847,462	)
Net increase (decrease) in share activity		(1,988,469	)	$	(53,022,911	)		172,693		$	3,357,798

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 67% 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 06/30/18	$	27.18	$	0.31	$	(0.89	)	$	(0.58	)	$	—		$	—		$	—		$	26.60		(2.13	)%	$	382,775		0.64	%(d)		0.65	%(d)		2.34	%(d)		5	%
Year ended 12/31/17		26.38		0.56		1.65			2.21			(0.46	)		(0.95	)		(1.41	)		27.18		8.58			437,104		0.64			0.65			2.06			16
Year ended 12/31/16		23.27		0.50		2.93			3.43			(0.32	)		—			(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	)		—			(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	)		—			(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	)		—			(0.44	)		20.93		31.04			321,581		0.71			0.72			1.76			20
Series II
Six months ended 06/30/18		27.00		0.28		(0.89	)		(0.61	)		—			—			—			26.39		(2.26	)		229,139		0.89	(d)		0.90	(d)		2.09	(d)		5
Year ended 12/31/17		26.23		0.49		1.64			2.13			(0.41	)		(0.95	)		(1.36	)		27.00		8.31			242,614		0.89			0.90			1.81			16
Year ended 12/31/16		23.16		0.43		2.92			3.35			(0.28	)		—			(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	)		—			(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	)		—			(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	)		—			(0.41	)		20.85		30.76			97,628		0.96			0.97			1.51			20

^(a)  Calculated using average shares outstanding.

^(b)  Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. 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 $405,062 and $234,806 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, 2018 through June 30, 2018.

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 (01/01/18)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/18)1		Expenses Paid During Period2		Ending Account Value (06/30/18)		Expenses Paid During Period2
Series I	$	1,000.00	$	978.70	$	3.14	$	1,021.62	$	3.21		0.64	%
Series II		1,000.00		977.00		4.36		1,020.38		4.46		0.89

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2018 through June 30, 2018, 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

At meetings held on June 5-6, 2018, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Diversified Dividend Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate Sub-Advisory Contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2018. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’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 detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider. 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 throughout the year, 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 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 6, 2018.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, 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, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also reviewed and considered the benefits to shareholders of investing in a fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by

Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries 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 investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2017 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 fifth 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 year period and reasonably comparable to the performance of the Index for the three and five year periods. The Board noted that the Fund’s overweight exposure to certain defensive sectors and underweight exposure to certain cyclically-oriented sectors, as well as its cash position, negatively impacted performance. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

Invesco V.I. Diversified Dividend Fund

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for 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 non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. 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 considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. 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 differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including management of cash flows as a result of redemptions and purchases, necessary infrastructure such as officers, office space, technology, legal and distribution, oversight of service providers, costs and business risks associated with launching new funds and sponsoring and maintaining the product line, preparation of annual registration statement updates and financial information and compliance with federal and state laws and regulations.

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 similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2017.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements.

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 considered the methodology used for calculating profitability and noted the periodic review of such methodology by an independent consultant. 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, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers 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 administrative, 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 Invesco representing 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 an affiliated broker receives commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Diversified Dividend Fund

	Semiannual Report to Shareholders	June 30, 2018
	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 (or any successor Form). The Fund’s Form N-Q (or any successor Form) filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q (or any successor Form) 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 (or any successor Form), 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             07132018      1456

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/17 to 6/30/18, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	1.61	%
Series II Shares	1.45
S&P 500 Index▼ (Broad Market Index)	2.65
S&P 500 Equal Weight Index▼ (Style-Specific Index)	1.77
Lipper VUF Multi-Cap Core Funds Index∎ (Peer Group Index)	1.57
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 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 6/30/18
Series I Shares
Inception (11/9/94)	10.78	%
10 Years	11.10
5 Years	12.26
1 Year	11.62
Series II Shares
Inception (7/24/00)	8.76	%
10 Years	10.83
5 Years	11.98
1 Year	11.36

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 0.32% and 0.57%, 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, 2018

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–99.36%
Advertising–0.41%
Interpublic Group of Cos., Inc. (The)		22,728	$	532,744
Omnicom Group Inc.		7,111		542,356
				1,075,100
Aerospace & Defense–2.47%
Arconic Inc.		29,291		498,240
Boeing Co. (The)		1,421		476,760
General Dynamics Corp.		2,604		485,412
Harris Corp.		3,397		491,002
Huntington Ingalls Industries, Inc.		2,320		502,953
L3 Technologies, Inc.		2,583		496,763
Lockheed Martin Corp.		1,630		481,551
Northrop Grumman Corp.		1,551		477,243
Raytheon Co.		2,456		474,450
Rockwell Collins, Inc.		3,774		508,282
Textron Inc.		7,579		499,532
TransDigm Group, Inc.		1,518		523,922
United Technologies Corp.		4,117		514,748
				6,430,858
Agricultural & Farm Machinery–0.18%
Deere & Co.		3,344		467,491
Agricultural Products–0.21%
Archer-Daniels-Midland Co.		11,716		536,944
Air Freight & Logistics–0.75%
C.H. Robinson Worldwide, Inc.		5,959		498,530
Expeditors International of Washington, Inc.		6,867		501,978
FedEx Corp.		2,019		458,434
United Parcel Service, Inc.–Class B		4,506		478,672
				1,937,614
Airlines–0.96%
Alaska Air Group, Inc.		8,430		509,088
American Airlines Group Inc.		12,189		462,694
Delta Air Lines, Inc.		9,714		481,232
Southwest Airlines Co.		10,409		529,610
United Continental Holdings Inc.(b)		7,507		523,463
				2,506,087
Alternative Carriers–0.21%
CenturyLink Inc.		29,772		554,950
Apparel Retail–0.99%
Foot Locker, Inc.		8,918		469,533
Gap, Inc. (The)		16,555		536,216
L Brands, Inc.		14,206		523,917
Ross Stores, Inc.		6,129		519,433
TJX Cos., Inc. (The)		5,551		528,344
				2,577,443

	Shares		Value
Apparel, Accessories & Luxury Goods–1.38%
Hanesbrands, Inc.(c)		26,156	$	575,955
Michael Kors Holdings Ltd.(b)		8,127		541,258
PVH Corp.		3,127		468,174
Ralph Lauren Corp.		3,693		464,284
Tapestry, Inc.		11,363		530,766
Under Armour, Inc.–Class A(b)(c)		11,276		253,485
Under Armour, Inc.–Class C(b)(c)		11,219		236,497
VF Corp.		6,285		512,353
				3,582,772
Application Software–1.59%
Adobe Systems Inc.(b)		2,091		509,807
ANSYS, Inc.(b)		3,054		531,946
Autodesk, Inc.(b)		3,887		509,547
Cadence Design Systems, Inc.(b)		11,923		516,385
Citrix Systems, Inc.(b)		4,894		513,087
Intuit Inc.		2,558		522,612
salesforce.com, inc.(b)		3,934		536,597
Synopsys, Inc.(b)		5,818		497,846
				4,137,827
Asset Management & Custody Banks–1.71%
Affiliated Managers Group, Inc.		3,185		473,514
Ameriprise Financial, Inc.		3,683		515,178
Bank of New York Mellon Corp. (The)		9,134		492,597
BlackRock, Inc.		961		479,577
Franklin Resources, Inc.		15,271		489,435
Invesco Ltd.(d)		18,814		499,700
Northern Trust Corp.		4,940		508,277
State Street Corp.		5,251		488,816
T. Rowe Price Group Inc.		4,170		484,095
				4,431,189
Auto Parts & Equipment–0.36%
Aptiv PLC		5,233		479,500
BorgWarner, Inc.		10,505		453,396
				932,896
Automobile Manufacturers–0.37%
Ford Motor Co.		43,428		480,748
General Motors Co.		11,875		467,875
				948,623
Automotive Retail–0.80%
Advance Auto Parts, Inc.		3,989		541,307
AutoZone, Inc.(b)		778		521,984
CarMax, Inc.(b)		7,121		518,907
O’Reilly Automotive, Inc.(b)		1,855		507,472
				2,089,670
Biotechnology–1.85%
AbbVie Inc.		5,253		486,691

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–(continued)
Alexion Pharmaceuticals, Inc.(b)		4,440	$	551,226
Amgen Inc.		2,857		527,374
Biogen Inc.(b)		1,732		502,696
Celgene Corp.(b)		6,646		527,825
Gilead Sciences, Inc.		7,306		517,557
Incyte Corp.(b)		7,505		502,835
Regeneron Pharmaceuticals, Inc.(b)		1,705		588,208
Vertex Pharmaceuticals Inc.(b)		3,490		593,160
				4,797,572
Brewers–0.22%
Molson Coors Brewing Co.–Class B		8,267		562,487
Broadcasting–0.46%
CBS Corp.–Class B		10,277		577,773
Discovery, Inc.–Class A(b)(c)		7,435		204,462
Discovery, Inc.–Class C(b)		16,252		414,426
				1,196,661
Building Products–0.95%
A.O. Smith Corp.		8,104		479,352
Allegion PLC		6,479		501,215
Fortune Brands Home & Security, Inc.		8,978		482,029
Johnson Controls International PLC		14,953		500,178
Masco Corp.		13,522		505,993
				2,468,767
Cable & Satellite–0.63%
Charter Communications, Inc.–Class A(b)		1,894		555,340
Comcast Corp.–Class A		16,379		537,395
DISH Network Corp.–Class A(b)		16,379		550,498
				1,643,233
Casinos & Gaming–0.38%
MGM Resorts International		17,072		495,600
Wynn Resorts Ltd.		2,955		494,490
				990,090
Commodity Chemicals–0.19%
LyondellBasell Industries N.V. -Class A		4,449		488,723
Communications Equipment–0.81%
Cisco Systems, Inc.		12,085		520,018
F5 Networks, Inc.(b)		2,976		513,211
Juniper Networks, Inc.		18,821		516,072
Motorola Solutions, Inc.		4,679		544,495
				2,093,796
Computer & Electronics Retail–0.21%
Best Buy Co., Inc.		7,266		541,898
Construction & Engineering–0.57%
Fluor Corp.		10,438		509,166
Jacobs Engineering Group Inc.		7,889		500,872
Quanta Services, Inc.(b)		14,160		472,944
				1,482,982

	Shares		Value
Construction Machinery & Heavy Trucks–0.56%
Caterpillar Inc.		3,383	$	458,972
Cummins Inc.		3,656		486,248
PACCAR Inc.		8,051		498,840
				1,444,060
Construction Materials–0.40%
Martin Marietta Materials, Inc.		2,288		510,979
Vulcan Materials Co.		4,040		521,402
				1,032,381
Consumer Electronics–0.20%
Garmin Ltd.		8,496		518,256
Consumer Finance–0.77%
American Express Co.		5,219		511,462
Capital One Financial Corp.		5,437		499,660
Discover Financial Services		6,971		490,828
Synchrony Financial		14,822		494,759
				1,996,709
Copper–0.19%
Freeport-McMoRan Inc.		29,144		503,025
Data Processing & Outsourced Services–2.60%
Alliance Data Systems Corp.		2,362		550,818
Automatic Data Processing, Inc.		3,881		520,597
Broadridge Financial Solutions, Inc.		4,400		506,440
Fidelity National Information Services, Inc.		4,976		527,605
Fiserv, Inc.(b)		6,962		515,815
FleetCor Technologies Inc.(b)		2,511		528,942
Global Payments Inc.		4,510		502,820
Mastercard Inc.–Class A		2,636		518,027
Paychex, Inc.		7,707		526,773
PayPal Holdings, Inc.(b)		6,236		519,272
Total System Services, Inc.		6,039		510,416
Visa Inc. -Class A		3,899		516,423
Western Union Co. (The)		25,251		513,353
				6,757,301
Department Stores–0.58%
Kohl’s Corp.		6,757		492,585
Macy’s, Inc.		13,176		493,178
Nordstrom, Inc.		10,014		518,525
				1,504,288
Distillers & Vintners–0.38%
Brown-Forman Corp.–Class B		9,920		486,179
Constellation Brands, Inc.–Class A		2,311		505,809
				991,988
Distributors–0.39%
Genuine Parts Co.		5,569		511,178
LKQ Corp.(b)		16,124		514,356
				1,025,534

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
Diversified Banks–0.97%
Bank of America Corp.		17,510	$	493,607
Citigroup Inc.		7,674		513,544
JPMorgan Chase & Co.		4,729		492,762
U.S. Bancorp		10,095		504,952
Wells Fargo & Co.		9,437		523,187
				2,528,052
Diversified Chemicals–0.38%
DowDuPont Inc.		7,561		498,421
Eastman Chemical Co.		4,830		482,807
				981,228
Diversified Support Services–0.40%
Cintas Corp.		2,752		509,313
Copart, Inc.(b)		9,390		531,098
				1,040,411
Drug Retail–0.19%
Walgreens Boots Alliance, Inc.		8,288		497,404
Electric Utilities–3.26%
Alliant Energy Corp.		13,394		566,834
American Electric Power Co., Inc.		8,196		567,573
Duke Energy Corp.		7,185		568,190
Edison International		8,815		557,725
Entergy Corp.		6,834		552,119
Evergy, Inc.		10,239		574,920
Eversource Energy		9,810		574,964
Exelon Corp.		13,136		559,594
FirstEnergy Corp.		15,771		566,337
NextEra Energy, Inc.		3,351		559,717
PG&E Corp.		12,676		539,490
Pinnacle West Capital Corp.		7,063		568,995
PPL Corp.		20,375		581,706
Southern Co. (The)		12,141		562,250
Xcel Energy, Inc.		12,309		562,275
				8,462,689
Electrical Components & Equipment–0.76%
AMETEK, Inc.		6,937		500,574
Eaton Corp. PLC		6,540		488,800
Emerson Electric Co.		7,182		496,563
Rockwell Automation, Inc.		2,956		491,376
				1,977,313
Electronic Components–0.39%
Amphenol Corp.–Class A		5,793		504,860
Corning Inc.		18,277		502,800
				1,007,660
Electronic Equipment & Instruments–0.19%
FLIR Systems, Inc.		9,543		495,950
Electronic Manufacturing Services–0.37%
IPG Photonics Corp.(b)		2,123		468,398

	Shares		Value
Electronic Manufacturing Services–(continued)
TE Connectivity Ltd.		5,421	$	488,215
				956,613
Environmental & Facilities Services–0.60%
Republic Services, Inc.		7,705		526,714
Stericycle, Inc.(b)		8,134		531,069
Waste Management, Inc.		6,291		511,710
				1,569,493
Fertilizers & Agricultural Chemicals–0.60%
CF Industries Holdings, Inc.		12,169		540,303
FMC Corp.		5,938		529,729	��
Mosaic Co. (The)		17,837		500,328
				1,570,360
Financial Exchanges & Data–1.38%
Cboe Global Markets, Inc.		5,078		528,467
CME Group Inc.–Class A		3,073		503,726
Intercontinental Exchange, Inc.		6,945		510,805
Moody’s Corp.		2,937		500,935
MSCI Inc.		3,161		522,924
Nasdaq, Inc.		5,540		505,636
S&P Global Inc.		2,556		521,143
				3,593,636
Food Distributors–0.21%
Sysco Corp.		7,943		542,427
Food Retail–0.23%
Kroger Co. (The)		20,721		589,512
Footwear–0.22%
NIKE, Inc.–Class B		7,015		558,955
General Merchandise Stores–0.62%
Dollar General Corp.		5,553		547,526
Dollar Tree, Inc.(b)		6,363		540,855
Target Corp.		6,735		512,668
				1,601,049
Gold–0.20%
Newmont Mining Corp.		13,691		516,288
Health Care Distributors–0.77%
AmerisourceBergen Corp.		6,111		521,085
Cardinal Health, Inc.		9,849		480,927
Henry Schein, Inc.(b)		7,285		529,182
McKesson Corp.		3,613		481,974
				2,013,168
Health Care Equipment–3.00%
Abbott Laboratories		8,305		506,522
ABIOMED, Inc.(b)		1,282		524,402
Baxter International Inc.		7,027		518,874
Becton, Dickinson and Co.		2,265		542,603
Boston Scientific Corp.(b)		16,446		537,784

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–(continued)
Danaher Corp.		5,124	$	505,636
Edwards Lifesciences Corp.(b)		3,678		535,406
Hologic, Inc.(b)		13,705		544,774
IDEXX Laboratories, Inc.(b)		2,391		521,095
Intuitive Surgical, Inc.(b)		1,087		520,108
Medtronic PLC		6,036		516,742
ResMed Inc.		4,946		512,307
Stryker Corp.		2,941		496,617
Varian Medical Systems, Inc.(b)		4,318		491,043
Zimmer Biomet Holdings, Inc.		4,589		511,398
				7,785,311
Health Care Facilities–0.39%
HCA Healthcare, Inc.		5,010		514,026
Universal Health Services, Inc.–Class B		4,557		507,832
				1,021,858
Health Care REITs–0.64%
HCP, Inc.		21,588		557,402
Ventas, Inc.		9,581		545,638
Welltower Inc.		9,060		567,972
				1,671,012
Health Care Services–1.19%
CVS Health Corp.		7,957		512,033
DaVita Inc.(b)		7,395		513,509
Envision Healthcare Corp.(b)		12,041		529,924
Express Scripts Holding Co.(b)		6,703		517,538
Laboratory Corp. of America Holdings(b)		2,817		505,736
Quest Diagnostics Inc.		4,789		526,503
				3,105,243
Health Care Supplies–0.61%
Align Technology, Inc.(b)		1,515		518,342
Cooper Cos., Inc. (The)		2,262		532,588
DENTSPLY SIRONA Inc.		12,232		535,395
				1,586,325
Health Care Technology–0.20%
Cerner Corp.(b)		8,658		517,662
Home Entertainment Software–0.63%
Activision Blizzard, Inc.		7,073		539,811
Electronic Arts Inc.(b)		3,810		537,286
Take-Two Interactive Software, Inc.(b)		4,632		548,244
				1,625,341
Home Furnishings–0.41%
Leggett & Platt, Inc.		12,041		537,510
Mohawk Industries, Inc.(b)		2,508		537,389
				1,074,899
Home Improvement Retail–0.39%
Home Depot, Inc. (The)		2,659		518,771

	Shares		Value
Home Improvement Retail–(continued)
Lowe’s Cos., Inc.		5,264	$	503,080
				1,021,851
Homebuilding–0.56%
D.R. Horton, Inc.		11,891		487,531
Lennar Corp.–Class A		9,730		510,825
PulteGroup Inc.		16,138		463,968
				1,462,324
Hotel & Resort REITs–0.19%
Host Hotels & Resorts Inc.		23,788		501,213
Hotels, Resorts & Cruise Lines–0.95%
Carnival Corp.		8,622		494,127
Hilton Worldwide Holdings Inc.		6,250		494,750
Marriott International Inc.–Class A		3,796		480,574
Norwegian Cruise Line Holdings Ltd.(b)		10,154		479,776
Royal Caribbean Cruises Ltd.		5,101		528,464
				2,477,691
Household Appliances–0.20%
Whirlpool Corp.		3,530		516,192
Household Products–1.06%
Church & Dwight Co., Inc.		10,903		579,604
Clorox Co. (The)		4,145		560,611
Colgate-Palmolive Co.		8,296		537,664
Kimberly-Clark Corp.		5,111		538,393
Procter & Gamble Co. (The)		6,808		531,432
				2,747,704
Housewares & Specialties–0.21%
Newell Brands, Inc.		21,292		549,121
Human Resource & Employment Services–0.19%
Robert Half International, Inc.		7,625		496,388
Hypermarkets & Super Centers–0.41%
Costco Wholesale Corp.		2,589		541,049
Walmart Inc.		6,234		533,942
				1,074,991
Independent Power Producers & Energy Traders–0.40%
AES Corp. (The)		41,150		551,821
NRG Energy, Inc.		15,851		486,626
				1,038,447
Industrial Conglomerates–0.78%
3M Co.		2,554		502,423
General Electric Co.		37,723		513,410
Honeywell International Inc.		3,460		498,413
Roper Technologies, Inc.		1,839		507,398
				2,021,644
Industrial Gases–0.39%
Air Products and Chemicals, Inc.		3,121		486,033

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–(continued)
Praxair, Inc.		3,287	$	519,839
				1,005,872
Industrial Machinery–1.92%
Dover Corp.		6,658		487,366
Flowserve Corp.		12,461		503,424
Fortive Corp.		6,719		518,102
Illinois Tool Works Inc.		3,556		492,648
Ingersoll-Rand PLC		5,806		520,972
Parker-Hannifin Corp.		3,011		469,264
Pentair PLC (United Kingdom)		11,677		491,368
Snap-on Inc.		3,348		538,091
Stanley Black & Decker Inc.		3,613		479,843
Xylem, Inc.		7,171		483,182
				4,984,260
Industrial REITs–0.41%
Duke Realty Corp.		18,296		531,133
Prologis, Inc.		7,967		523,352
				1,054,485
Insurance Brokers–0.78%
Aon PLC		3,674		503,963
Arthur J. Gallagher & Co.		7,752		506,050
Marsh & McLennan Cos., Inc.		6,342		519,854
Willis Towers Watson PLC		3,323		503,767
				2,033,634
Integrated Oil & Gas–0.60%
Chevron Corp.		4,155		525,317
Exxon Mobil Corp.		6,290		520,372
Occidental Petroleum Corp.		6,155		515,050
				1,560,739
Integrated Telecommunication Services–0.40%
AT&T Inc.		15,533		498,765
Verizon Communications Inc.		10,685		537,562
				1,036,327
Internet & Direct Marketing Retail–1.02%
Amazon.com, Inc.(b)(e)		312		530,338
Booking Holdings Inc.(b)		245		496,637
Expedia Group, Inc.		4,346		522,346
Netflix, Inc.(b)		1,457		570,313
TripAdvisor, Inc.(b)		9,410		524,231
				2,643,865
Internet Software & Services–1.20%
Akamai Technologies, Inc.(b)		6,695		490,275
Alphabet Inc.–Class A(b)		232		261,972
Alphabet Inc.–Class C(b)		236		263,293
eBay Inc.(b)		13,042		472,903
Facebook, Inc.–Class A(b)		2,786		541,376
Twitter, Inc.(b)		12,750		556,793

	Shares		Value
Internet Software & Services–(continued)
VeriSign, Inc.(b)		3,810	$	523,570
				3,110,182
Investment Banking & Brokerage–0.92%
Charles Schwab Corp. (The)		9,101		465,061
E*TRADE Financial Corp.(b)		8,033		491,298
Goldman Sachs Group, Inc. (The)		2,250		496,283
Morgan Stanley		10,122		479,783
Raymond James Financial, Inc.		5,235		467,747
				2,400,172
IT Consulting & Other Services–0.99%
Accenture PLC–Class A		3,250		531,667
Cognizant Technology Solutions Corp.–Class A		6,814		538,238
DXC Technology Co.		6,150		495,751
Gartner, Inc.(b)		3,814		506,881
International Business Machines Corp.		3,594		502,082
				2,574,619
Leisure Products–0.40%
Hasbro, Inc.		5,816		536,875
Mattel, Inc.(c)		30,856		506,656
				1,043,531
Life & Health Insurance–1.49%
Aflac, Inc.		11,450		492,579
Brighthouse Financial, Inc.(b)		11,251		450,828
Lincoln National Corp.		7,587		472,291
MetLife, Inc.		11,083		483,219
Principal Financial Group, Inc.		9,250		489,787
Prudential Financial, Inc.		5,247		490,647
Torchmark Corp.		6,120		498,229
Unum Group		13,353		493,927
				3,871,507
Life Sciences Tools & Services–1.36%
Agilent Technologies, Inc.		7,994		494,349
Illumina, Inc.(b)		1,862		520,038
IQVIA Holdings Inc.(b)		5,047		503,791
Mettler-Toledo International Inc.(b)		882		510,352
PerkinElmer, Inc.		6,726		492,545
Thermo Fisher Scientific, Inc.		2,434		504,179
Waters Corp.(b)		2,570		497,526
				3,522,780
Managed Health Care–1.22%
Aetna Inc.		2,911		534,169
Anthem, Inc.		2,301		547,707
Centene Corp.(b)		4,385		540,276
Cigna Corp.		2,960		503,052
Humana Inc.		1,764		525,019
UnitedHealth Group Inc.		2,095		513,987
				3,164,210

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–0.19%
Ball Corp.		13,975	$	496,811
Motorcycle Manufacturers–0.20%
Harley-Davidson, Inc.		12,321		518,468
Movies & Entertainment–0.68%
Twenty-First Century Fox, Inc.–Class A		9,304		462,316
Twenty-First Century Fox, Inc.–Class B		3,918		193,040
Viacom Inc.–Class B		18,827		567,822
Walt Disney Co. (The)		5,077		532,120
				1,755,298
Multi-Line Insurance–0.80%
American International Group, Inc.		9,533		505,440
Assurant, Inc.		5,365		555,224
Hartford Financial Services Group, Inc. (The)		9,866		504,448
Loews Corp.		10,422		503,174
				2,068,286
Multi-Sector Holdings–0.39%
Berkshire Hathaway Inc.–Class B(b)		2,689		501,902
Jefferies Financial Group Inc.		22,778		517,972
				1,019,874
Multi-Utilities–2.42%
Ameren Corp.		9,268		563,958
CenterPoint Energy, Inc.		20,729		574,401
CMS Energy Corp.		12,121		573,081
Consolidated Edison, Inc.		7,222		563,172
Dominion Energy, Inc.		8,394		572,303
DTE Energy Co.		5,437		563,436
NiSource Inc.		22,342		587,148
Public Service Enterprise Group Inc.		10,325		558,995
SCANA Corp.		14,535		559,888
Sempra Energy		5,202		604,004
WEC Energy Group, Inc.		8,837		571,312
				6,291,698
Office REITs–0.82%
Alexandria Real Estate Equities, Inc.		4,130		521,082
Boston Properties, Inc.		4,283		537,174
SL Green Realty Corp.		5,351		537,936
Vornado Realty Trust		7,338		542,425
				2,138,617
Oil & Gas Drilling–0.20%
Helmerich & Payne, Inc.		8,037		512,439
Oil & Gas Equipment & Services–0.98%
Baker Hughes, a GE Co.		15,143		500,173
Halliburton Co.		10,924		492,236
National Oilwell Varco Inc.		12,341		535,599
Schlumberger Ltd.		7,567		507,216
TechnipFMC PLC (United Kingdom)		16,119		511,617
				2,546,841

	Shares		Value
Oil & Gas Exploration & Production–2.97%
Anadarko Petroleum Corp.		7,359	$	539,047
Apache Corp.		12,440		581,570
Cabot Oil & Gas Corp.		22,323		531,287
Cimarex Energy Co.		6,146		625,294
Concho Resources Inc.(b)		4,095		566,543
ConocoPhillips		7,567		526,815
Devon Energy Corp.		12,464		547,917
EOG Resources, Inc.		4,465		555,580
EQT Corp.		9,892		545,841
Hess Corp.		8,497		568,364
Marathon Oil Corp.		25,035		522,230
Newfield Exploration Co.(b)		18,026		545,287
Noble Energy, Inc.		15,428		544,300
Pioneer Natural Resources Co.		2,727		516,057
				7,716,132
Oil & Gas Refining & Marketing–0.92%
Andeavor		3,631		476,315
HollyFrontier Corp.		6,807		465,803
Marathon Petroleum Corp.		6,652		466,704
Phillips 66		4,497		505,058
Valero Energy Corp.		4,388		486,322
				2,400,202
Oil & Gas Storage & Transportation–0.63%
Kinder Morgan, Inc.		31,186		551,057
ONEOK, Inc.		7,676		536,015
Williams Cos., Inc. (The)		20,117		545,372
				1,632,444
Packaged Foods & Meats–2.34%
Campbell Soup Co.(c)		15,432		625,613
Conagra Brands, Inc.		13,923		497,469
General Mills, Inc.		12,246		542,008
Hershey Co. (The)		5,739		534,071
Hormel Foods Corp.(c)		14,511		539,954
JM Smucker Co. (The)		5,148		553,307
Kellogg Co.		8,247		576,218
Kraft Heinz Co. (The)		8,986		564,501
McCormick & Co., Inc.		5,101		592,175
Mondelez International, Inc.–Class A		13,209		541,569
Tyson Foods, Inc.–Class A		7,426		511,280
				6,078,165
Paper Packaging–0.94%
Avery Dennison Corp.		4,890		499,269
International Paper Co.		8,935		465,335
Packaging Corp. of America		4,284		478,908
Sealed Air Corp.		11,997		509,273
WestRock Co.		8,620		491,512
				2,444,297

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
Personal Products–0.39%
Coty Inc.–Class A		37,831	$	533,417
Estee Lauder Cos. Inc. (The)–Class A		3,433		489,855
				1,023,272
Pharmaceuticals–1.96%
Allergan PLC		3,087		514,665
Bristol-Myers Squibb Co.		9,884		546,981
Eli Lilly and Co.		6,112		521,537
Johnson & Johnson		4,235		513,875
Merck & Co., Inc.		8,396		509,637
Mylan N.V.(b)		12,704		459,123
Nektar Therapeutics(b)		9,705		473,895
Perrigo Co. PLC		7,172		522,910
Pfizer Inc.		14,330		519,892
Zoetis Inc.		6,063		516,507
				5,099,022
Property & Casualty Insurance–1.16%
Allstate Corp. (The)(e)		5,622		513,120
Chubb Ltd.		3,934		499,697
Cincinnati Financial Corp.		7,371		492,825
Progressive Corp. (The)		8,362		494,612
Travelers Cos., Inc. (The)		4,000		489,360
XL Group Ltd. (Bermuda)		9,333		522,181
				3,011,795
Publishing–0.20%
News Corp.–Class A		25,077		388,694
News Corp.–Class B		7,972		126,356
				515,050
Railroads–0.78%
CSX Corp.		7,834		499,652
Kansas City Southern		4,809		509,562
Norfolk Southern Corp.		3,407		514,014
Union Pacific Corp.		3,635		515,007
				2,038,235
Real Estate Services–0.20%
CBRE Group, Inc.–Class A(b)		10,813		516,213
Regional Banks–2.44%
BB&T Corp.		9,623		485,384
Citizens Financial Group, Inc.		12,517		486,911
Comerica Inc.		5,464		496,787
Fifth Third Bancorp		16,519		474,095
Huntington Bancshares Inc.		33,492		494,342
KeyCorp		25,583		499,892
M&T Bank Corp.		2,971		505,516
People’s United Financial, Inc.		27,383		495,358
PNC Financial Services Group, Inc. (The)		3,530		476,903
Regions Financial Corp.		27,497		488,897
SunTrust Banks, Inc.		7,449		491,783
SVB Financial Group(b)		1,613		465,770

	Shares		Value
Regional Banks–(continued)
Zions Bancorp.		9,187	$	484,063
				6,345,701
Reinsurance–0.20%
Everest Re Group, Ltd.		2,280		525,494
Research & Consulting Services–0.80%
Equifax Inc.		4,110		514,202
IHS Markit Ltd.(b)		10,275		530,087
Nielsen Holdings PLC		16,820		520,243
Verisk Analytics, Inc.–Class A(b)		4,845		521,516
				2,086,048
Residential REITs–1.23%
Apartment Investment & Management Co.–Class A		12,600		532,980
AvalonBay Communities, Inc.		3,133		538,531
Equity Residential		8,134		518,054
Essex Property Trust, Inc.		2,179		520,934
Mid-America Apartment Communities, Inc.		5,474		551,068
UDR, Inc.		14,024		526,461
				3,188,028
Restaurants–0.98%
Chipotle Mexican Grill, Inc.(b)		1,161		500,821
Darden Restaurants, Inc.		5,759		616,558
McDonald’s Corp.		3,113		487,776
Starbucks Corp.		9,283		453,475
Yum! Brands, Inc.		6,332		495,289
				2,553,919
Retail REITs–1.45%
Federal Realty Investment Trust		4,347		550,113
GGP Inc.		25,422		519,371
Kimco Realty Corp.		32,081		545,056
Macerich Co. (The)		9,218		523,859
Realty Income Corp.		9,864		530,585
Regency Centers Corp.		8,836		548,539
Simon Property Group, Inc.		3,178		540,864
				3,758,387
Semiconductor Equipment–0.55%
Applied Materials, Inc.		10,273		474,510
KLA-Tencor Corp.		4,601		471,740
Lam Research Corp.		2,801		484,153
				1,430,403
Semiconductors–2.27%
Advanced Micro Devices, Inc.(b)(c)		34,458		516,525
Analog Devices, Inc.		5,221		500,798
Broadcom Inc.		2,036		494,015
Intel Corp.		9,545		474,482
Microchip Technology Inc.		5,166		469,848
Micron Technology, Inc.(b)		8,559		448,834
NVIDIA Corp.		2,002		474,274

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
Semiconductors–(continued)
Qorvo, Inc.(b)		6,556	$	525,595
QUALCOMM Inc.		8,720		489,366
Skyworks Solutions, Inc.		5,285		510,795
Texas Instruments Inc.		4,539		500,425
Xilinx, Inc.		7,555		493,039
				5,897,996
Soft Drinks–0.63%
Coca-Cola Co. (The)		11,956		524,390
Monster Beverage Corp.(b)		9,471		542,688
PepsiCo, Inc.		5,149		560,572
				1,627,650
Specialized Consumer Services–0.16%
H&R Block, Inc.		18,026		410,632
Specialized REITs–1.87%
American Tower Corp.–Class A		3,791		546,548
Crown Castle International Corp.		5,122		552,254
Digital Realty Trust, Inc.		4,823		538,150
Equinix, Inc.		1,302		559,717
Extra Space Storage Inc.		5,380		536,978
Iron Mountain Inc.		15,182		531,522
Public Storage		2,439		553,312
SBA Communications Corp.–Class A(b)		3,340		551,501
Weyerhaeuser Co.		13,788		502,710
				4,872,692
Specialty Chemicals–1.00%
Albemarle Corp.(c)		5,526		521,267
Ecolab Inc.		3,593		504,206
International Flavors & Fragrances Inc.		4,156		515,178
PPG Industries, Inc.		5,069		525,807
Sherwin-Williams Co. (The)		1,319		537,585
				2,604,043
Specialty Stores–0.59%
Tiffany & Co.		3,974		522,978
Tractor Supply Co.		6,861		524,798
Ulta Beauty, Inc.(b)		2,075		484,430
				1,532,206
Steel–0.19%
Nucor Corp.		7,860		491,250
Systems Software–0.94%
CA, Inc.		14,483		516,319
Microsoft Corp.		5,192		511,983
Oracle Corp.		10,906		480,518
Red Hat, Inc.(b)		3,074		413,053
Symantec Corp.		24,647		508,961
				2,430,834
Technology Hardware, Storage & Peripherals–1.35%
Apple Inc.		2,749		508,867

	Shares		Value
Technology Hardware, Storage & Peripherals–(continued)
Hewlett Packard Enterprise Co.		32,822	$	479,529
HP Inc.		22,162		502,856
NetApp, Inc.		7,067		554,972
Seagate Technology PLC		9,386		530,028
Western Digital Corp.		6,364		492,637
Xerox Corp.		18,827		451,848
				3,520,737
Tires & Rubber–0.19%
Goodyear Tire & Rubber Co. (The)		20,762		483,547
Tobacco–0.40%
Altria Group, Inc.		9,104		517,016
Philip Morris International Inc.		6,616		534,176
				1,051,192
Trading Companies & Distributors–0.56%
Fastenal Co.		9,948		478,798
United Rentals, Inc.(b)		3,152		465,298
W.W. Grainger, Inc.		1,670		515,028
				1,459,124
Trucking–0.19%
J.B. Hunt Transport Services, Inc.		4,083		496,289
Water Utilities–0.22%
American Water Works Co., Inc.		6,628		565,899
Total Common Stocks & Other Equity Interests (Cost $186,917,304)				258,208,053
Money Market Funds–0.63%
Invesco Government & Agency Portfolio–Institutional Class, 1.80%(f)		911,382		911,382
Invesco Liquid Assets Portfolio–Institutional Class, 2.02%(f)		716,770		716,985
Total Money Market Funds (Cost $1,628,203)				1,628,367
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)–99.99% (Cost $188,545,507)				259,836,420
Investments Purchased with Cash Collateral from Securities on Loan
Money Market Funds–1.19%
Invesco Government & Agency Portfolio–Institutional Class, 1.80% (Cost $3,078,088)(f)(g)		3,078,088		3,078,088
TOTAL INVESTMENTS IN SECURITIES–101.18% (Cost $191,623,595)				262,914,508
OTHER ASSETS LESS LIABILITIES–(1.18)%				(3,053,846	)
NET ASSETS–100.00%			$	259,860,662

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)  All or a portion of this security was out on loan at June 30, 2018.

^(d)  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, 2018 represented less than 1% of the Fund’s Net Assets. See Note 5.

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

^(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, 2018.

^(g)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2018

Consumer Discretionary	15.1	%
Information Technology	13.9
Industrials	13.4
Financials	13.0
Health Care	12.6
Real Estate	6.8
Consumer Staples	6.7
Energy	6.3
Utilities	6.3
Materials	4.7
Telecommunication Services	0.6
Money Market Funds Plus Other Assets Less Liabilities	0.6

Open Futures Contracts — Equity Risk
Long Futures Contracts	Number of Contracts		Expiration Month		Notional Value		Value			Unrealized Appreciation (Depreciation)
E-Mini S&P 500 Index		13		September–2018	$	1,769,040	$	(28,621	)	$	(28,621	)

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, 2018

(Unaudited)

Statement of Operations

For the six months ended June 30, 2018

(Unaudited)

Assets:
Investments in securities, at value (Cost $186,430,184)*	$	257,708,353
Investments in affiliates, at value (Cost $5,193,411)		5,206,155
Other investments:
Variation margin — futures contracts		1,365
Receivable for:
Investments sold		534,772
Fund shares sold		79,079
Dividends		296,174
Investment for trustee deferred compensation and retirement plans		34,203
Total assets		263,860,101
Liabilities:
Payable for:
Investments purchased		531,070
Collateral upon return of securities loaned		3,078,088
Fund shares reacquired		62,471
Amount due custodian		88,633
Accrued fees to affiliates		141,433
Accrued trustees’ and officers’ fees and benefits		4,306
Accrued other operating expenses		56,945
Trustee deferred compensation and retirement plans		36,493
Total liabilities		3,999,439
Net assets applicable to shares outstanding	$	259,860,662
Net assets consist of:
Shares of beneficial interest	$	177,365,452
Undistributed net investment income		4,803,044
Undistributed net realized gain		6,429,874
Net unrealized appreciation		71,262,292
	$	259,860,662
Net Assets:
Series I	$	121,970,111
Series II	$	137,890,551
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		6,039,495
Series II		7,024,141
Series I:
Net asset value per share	$	20.20
Series II:
Net asset value per share	$	19.63

* At June 30, 2018, securities with an aggregate value of $2,973,933 were on loan to brokers.

Investment income:
Dividends	$	2,434,098
Dividends from affiliates (includes securities lending income of $7,743)		41,657
Total investment income		2,475,755
Expenses:
Advisory fees		150,474
Administrative services fees		147,642
Custodian fees		21,950
Distribution fees — Series II		158,728
Transfer agent fees		3,747
Trustees’ and officers’ fees and benefits		12,151
Licensing fees		19,036
Reports to shareholders		7,665
Professional services fees		33,321
Other		8,704
Total expenses		563,418
Less: Fees waived		(1,807	)
Net expenses		561,611
Net investment income		1,914,144
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		3,189,297
Futures contracts		(152,476	)
		3,036,821
Change in net unrealized appreciation (depreciation) of:
Investment securities		(1,150,486	)
Futures contracts		(20,018	)
		(1,170,504	)
Net realized and unrealized gain		1,866,317
Net increase in net assets resulting from operations	$	3,780,461

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, 2018 and the year ended December 31, 2017

(Unaudited)

		June 30, 2018			December 31, 2017
Operations:
Net investment income		$	1,914,144		$	2,917,967
Net realized gain			3,036,821			4,516,918
Change in net unrealized appreciation (depreciation)			(1,170,504	)		26,902,954
Net increase in net assets resulting from operations			3,780,461			34,337,839
Distributions to shareholders from net investment income:
Series I			—			(959,664	)
Series ll			—			(684,524	)
Total distributions from net investment income	��		—			(1,644,188	)
Distributions to shareholders from net realized gains:
Series l			—			(2,321,226	)
Series ll			—			(1,911,306	)
Total distributions from net realized gains			—			(4,232,532	)
Share transactions-net:
Series l			(7,536,374	)		(3,857,449	)
Series ll			18,754,534			57,119,964
Net increase in net assets resulting from share transactions			11,218,160			53,262,515
Net increase in net assets			14,998,621			81,723,634
Net assets:
Beginning of period			244,862,041			163,138,407
End of period (includes undistributed net investment income of $4,803,044 and $2,888,900, respectively)		$	259,860,662		$	244,862,041

Notes to Financial Statements

June 30, 2018

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

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

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

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

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

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

Invesco V.I. Equally-Weighted S&P 500 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 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. 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 affiliates on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

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. Collateral — To the extent the Fund has pledged or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day. This practice does not apply to securities pledged as collateral for securities lending transactions.

Invesco V.I. Equally-Weighted S&P 500 Fund

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $2 billion	0.12%
Over $2 billion	0.10%

For the six months ended June 30, 2018, 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 Capital Management LLC, formerly Invesco PowerShares Capital Management LLC, and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2019, 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, 2019. 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, 2020, 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, 2018, the Adviser waived advisory fees of $1,807.

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, 2018, Invesco was paid $31,320 for accounting and fund administrative services and was reimbursed $116,322 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, 2018, 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. The fees are accrued daily and paid monthly. 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, 2018, 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.

Invesco V.I. Equally-Weighted S&P 500 Fund

The following is a summary of the tiered valuation input levels, as of June 30, 2018. 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.

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period. During the six months ended June 30, 2018, there were no material transfers between valuation levels.

	Level 1			Level 2		Level 3		Total
Investments in Securities
Common Stocks & Other Equity Interests	$	258,208,053		$	—	$	—	$	258,208,053
Money Market Funds		4,706,455			—		—		4,706,455
Total Investments in Securities		262,914,508			—		—		262,914,508
Other Investments – Liabilities*
Futures Contracts		(28,621	)		—		—		(28,621	)
Total Investments	$	262,885,887		$	—	$	—	$	262,885,887

* 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, 2018:

	Value
Derivative Liabilities	Equity Risk
Unrealized depreciation on futures contracts—Exchange-Traded(a)	$	(28,621	)
Derivatives not subject to master netting agreements		28,621
Total Derivative Liabilities subject to master netting agreements	$	—

^(a)  The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities.

Effect of Derivative Investments for the six months ended June 30, 2018

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

	Location of Gain (Loss) on Statement of Operations
	Equity Risk
Realized Gain (Loss):
Futures contracts	$	(152,476	)
Change in Net Unrealized Appreciation (Depreciation):
Futures contracts		(20,018	)
Total	$	(172,494	)

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

	Futures Contracts
Average notional value	$	2,777,208

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, 2018.

	Value 12/31/17		Purchases at Cost		Proceeds from Sales		Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)		Value 06/30/18		Dividend Income
Invesco Ltd.	$	467,675	$	176,897	$	—	$	(144,872	)	$	—	$	499,700	$	8,205

Invesco V.I. Equally-Weighted S&P 500 Fund

NOTE 6—Trustees’ and Officers’ Fees and Benefits

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

NOTE 7—Cash Balances

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

NOTE 8—Tax Information

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

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, 2017.

NOTE 9—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2018 was $43,070,081 and $29,853,825, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	73,685,314
Aggregate unrealized (depreciation) of investments		(3,875,019	)
Net unrealized appreciation of investments	$	69,810,295

Cost of investments for tax purposes is $193,075,592

Invesco V.I. Equally-Weighted S&P 500 Fund

NOTE 10—Share Information

	Summary of Share Activity
	Six months ended June 30, 2018(a)						Year ended December 31, 2017
	Shares			Amount			Shares			Amount
Sold:
Series I		133,892		$	2,689,743			441,919		$	8,277,046
Series II		1,374,896			26,887,237			3,562,087			64,459,112
Issued as reinvestment of dividends:
Series I		—			—			177,345			3,280,890
Series II		—			—			144,133			2,595,830
Reacquired:
Series I		(506,653	)		(10,226,117	)		(830,573	)		(15,415,385	)
Series II		(419,097	)		(8,132,703	)		(547,921	)		(9,934,978	)
Net increase in share activity		583,038		$	11,218,160			2,946,990		$	53,262,515

^(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.

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 06/30/18	$	19.88	$	0.16	$	0.16		$	0.32		$	–		$	–		$	–		$	20.20		1.61	%	$	121,970		0.32	%(d)		0.32	%(d)		1.65	%(d)		12	%
Year ended 12/31/17		17.24		0.29		2.87			3.16			(0.15	)		(0.37	)		(0.52	)		19.88		18.58			127,462		0.32			0.32			1.55			22
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
Series II
Six months ended 06/30/18		19.35		0.14		0.14			0.28			–			–			–			19.63		1.45			137,891		0.57	(d)		0.57	(d)		1.40	(d)		12
Year ended 12/31/17		16.82		0.24		2.79			3.03			(0.13	)		(0.37	)		(0.50	)		19.35		18.26			117,400		0.57			0.57			1.30			22
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

^(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 $124,835 and $128,035 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, 2018 through June 30, 2018.

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 (01/01/18)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/18)1		Expenses Paid During Period2		Ending Account Value (06/30/18)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,016.10	$	1.60	$	1,023.21	$	1.61		0.32	%
Series II		1,000.00		1,014.50		2.85		1,021.97		2.86		0.57

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2018 through June 30, 2018, 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

At meetings held on June 5-6, 2018, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Equally-Weighted S&P 500 Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc., Invesco Canada Ltd. and separate Sub-Advisory Contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2018. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’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 detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider. 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 throughout the year, 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 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 6, 2018.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, 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, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also reviewed and considered the benefits to shareholders of investing in a fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by

Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries 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 investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2017 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 fourth quintile of its performance universe for the one year period, the second quintile for the three year period and the first 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 reasonably comparable to the performance of the Index for the one year period, and above the performance of the Index for the three and five year periods. The Board noted that underweight exposure to certain sectors and capitalization sizes driven by the Fund’s equally-weighted investment process detracted from the Fund’s performance. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

Invesco V.I. Equally-Weighted S&P 500 Fund

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for 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 non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. 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 considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that there were only three funds (including the Fund) in the expense group.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. 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 differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including management of cash flows as a result of redemptions and purchases, necessary infrastructure such as officers, office space, technology, legal and distribution, oversight of service providers, costs and business risks associated with launching new funds and sponsoring and maintaining the product line, preparation of annual registration statement updates and financial information and compliance with federal and state laws and regulations.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule,

which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements.

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 considered the methodology used for calculating profitability and noted the periodic review of such methodology by an independent consultant. 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, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers 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 administrative, 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 Invesco representing 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 an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are 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

	Semiannual Report to Shareholders	June 30, 2018
	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 semi-annual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The Fund’s Form N-Q (or any successor Form) filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q (or any successor Form) 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 (or any successor Form), 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             07182018      0831

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/17 to 6/30/18, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-1.10	%
Series II Shares	-1.21
Russell 1000 Value Index▼ (Broad Market Index)	-1.69
Bloomberg Barclays U.S. Government/Credit Index▼ (Style-Specific Index)	-1.90
Lipper VUF Mixed-Asset Target Allocation Growth Funds Index∎ (Peer Group Index)	0.26
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.

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 0.56% and 0.81%, 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 0.57% and 0.82%, 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

Average Annual Total Returns As of 6/30/18
Series I Shares
10 Years	8.10	%
5 Years	8.34
1 Year	5.47
Series II Shares
Inception (4/30/03)	7.96	%
10 Years	7.92
5 Years	8.08
1 Year	5.21

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 reim- bursements by the adviser in effect through at least June 30, 2020. See current prospectus for more information.

Invesco V.I. Equity and Income Fund

Schedule of Investments^(a)

June 30, 2018

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests-63.12%
Aerospace & Defense-1.27%
General Dynamics Corp.		100,897	$	18,808,210
Asset Management & Custody Banks-1.62%
Northern Trust Corp.		104,723		10,774,950
State Street Corp.		142,382		13,254,340
				24,029,290
Automobile Manufacturers-1.51%
General Motors Co.		568,132		22,384,401
Biotechnology-1.16%
Amgen Inc.		55,838		10,307,136
Celgene Corp.(b)		87,561		6,954,095
				17,261,231
Building Products-0.55%
Johnson Controls International PLC		245,174		8,201,070
Cable & Satellite-1.32%
Charter Communications, Inc.–Class A(b)		39,513		11,585,607
Comcast Corp.–Class A		244,946		8,036,678
				19,622,285
Communications Equipment-1.75%
Cisco Systems, Inc.		431,975		18,587,884
Juniper Networks, Inc.		270,880		7,427,530
				26,015,414
Diversified Banks-9.15%
Bank of America Corp.		1,420,904		40,055,284
Citigroup Inc.		699,369		46,801,773
JPMorgan Chase & Co.		327,164		34,090,489
Wells Fargo & Co.		270,090		14,973,790
				135,921,336
Diversified Metals & Mining-0.54%
BHP Billiton Ltd. (Australia)		320,762		8,039,140
Drug Retail-0.76%
Walgreens Boots Alliance, Inc.		188,544		11,315,468
Electric Utilities-0.29%
FirstEnergy Corp.		119,885		4,305,070
Fertilizers & Agricultural Chemicals-1.01%
Mosaic Co. (The)		274,608		7,702,755
Nutrien Ltd. (Canada)		134,106		7,292,684
				14,995,439
Health Care Distributors-0.95%
McKesson Corp.		106,056		14,147,870

	Shares		Value
Health Care Equipment-2.14%
Baxter International Inc.		113,977	$	8,416,062
Medtronic PLC		145,240		12,433,996
Zimmer Biomet Holdings, Inc.		98,726		11,002,026
				31,852,084
Health Care Services-1.38%
CVS Health Corp.		317,461		20,428,615
Home Improvement Retail-0.84%
Kingfisher PLC (United Kingdom)		3,180,076		12,465,281
Hotels, Resorts & Cruise Lines-1.04%
Carnival Corp.		269,575		15,449,343
Industrial Machinery-0.76%
Ingersoll-Rand PLC		125,919		11,298,712
Insurance Brokers-1.76%
Aon PLC		83,157		11,406,646
Marsh & McLennan Cos., Inc.		75,611		6,197,833
Willis Towers Watson PLC		56,578		8,577,225
				26,181,704
Integrated Oil & Gas-4.10%
BP PLC (United Kingdom)		2,385,388		18,163,550
Occidental Petroleum Corp.		249,644		20,890,210
Royal Dutch Shell PLC–Class A (United Kingdom)		632,234		21,910,597
				60,964,357
Integrated Telecommunication Services-0.59%
Verizon Communications Inc.		175,290		8,818,840
Internet Software & Services-0.89%
eBay Inc.(b)		362,934		13,159,987
Investment Banking & Brokerage-2.48%
Charles Schwab Corp. (The)		18,841		962,775
Goldman Sachs Group, Inc. (The)		47,081		10,384,656
Morgan Stanley		539,367		25,565,996
				36,913,427
IT Consulting & Other Services-0.87%
Cognizant Technology Solutions Corp.–Class A		164,359		12,982,717
Managed Health Care-0.66%
Anthem, Inc.		41,200		9,806,836
Multi-Line Insurance-1.43%
American International Group, Inc.		401,613		21,293,521
Oil & Gas Equipment & Services-1.55%
Baker Hughes, a GE Co.		179,487		5,928,456
TechnipFMC PLC (United Kingdom)		537,415		17,057,552
				22,986,008

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

Invesco V.I. Equity and Income Fund

	Shares		Value
Oil & Gas Exploration & Production-5.11%
Anadarko Petroleum Corp.		293,659	$	21,510,522
Apache Corp.		322,839		15,092,723
Canadian Natural Resources Ltd. (Canada)		419,937		15,156,318
Devon Energy Corp.		550,499		24,199,936
				75,959,499
Other Diversified Financial Services-1.10%
AXA Equitable Holdings, Inc.(b)		328,879		6,778,196
Voya Financial, Inc.		202,188		9,502,836
				16,281,032
Packaged Foods & Meats-1.02%
Mondelez International, Inc.–Class A		369,513		15,150,033
Pharmaceuticals-3.77%
Bristol-Myers Squibb Co.		154,233		8,535,254
Merck & Co., Inc.		246,985		14,991,989
Novartis AG (Switzerland)		155,032		11,742,828
Pfizer Inc.		332,706		12,070,574
Sanofi (France)		108,069		8,652,610
				55,993,255
Railroads-0.99%
CSX Corp.		229,756		14,653,838
Regional Banks-3.72%
Citizens Financial Group, Inc.		568,443		22,112,433
Fifth Third Bancorp		420,228		12,060,543
First Horizon National Corp.		383,880		6,848,419
PNC Financial Services Group, Inc. (The)		105,719		14,282,637
				55,304,032
Semiconductors-1.87%
Intel Corp.		248,590		12,357,409
QUALCOMM Inc.		275,805		15,478,177
				27,835,586
Systems Software-1.74%
Oracle Corp.		505,913		22,290,527
Symantec Corp.		175,559		3,625,293
				25,915,820
Tobacco-1.43%
Philip Morris International Inc.		263,227		21,252,948
Total Common Stocks (Cost $687,067,660)				937,993,699
	Principal Amount
Bonds & Notes-17.99%
Aerospace & Defense-0.04%
BAE Systems Holdings Inc. (United Kingdom), Sr. Unsec. Gtd. Notes, 2.85%, 12/15/2020(c)	$	288,000		284,595
Precision Castparts Corp., Sr. Unsec. Global Notes, 2.50%, 01/15/2023		365,000		351,913
				636,508

	Principal Amount		Value
Agricultural & Farm Machinery-0.08%
Deere & Co., Sr. Unsec. Notes, 2.60%, 06/08/2022	$	1,275,000	$	1,243,051
Agricultural Products-0.02%
Ingredion Inc., Sr. Unsec. Notes, 6.63%, 04/15/2037		255,000		314,940
Air Freight & Logistics-0.11%
FedEx Corp.,
Sr. Unsec. Gtd. Bonds, 4.90%, 01/15/2034		440,000		464,414
Sr. Unsec. Gtd. Notes, 5.10%, 01/15/2044		910,000		956,798
United Parcel Service, Inc., Sr. Unsec. Notes, 3.40%, 11/15/2046		258,000		227,760
				1,648,972
Airlines-0.15%
American Airlines Pass Through Trust, Series 2014-1, Class A, Sr. Sec. First Lien Pass Through Ctfs., 3.70%, 04/01/2028		361,803		354,115
Continental Airlines Pass Through Trust,
Series 2010-1, Class A, Sr. Sec. First Lien Pass Through Ctfs., 4.75%, 01/12/2021		181,739		185,403
Series 2012-1, Class A, Sr. Sec. First Lien Pass Through Ctfs., 4.15%, 04/11/2024		384,492		389,025
Delta Air Lines Pass Through Trust, Series 2010-1, Class A, Sr. Sec. First Lien Pass Through Ctfs., 6.20%, 01/02/2020		87,527		87,527
United Airlines Pass Through Trust,
Series 2014-2, Class A, Sr. Sec. First Lien Pass Through Ctfs., 3.75%, 09/03/2026		467,225		465,068
Series 2018-1, Class AA, Sr. Sec. First Lien Pass Through Ctfs., 3.50%, 09/01/2031		543,000		528,140
Virgin Australia Pass Through Trust (Australia), Series 2013-1, Class A, Sec. Gtd. Pass Through Ctfs., 5.00%, 04/23/2025(c)		264,375		269,104
				2,278,382
Application Software-0.72%
Citrix Systems, Inc., Sr. Unsec. Conv. Notes, 0.50%, 04/15/2019		2,171,000		3,157,709
Nuance Communications, Inc.,
Sr. Unsec. Conv. Bonds, 1.00%, 12/15/2022(d)		2,703,000		2,432,689
Sr. Unsec. Conv. Global Bonds, 1.25%, 04/01/2025		1,713,000		1,618,973
RealPage, Inc., Sr. Unsec. Conv. Bonds, 1.50%, 11/15/2022		690,000		981,161
Workday, Inc., Sr. Unsec. Conv. Notes, 0.25%, 10/01/2022(c)		2,389,000		2,513,897
				10,704,429

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
Asset Management & Custody Banks-0.28%
Apollo Management Holdings L.P., Sr. Unsec. Gtd. Notes, 4.00%, 05/30/2024(c)	$	2,985,000	$	2,967,567
Brookfield Asset Management Inc. (Canada), Sr. Unsec. Notes, 4.00%, 01/15/2025		460,000		455,264
Carlyle Holdings Finance LLC, Sr. Unsec. Gtd. Notes, 3.88%, 02/01/2023(c)		395,000		394,497
KKR Group Finance Co. III LLC, Sr. Unsec. Gtd. Bonds, 5.13%, 06/01/2044(c)		315,000		311,773
				4,129,101
Automobile Manufacturers-0.16%
Ford Motor Credit Co. LLC, Sr. Unsec. Global Notes,
3.10%, 05/04/2023		267,000		254,786
3.81%, 01/09/2024		445,000		432,321
4.13%, 08/04/2025		687,000		670,766
General Motors Co., Sr. Unsec. Global Notes, 6.60%, 04/01/2036		397,000		430,584
General Motors Financial Co., Inc., Sr. Unsec. Gtd. Global Notes, 5.25%, 03/01/2026		503,000		522,022
				2,310,479
Automotive Retail-0.07%
Advance Auto Parts, Inc., Sr. Unsec. Gtd. Notes,
4.50%, 12/01/2023		660,000		676,773
5.75%, 05/01/2020		399,000		416,376
				1,093,149
Biotechnology-0.57%
AbbVie Inc., Sr. Unsec. Global Notes, 4.50%, 05/14/2035		720,000		707,646
BioMarin Pharmaceutical Inc., Sr. Unsec. Sub. Conv. Notes, 1.50%, 10/15/2020		2,388,000		2,840,820
Celgene Corp., Sr. Unsec. Global Notes,
4.00%, 08/15/2023		485,000		489,508
4.63%, 05/15/2044		1,390,000		1,293,964
Gilead Sciences, Inc., Sr. Unsec. Global Notes, 4.40%, 12/01/2021		492,000		508,893
Neurocrine Biosciences, Inc., Sr. Unsec. Conv. Notes, 2.25%, 05/15/2024		1,853,000		2,678,943
				8,519,774
Brewers-0.34%
Anheuser-Busch InBev Finance, Inc. (Belgium), Sr. Unsec. Gtd. Global Notes,
2.65%, 02/01/2021		625,000		616,634
3.30%, 02/01/2023		593,000		588,471
4.70%, 02/01/2036		1,005,000		1,020,917
4.90%, 02/01/2046		1,122,000		1,157,950
Heineken NV (Netherlands), Sr. Unsec. Notes, 3.50%, 01/29/2028(c)		1,000,000		963,895

	Principal Amount		Value
Brewers–(continued)
Molson Coors Brewing Co., Sr. Unsec. Gtd. Global Notes,
1.45%, 07/15/2019	$	341,000	$	335,697
4.20%, 07/15/2046		395,000		355,739
				5,039,303
Broadcasting-0.61%
Liberty Media Corp., Liberty Formula One,
Sr. Unsec. Conv. Bonds, 1.00%, 01/30/2023		570,000		668,064
Sr. Unsec. Conv. Deb., 2.25%, 10/05/2021(d)		1,538,000		811,635
Sr. Unsec. Conv. Notes, 1.38%, 10/15/2023		6,063,000		7,557,348
				9,037,047
Cable & Satellite-0.68%
Charter Communications Operating, LLC/Charter Communications Operating Capital Corp., Sr. Sec. Gtd. First Lien Global Notes, 4.46%, 07/23/2022		1,065,000		1,077,819
Comcast Corp.,
Sr. Unsec. Gtd. Global Notes, 3.90%, 03/01/2038		820,000		747,982
Sr. Unsec. Gtd. Notes, 6.45%, 03/15/2037		305,000		362,973
DISH Network Corp., Sr. Unsec. Conv. Bonds, 3.38%, 08/15/2026		4,954,000		4,810,810
GCI Liberty, Inc., Sr. Unsec. Conv. Deb., 1.75%, 10/05/2023(c)(d)		2,357,000		2,437,011
NBCUniversal Media LLC, Sr. Unsec. Gtd. Global Notes,
5.15%, 04/30/2020		175,000		180,878
5.95%, 04/01/2041		215,000		242,453
Sky PLC (United Kingdom), Sr. Unsec. Gtd. Notes, 9.50%, 11/15/2018(c)		235,000		240,608
				10,100,534
Commodity Chemicals-0.06%
Basell Finance Co. B.V. (Netherlands), Sr. Unsec. Gtd. Deb., 8.10%, 03/15/2027(c)		745,000		931,271
Communications Equipment-0.59%
Ciena Corp., Sr. Unsec. Conv. Bonds, 4.00%, 12/15/2020		1,610,000		2,275,521
Finisar Corp., Sr. Unsec. Conv. Bonds, 0.50%, 12/15/2021(d)		1,114,000		1,013,907
Viavi Solutions Inc., Sr. Unsec. Conv. Deb., 0.63%, 08/15/2018(d)		1,990,000		2,009,313
Sr. Unsec. Conv. Notes,
1.00%, 03/01/2024		1,986,000		2,009,331
1.75%, 06/01/2023(c)		1,424,000		1,468,547
				8,776,619
Consumer Finance-0.13%
American Express Co., Unsec. Sub. Global Notes, 3.63%, 12/05/2024		336,000		331,255

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
Consumer Finance–(continued)
Capital One Financial Corp., Sr. Unsec. Global Notes, 3.20%, 01/30/2023	$	1,035,000	$	1,005,846
Synchrony Financial, Sr. Unsec. Global Notes, 3.95%, 12/01/2027		600,000		554,355
				1,891,456
Data Processing & Outsourced Services-0.05%
Visa Inc., Sr. Unsec. Global Notes, 4.15%, 12/14/2035		670,000		695,072
Diversified Banks-1.82%
ANZ New Zealand (Int'l) Ltd. (New Zealand), Sr. Unsec. Gtd. Notes, 2.88%, 01/25/2022(c)		350,000		341,508
Australia and New Zealand Banking Group Ltd. (Australia), Sr. Unsec. Medium-Term Global Notes, 2.30%, 06/01/2021		713,000		693,253
Bank of America Corp.,
Sr. Unsec. Medium-Term Global Notes, 3.50%, 04/19/2026		615,000		595,270
Sr. Unsec. Medium-Term Notes, 3.25%, 10/21/2027		565,000		526,978
Bank of Nova Scotia (The) (Canada), Sr. Unsec. Global Notes, 2.05%, 10/30/2018		1,500,000		1,497,515
BBVA Bancomer S.A. (Mexico), Sr. Unsec. Notes, 4.38%, 04/10/2024(c)		700,000		699,300
Citigroup Inc.,
Sr. Unsec. Global Notes, 3.67%, 07/24/2028		545,000		518,717
Unsec. Sub. Global Notes,
5.30%, 05/06/2044		250,000		258,107
6.68%, 09/13/2043		815,000		987,527
Unsec. Sub. Notes, 4.75%, 05/18/2046		375,000		357,661
Commonwealth Bank of Australia (Australia), Sr. Unsec. Notes, 2.25%, 03/10/2020(c)		1,085,000		1,069,711
Coöperatieve Rabobank U.A. (Netherlands), Jr. Unsec. Sub. Notes, 11.00%(c)(e)		810,000		870,750
Discover Bank, Sr. Unsec. Notes, 3.35%, 02/06/2023		1,500,000		1,462,811
JPMorgan Chase & Co., Sr. Unsec. Global Notes,
3.20%, 06/15/2026		415,000		392,690
3.51%, 01/23/2029		1,145,000		1,087,117
3.90%, 01/23/2049		1,145,000		1,029,764
4.26%, 02/22/2048		525,000		494,961
4.50%, 01/24/2022		80,000		82,773
Series V, Jr. Unsec. Sub. Global Notes, 5.00%(e)		640,000		644,000
Mizuho Financial Group Cayman 3 Ltd. (Japan), Unsec. Gtd. Sub. Notes, 4.60%, 03/27/2024(c)		200,000		203,465
National Australia Bank Ltd. (Australia),
Sr. Unsec. Medium-Term Global Notes, 2.00%, 01/14/2019		930,000		926,578
Sr. Unsec. Notes, 1.88%, 07/12/2021		945,000		902,878

	Principal Amount		Value
Diversified Banks–(continued)
Royal Bank of Canada (Canada), Sr. Unsec. Global Notes, 2.00%, 12/10/2018	$	4,000,000	$	3,991,196
Société Générale S.A. (France),
Sr. Unsec. Notes, 2.63%, 09/16/2020(c)		890,000		875,827
Unsec. Sub. Notes, 5.00%, 01/17/2024(c)		735,000		738,078
Standard Chartered PLC (United Kingdom), Sr. Unsec. Notes, 3.05%, 01/15/2021(c)		680,000		670,968
Sumitomo Mitsui Banking Corp. (Japan), Sr. Unsec. Gtd. Medium-Term Global Notes, 2.65%, 07/23/2020		715,000		705,637
U.S. Bancorp, Series W, Unsec. Sub. Medium-Term Notes, 3.10%, 04/27/2026		2,295,000		2,166,082
Wells Fargo & Co.,
Sr. Unsec. Medium-Term Notes, 3.55%, 09/29/2025		655,000		635,340
Unsec. Sub. Medium-Term Notes,
4.10%, 06/03/2026		450,000		441,250
4.65%, 11/04/2044		1,200,000		1,144,819
				27,012,531
Diversified Capital Markets-0.58%
Credit Suisse AG (Switzerland),
Sr. Unsec. Conv. Medium-Term Notes, 0.50%, 06/24/2024(c)		7,880,000		7,874,484
Unsec. Sub. Notes, 6.50%, 08/08/2023(c)		686,000		731,266
				8,605,750
Diversified Chemicals-0.05%
Eastman Chemical Co., Sr. Unsec. Global Notes, 2.70%, 01/15/2020		795,000		790,516
Diversified Metals & Mining-0.02%
Rio Tinto Finance USA Ltd. (Australia), Sr. Unsec. Gtd. Global Notes, 7.13%, 07/15/2028		200,000		252,909
Drug Retail-0.12%
CVS Pass Through Trust, Sr. Sec. First Lien Global Pass Through Ctfs., 6.04%, 12/10/2028		777,828		828,991
Walgreens Boots Alliance Inc., Sr. Unsec. Global Notes,
3.30%, 11/18/2021		602,000		598,715
4.50%, 11/18/2034		444,000		420,494
				1,848,200
Electric Utilities-0.28%
Electricite de France S.A. (France),
Jr. Unsec. Sub. Notes, 5.63%(c)(e)		745,000		732,894
Sr. Unsec. Notes,
4.60%, 01/27/2020(c)		150,000		153,402
4.88%, 01/22/2044(c)		930,000		943,906

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
Electric Utilities-(continued)
NextEra Energy Capital Holdings Inc., Sr. Unsec. Gtd. Deb., 3.55%, 05/01/2027	$	569,000	$	547,755
Ohio Power Co., Series M, Sr. Unsec. Notes, 5.38%, 10/01/2021		200,000		213,088
PPL Electric Utilities Corp., Sr. Sec. First Mortgage Bonds, 6.25%, 05/15/2039		50,000		63,557
Southern Electric Generating Co., Sr. Unsec. Gtd. Notes, 2.20%, 12/01/2018(c)		1,535,000		1,531,448
Virginia Electric & Power Co., Sr. Unsec. Notes, 5.00%, 06/30/2019		15,000		15,292
				4,201,342
Environmental & Facilities Services-0.03%
Waste Management, Inc., Sr. Unsec. Gtd. Global Notes, 3.90%, 03/01/2035		469,000		457,230
Fertilizers & Agricultural Chemicals-0.02%
Monsanto Co., Sr. Unsec. Global Notes, 2.13%, 07/15/2019		305,000		302,311
Financial Exchanges & Data-0.07%
Moody's Corp., Sr. Unsec. Global Notes, 4.50%, 09/01/2022		935,000		966,812
Food Retail-0.01%
Alimentation Couche-Tard Inc. (Canada), Sr. Unsec. Gtd. Notes, 4.50%, 07/26/2047(c)		120,000		113,574
General Merchandise Stores-0.02%
Dollar General Corp., Sr. Unsec. Global Notes, 3.25%, 04/15/2023		365,000		358,932
Health Care Distributors-0.07%
McKesson Corp., Sr. Unsec. Global Notes, 2.28%, 03/15/2019		1,095,000		1,091,059
Health Care Equipment-0.89%
Becton, Dickinson and Co.,
Sr. Unsec. Global Notes, 4.88%, 05/15/2044		750,000		738,261
Sr. Unsec. Notes, 2.68%, 12/15/2019		274,000		272,033
DexCom, Inc., Sr. Unsec. Conv. Notes, 0.75%, 05/15/2022(c)		2,591,000		3,010,905
Edwards Lifesciences Corp., Sr. Unsec. Global Notes, 2.88%, 10/15/2018		731,000		731,251
Insulet Corp., Sr. Unsec. Conv. Notes, 1.38%, 11/15/2024(c)		476,000		535,866
Medtronic, Inc., Sr. Unsec. Gtd. Global Notes,
3.15%, 03/15/2022		1,076,000		1,067,652
4.38%, 03/15/2035		358,000		370,675
4.63%, 03/15/2044		525,000		553,810
NuVasive, Inc., Sr. Unsec. Conv. Notes, 2.25%, 03/15/2021		1,880,000		2,041,849

	Principal Amount		Value
Health Care Equipment–(continued)
Wright Medical Group N.V., Sr. Unsec. Conv. Bonds, 2.25%, 11/15/2021	$	986,000	$	1,317,344
Wright Medical Group, Inc., Sr. Unsec. Gtd. Conv. Notes, 1.63%, 06/15/2023(c)		2,525,000		2,517,425
				13,157,071
Health Care REITs-0.08%
HCP, Inc., Sr. Unsec. Global Notes,
3.88%, 08/15/2024		505,000		494,337
4.20%, 03/01/2024		480,000		480,096
Ventas Realty L.P., Sr. Unsec. Gtd. Notes, 5.70%, 09/30/2043		215,000		237,824
				1,212,257
Health Care Services-0.61%
Convertible Trust –Healthcare, Series 2018-1, Sr. Unsec. Medium-Term Notes, 0.25%, 02/05/2024		5,897,000		5,856,370
CVS Health Corp.,
Sr. Unsec. Global Bonds, 3.38%, 08/12/2024		375,000		362,339
Sr. Unsec. Global Notes, 4.10%, 03/25/2025		1,359,000		1,353,523
Express Scripts Holding Co., Sr. Unsec. Gtd. Global Notes, 2.25%, 06/15/2019		575,000		570,968
Laboratory Corp. of America Holdings, Sr. Unsec. Notes,
3.20%, 02/01/2022		602,000		595,864
4.70%, 02/01/2045		264,000		259,058
				8,998,122
Home Improvement Retail-0.04%
Home Depot, Inc. (The), Sr. Unsec. Global Notes, 2.00%, 04/01/2021		631,000		615,661
Homebuilding-0.06%
MDC Holdings, Inc., Sr. Unsec. Gtd. Notes, 6.00%, 01/15/2043		1,050,000		919,170
Hotel & Resort REITs-0.03%
Hospitality Properties Trust, Sr. Unsec. Notes,
4.50%, 06/15/2023		270,000		271,454
5.00%, 08/15/2022		200,000		205,679
				477,133
Housewares & Specialties-0.03%
Tupperware Brands Corp., Sr. Unsec. Gtd. Global Notes, 4.75%, 06/01/2021		475,000		487,787
Insurance Brokers-0.02%
Willis North America, Inc., Sr. Unsec. Gtd. Global Notes, 3.60%, 05/15/2024		250,000		241,818

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
Integrated Oil & Gas-0.11%
Husky Energy Inc. (Canada), Sr. Unsec. Global Notes, 3.95%, 04/15/2022	$	300,000	$	302,411
Occidental Petroleum Corp., Sr. Unsec. Global Notes, 3.40%, 04/15/2026		365,000		356,554
Petróleos Mexicanos (Mexico), Sr. Unsec. Gtd. Global Notes, 4.88%, 01/24/2022		570,000		576,441
Suncor Energy Inc. (Canada), Sr. Unsec. Notes, 3.60%, 12/01/2024		334,000		330,234
				1,565,640
Integrated Telecommunication Services-0.46%
AT&T Inc., Sr. Unsec. Global Notes,
3.00%, 06/30/2022		520,000		504,546
3.40%, 05/15/2025		289,000		272,203
4.50%, 05/15/2035		463,000		429,225
4.80%, 06/15/2044		935,000		850,780
5.15%, 03/15/2042		90,000		85,475
5.35%, 09/01/2040		101,000		98,822
Sr. Unsec. Notes,
4.30%, 02/15/2030(c)		348,000		329,777
5.15%, 11/15/2046(c)		140,000		132,270
Orange S.A. (France), Sr. Unsec. Global Notes, 1.63%, 11/03/2019		1,455,000		1,428,420
Telefónica Emisiones, S.A.U. (Spain), Sr. Unsec. Gtd. Global Notes,
4.67%, 03/06/2038		750,000		703,266
5.21%, 03/08/2047		700,000		676,689
7.05%, 06/20/2036		360,000		433,670
Verizon Communications Inc., Sr. Unsec. Global Notes,
4.13%, 08/15/2046		83,000		71,121
4.40%, 11/01/2034		325,000		303,788
4.81%, 03/15/2039		503,000		487,621
				6,807,673
Internet & Direct Marketing Retail-0.37%
Ctrip.com International, Ltd. (China), Sr. Unsec. Conv. Bonds, 1.25%, 09/15/2019(d)		2,992,000		3,078,080
Liberty Expedia Holdings, Inc., Sr. Unsec. Conv. Deb., 1.00%, 07/05/2022(c)(d)		1,574,000		1,558,318
QVC, Inc., Sr. Sec. Gtd. First Lien Global Notes, 5.45%, 08/15/2034		880,000		814,516
				5,450,914
Investment Banking & Brokerage-1.27%
Goldman Sachs Group, Inc. (The),
Sr. Unsec. Global Notes,
4.02%, 10/31/2038		550,000		501,771
5.25%, 07/27/2021		400,000		420,517
Unsec. Sub. Notes, 4.25%, 10/21/2025		552,000		544,244
Series 0000, Sr. Unsec. Exchangeable Basket-Linked Conv. Medium-Term Notes, 1.00%, 09/28/2020(c)(f)		6,230,000		11,272,313

	Principal Amount		Value
Investment Banking & Brokerage-(continued)
GS Finance Corp., Series 0001, Sr. Unsec. Conv. Medium-Term Notes, 0.25%, 07/08/2024	$	5,920,000	$	5,485,413
Morgan Stanley, Sr. Unsec. Medium-Term Global Notes, 4.00%, 07/23/2025		680,000		678,344
				18,902,602
IT Consulting & Other Services-0.03%
DXC Technology Co., Sr. Unsec. Global Notes, 4.45%, 09/18/2022		490,000		504,691
Life & Health Insurance-0.44%
Athene Global Funding, Sec. Notes,
2.88%, 10/23/2018(c)		624,000		623,918
4.00%, 01/25/2022(c)		1,220,000		1,229,041
Jackson National Life Global Funding, Sr. Sec. Notes,
2.10%, 10/25/2021(c)		525,000		503,081
3.25%, 01/30/2024(c)		480,000		470,740
Nationwide Financial Services Inc., Sr. Unsec. Notes, 5.30%, 11/18/2044(c)		910,000		974,577
Prudential Financial, Inc., Sr. Unsec. Global Notes,
3.91%, 12/07/2047		155,000		139,889
3.94%, 12/07/2049		496,000		446,770
Reliance Standard Life Global Funding II, Sr. Sec. First Lien Notes,
2.15%, 10/15/2018(c)		1,250,000		1,248,194
3.05%, 01/20/2021(c)		465,000		459,742
Teachers Insurance and Annuity Association of America, Unsec. Sub. Notes, 4.27%, 05/15/2047(c)		498,000		477,012
				6,572,964
Movies & Entertainment-0.15%
Live Nation Entertainment, Inc., Sr. Unsec. Conv. Notes, 2.50%, 03/15/2023(c)		2,147,000		2,228,399
Multi-Line Insurance-0.14%
American Financial Group, Inc., Sr. Unsec. Notes, 4.50%, 06/15/2047		520,000		493,022
American International Group, Inc., Sr. Unsec. Global Notes,
2.30%, 07/16/2019		385,000		382,768
4.38%, 01/15/2055		720,000		624,334
Metropolitan Life Global Funding I, Sec. Notes, 2.05%, 06/12/2020(c)		590,000		578,227
				2,078,351
Multi-Utilities-0.08%
NiSource Inc., Sr. Unsec. Global Notes, 4.38%, 05/15/2047		616,000		600,190
Sempra Energy, Sr. Unsec. Global Notes, 3.80%, 02/01/2038		605,000		550,764
				1,150,954

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
Office REITs-0.05%
Government Properties Income Trust, Sr. Unsec. Global Notes, 4.00%, 07/15/2022	$	730,000	$	721,826
Oil & Gas Equipment & Services-0.58%
Ensco Jersey Finance Ltd., Sr. Unsec. Gtd. Conv. Bonds, 3.00%, 01/31/2024		2,100,000		1,955,390
Helix Energy Solutions Group, Inc., Sr. Unsec. Conv. Notes, 4.25%, 05/01/2022		1,105,000		1,156,253
Nabors Industries Inc., Sr. Unsec. Gtd. Conv. Bonds, 0.75%, 01/15/2024		1,150,000		907,661
Oil States International, Inc., Sr. Unsec. Conv. Notes, 1.50%, 02/15/2023(c)		1,595,000		1,667,295
Weatherford International Ltd., Sr. Unsec. Gtd. Conv. Notes, 5.88%, 07/01/2021		2,952,000		2,912,532
				8,599,131
Oil & Gas Exploration & Production-0.18%
Anadarko Petroleum Corp., Sr. Unsec. Notes, 6.60%, 03/15/2046		443,000		533,884
Chesapeake Energy Corp., Sr. Unsec. Gtd. Conv. Bonds, 5.50%, 09/15/2026		1,042,000		1,061,574
ConocoPhillips Co., Sr. Unsec. Gtd. Global Notes, 4.15%, 11/15/2034		237,000		237,426
Noble Energy, Inc., Sr. Unsec. Global Notes, 5.25%, 11/15/2043		830,000		847,384
				2,680,268
Oil & Gas Storage & Transportation-0.73%
Enable Midstream Partners, LP, Sr. Unsec. Global Notes, 2.40%, 05/15/2019		440,000		437,318
Energy Transfer Partners, L.P., Sr. Unsec. Gtd. Notes,
4.20%, 09/15/2023		1,892,000		1,890,914
4.90%, 03/15/2035		357,000		327,297
Enterprise Products Operating LLC, Sr. Unsec. Gtd. Global Bonds, 6.45%, 09/01/2040		25,000		30,053
Sr. Unsec. Gtd. Global Notes,
4.25%, 02/15/2048		754,000		703,812
5.25%, 01/31/2020		155,000		160,104
Sr. Unsec. Gtd. Notes, 2.55%, 10/15/2019		370,000		367,608
Series N, Sr. Unsec. Gtd. Notes, 6.50%, 01/31/2019		245,000		250,143
Kinder Morgan Inc., Sr. Unsec. Gtd. Notes, 5.30%, 12/01/2034		422,000		416,657
MPLX LP,
Sr. Unsec. Global Bonds, 4.50%, 07/15/2023		1,820,000		1,859,889
Sr. Unsec. Global Notes,
4.50%, 04/15/2038		877,000		812,080
5.50%, 02/15/2023		745,000		760,012

	Principal Amount		Value
Oil & Gas Storage & Transportation–(continued)
Plains All American Pipeline L.P./ PAA Finance Corp., Sr. Unsec. Global Notes, 3.65%, 06/01/2022	$	355,000	$	348,203
Spectra Energy Partners, L.P., Sr. Unsec. Global Notes, 4.50%, 03/15/2045		536,000		498,019
Sunoco Logistics Partners Operations L.P., Sr. Unsec. Gtd. Notes,
5.30%, 04/01/2044		645,000		585,418
5.50%, 02/15/2020		535,000		551,263
Texas Eastern Transmission L.P., Sr. Unsec. Notes, 7.00%, 07/15/2032		185,000		228,432
Western Gas Partners, LP, Sr. Unsec. Notes, 5.45%, 04/01/2044		600,000		567,230
				10,794,452
Other Diversified Financial Services-0.21%
ERAC USA Finance LLC, Sr. Unsec. Gtd. Notes, 2.35%, 10/15/2019(c)		935,000		924,768
MassMutual Global Funding II,
Sec. Notes, 2.00%, 04/15/2021(c)		945,000		912,815
Sr. Sec. Notes, 2.10%, 08/02/2018(c)		975,000		974,763
SMBC Aviation Capital Finance DAC (Ireland), Sr. Unsec. Gtd. Notes, 2.65%, 07/15/2021(c)		315,000		305,620
				3,117,966
Packaged Foods & Meats-0.06%
General Mills, Inc., Sr. Unsec. Global Notes, 2.20%, 10/21/2019		850,000		840,290
Mead Johnson Nutrition Co. (United Kingdom), Sr. Unsec. Gtd. Global Notes, 4.13%, 11/15/2025		64,000		65,240
				905,530
Paper Packaging-0.10%
International Paper Co., Sr. Unsec. Global Notes, 6.00%, 11/15/2041		245,000		271,201
Packaging Corp. of America, Sr. Unsec. Global Notes, 4.50%, 11/01/2023		1,139,000		1,177,892
				1,449,093
Pharmaceuticals-0.68%
Allergan Funding SCS, Sr. Unsec. Gtd. Global Notes, 4.85%, 06/15/2044		950,000		918,742
Bayer US Finance II LLC (Germany), Sr. Unsec. Gtd. Notes, 4.38%, 12/15/2028(c)		985,000		988,515
Bayer US Finance LLC (Germany), Sr. Unsec. Gtd. Notes,
2.38%, 10/08/2019(c)		2,270,000		2,251,294
3.00%, 10/08/2021(c)		590,000		580,801
GlaxoSmithKline Capital Inc. (United Kingdom), Sr. Unsec. Gtd. Global Bonds, 6.38%, 05/15/2038		70,000		90,019
Jazz Investments I Ltd., Sr. Unsec. Gtd. Conv. Bonds, 1.88%, 08/15/2021		1,455,000		1,587,174

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
Pharmaceuticals-(continued)
Medicines Co. (The), Sr. Unsec. Conv. Bonds, 2.75%, 07/15/2023	$	938,000	$	947,830
Merck Sharp & Dohme Corp., Sr. Unsec. Gtd. Global Notes, 5.00%, 06/30/2019		280,000		286,402
Mylan N.V., Sr. Unsec. Gtd. Global Notes, 3.15%, 06/15/2021		431,000		426,415
Pacira Pharmaceuticals, Inc., Sr. Unsec. Conv. Notes, 2.38%, 04/01/2022		792,000		738,039
Supernus Pharmaceuticals, Inc., Sr. Unsec. Conv. Notes, 0.63%, 04/01/2023(c)		765,000		936,114
Zoetis Inc., Sr. Unsec. Global Notes, 4.70%, 02/01/2043		365,000		377,489
				10,128,834
Property & Casualty Insurance-0.21%
Allstate Corp. (The), Sr. Unsec. Bonds, 3.28%, 12/15/2026		320,000		307,856
CNA Financial Corp., Sr. Unsec. Global Bonds, 5.88%, 08/15/2020		325,000		341,812
Liberty Mutual Group Inc., Sr. Unsec. Gtd. Bonds, 4.85%, 08/01/2044(c)		975,000		980,369
Markel Corp., Sr. Unsec. Notes, 5.00%, 03/30/2043		385,000		395,323
Travelers Cos., Inc. (The), Sr. Unsec. Global Notes, 4.60%, 08/01/2043		665,000		699,510
WR Berkley Corp., Sr. Unsec. Global Notes, 4.63%, 03/15/2022		420,000		434,102
				3,158,972
Railroads-0.18%
Burlington Northern Santa Fe, LLC, Sr. Unsec. Deb., 5.15%, 09/01/2043		991,000		1,099,917
CSX Corp., Sr. Unsec. Notes, 5.50%, 04/15/2041		380,000		422,516
Union Pacific Corp.,
Sr. Unsec. Global Notes, 3.65%, 02/15/2024		101,000		101,253
Sr. Unsec. Notes,
4.15%, 01/15/2045		440,000		424,561
4.85%, 06/15/2044		570,000		598,782
				2,647,029
Regional Banks-0.05%
Citizens Financial Group, Inc., Sr. Unsec. Global Notes, 2.38%, 07/28/2021		455,000		440,240
SunTrust Banks, Inc., Unsec. Sub. Global Notes, 3.30%, 05/15/2026		385,000		363,784
				804,024
Reinsurance-0.03%
Reinsurance Group of America, Inc., Sr. Unsec. Medium-Term Notes, 4.70%, 09/15/2023		386,000		399,375
Renewable Electricity-0.04%
Oglethorpe Power Corp., Sr. Sec. First Mortgage Bonds, 4.55%, 06/01/2044		581,000		580,508

	Principal Amount		Value
Semiconductors-0.67%
Broadcom Corp./Broadcom Cayman Finance Ltd., Sr. Unsec. Gtd. Global Notes, 3.63%, 01/15/2024	$	1,435,000	$	1,390,282
Microchip Technology Inc., Sr. Unsec. Sub. Conv. Notes, 1.63%, 02/15/2027		2,180,000		2,544,348
Micron Technology, Inc., Series G, Sr. Unsec. Conv. Global Bonds, 3.00%, 11/15/2028(d)		1,566,000		2,824,065
ON Semiconductor Corp., Sr. Unsec. Gtd. Conv. Bonds, 1.00%, 12/01/2020		1,702,000		2,243,374
Silicon Laboratories Inc., Sr. Unsec. Conv. Bonds, 1.38%, 03/01/2022		619,000		757,858
Texas Instruments Inc., Sr. Unsec. Notes, 2.63%, 05/15/2024		230,000		220,304
				9,980,231
Specialized Finance-0.35%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust (Ireland), Sr. Unsec. Gtd. Global Notes, 3.95%, 02/01/2022		385,000		382,948
Air Lease Corp., Sr. Unsec. Global Notes,
2.63%, 09/04/2018		1,150,000		1,149,581
3.00%, 09/15/2023		649,000		615,102
4.25%, 09/15/2024		430,000		427,327
Aviation Capital Group LLC, Sr. Unsec. Notes,
2.88%, 09/17/2018(c)		745,000		745,162
2.88%, 01/20/2022(c)		1,115,000		1,079,080
4.88%, 10/01/2025(c)		735,000		764,483
				5,163,683
Specialized REITs-0.30%
Crown Castle International Corp.,
Sr. Unsec. Global Bonds, 3.80%, 02/15/2028		1,917,000		1,796,504
Sr. Unsec. Global Notes, 4.75%, 05/15/2047		50,000		47,276
Crown Castle Towers LLC, Sr. Sec. Gtd. First Lien Notes, 4.88%, 08/15/2020(c)		538,000		552,050
EPR Properties, Sr. Unsec. Gtd. Global Notes, 4.75%, 12/15/2026		1,710,000		1,674,849
Life Storage LP, Sr. Unsec. Gtd. Global Notes, 3.50%, 07/01/2026		444,000		416,412
				4,487,091
Specialty Chemicals-0.01%
Sherwin-Williams Co. (The), Sr. Unsec. Global Notes, 4.50%, 06/01/2047		170,000		162,759
Systems Software-0.24%
FireEye, Inc.,
Series A, Sr. Unsec. Conv. Bonds, 1.00%, 06/01/2020(d)		1,722,000		1,648,815
Series B, Sr. Unsec. Conv. Bonds, 1.63%, 06/01/2022(d)		1,745,000		1,602,615

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
Systems Software-(continued)
Microsoft Corp., Sr. Unsec. Global Notes, 3.50%, 02/12/2035	$	403,000	$	390,982
				3,642,412
Technology Distributors-0.05%
Avnet, Inc., Sr. Unsec. Global Notes, 4.63%, 04/15/2026		705,000		695,601
Technology Hardware, Storage & Peripherals-0.42%
Apple Inc., Sr. Unsec. Global Notes,
2.15%, 02/09/2022		716,000		693,946
3.35%, 02/09/2027		335,000		327,368
Dell International LLC/ EMC Corp., Sr. Sec. Gtd. First Lien Notes,
5.45%, 06/15/2023(c)		645,000		675,271
8.35%, 07/15/2046(c)		14,000		16,901
SanDisk Corp., Sr. Unsec. Gtd. Conv. Bonds, 0.50%, 10/15/2020		2,520,000		2,388,935
Western Digital Corp., Sr. Unsec. Gtd. Conv. Notes, 1.50%, 02/01/2024(c)		2,107,000		2,135,489
				6,237,910
Tobacco-0.11%
Philip Morris International Inc., Sr. Unsec. Global Notes,
3.60%, 11/15/2023		405,000		403,300
4.88%, 11/15/2043		1,210,000		1,248,217
				1,651,517
Wireless Telecommunication Services-0.18%
América Móvil, S.A.B. de C.V. (Mexico), Sr. Unsec. Global Notes, 4.38%, 07/16/2042		600,000		587,606
Rogers Communications Inc. (Canada), Sr. Unsec. Gtd. Global Notes,
4.30%, 02/15/2048		1,515,000		1,450,231
4.50%, 03/15/2043		585,000		575,286
				2,613,123
Total Bonds & Notes (Cost $256,900,386)				267,343,795
U.S. Treasury Securities-12.23%
U.S. Treasury Bills-0.00%
1.59%, 07/26/2018(g)(h)		45,000		44,948
U.S. Treasury Notes-11.13%
1.25%, 01/31/2019		19,275,000		19,169,213
3.63%, 08/15/2019		1,525,000		1,545,611
3.38%, 11/15/2019		300,000		303,639
3.63%, 02/15/2020		46,000		46,817
2.50%, 05/31/2020		71,210,000		71,180,790
2.63%, 11/15/2020		600,000		600,586
2.63%, 06/15/2021		26,096,000		26,099,567
2.75%, 05/31/2023		17,041,500		17,058,807
2.88%, 05/31/2025		9,710,700		9,747,305
2.88%, 05/15/2028		19,626,400		19,659,749
				165,412,084

	Principal Amount		Value
U.S. Treasury Bonds-1.10%
4.50%, 02/15/2036	$	4,000,000	$	4,888,828
4.50%, 08/15/2039		40,000		49,828
4.38%, 05/15/2040		80,000		98,355
3.00%, 02/15/2048		11,313,000		11,341,725
				16,378,736
Total U.S. Treasury Securities (Cost $181,685,827)				181,835,768
	Shares
Preferred Stocks-0.51%
Asset Management & Custody Banks-0.19%
AMG Capital Trust II, $2.58 Conv. Pfd.		47,000		2,809,707
Diversified Banks-0.02%
Wells Fargo & Co., Series Q, 5.85% Pfd.		12,000		310,800
Oil & Gas Storage & Transportation-0.30%
El Paso Energy Capital Trust I, $2.38 Conv. Pfd.		95,499		4,444,524
Total Preferred Stocks (Cost $6,118,550)				7,565,031
	Principal Amount
U.S. Government Sponsored Agency Securities–0.07%
Federal Home Loan Mortgage Corp. (FHLMC)-0.07%
Unsec. Global Notes, 6.75%, 03/15/2031 (Cost $925,271)	$	750,000		1,024,838
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		22		24
Federal National Mortgage Association (FNMA)-0.00%
Pass Through Ctfs.,
5.50%, 03/01/2021		46		47
8.00%, 08/01/2021		17		17
9.50%, 04/01/2030		1,694		1,905
				1,969
Total U.S. Government Sponsored Agency Mortgage-Backed Securities (Cost $1,964)				1,993
	Shares
Money Market Funds-5.42%
Invesco Government & Agency Portfolio–Institutional Class, 1.80%(i)		28,187,249		28,187,249
Invesco Liquid Assets Portfolio–Institutional Class, 2.02%(i)		20,132,380		20,138,420
Invesco Treasury Portfolio–Institutional Class, 1.76%(i)		32,213,998		32,213,998
Total Money Market Funds (Cost $80,534,335)				80,539,667
TOTAL INVESTMENTS IN SECURITIES-99.34% (Cost $1,213,233,993)				1,476,304,791
OTHER ASSETS LESS LIABILITIES-0.66%				9,757,297
NET ASSETS-100.00%			$	1,486,062,088

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

Invesco V.I. Equity and Income Fund

Investment Abbreviations:

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, 2018 was $74,973,941, which represented 5.05% 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.

⁽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, 2018.

Portfolio Composition

By security type, based on Net Assets

as of June 30, 2018

Common Stocks	63.1	%
Bonds & Notes	18.0
U.S. Treasury Securities	12.2
Security Types Each Less Than 1% of Portfolio	0.6
Money Market Funds Plus Other Assets Less Liabilities	6.1

Open Futures Contracts
Short Futures Contracts	Number of Contracts		Expiration Month		Notional Value			Value			Unrealized Appreciation (Depreciation)
U.S. Treasury 5 Year Notes		20		September-2018	$	(2,272,344	)	$	(9,266	)	$	(9,266	)
U.S. Treasury 10 Year Notes		17		September-2018		(2,043,188	)		(17,306	)		(17,306	)
Total Futures Contracts-Interest — Rate Risk								$	(26,572	)	$	(26,572	)

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

Invesco V.I. Equity and Income Fund

Open Forward Foreign Currency Contracts
Settlement Date	Counterparty	Contract to						Unrealized Appreciation (Depreciation)
		Deliver			Receive
07/13/2018	Bank of New York Mellon (The)		AUD	3,938,156		USD	2,997,279	$	82,012
07/13/2018	Bank of New York Mellon (The)		CAD	6,899,040		USD	5,311,489		62,446
07/13/2018	Bank of New York Mellon (The)		CHF	4,185,124		USD	4,257,934		26,719
07/13/2018	Bank of New York Mellon (The)		EUR	2,690,918		USD	3,153,917		8,448
07/13/2018	Bank of New York Mellon (The)		GBP	16,645,929		USD	22,283,031		299,713
07/13/2018	State Street Bank and Trust Co.		AUD	3,938,156		USD	3,000,827		85,560
07/13/2018	State Street Bank and Trust Co.		CAD	6,899,040		USD	5,313,514		64,471
07/13/2018	State Street Bank and Trust Co.		CHF	4,185,124		USD	4,264,594		33,379
07/13/2018	State Street Bank and Trust Co.		EUR	2,690,918		USD	3,161,264		15,795
07/13/2018	State Street Bank and Trust Co.		GBP	16,645,929		USD	22,313,701		330,383
Subtotal									1,008,926
07/13/2018	State Street Bank and Trust Co.		CHF	306,039		USD	307,066		(2,343	)
Total Forward Foreign Currency Contracts – Currency Risk								$	1,006,583

Currency Abbreviations:

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

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, 2018

(Unaudited)

Statement of Operations

For the six months ended June 30, 2018

(Unaudited)

Assets:
Investments in securities, at value (Cost $1,132,699,658)	$	1,395,765,124
Investments in affiliated money market funds, at value (Cost $80,534,335)		80,539,667
Other investments:
Variation margin receivable — futures contracts		469
Unrealized appreciation on forward foreign currency contracts outstanding		1,008,926
Cash		62,460
Foreign currencies, at value (Cost $1,130,158)		1,128,847
Receivable for:
Investments sold		8,271,093
Fund shares sold		180,163
Dividends and interest		4,534,826
Investment for trustee deferred compensation and retirement plans		157,272
Other assets		6,834
Total assets		1,491,655,681
Liabilities:
Other investments:
Unrealized depreciation on forward foreign currency contracts outstanding		2,343
Payable for:
Investments purchased		3,617,672
Fund shares reacquired		393,671
Accrued fees to affiliates		1,344,060
Accrued trustees’ and officers’ fees and benefits		7,269
Accrued other operating expenses		54,737
Trustee deferred compensation and retirement plans		173,841
Total liabilities		5,593,593
Net assets applicable to shares outstanding	$	1,486,062,088
Net assets consist of:
Shares of beneficial interest	$	1,081,518,505
Undistributed net investment income		38,041,266
Undistributed net realized gain		102,459,477
Net unrealized appreciation		264,042,840
	$	1,486,062,088
Net Assets:
Series I	$	181,545,550
Series II	$	1,304,516,538
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		9,642,569
Series II		69,700,777
Series I:
Net asset value per share	$	18.83
Series II:
Net asset value per share	$	18.72

Investment income:
Dividends (net of foreign withholding taxes of $221,310)	$	11,979,044
Dividends from affiliated money market funds		564,735
Interest		5,825,283
Total investment income		18,369,062
Expenses:
Advisory fees		2,855,620
Administrative services fees		1,223,233
Custodian fees		44,262
Distribution fees — Series II		1,676,640
Transfer agent fees		20,867
Trustees’ and officers’ fees and benefits		20,547
Reports to shareholders		10,767
Professional services fees		41,574
Other		22,614
Total expenses		5,916,124
Less: Fees waived		(44,665	)
Net expenses		5,871,459
Net investment income		12,497,603
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		42,529,754
Foreign currencies		(37,782	)
Forward foreign currency contracts		262,814
Futures contracts		150,944
		42,905,730
Change in net unrealized appreciation (depreciation) of:
Investment securities		(76,477,012	)
Foreign currencies		(15,849	)
Forward foreign currency contracts		2,366,721
Futures contracts		(55,453	)
		(74,181,593	)
Net realized and unrealized gain (loss)		(31,275,863	)
Net increase (decrease) in net assets resulting from operations	$	(18,778,260	)

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, 2018 and the year ended December 31, 2017

(Unaudited)

	June 30, 2018			December 31, 2017
Operations:
Net investment income	$	12,497,603		$	25,839,989
Net realized gain		42,905,730			71,047,538
Change in net unrealized appreciation (depreciation)		(74,181,593	)		59,017,947
Net increase (decrease) in net assets resulting from operations		(18,778,260	)		155,905,474
Distributions to shareholders from net investment income:
Series I		—			(2,908,928	)
Series ll		—			(19,584,973	)
Total distributions from net investment income		—			(22,493,901	)
Distributions to shareholders from net realized gains:
Series l		—			(3,156,537	)
Series ll		—			(24,461,379	)
Total distributions from net realized gains		—			(27,617,916	)
Share transactions–net:
Series l		(1,022,683	)		14,958,314
Series ll		(64,394,856	)		(22,591,494	)
Net increase (decrease) in net assets resulting from share transactions		(65,417,539	)		(7,633,180	)
Net increase (decrease) in net assets		(84,195,799	)		98,160,477
Net assets:
Beginning of period		1,570,257,887			1,472,097,410
End of period (includes undistributed net investment income of $38,041,266 and $25,543,663, respectively)	$	1,486,062,088		$	1,570,257,887

Notes to Financial Statements

June 30, 2018

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a

Invesco V.I. Equity and Income Fund

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

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

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

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

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

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

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

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

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

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

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

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.

Invesco V.I. Equity and Income Fund

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. 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

Invesco V.I. Equity and Income Fund

from, or cost of, the closing transaction and the Fund’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Fund were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Fund would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal Counterparty risk since the exchange’s clearinghouse, as Counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.

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

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $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, 2018, the effective advisory fees incurred by the Fund was 0.37%.

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

The Adviser has contractually agreed, through at least June 30, 2019, 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, 2019. 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, 2020, 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, 2018, the Adviser waived advisory fees of $44,665.

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, 2018, Invesco was paid $176,022 for accounting and fund administrative services and was reimbursed $1,047,211.

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, 2018, 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. The fees are accrued daily and paid monthly. 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, 2018, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2018, the Fund incurred $5,815 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, 2018. 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.

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period. During the six months ended June 30, 2018, there were no material transfers between valuation levels.

	Level 1			Level 2			Level 3		Total
Investments in Securities
Common Stocks & Other Equity Interests	$	869,484,974		$	68,508,725		$	—	$	937,993,699
Bonds & Notes		—			267,343,795			—		267,343,795
U.S. Treasury Securities		—			181,835,768			—		181,835,768
Preferred Stocks		7,565,031			—			—		7,565,031
U.S. Government Sponsored Agency Securities		—			1,024,838			—		1,024,838
U.S. Government Sponsored Agency Mortgage-Backed Securities		—			1,993			—		1,993
Money Market Funds		80,539,667			—			—		80,539,667
Total Investments in Securities		957,589,672			518,715,119			—		1,476,304,791
Other Investments — Assets*
Forward Foreign Currency Contracts		—			1,008,926			—		1,008,926
Other Investments — Liabilities*
Forward Foreign Currency Contracts		—			(2,343	)		—		(2,343	)
Futures Contracts		(26,572	)		—			—		(26,572	)
		(26,572	)		(2,343	)		—		(28,915	)
Total Other Investments		(26,572	)		1,006,583			—		980,011
Total Investments	$	957,563,100		$	519,721,702		$	—	$	1,477,284,802

* 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, 2018:

Derivative Assets	Value
	Currency Risk		Interest Rate Risk		Total
Unrealized appreciation on forward foreign currency contracts outstanding	$	1,008,926	$	—	$	1,008,926
Derivatives not subject to master netting agreements		—		—		—
Total Derivative Assets subject to master netting agreements	$	1,008,926	$	—	$	1,008,926

Invesco V.I. Equity and Income Fund

Derivative Liabilities	Value
	Currency Risk			Interest Rate Risk			Total
Unrealized depreciation on futures contracts-Exchange-Traded(a)	$	—		$	(26,572	)	$	(26,572	)
Unrealized depreciation on forward foreign currency contracts outstanding		(2,343	)		—			(2,343	)
Total Derivative Liabilities		(2,343	)		(26,572	)		(28,915	)
Derivatives not subject to master netting agreements		—			26,572			26,572
Total Derivative Liabilities subject to master netting agreements	$	(2,343	)	$	—		$	(2,343	)

^(a)  The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities.

Offsetting Assets and Liabilities

The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of June 30, 2018.

	Financial Derivative Assets		Financial Derivative Liabilities					Collateral (Received)/Pledged
Counterparty	Forward Foreign Currency Contracts		Forward Foreign Currency Contracts			Net Value of Derivatives		Non-Cash		Cash		Net Amount
Bank of Mellon New York (The)	$	479,338	$	—		$	479,338	$	—	$	—	$	479,338
State Street Bank and Trust Co.		529,588		(2,343	)		527,245		—		—		527,245
Total	$	1,008,926	$	(2,343	)	$	1,006,583	$	—	$	—	$	1,006,583

Effect of Derivative Investments for the six months ended June 30, 2018

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

	Location of Gain (Loss) on Statement of Operations
	Currency Risk		Interest Rate Risk			Total
Realized Gain:
Forward foreign currency contracts	$	262,814	$	—		$	262,814
Futures contracts		—		150,944			150,944
Change in Net Unrealized Appreciation (Depreciation):
Forward foreign currency contracts		2,366,721		—			2,366,721
Futures contracts		—		(55,453	)		(55,453	)
Total	$	2,629,535	$	95,491		$	2,725,026

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	$	108,095,642	$	4,500,257

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.

Invesco V.I. Equity and Income 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 did not have a capital loss carryforward as of December 31, 2017.

NOTE 8—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2018 was $231,801,457 and $266,941,642, respectively. During the same period, purchases and sales of U.S. Treasury obligations were $812,451,654 and $808,183,027, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	288,618,699
Aggregate unrealized (depreciation) of investments		(30,350,631	)
Net unrealized appreciation of investments	$	258,268,068

Cost of investments for tax purposes is $1,219,016,734.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended June 30, 2018(a)						Year ended December 31, 2017
	Shares			Amount			Shares			Amount
Sold:
Series I		571,619		$	11,168,841			1,444,387		$	26,450,705
Series II		2,439,749			46,009,602			3,955,635			72,128,100
Issued as reinvestment of dividends:
Series I		—			—			331,991			6,065,465
Series II		—			—			2,420,129			44,046,353
Reacquired:
Series I		(635,295	)		(12,191,524	)		(955,203	)		(17,557,856	)
Series II		(5,864,145	)		(110,404,458	)		(7,581,250	)		(138,765,947	)
Net increase (decrease) in share activity		(3,488,072	)	$	(65,417,539	)		(384,311	)	$	(7,633,180	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 77% 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 06/30/18	$	19.04	$	0.18		$	(0.39	)	$	(0.21	)	$	—		$	—		$	—		$	18.83		(1.10	)%	$	181,546		0.55	%(e)		0.56	%(e)		1.86	%(e)		72	%
Year ended 12/31/17		17.76		0.35	(d)		1.58			1.93			(0.31	)		(0.34	)		(0.65	)		19.04		11.03			184,768		0.55			0.56			1.93	(d)		119
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	(f)		1.28			1.65			(0.35	)		(0.95	)		(1.30	)		18.93		9.03			72,391		0.66			0.67			1.92	(f)		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
Series II
Six months ended 06/30/18		18.95		0.15			(0.38	)		(0.23	)		—			—			—			18.72		(1.21	)		1,304,517		0.80	(e)		0.81	(e)		1.61	(e)		72
Year ended 12/31/17		17.68		0.31	(d)		1.57			1.88			(0.27	)		(0.34	)		(0.61	)		18.95		10.78			1,385,490		0.80			0.81			1.68	(d)		119
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	(f)		1.28			1.60			(0.31	)		(0.95	)		(1.26	)		18.86		8.77			1,290,920		0.91			0.92			1.67	(f)		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

^(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)  Net investment income per share and the ratio of net investment income to average net assets includes significant dividends received during the year ended December 31, 2017. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.30 and 1.64% and $0.26 and 1.39% for Series I and Series II shares, respectively.

^(e) Ratios are annualized and based on average daily net assets (000’s omitted) of $185,735 and $1,352,428 for Series I and Series II shares, respectively.

^(f)  Net investment income per share and the ratio of net investment income to average net assets includes significant dividends received during the year ended December 31, 2014. 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, 2018 through June 30, 2018.

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 (01/01/18)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/18)1		Expenses Paid During Period2		Ending Account Value (06/30/18)		Expenses Paid During Period2
Series I	$	1,000.00	$	989.00	$	2.71	$	1,022.07	$	2.76		0.55	%
Series II		1,000.00		987.90		3.94		1,020.83		4.01		0.80

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2018 through June 30, 2018, 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

At meetings held on June 5-6, 2018, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Equity and Income Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate Sub-Advisory Contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2018. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’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 detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider. 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 throughout the year, 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 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 6, 2018.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, 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, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also reviewed and considered the benefits to shareholders of investing in a fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by

Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries 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 investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2017 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 fifth quintile of its performance universe for the one year period, the second quintile for the three year period and the first 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 II shares of the Fund was below the performance of the Index for the one year period, reasonably comparable to the performance of the Index for the three year period and above the performance of the Index for the five year periods. The Board noted that the Fund’s style of equity investing compared to its peers impacted relative performance. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

Invesco V.I. Equity and Income Fund

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for 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 non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. 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 considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. 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 differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including management of cash flows as a result of redemptions and purchases, necessary infrastructure such as officers, office space, technology, legal and distribution, oversight of service providers, costs and business risks associated with launching new funds and sponsoring and maintaining the product line, preparation of annual registration statement updates and financial information and compliance with federal and state laws and regulations.

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 similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2017.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements.

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 considered the methodology used for calculating profitability and noted the periodic review of such methodology by an independent consultant. 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 received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers 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 administrative, 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 Invesco representing 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 an affiliated broker receives commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Equity and Income Fund

	Semiannual Report to Shareholders	June 30, 2018
	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 semi-annual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The Fund’s Form N-Q (or any successor Form) filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q (or any successor Form) 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 (or any successor Form), 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            07132018      1052

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/17 to 6/30/18, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-2.80	%
Series II Shares	-2.98
MSCI World Index▼ (Broad Market / Style-Specific Index)	0.43
Lipper VUF Global Multi-Cap Value Funds Classification Average∎ (Peer Group)	-1.88
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 6/30/18
Series I Shares
Inception (1/2/97)	5.19	%
10 Years	3.65
5 Years	7.84
1 Year	7.53
Series II Shares
10 Years	3.39	%
5 Years	7.57
1 Year	7.28

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 1.04% and 1.29%, 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, 2018

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–98.30%
Australia–1.76%
Brambles Ltd.		89,357	$	588,189
Rio Tinto PLC		14,477		798,478
				1,386,667
Brazil–0.60%
PagSeguro Digital Ltd.–Class A(a)		16,985		471,334
China–1.42%
Baidu, Inc.–ADR (a)		4,597		1,117,071
Denmark–1.57%
A.P. Møller — Maersk A/S–Class B		373		464,606
Novo Nordisk A/S–Class B		16,732		772,723
				1,237,329
Germany–3.39%
Infineon Technologies AG		18,910		482,033
KION Group AG		4,741		340,647
Siemens AG		13,974		1,847,460
				2,670,140
Hong Kong–2.52%
AIA Group Ltd.		229,200		1,984,238
Ireland–1.12%
James Hardie Industries PLC		52,239		879,478
Italy–4.42%
Banca Mediolanum S.p.A.		111,740		755,606
Enel S.p.A.		346,563		1,919,840
Prysmian S.p.A.		32,531		808,232
				3,483,678
Japan–14.26%
Asahi Group Holdings, Ltd.		34,000		1,742,078
Daito Trust Construction Co., Ltd.		7,800		1,268,997
Hitachi, Ltd.		155,000		1,091,977
KDDI Corp.		59,800		1,635,188
Komatsu Ltd.		41,800		1,189,905
Nissan Chemical Corp.		9,300		433,340
Seven & i Holdings Co., Ltd.		22,700		989,564
Shimano Inc.		7,900		1,160,379
SoftBank Group Corp.		17,300		1,241,527
Suruga Bank Ltd.		55,400		495,948
				11,248,903
Luxembourg–0.67%
ArcelorMittal		18,211		531,770
Netherlands–3.47%
Heineken N.V.		7,655		767,433
ING Groep N.V.		69,659		999,474

	Shares		Value
Netherlands–(continued)
Randstad N.V.		16,591	$	973,626
				2,740,533
Norway–0.49%
Orkla ASA		44,401		388,778
Singapore–0.88%
DBS Group Holdings Ltd.		35,800		695,153
South Africa–0.48%
Naspers Ltd.–Class N		1,501		381,348
South Korea–0.80%
Samsung Electronics Co., Ltd.		15,050		628,331
Sweden–1.31%
Svenska Handelsbanken AB–Class A		93,468		1,037,233
Switzerland–2.33%
Glencore PLC		181,081		858,571
UBS Group AG		63,624		978,860
				1,837,431
Taiwan–0.72%
Taiwan Semiconductor Manufacturing Co. Ltd.		80,000		569,424
United Kingdom–8.49%
Imperial Brands PLC		24,193		901,062
Just Eat PLC(a)		98,630		1,014,039
Royal Dutch Shell PLC–Class A–ADR		36,853		2,551,333
St. James’s Place PLC		94,112		1,425,299
Vodafone Group PLC–ADR		32,971		801,525
				6,693,258
United States–47.60%
Allergan PLC		6,251		1,042,167
Alphabet Inc.–Class C(a)		2,364		2,637,397
American Express Co.		18,468		1,809,864
Aptiv PLC		8,321		762,453
Biogen Inc.(a)		3,783		1,097,978
BioMarin Pharmaceutical Inc.(a)		7,875		741,825
Booking Holdings Inc.(a)		587		1,189,902
Carnival Corp.		15,549		891,113
Celgene Corp.(a)		9,141		725,978
Chevron Corp.		22,530		2,848,468
Cognizant Technology Solutions Corp.–Class A		15,976		1,261,944
Colfax Corp.(a)		39,207		1,201,694
Comcast Corp.–Class A		32,404		1,063,175
Concho Resources Inc.(a)		9,126		1,262,582
Delta Air Lines, Inc.		31,664		1,568,635
eBay Inc.(a)		36,273		1,315,259
EPAM Systems, Inc.(a)		9,953		1,237,456
Facebook, Inc.–Class A(a)		4,938		959,552
FedEx Corp.		4,228		960,010

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)
First Republic Bank		25,963	$	2,512,959
HCA Healthcare, Inc.		10,061		1,032,259
Marsh & McLennan Cos., Inc.		10,573		866,669
Mastercard Inc.–Class A		38		7,468
Moody’s Corp.		2,816		480,297
NIKE, Inc.–Class B		18,734		1,492,725
Oracle Corp.		25,660		1,130,580
PepsiCo, Inc.		9,586		1,043,628
Progressive Corp. (The)		8,077		477,754
Sherwin-Williams Co. (The)		2,108		859,158
U.S. Bancorp		19,625		981,642
United Technologies Corp.		11,822		1,478,105
Zimmer Biomet Holdings, Inc.		5,446		606,902
				37,547,598
Total Common Stocks & Other Equity Interests (Cost $67,791,433)				77,529,695

	Shares		Value
Money Market Funds–1.47%
Invesco Government & Agency Portfolio–Institutional Class, 1.80%(b)		407,188	$	407,188
Invesco Liquid Assets Portfolio–Institutional Class, 2.02%(b)		290,761		290,849
Invesco Treasury Portfolio–Institutional Class, 1.76%(b)		465,358		465,358
Total Money Market Funds (Cost $1,163,389)				1,163,395
TOTAL INVESTMENTS IN SECURITIES–99.77% (Cost $68,954,822)				78,693,090
OTHER ASSETS LESS LIABILITIES–0.23%				181,356
NET ASSETS–100.00%			$	78,874,446

Investment Abbreviations:

ADR – American Depositary Receipt

Notes to Schedule of Investments:

^(a) Non-income producing security.

^(b) The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of June 30, 2018.

Portfolio Composition

By country, based on Net Assets

as of June 30, 2018

United States	47.6	%
Japan	14.3
United Kingdom	8.5
Italy	4.4
Netherlands	3.5
Germany	3.4
Hong Kong	2.5
Switzerland	2.3
Countries each less than 2.0% of portfolio	11.8
Money Market Funds Plus Other Assets Less Liabilities	1.7

Open Forward Foreign Currency Contracts
Settlement Date		Contract to						Unrealized Appreciation
	Counterparty	Deliver			Receive
08/08/2018	Goldman Sachs International		JPY	101,000,000		USD	924,854	$	9,975
08/08/2018	JPMorgan Chase Bank, N.A.		JPY	101,000,000		USD	924,925		10,047
Total Forward Foreign Currency Contracts — Currency Risk								$	20,022

Abbreviations:

JPY	– Japanese Yen
USD	– U.S. Dollar

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, 2018

(Unaudited)

Statement of Operations

For the six months ended June 30, 2018

(Unaudited)

Assets:
Investments in securities, at value (Cost $67,791,433)	$	77,529,695
Investments in affiliated money market funds, at value (Cost $1,163,389)		1,163,395
Other investments:
Unrealized appreciation on forward foreign currency contracts outstanding		20,022
Cash		5,565
Foreign currencies, at value (Cost $133,120)		131,490
Receivable for:
Fund shares sold		240
Dividends		145,862
Investment for trustee deferred compensation and retirement plans		39,545
Other assets		2,823
Total assets		79,038,637
Liabilities:
Payable for:
Fund shares reacquired		49,601
Accrued fees to affiliates		39,818
Accrued trustees’ and officers’ fees and benefits		4,298
Accrued other operating expenses		28,476
Trustee deferred compensation and retirement plans		41,998
Total liabilities		164,191
Net assets applicable to shares outstanding	$	78,874,446
Net assets consist of:
Shares of beneficial interest	$	64,485,301
Undistributed net investment income		1,349,180
Undistributed net realized gain		3,283,779
Net unrealized appreciation		9,756,186
	$	78,874,446
Net Assets:
Series I	$	67,211,936
Series II	$	11,662,510
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		6,446,032
Series II		1,119,944
Series I:
Net asset value per share	$	10.43
Series II:
Net asset value per share	$	10.41

Investment income:
Dividends (net of foreign withholding taxes of $87,984)	$	1,089,554
Dividends from affiliated money market funds (includes securities lending income of $4,287)		16,524
Total investment income		1,106,078
Expenses:
Advisory fees		283,013
Administrative services fees		88,132
Custodian fees		13,815
Distribution fees — Series II		15,557
Transfer agent fees		5,987
Trustees’ and officers’ fees and benefits		11,496
Reports to shareholders		4,667
Professional services fees		24,952
Other		1,318
Total expenses		448,937
Less: Fees waived		(901	)
Net expenses		448,036
Net investment income		658,042
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		3,399,969
Foreign currencies		(6,611	)
Forward foreign currency contracts		(7,979	)
		3,385,379
Change in net unrealized appreciation (depreciation) of:
Investment securities		(6,318,749	)
Foreign currencies		(5,431	)
Forward foreign currency contracts		(35,132	)
		(6,359,312	)
Net realized and unrealized gain (loss)		(2,973,933	)
Net increase (decrease) in net assets resulting from operations	$	(2,315,891	)

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, 2018 and the year ended December 31, 2017

(Unaudited)

	June 30, 2018			December 31, 2017
Operations:
Net investment income	$	658,042		$	732,311
Net realized gain		3,385,379			4,600,551
Change in net unrealized appreciation (depreciation)		(6,359,312	)		11,232,447
Net increase (decrease) in net assets resulting from operations		(2,315,891	)		16,565,309
Distributions to shareholders from net investment income:
Series I		—			(788,459	)
Series ll		—			(112,894	)
Total distributions from net investment income		—			(901,353	)
Share transactions-net:
Series l		(4,528,867	)		(1,609,008	)
Series ll		(1,040,026	)		(1,728,127	)
Net increase (decrease) in net assets resulting from share transactions		(5,568,893	)		(3,337,135	)
Net increase (decrease) in net assets		(7,884,784	)		12,326,821
Net assets:
Beginning of period		86,759,230			74,432,409
End of period (includes undistributed net investment income of $1,349,180 and $691,138, respectively)	$	78,874,446		$	86,759,230

Notes to Financial Statements

June 30, 2018

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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.

Invesco V.I. Global 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. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

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

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

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

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

D. Distributions – Distributions from net investment income and net realized capital gain, if any, are generally declared and paid 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.

Invesco V.I. Global Core Equity Fund

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. 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

Invesco V.I. Global Core Equity Fund

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

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $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, 2018, the effective advisory fees incurred by the Fund was 0.67%.

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

The Adviser has contractually agreed, through at least June 30, 2019, 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, 2019. 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, 2020, 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 (excluding investments of cash collateral from securities lending) cash in such affiliated money market funds.

For the six months ended June 30, 2018, the Adviser waived advisory fees of $901.

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, 2018, Invesco was paid $24,795 for accounting and fund administrative services and was reimbursed $63,337 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, 2018, 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. The fees are accrued daily and paid monthly. 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, 2018, 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 Core Equity 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, 2018. 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.

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period.

During the six months ended June 30, 2018, there were transfers from Level 1 to Level 2 of $7,854,476 and from Level 2 to Level 1 of $4,286,798 due to foreign fair value adjustments.

	Level 1		Level 2		Level 3		Total
Investments in Securities
Australia	$	—	$	1,386,667	$	—	$	1,386,667
Brazil		471,334		—		—		471,334
China		1,117,071		—		—		1,117,071
Denmark		464,606		772,723		—		1,237,329
Germany		2,329,493		340,647		—		2,670,140
Hong Kong		—		1,984,238		—		1,984,238
Ireland		—		879,478		—		879,478
Italy		—		3,483,678		—		3,483,678
Japan		4,667,402		6,581,501		—		11,248,903
Luxembourg		—		531,770		—		531,770
Netherlands		—		2,740,533		—		2,740,533
Norway		—		388,778		—		388,778
Singapore		—		695,153		—		695,153
South Africa		381,348		—		—		381,348
South Korea		—		628,331		—		628,331
Sweden		—		1,037,233		—		1,037,233
Switzerland		—		1,837,431		—		1,837,431
Taiwan		—		569,424		—		569,424
United Kingdom		6,693,258		—		—		6,693,258
United States		37,547,598		—		—		37,547,598
Money Market Funds		1,163,395		—		—		1,163,395
Total Investments in Securities		54,835,505		23,857,585		—		78,693,090
Other Investments — Assets*
Forward Foreign Currency Contracts		—		20,022		—		20,022
Total Other Investments
Total Investments	$	54,835,505	$	23,877,607	$	—	$	78,713,112

* Forward foreign currency contracts are valued at 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.

Invesco V.I. Global Core Equity Fund

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

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, 2018:

	Value
Derivative Assets	Currency Risk
Unrealized appreciation on forward foreign currency contracts outstanding	$	20,022
Derivatives not subject to master netting agreements		—
Total Derivative Assets subject to master netting agreements	$	20,022

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, 2018.

	Financial Derivative Assets				Collateral (Received)/Pledged
Counterparty	Forward Foreign Currency Contracts		Net Value of Derivatives		Non-Cash		Cash		Net Amount
Goldman Sachs International	$	9,975	$	9,975	$	—	$	—	$	9,975
JPMorgan Chase Bank, N.A.		10,047		10,047		—		—		10,047
Total	$	20,022	$	20,022	$	—	$	—	$	20,022

Effect of Derivative Investments for the six months ended June 30, 2018

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	$	(7,979	)
Change in Net Unrealized Appreciation (Depreciation):
Forward foreign currency contracts		(35,132	)
Total	$	(43,111	)

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

	Forward Foreign Currency Contracts
Average notional value	$	3,829,077

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.

Invesco V.I. Global Core Equity 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 did not have a capital loss carryforward as of December 31, 2017.

NOTE 8—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2018 was $13,651,698 and $19,868,217, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	12,886,876
Aggregate unrealized (depreciation) of investments		(3,293,314	)
Net unrealized appreciation of investments	$	9,593,562

Cost of investments for tax purposes is $69,119,550.

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended June 30, 2018(a)						Year ended December 31, 2017
	Shares			Amount			Shares			Amount
Sold:
Series I		325,566		$	3,562,104			830,159		$	8,058,908
Series II		826			9,018			6,745			66,624
Issued as reinvestment of dividends:
Series I		—			—			77,528			788,459
Series II		—			—			11,087			112,756
Reacquired:
Series I		(750,778	)		(8,090,971	)		(1,075,643	)		(10,456,375	)
Series II		(96,737	)		(1,049,044	)		(195,837	)		(1,907,507	)
Net increase (decrease) in share activity		(521,123	)	$	(5,568,893	)		(345,961	)	$	(3,337,135	)

^(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 06/30/18	$	10.73	$	0.09	$	(0.39	)	$	(0.30	)	$	—		$	—		$	—		$	10.43		(2.80	)%	$	67,212		1.03	%(d)		1.03	%(d)		1.59	%(d)		16	%
Year ended 12/31/17		8.83		0.09		1.93			2.02			(0.12	)		—			(0.12	)		10.73		22.90			73,716		1.04			1.04			0.95			69
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
Series II
Six months ended 06/30/18		10.73		0.07		(0.39	)		(0.32	)		—			—			—			10.41		(2.98	)		11,663		1.28	(d)		1.28	(d)		1.34	(d)		16
Year ended 12/31/17		8.83		0.07		1.92			1.99			(0.09	)		—			(0.09	)		10.73		22.60			13,043		1.29			1.29			0.70			69
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

^(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 $72,633 and $12,549 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, 2018 through June 30, 2018.

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 (01/01/18)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/18)1		Expenses Paid During Period2		Ending Account Value (06/30/18)		Expenses Paid During Period2
Series I	$	1,000.00	$	972.00	$	5.04	$	1,019.69	$	5.16		1.03	%
Series II		1,000.00		970.20		6.25		1,018.45		6.41		1.28

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2018 through June 30, 2018, 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

At meetings held on June 5-6, 2018, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Global Core Equity Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate Sub-Advisory Contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2018. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’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 detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider. 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 throughout the year, 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 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 6, 2018.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, 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, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also reviewed and considered the benefits to shareholders of investing in a fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by

Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries 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 investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2017 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 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 also noted there was no comparative index. The Board noted that the Fund’s underweight and overweight exposure to and stock selection in certain sectors and regions negatively impacted performance. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of

Invesco V.I. Global Core Equity Fund

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 non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. 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 considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that there were only four funds (including the Fund) in the expense group.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. 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 differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including management of cash flows as a result of redemptions and purchases, necessary infrastructure such as officers, office space, technology, legal and distribution, oversight of service providers, costs and business risks associated with launching new funds and sponsoring and maintaining the product line, preparation of annual registration statement updates and financial information and compliance with federal and state laws and regulations.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements.

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 considered the methodology used for calculating profitability and noted the periodic review of such methodology by an independent consultant. 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, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers 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 administrative, 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 Invesco representing 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 an affiliated broker receives commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Global Core Equity Fund

	Semiannual Report to Shareholders	June 30, 2018
	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 (or any successor Form). The Fund’s Form N-Q (or any successor Form) filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q (or any successor Form) 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 (or any successor Form), 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            08072018    1127

Fund Performance

Performance summary

Fund vs. Indexes

Cumulative total returns, 12/31/17 to 6/30/18, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.

Series I Shares	-0.06	%
Series II Shares	-0.12
MSCI World Index▼ (Broad Market Index)	0.43
Custom Invesco Global Real Estate Index∎ (Style-Specific Index)	-0.52
Lipper VUF Real Estate Funds Classification Average◆ (Peer Group)	0.71
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 net version of the index is computed using the net return, which withholds applicable taxes for non-resident investors.

The FTSE EPRA/NAREIT Global Index is designed to track the performance of listed real estate companies and REITS in developed and emerging markets. 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.

Average Annual Total Returns As of 6/30/18
Series I Shares
Inception (3/31/98)	7.81	%
10 Years	4.81
5 Years	5.78
1 Year	6.40
Series II Shares
Inception (4/30/04)	7.70	%
10 Years	4.56
5 Years	5.52
1 Year	6.17

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 1.02% and 1.27%, 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, 2018

(Unaudited)

	Shares		Value
Real Estate Investments Trust, Common Stocks & Other Equity Interests–98.90%
Australia–4.37%
Dexus		293,508	$	2,116,825
Goodman Group		605,553		4,323,325
GPT Group (The)		411,421		1,546,333
Mirvac Group		1,682,345		2,709,610
Scentre Group		2,084,369		6,792,063
				17,488,156
Brazil–0.45%
BR Malls Participacoes S.A.(a)		259,125		651,306
BR Properties S.A.		137,500		324,314
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes		72,300		204,860
MRV Engenharia e Participacoes S.A.		97,500		301,173
Multiplan Empreendimentos Imobiliarios S.A.		21,100		308,243
				1,789,896
Canada–1.99%
Allied Properties REIT		57,600		1,833,544
Canadian Apartment Properties REIT		46,003		1,491,677
Chartwell Retirement Residences		95,552		1,114,180
H&R REIT		63,300		968,735
Killam Apartment REIT		87,700		999,274
RioCan REIT		84,200		1,546,687
				7,954,097
Chile–0.10%
Parque Arauco S.A.		143,045		402,075
China–5.24%
Agile Group Holdings Ltd.		352,000		599,409
CapitaLand Retail China Trust		213,700		238,627
China Evergrande Group(a)		653,000		1,660,201
China Jinmao Holdings Group Ltd.		1,906,000		955,146
China Overseas Grand Oceans Group Ltd.		523,000		192,283
China Overseas Land & Investment Ltd.		1,076,000		3,520,027
China Resources Land Ltd.		700,444		2,344,475
China SCE Property Holdings Ltd.		388,000		183,021
China Vanke Co., Ltd.–Class H		355,200		1,240,243
CIFI Holdings (Group) Co. Ltd.		1,100,000		696,014
Country Garden Holdings Co. Ltd.		1,854,000		3,234,511
KWG Property Holding Ltd.		447,000		556,990
Logan Property Holdings Co. Ltd.		340,000		456,927
Longfor Properties Co. Ltd.		410,000		1,105,269
Shenzhen Investment Ltd.		799,900		290,175
Shimao Property Holdings Ltd.		412,000		1,075,916
SOHO China Ltd.		507,500		240,797
Sunac China Holdings Ltd.		440,000		1,530,684
Times China Holdings Ltd.		135,000		199,376
Yanlord Land Group Ltd.		318,900		371,585
Yuexiu Property Co. Ltd.		356,000		67,852

	Shares		Value
China–(continued)
Yuzhou Properties Co. Ltd.		339,000	$	198,514
				20,958,042
France–3.03%
ICADE		32,347		3,033,059
Klepierre S.A.		43,266		1,627,279
Unibail-Rodamco-Westfield		30,243		6,658,596
Unibail-Rodamco-Westfield(a)		74,500		808,976
				12,127,910
Germany–5.58%
Aroundtown S.A.		403,809		3,317,198
Deutsche Wohnen S.E.		113,339		5,473,501
Grand City Properties S.A.		151,888		3,944,478
LEG Immobilien AG		23,260		2,528,118
Vonovia S.E.		147,566		7,023,470
				22,286,765
Hong Kong–7.48%
CK Asset Holdings Ltd.		765,800		6,050,748
Hang Lung Properties Ltd.		877,000		1,801,170
Hongkong Land Holdings Ltd.		223,300		1,596,595
K Wah International Holdings Ltd.		494,000		283,225
Kerry Properties Ltd.		81,500		390,069
Link REIT		661,500		6,014,047
Mapletree North Asia Commercial Trust–REGS(b)		426,500		356,851
New World Development Co. Ltd.		2,100,000		2,934,716
Sun Hung Kai Properties Ltd.		348,000		5,221,257
Swire Properties Ltd.		463,800		1,714,362
Wharf (Holdings) Ltd. (The)		398,000		1,274,830
Wharf Real Estate Investment Co. Ltd.		283,000		2,009,653
Yuexiu REIT		378,000		253,758
				29,901,281
India–0.17%
Ascendas India Trust		351,200		260,339
Oberoi Realty Ltd.		62,718		437,249
				697,588
Indonesia–0.35%
PT Bumi Serpong Damai Tbk(a)		2,995,300		326,461
PT Ciputra Development Tbk		7,420,638		527,174
PT Pakuwon Jati Tbk(a)		10,511,000		388,753
PT Summarecon Agung Tbk		2,181,600		137,504
				1,379,892
Ireland–0.32%
Green REIT PLC		748,435		1,293,442
Japan–10.49%
Activia Properties, Inc.		179		821,427
Advance Residence Investment Corp.		449		1,151,095
AEON REIT Investment Corp.		772		890,555

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)
Daiwa House REIT Investment Corp.		638	$	1,515,178
Daiwa Office Investment Corp.		264		1,516,748
Fukuoka REIT Corp.		482		764,582
GLP J-REIT(b)		213		226,276
GLP J-REIT		1,400		1,487,263
Hulic Co., Ltd.		165,700		1,764,390
Japan Hotel REIT Investment Corp.		2,666		1,998,898
Japan Prime Realty Investment Corp.		157		570,845
Japan Real Estate Investment Corp.		377		1,995,682
Japan Retail Fund Investment Corp.		639		1,152,163
Kenedix Office Investment Corp.		128		795,519
Mitsubishi Estate Co., Ltd.		363,000		6,351,680
Mitsui Fudosan Co., Ltd.		286,300		6,915,684
Mitsui Fudosan Logistics Park Inc.		230		703,297
Nippon Building Fund Inc.		350		2,020,325
Nippon Prologis REIT Inc.		362		751,469
Nomura Real Estate Master Fund, Inc.		762		1,075,886
ORIX JREIT Inc.		470		750,322
Sumitomo Realty & Development Co., Ltd.		117,000		4,307,320
Tokyo Tatemono Co., Ltd.		91,500		1,255,287
United Urban Investment Corp.		751		1,167,176
				41,949,067
Malaysia–0.38%
IOI Properties Group Bhd.		1,224,000		484,933
KLCCP Stapled Group		285,200		563,778
Mah Sing Group Bhd.		731,700		193,607
Sime Darby Property Bhd		946,900		280,634
				1,522,952
Malta–0.00%
BGP Holdings PLC (Acquired 08/06/2009; Cost $0)(a)(b)(c)		3,053,090		0
Mexico–0.47%
Fibra Uno Administracion S.A. de C.V.		807,700		1,177,020
Macquarie Mexico Real Estate Management S.A. de C.V.		534,800		530,326
PLA Administradora Industrial, S. de R.L. de C.V.		132,000		180,065
				1,887,411
Netherlands–0.17%
InterXion Holding N.V.(a)		10,625		663,212
Philippines–0.75%
Ayala Land, Inc.		1,691,800		1,201,342
Robinsons Land Corp.		589,600		205,470
SM Prime Holdings Inc.		2,345,300		1,579,704
				2,986,516
Singapore–1.94%
Ascendas REIT		1,214,800		2,357,362
CapitaLand Commercial Trust		1,234,300		1,501,597
City Developments Ltd.		213,800		1,719,177
Mapletree Commercial Trust		864,800		996,503
UOL Group Ltd.		209,500		1,168,464
				7,743,103

	Shares		Value
South Africa–0.87%
Growthpoint Properties Ltd.		856,434	$	1,666,403
Hyprop Investments Ltd.		129,640		965,590
SA Corporate Real Estate Ltd.		2,605,476		830,054
				3,462,047
Spain–0.98%
Hispania Activos Inmobiliarios SOCIMI S.A.		44,149		939,807
Inmobiliaria Colonial SOCIMI, S.A.		41,708		460,558
Merlin Properties SOCIMI, S.A.		173,828		2,524,720
				3,925,085
Sweden–1.47%
Fabege AB		162,234		1,933,586
Hufvudstaden AB–Class A		142,935		2,045,189
Wihlborgs Fastigheter AB		163,313		1,887,720
				5,866,495
Switzerland–0.81%
Swiss Prime Site AG		35,195		3,237,597
Thailand–0.61%
AP Thailand PCL		1,192,200		294,268
Central Pattana PCL		730,800		1,543,757
Supalai PCL(a)		287,300		204,475
Supalai PCL–NVDR(a)		161,400		114,870
WHA Corp. PCL–NVDR		2,524,000		279,460
				2,436,830
Turkey–0.07%
Emlak Konut Gayrimenkul Yatirim Ortakligi A.S.		590,638		261,088
United Arab Emirates–0.13%
Emaar Malls PJSC		882,789		514,339
United Kingdom–4.23%
Big Yellow Group PLC		100,542		1,265,250
Derwent London PLC		45,273		1,855,876
Grainger PLC		266,149		1,081,187
Great Portland Estates PLC		164,792		1,553,766
Land Securities Group PLC		240,978		3,033,643
SEGRO PLC		364,510		3,220,352
Tritax Big Box REIT PLC		1,100,525		2,264,405
UNITE Group PLC (The)		127,488		1,448,707
Workspace Group PLC		82,327		1,173,476
				16,896,662
United States–46.45%
Acadia Realty Trust		23,283		637,256
Alexandria Real Estate Equities, Inc.		20,067		2,531,853
American Campus Communities, Inc.		79,187		3,395,539
American Homes 4 Rent–Class A		88,017		1,952,217
American Tower Corp.–Class A		7,960		1,147,593
AvalonBay Communities, Inc.		63,326		10,885,106
Boston Properties, Inc.		60,214		7,552,040
Corporate Office Properties Trust		57,014		1,652,836
Cousins Properties, Inc.		203,978		1,976,547
Crown Castle International Corp.		25,795		2,781,217
CyrusOne Inc.		11,726		684,329
Digital Realty Trust, Inc.		30,941		3,452,397

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)
EastGroup Properties, Inc.		7,194	$	687,459
Education Realty Trust, Inc.		44,617		1,851,605
Empire State Realty Trust Inc.–Class A		99,887		1,708,068
Equinix, Inc.		3,263		1,402,731
Equity LifeStyle Properties, Inc.		8,532		784,091
Equity Residential		84,681		5,393,333
Essex Property Trust, Inc.		16,055		3,838,269
Extra Space Storage Inc.		54,110		5,400,719
Federal Realty Investment Trust		38,110		4,822,821
GGP Inc.		182,628		3,731,090
HCP, Inc.		64,613		1,668,308
Healthcare Realty Trust, Inc.		161,243		4,688,946
Hilton Worldwide Holdings Inc.		26,029		2,060,456
Host Hotels & Resorts Inc.		88,905		1,873,228
Hudson Pacific Properties Inc.		138,824		4,918,534
Invitation Homes Inc.		141,847		3,270,992
Kilroy Realty Corp.		45,242		3,422,105
Liberty Property Trust		70,659		3,132,313
Macerich Co. (The)		54,897		3,119,797
Mid-America Apartment Communities, Inc.		45,820		4,612,699
National Health Investors, Inc.		30,359		2,236,851
National Retail Properties, Inc.		51,132		2,247,763
Park Hotels & Resorts Inc.		131,415		4,025,241
Pebblebrook Hotel Trust		54,767		2,124,960
PotlatchDeltic Corp.		20,217		1,028,034
Prologis, Inc.		186,578		12,256,309
Public Storage		50,019		11,347,310
QTS Realty Trust, Inc.–Class A		42,938		1,696,051
Realty Income Corp.		53,446		2,874,860

	Shares		Value
United States–(continued)
Regency Centers Corp.		41,334	$	2,566,015
Retail Opportunity Investments Corp.		273,202		5,234,550
Simon Property Group, Inc.		82,999		14,125,600
SL Green Realty Corp.		34,993		3,517,846
Sun Communities, Inc.		18,581		1,818,708
Sunstone Hotel Investors, Inc.		162,001		2,692,457
Terreno Realty Corp.		7,926		298,572
Ventas, Inc.		91,893		5,233,306
Vornado Realty Trust		3,412		252,215
Washington REIT		120,207		3,645,878
Welltower Inc.		74,726		4,684,573
Weyerhaeuser Co.		19,863		724,205
				185,667,798
Total Real Estate Investments Trust, Common Stocks & Other Equity Interests (Cost $346,473,815)				395,299,346
Money Market Funds–0.54%
Invesco Government & Agency Portfolio–Institutional Class, 1.80%(d)		759,285		759,285
Invesco Liquid Assets Portfolio–Institutional Class, 2.02%(d)		542,191		542,353
Invesco Treasury Portfolio–Institutional Class, 1.76%(d)		867,754		867,754
Total Money Market Funds (Cost $2,169,374)				2,169,392
TOTAL INVESTMENTS IN SECURITIES–99.44% (Cost $348,633,956)				397,468,738
OTHER ASSETS LESS LIABILITIES–0.56%				2,236,938
NET ASSETS–100.00%			$	399,705,676

Investment Abbreviations:

NVDR	– Non-Voting Depositary Receipt
REGS	– Regulation S
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, 2018 was $583,127, which represented less than 1% of the Fund’s Net Assets.

^(c)  Security valued using significant unobservable inputs (Level 3). See Note 3.

^(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, 2018.

Portfolio Composition

By country, based on Net Assets

as of June 30, 2018

United States	46.5	%
Japan	10.5
Hong Kong	7.5
Germany	5.6
China	5.2
Australia	4.4
United Kingdom	4.2
France	3.0
Countries each less than 2.0% of portfolio	12.0
Money Market Funds Plus Other Assets Less Liabilities	1.1

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, 2018

(Unaudited)

Statement of Operations

For the six months ended June 30, 2018

(Unaudited)

Assets:
Investments in securities, at value (Cost $346,473,815)	$	395,299,346
Investments in affiliated money market funds, at value (Cost $2,169,374)		2,169,392
Foreign currencies, at value (Cost $488,992)		499,962
Receivable for:
Investments sold		1,604,514
Fund shares sold		51,227
Dividends		2,170,524
Investment for trustee deferred compensation and retirement plans		69,902
Other assets		1,679
Total assets		401,866,546
Liabilities:
Payable for:
Investments purchased		1,041,244
Fund shares reacquired		571,273
Accrued foreign taxes		71,144
Amount due custodian		35,825
Accrued fees to affiliates		307,397
Accrued trustees’ and officers’ fees and benefits		4,628
Accrued other operating expenses		50,298
Trustee deferred compensation and retirement plans		79,061
Total liabilities		2,160,870
Net assets applicable to shares outstanding	$	399,705,676
Net assets consist of:
Shares of beneficial interest	$	335,579,708
Undistributed net investment income		9,521,451
Undistributed net realized gain		5,766,048
Net unrealized appreciation		48,838,469
	$	399,705,676
Net Assets:
Series I	$	142,980,222
Series II	$	256,725,454
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		8,225,435
Series II		15,249,580
Series I:
Net asset value per share	$	17.38
Series II:
Net asset value per share	$	16.83

Investment income:
Dividends (net of foreign withholding taxes of $427,300)	$	8,336,406
Dividends from affiliated money market funds		24,834
Total investment income		8,361,240
Expenses:
Advisory fees		1,483,604
Administrative services fees		346,265
Custodian fees		120,292
Distribution fees — Series II		308,762
Transfer agent fees		17,748
Trustees’ and officers’ fees and benefits		13,118
Reports to shareholders		5,036
Professional services fees		21,439
Other		6,451
Total expenses		2,322,715
Less: Fees waived		(1,485	)
Net expenses		2,321,230
Net investment income		6,040,010
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (net of foreign taxes of $18,862)		5,357,682
Foreign currencies		(158,203	)
		5,199,479
Change in net unrealized appreciation (depreciation) of:
Investment securities (net of foreign taxes of $71,143)		(12,121,514	)
Foreign currencies		(14,308	)
		(12,135,822	)
Net realized and unrealized gain (loss)		(6,936,343	)
Net increase (decrease) in net assets resulting from operations	$	(896,333	)

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, 2018 and the year ended December 31, 2017

(Unaudited)

	June 30, 2018			December 31, 2017
Operations:
Net investment income	$	6,040,010		$	9,862,959
Net realized gain		5,199,479			7,559,135
Change in net unrealized appreciation (depreciation)		(12,135,822	)		29,881,018
Net increase (decrease) in net assets resulting from operations		(896,333	)		47,303,112
Distributions to shareholders from net investment income:
Series I		—			(4,949,175	)
Series ll		—			(7,647,921	)
Total distributions from net investment income		—			(12,597,096	)
Distributions to shareholders from net realized gains:
Series l		—			(2,511,786	)
Series ll		—			(4,167,052	)
Total distributions from net realized gains		—			(6,678,838	)
Share transactions–net:
Series l		(15,205,175	)		(502,416	)
Series ll		(2,505,340	)		26,512,911
Net increase (decrease) in net assets resulting from share transactions		(17,710,515	)		26,010,495
Net increase (decrease) in net assets		(18,606,848	)		54,037,673
Net assets:
Beginning of period		418,312,524			364,274,851
End of period (includes undistributed net investment income of $9,521,451 and $3,481,441, respectively)	$	399,705,676		$	418,312,524

Notes to Financial Statements

June 30, 2018

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

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

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

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

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

Invesco V.I. Global Real Estate Fund

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.

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 accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets	Rate
First $250 million		0.75%
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, 2018, 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 Capital Management LLC, formerly Invesco PowerShares Capital Management LLC, and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2019, 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, 2019. 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, 2020, 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, 2018, the Adviser waived advisory fees of $1,485.

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, 2018, Invesco was paid $48,206 for accounting and fund administrative services and was reimbursed $298,059 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, 2018, 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. The fees are accrued daily and paid monthly. 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, 2018, 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, 2018. 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.

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period.

During the six months ended June 30, 2018, there were transfers from Level 1 to Level 2 of $31,460,661 and from Level 2 to Level 1 of $27,633,174, due to foreign fair value adjustments.

	Level 1		Level 2		Level 3		Total
Investments in Securities
Australia	$	0	$	17,488,156	$	—	$	17,488,156
Brazil		1,789,896		—		—		1,789,896
Canada		7,954,097		—		—		7,954,097
Chile		402,075		—		—		402,075
China		1,704,678		19,253,364		—		20,958,042
France		10,500,631		1,627,279		—		12,127,910
Germany		16,813,264		5,473,501		—		22,286,765
Hong Kong		4,057,877		25,843,404		—		29,901,281
India		697,588		—		—		697,588
Indonesia		388,753		991,139		—		1,379,892
Ireland		1,293,442		—		—		1,293,442
Japan		32,704,572		9,244,495		—		41,949,067
Malaysia		484,933		1,038,019		—		1,522,952
Malta		—		—		0		0
Mexico		1,887,411		—		—		1,887,411
Netherlands		663,212		—		—		663,212
Philippines		2,986,516		—		—		2,986,516
Singapore		996,503		6,746,600		—		7,743,103
South Africa		2,496,457		965,590		—		3,462,047
Spain		939,807		2,985,278		—		3,925,085
Sweden		—		5,866,495		—		5,866,495
Switzerland		—		3,237,597		—		3,237,597
Thailand		2,157,370		279,460		—		2,436,830
Turkey		261,088		—		—		261,088
United Arab Emirates		514,339		—		—		514,339
United Kingdom		12,781,832		4,114,830		—		16,896,662
United States		185,667,798		—		—		185,667,798
Money Market Funds		2,169,392		—		—		2,169,392
Total Investments	$	292,313,531	$	105,155,207	$	0	$	397,468,738

Invesco V.I. Global Real Estate 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 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, 2017.

NOTE 7—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2018 was $128,778,148 and $140,733,413, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	42,911,306
Aggregate unrealized (depreciation) of investments		(8,831,812	)
Net unrealized appreciation of investments	$	34,079,494

Cost of investments for tax purposes is $363,389,244.

Invesco V.I. Global Real Estate Fund

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended June 30, 2018(a)						Year ended December 31, 2017
	Shares			Amount			Shares			Amount
Sold:
Series I		981,060		$	16,686,474			1,590,286		$	26,867,883
Series II		1,448,005			23,922,327			2,922,326			48,002,807
Issued as reinvestment of dividends:
Series I		—			—			441,738			7,460,961
Series II		—			—			720,865			11,814,973
Reacquired:
Series I		(1,857,176	)		(31,891,649	)		(2,054,075	)		(34,831,260	)
Series II		(1,626,730	)		(26,427,667	)		(2,037,490	)		(33,304,869	)
Net increase (decrease) in share activity		(1,054,841	)	$	(17,710,515	)		1,583,650		$	26,010,495

^(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.

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 06/30/18	$	17.38	$	0.27		$	(0.27	)	$	—		$	—		$	—		$	—		$	17.38		(0.06	)%	$	142,980		1.01	%(d)		1.01	%(d)		3.20	%(d)		32	%
Year ended 12/31/17		16.15		0.45	(e)		1.62			2.07			(0.56	)		(0.28	)		(0.84	)		17.38		12.98			158,229		1.02			1.02			2.63	(e)		50
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
Series II
Six months ended 06/30/18		16.86		0.24			(0.27	)		(0.03	)		—			—			—			16.83		(0.12	)		256,725		1.26	(d)		1.26	(d)		2.95	(d)		32
Year ended 12/31/17		15.69		0.39	(e)		1.58			1.97			(0.52	)		(0.28	)		(0.80	)		16.86		12.73			260,083		1.27			1.27			2.38	(e)		50
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

^(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 $151,862 and $249,057 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 $0.38 and 2.18%, $0.32 and 1.93% 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, 2018 through June 30, 2018.

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 (01/01/18)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/18)1		Expenses Paid During Period2		Ending Account Value (06/30/18)		Expenses Paid During Period2
Series I	$	1,000.00	$	999.40	$	5.01	$	1,019.79	$	5.06		1.01	%
Series II		1,000.00		998.80		6.24		1,018.55		6.31		1.26

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2018 through June 30, 2018, 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

At meetings held on June 5-6, 2018, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Global Real Estate Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc., Invesco Canada Ltd. and separate Sub-Advisory Contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2018. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’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 detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider. 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 throughout the year, 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 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 6, 2018.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, 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, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also reviewed and considered the benefits to shareholders of investing in a fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by

Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries 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 assets of the Fund.

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2017 to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds Real Estate Funds Classification Average 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 year period, and reasonably comparable to 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 and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of funds in its expense group. The Board noted

Invesco V.I. Global Real Estate Fund

that the term “contractual management fee” for funds in the expense group may include both advisory and certain non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. 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 considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. 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 differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including management of cash flows as a result of redemptions and purchases, necessary infrastructure such as officers, office space, technology, legal and distribution, oversight of service providers, costs and business risks associated with launching new funds and sponsoring and maintaining the product line, preparation of annual registration statement updates and financial information and compliance with federal and state laws and regulations.

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 similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2017.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that Invesco Advisers retains overall responsibility for, and provides services to, sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described herein other than day-to-day portfolio management.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also

considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements.

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 considered the methodology used for calculating profitability and noted the periodic review of such methodology by an independent consultant. 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, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers 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 administrative, 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 Invesco representing 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 an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Global Real Estate Fund

	Semiannual Report to Shareholders	June 30, 2018
	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 semi-annual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The Fund’s Form N-Q (or any successor Form) filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q (or any successor Form) 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 (or any successor Form), 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            07172018      1749

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, 2018

(Unaudited)

	Interest Rate			Maturity Date		Principal Amount (000)		Value
U.S. Government Sponsored Agency Securities–38.15%
Federal Farm Credit Bank (FFCB)–2.70%
Unsec. Bonds (1 mo. USD LIBOR – 0.10%)(a)		1.93	%		10/08/2019	$	10,000	$	9,995,229
Unsec. Bonds (1 mo. USD LIBOR – 0.06%)(a)		1.94	%		12/04/2019		5,000		4,999,814
Unsec. Bonds (1 mo. USD LIBOR – 0.07%)(a)		2.02	%		12/18/2019		5,000		4,999,296
									19,994,339
Federal Home Loan Bank (FHLB)–31.09%
Unsec. Bonds (1 mo. USD LIBOR – 0.11%)(a)		1.88	%		08/01/2018		5,000		5,000,000
Unsec. Bonds (3 mo. USD LIBOR – 0.31%)(a)		2.03	%		08/15/2018		12,000		11,999,460
Unsec. Bonds (1 mo. USD LIBOR – 0.13%)(a)		1.92	%		10/10/2018		13,000		13,000,000
Unsec. Bonds (1 mo. USD LIBOR – 0.13%)(a)		1.88	%		11/05/2018		12,000		12,000,000
Unsec. Bonds (1 mo. USD LIBOR – 0.13%)(a)		1.92	%		11/09/2018		3,000		3,000,000
Unsec. Bonds (1 mo. USD LIBOR – 0.12%)(a)		1.94	%		12/14/2018		10,000		10,000,000
Unsec. Bonds (1 mo. USD LIBOR – 0.09%)(a)		1.97	%		01/14/2019		9,000		9,000,000
Unsec. Bonds (1 mo. USD LIBOR – 0.08%)(a)		1.97	%		02/11/2019		8,000		8,000,000
Unsec. Bonds (1 mo. USD LIBOR – 0.07%)(a)		2.00	%		02/15/2019		10,000		10,000,000
Unsec. Bonds (1 mo. USD LIBOR – 0.08%)(a)		2.03	%		02/28/2019		5,000		5,000,000
Unsec. Bonds (1 mo. USD LIBOR – 0.08%)(a)		1.93	%		03/06/2019		8,000		8,000,000
Unsec. Bonds (1 mo. USD LIBOR – 0.08%)(a)		2.00	%		03/20/2019		2,000		2,000,000
Unsec. Bonds (1 mo. USD LIBOR – 0.11%)(a)		1.97	%		04/22/2019		3,000		3,000,000
Unsec. Bonds (1 mo. USD LIBOR – 0.09%)(a)		2.00	%		05/17/2019		20,000		20,000,000
Unsec. Bonds (1 mo. USD LIBOR – 0.07%)(a)		2.02	%		07/19/2019		7,000		7,000,000
Unsec. Bonds (1 mo. USD LIBOR – 0.09%)(a)		1.97	%		08/14/2019		10,000		10,000,000
Unsec. Bonds (1 mo. USD LIBOR – 0.06%)(a)		1.99	%		10/11/2019		2,000		2,000,000
Unsec. Bonds (1 mo. USD LIBOR – 0.09%)(a)		1.99	%		12/20/2019		9,000		9,000,000
Unsec. Disc. Notes(b)		1.89	%		07/12/2018		1,600		1,599,160
Unsec. Disc. Notes(b)		1.90	%		07/13/2018		2,400		2,398,607
Unsec. Disc. Notes(b)		1.90	%		07/16/2018		3,664		3,661,336
Unsec. Disc. Notes(b)		1.92	%		07/16/2018		1,853		1,851,573
Unsec. Disc. Notes(b)		1.90	%		07/20/2018		3,100		3,096,965
Unsec. Disc. Notes(b)		1.91	%		07/20/2018		6,000		5,994,390
Unsec. Disc. Notes(b)		1.93	%		07/27/2018		2,900		2,896,133
Unsec. Disc. Notes(b)		1.86	%		08/01/2018		18,800		18,771,064
Unsec. Disc. Notes(b)		1.89	%		08/08/2018		20,000		19,961,376
Unsec. Disc. Notes(b)		1.94	%		09/12/2018		10,000		9,961,480
Unsec. Global Bonds (1 mo. USD LIBOR – 0.14%)(a)		1.97	%		07/27/2018		1,600		1,600,007
Unsec. Global Bonds (1 mo. USD LIBOR – 0.12%)(a)		1.97	%		12/21/2018		5,000		5,000,000
Unsec. Global Bonds (1 mo. USD LIBOR – 0.09%)(a)		1.97	%		06/14/2019		5,000		5,000,000
									229,791,551
Federal Home Loan Mortgage Corp. (FHLMC)–0.86%
Unsec. Global Notes		0.85	%		07/27/2018		1,342		1,341,019
Unsec. Global Notes		1.00	%		07/27/2018		5,000		4,996,859
									6,337,878
Overseas Private Investment Corp. (OPIC)–3.50%
Sr. Unsec. Gtd. VRD COP Bonds (3 mo. U.S. Treasury Bill Rate)(c)		1.96	%		06/15/2025		3,000		3,000,000
Sr. Unsec. Gtd. VRD COP Bonds (3 mo. U.S. Treasury Bill Rate)(c)		1.96	%		02/15/2028		10,000		10,000,000
Unsec. Gtd. VRD COP Bonds (3 mo. U.S. Treasury Bill Rate)(c)		1.96	%		09/15/2020		5,000		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		Principal Amount (000)		Value
Overseas Private Investment Corp. (OPIC)–(continued)
Unsec. Gtd. VRD COP Bonds (3 mo. U.S. Treasury Bill Rate)(c)		1.96	%		07/15/2025	$	375	$	375,389
Unsec. Gtd. VRD COP Bonds (3 mo. U.S. Treasury Bill Rate)(c)		2.00	%		07/07/2040		7,500		7,500,000
									25,875,389
Total U.S. Government Sponsored Agency Securities (Cost $281,999,157)									281,999,157
U.S. Treasury Securities–17.27%
U.S. Treasury Bills – 12.13%(b)
U.S. Treasury Bills		1.63	%		07/26/2018		5,000		4,986,042
U.S. Treasury Bills		1.90	%		08/23/2018		10,000		9,972,628
U.S. Treasury Bills		1.84	%		08/30/2018		10,000		9,970,131
U.S. Treasury Bills		1.85	%		09/06/2018		10,000		9,966,450
U.S. Treasury Bills		1.87	%		09/13/2018		5,000		4,980,939
U.S. Treasury Bills		1.91	%		09/13/2018		5,000		4,981,086
U.S. Treasury Bills		1.92	%		09/20/2018		6,000		5,973,599
U.S. Treasury Bills		1.93	%		09/20/2018		9,000		8,962,501
U.S. Treasury Bills		1.91	%		10/11/2018		5,000		4,973,480
U.S. Treasury Bills		1.96	%		10/18/2018		25,000		24,853,750
									89,620,606
U.S. Treasury Notes–5.14%
U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.07%)(a)		1.98	%		04/30/2019		11,000		11,000,993
U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.06%)(a)		1.97	%		07/31/2019		6,000		5,999,860
U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.05%)(a)		1.96	%		10/31/2019		8,000		8,001,368
U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate)(a)		1.91	%		01/31/2020		10,000		9,994,526
U.S. Treasury Floating Rate Notes (3 mo. U.S. Treasury Bill Money Market Yield Rate + 0.03%)(a)		1.94	%		04/30/2020		3,000		3,000,257
									37,997,004
Total U.S. Treasury Securities (Cost $127,617,610)									127,617,610
TOTAL INVESTMENTS IN SECURITIES (excluding Repurchase Agreements)–55.42% (Cost $409,616,767)									409,616,767
						Repurchase Amount
Repurchase Agreements–43.98%(d)
BNP Paribas Securities Corp., joint agreement dated 06/29/2018, aggregate maturing value of $1,500,265,000 (collateralized by U.S. Treasury obligations valued at $1,527,599,416; 0.38%; 07/15/2023)		2.12	%		07/02/2018		35,006,183		35,000,000
CIBC World Markets Corp., joint agreement dated 06/29/2018, aggregate maturing value of $1,000,176,667 (collateralized by U.S. Treasury obligations and U.S. government sponsored agency obligations valued at $1,020,000,057; 1.75%-4.50%; 01/31/2022-04/01/2048)		2.12	%		07/02/2018		35,006,183		35,000,000
Fixed Income Clearing Corp. Bank of New York Mellon (The), agreement dated 06/29/2018, maturing value of $35,006,183 (collateralized by a U.S. Treasury obligation valued at $35,700,019; 2.13%; 02/29/2024)		2.12	%		07/02/2018		35,006,183		35,000,000
HSBC Securities (USA) Inc., joint term agreement dated 06/28/2018, aggregate maturing value of $200,075,833 (collateralized by U.S. government sponsored agency obligations valued at $204,004,682; 3.50%-4.00%; 01/01/2025-03/01/2048)(e)		1.95	%		07/05/2018		15,005,688		15,000,000
ING Financial Markets, LLC, joint term agreement dated 06/26/2018, aggregate maturing value of $200,075,444 (collateralized by U.S. Treasury obligations and U.S. government sponsored agency obligations valued at $204,000,009; 1.00%-6.50%; 03/15/2019-06/01/2048)(e)		1.94	%		07/03/2018		15,005,658		15,000,000
Lloyds Bank PLC, joint term agreement dated 05/08/2018, aggregate maturing value of $501,733,333 (collateralized by U.S. Treasury obligations valued at $510,211,235; 1.00%-2.13%; 11/30/2019-12/31/2021)		1.95	%		07/11/2018		25,086,667		25,000,000
Lloyds Bank PLC, joint term agreement dated 06/05/2018, aggregate maturing value of $668,083,875 (collateralized by U.S. Treasury obligations valued at $680,843,692; 1.63%-2.13%; 10/31/2020-08/15/2025)(e)		1.95	%		07/06/2018		4,006,500		4,000,000

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
Lloyds Bank PLC, joint term agreement dated 06/08/2018, aggregate maturing value of $702,763,056 (collateralized by U.S. Treasury obligations valued at $714,546,391; 2.63%-3.50%; 05/15/2020-11/15/2020)		2.03	%		08/20/2018	$	5,019,736	$	5,000,000
Metropolitan Life Insurance Co., joint term agreement dated 06/27/2018, aggregate maturing value of $800,368,300 (collateralized by U.S. Treasury obligations valued at $821,319,576; 0%-4.50%; 07/12/2018-08/15/2047)(e)		2.04	%		07/05/2018		15,007,388		15,000,588
Mitsubishi UFJ Trust and Banking Corp., joint term agreement dated 06/27/2018, aggregate maturing value of $2,784,968,664 (collateralized by U.S. Treasury obligations valued at $2,840,200,621; 1.63%-2.25%; 08/31/2022-11/30/2024)(e)		1.97	%		07/05/2018		33,001,941		32,987,500
RBC Capital Markets LLC, joint term agreement dated 06/29/2018, aggregate maturing value of $1,000,000,000 (collateralized by U.S. government sponsored agency obligations valued at $1,020,000,000; 0%-7.50%; 08/01/2018-03/25/2058)(a)(e)		1.91	%		08/29/2018		45,000,000		45,000,000
Royal Bank of Canada, joint term agreement dated 06/19/2018, aggregate maturing value of $1,101,769,167 (collateralized by U.S. government sponsored agency obligations valued at $1,122,000,000; 2.26%-7.00%; 05/01/2025-02/20/2066)(e)		1.93	%		07/19/2018		10,016,083		10,000,000
Societe Generale, joint open agreement dated 06/25/2018, (collateralized by U.S. government sponsored agency obligations and U.S. Treasury obligations valued at $510,000,045; 0%-8.50%; 08/24/2018-05/15/2053)(f)		1.94	%		—		—		5,000,000
Sumitomo Mitsui Banking Corp., joint agreement dated 06/29/2018, aggregate maturing value of $2,000,358,333 (collateralized by U.S. government sponsored agency obligations valued at $2,040,000,000; 3.00%-3.50%; 08/20/2042-02/20/2048)(a)		2.15	%		07/02/2018		18,089,831		18,086,591
Wells Fargo Securities, LLC, joint agreement dated 06/29/2018, aggregate maturing value of $760,134,267 (collateralized by U.S. government sponsored agency obligations valued at $775,200,099; 1.38%-5.00%; 01/28/2019-06/01/2048)		2.12	%		07/02/2018		30,005,300		30,000,000
Total Repurchase Agreements (Cost $325,074,679)									325,074,679
TOTAL INVESTMENTS IN SECURITIES(g)–99.40% (Cost $734,691,446)									734,691,446
OTHER ASSETS LESS LIABILITIES–0.60%									4,478,721
NET ASSETS–100.00%								$	739,170,167

Investment Abbreviations:

COP	– Certificates of Participation
Disc.	– Discounted
Gtd.	– Guaranteed
LIBOR	– London Interbank Offered  Rate

Sr.	– Senior
Unsec.	– Unsecured
USD	– U.S. Dollar
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, 2018.

^(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 based on current market interest rates. Rate shown is the rate in effect on June 30, 2018.

^(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, 2018

1-7	43.7	%
8-30	8.1
31-60	9.6
61-90	7.5
91-180	9.9
181+	21.2

* 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, 2018

(Unaudited)

Statement of Operations

For the six months ended June 30, 2018

(Unaudited)

Assets:
Investments, excluding repurchase agreements, at value and cost	$	409,616,767
Repurchase agreements at value and cost		325,074,679
Receivable for:
Fund shares sold		4,391,222
Interest		541,598
Investment for trustee deferred compensation and retirement plans		51,554
Other assets		43
Total assets		739,675,863
Liabilities:
Payable for:
Dividends		21,053
Fund shares reacquired		25,655
Accrued fees to affiliates		343,460
Accrued trustees’ and officers’ fees and benefits		5,981
Accrued other operating expenses		48,791
Trustee deferred compensation and retirement plans		60,756
Total liabilities		505,696
Net assets applicable to shares outstanding	$	739,170,167
Net assets consist of:
Shares of beneficial interest	$	739,182,131
Undistributed net investment income		2,617
Undistributed net realized gain (loss)		(14,581	)
	$	739,170,167
Net Assets:
Series I	$	651,104,448
Series II	$	88,065,719
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		651,103,697
Series II		88,065,572
Series I:
Net asset value per share	$	1.00
Series II:
Net asset value per share	$	1.00

Investment income:
Interest	$	6,345,053
Expenses:
Advisory fees		579,411
Administrative services fees		776,283
Custodian fees		1,711
Distribution fees — Series II		108,703
Transfer agent fees		3,145
Trustees’ and officers’ fees and benefits		15,693
Reports to shareholders		4,199
Professional services fees		13,466
Other		8,808
Net expenses		1,511,419
Net investment income		4,833,634
Net realized gain from investment securities		2,776
Net increase in net assets resulting from operations	$	4,836,410

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, 2018 and the year ended December 31, 2017

(Unaudited)

	June 30, 2018			December 31, 2017
Operations:
Net investment income	$	4,833,634		$	3,798,339
Net realized gain (loss)		2,776			(17,357	)
Net increase in net assets resulting from operations		4,836,410			3,780,982
Distributions to shareholders from net investment income:
Series I		(4,384,259	)		(3,515,426	)
Series ll		(449,375	)		(282,913	)
Total distributions from net investment income		(4,833,634	)		(3,798,339	)
Share transactions-net:
Series l		(5,266,097	)		19,851,083
Series ll		2,524,086			(11,818,876	)
Net increase (decrease) in net assets resulting from share transactions		(2,742,011	)		8,032,207
Net increase (decrease) in net assets		(2,739,235	)		8,014,850
Net assets:
Beginning of period		741,909,402			733,894,552
End of period (includes undistributed net investment income of $2,617 and $2,617, respectively)	$	739,170,167		$	741,909,402

Notes to Financial Statements

June 30, 2018

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income.

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 Capital Management LLC, formerly Invesco PowerShares Capital Management LLC, and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the

Invesco V.I. Government Money Market Fund

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, 2019, 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, 2019. 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.

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, 2018, Invesco was paid $207,205 for accounting and fund administrative services and was reimbursed $569,078 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, 2018, 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. The fees are accrued daily and paid monthly. 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, 2018, 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, 2018, 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.

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period. During the six months ended June 30, 2018, there were no material transfers between valuation levels.

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. 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, 2017, as follows:

Capital Loss Carryforward*
Expiration	Short-Term		Long-Term		Total
Not subject to expiration	$	17,357	$	—	$	17,357

* 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—Share Information

	Summary of Share Activity
	Six months ended June 30, 2018(a)						Year ended December 31, 2017
	Shares			Amount			Shares			Amount
Sold:
Series I		821,778,211		$	821,778,211			1,456,355,567		$	1,456,355,567
Series II		33,193,150			33,193,150			45,247,987			45,247,987
Issued as reinvestment of dividends:
Series I		4,278,832			4,278,832			3,422,005			3,422,005
Series II		449,375			449,375			282,913			282,913
Reacquired:
Series I		(831,323,140	)		(831,323,140	)		(1,439,926,489	)		(1,439,926,489	)
Series II		(31,118,439	)		(31,118,439	)		(57,349,776	)		(57,349,776	)
Net increase (decrease) in share activity		(2,742,011	)	$	(2,742,011	)		8,032,207		$	8,032,207

^(a) There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 90% 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. 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 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
Series I
Six months ended 06/30/18	$	1.00		$	0.01	$	0.00		$	0.01	$	(0.01	)	$	1.00		0.63	%	$	651,104		0.36	%(c)		0.36	%(c)		1.28	%(c)
Year ended 12/31/17		1.00			0.01		(0.00	)		0.01		(0.01	)		1.00		0.56			656,368		0.40			0.40			0.56
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
Series II
Six months ended 06/30/18		1.00			0.01		0.00			0.01		(0.01	)		1.00		0.51			88,066		0.61	(c)		0.61	(c)		1.03	(c)
Year ended 12/31/17		1.00			0.00		(0.00	)		0.00		(0.00	)		1.00		0.31			85,541		0.65			0.65			0.31
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

^(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 $691,267 and $87,683 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, 2018 through June 30, 2018.

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 (01/01/18)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/18)1		Expenses Paid During Period2		Ending Account Value (06/30/18)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,006.40	$	1.79	$	1,023.01	$	1.81		0.36	%
Series II		1,000.00		1,005.10		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, 2018 through June 30, 2018, 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

At meetings held on June 5-6, 2018, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Government Money Market Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate Sub-Advisory Contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2018. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’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 detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider. 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 throughout the year, 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 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 6, 2018.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, 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, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also reviewed and considered the benefits to shareholders of investing in a fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by

Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries 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 investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2017 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 second quintile of its performance universe for the one and three year periods and the first 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 and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was below the median contractual management fee rate of

Invesco V.I. Government Money Market Fund

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 non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. 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 considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. 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 differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including management of cash flows as a result of redemptions and purchases, necessary infrastructure such as officers, office space, technology, legal and distribution, oversight of service providers, costs and business risks associated with launching new funds and sponsoring and maintaining the product line, preparation of annual registration statement updates and financial information and compliance with federal and state laws and regulations.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements.

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 considered the methodology used for calculating profitability and noted the periodic review of such methodology by an independent consultant. 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, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers 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 administrative, 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

	Semiannual Report to Shareholders	June 30, 2018
	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 (or any successor Form). The Fund’s Form N-Q (or any successor Form) filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q (or any successor Form) 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 (or any successor Form), 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            07182018       1030

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/17 to 6/30/18, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-0.70	%
Series II Shares	-0.88
Bloomberg Barclays U.S. Aggregate Bond Index▼ (Broad Market Index)	-1.62
Bloomberg Barclays U.S. Government Index▼ (Style-Specific Index)	-1.05
Lipper VUF General U.S. Government Funds Index∎ (Peer Group Index)	-0.85
Source(s): ▼FactSet Research Systems Inc.; ∎Lipper Inc.

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

    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.

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 0.70% 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. 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.

Average Annual Total Returns As of 6/30/18
Series I Shares
Inception (5/5/93)	4.11	%
10 Years	2.85
5 Years	1.30
1 Year	-0.16
Series II Shares
Inception (9/19/01)	3.10	%
10 Years	2.58
5 Years	1.04
1 Year	-0.41

Invesco V.I. Government Securities Fund

Schedule of Investments

June 30, 2018

(Unaudited)

	Principal Amount		Value
U.S. Treasury Securities–44.75%
U.S. Treasury Bills–0.16%
1.58%, 07/26/2018(a)	$	90,000	$	89,897
1.59%, 07/26/2018(a)(b)		625,000		624,282
1.79%, 07/26/2018(a)		95,000		94,891
				809,070
U.S. Treasury Notes–32.70%
1.25%, 12/31/2018		3,000,000		2,986,406
1.50%, 12/31/2018		2,500,000		2,491,846
1.00%, 03/15/2019		3,000,000		2,974,102
1.50%, 05/31/2019		7,000,000		6,947,090
0.75%, 07/15/2019		8,100,000		7,966,635
1.63%, 07/31/2019		2,700,000		2,678,010
1.75%, 09/30/2019		2,500,000		2,479,297
3.38%, 11/15/2019		625,000		632,581
1.75%, 11/30/2019		3,000,000		2,970,234
1.50%, 04/15/2020		2,000,000		1,964,688
2.50%, 05/31/2020		2,000,000		1,999,180
2.00%, 09/30/2020		2,500,000		2,469,043
1.75%, 12/31/2020		2,500,000		2,449,463
2.00%, 01/15/2021		9,250,000		9,114,863
1.38%, 01/31/2021		3,000,000		2,908,652
2.63%, 05/15/2021		7,000,000		7,000,547
3.13%, 05/15/2021		2,100,000		2,129,244
2.13%, 08/15/2021		2,700,000		2,658,551
2.00%, 10/31/2021		2,500,000		2,447,851
2.00%, 11/15/2021		3,300,000		3,230,713
2.00%, 12/31/2021		3,000,000		2,933,262
1.88%, 03/31/2022		6,000,000		5,827,617
1.75%, 05/15/2022		4,000,000		3,861,953
2.13%, 06/30/2022		3,000,000		2,934,961
2.00%, 07/31/2022		2,000,000		1,945,703
1.63%, 08/31/2022		5,000,000		4,787,988
1.63%, 11/15/2022		2,000,000		1,910,508
2.00%, 11/30/2022		2,700,000		2,620,371
2.13%, 12/31/2022		12,000,000		11,697,422
2.38%, 01/31/2023		2,000,000		1,969,922
1.63%, 04/30/2023		4,000,000		3,799,922
1.63%, 05/31/2023		1,400,000		1,328,906
2.75%, 05/31/2023		13,500,000		13,513,711
1.63%, 10/31/2023		625,000		589,966
2.13%, 11/30/2023		5,500,000		5,323,721
2.13%, 03/31/2024		4,000,000		3,861,016
2.13%, 07/31/2024		3,000,000		2,887,500
2.25%, 11/15/2024		5,000,000		4,837,793
2.88%, 05/31/2025		4,000,000		4,015,078
1.50%, 08/15/2026		8,750,000		7,900,297
2.38%, 05/15/2027		1,000,000		962,812

	Principal Amount		Value
U.S. Treasury Notes–(continued)
2.25%, 11/15/2027	$	4,000,000	$	3,801,562
2.88%, 05/15/2028		2,000,000		2,003,398
				165,814,385
U.S. Treasury Bonds–11.89%
8.75%, 05/15/2020		1,200,000		1,337,555
7.88%, 02/15/2021		1,100,000		1,246,566
5.38%, 02/15/2031		3,800,000		4,799,578
3.38%, 05/15/2044		6,000,000		6,422,110
3.00%, 05/15/2045		7,000,000		7,022,149
2.88%, 08/15/2045		750,000		734,473
3.00%, 11/15/2045		3,000,000		3,008,320
2.50%, 05/15/2046		6,000,000		5,446,877
2.25%, 08/15/2046		6,550,000		5,635,306
3.00%, 05/15/2047		7,300,000		7,315,113
2.75%, 08/15/2047		10,000,000		9,534,766
2.75%, 11/15/2047		5,500,000		5,243,584
3.13%, 05/15/2048		2,500,000		2,567,529
				60,313,926
Total U.S. Treasury Securities (Cost $231,410,952)				226,937,381
U.S. Government Sponsored Agency Mortgage-Backed Securities–41.09%
Collateralized Mortgage Obligations–19.61%
Fannie Mae ACES, 2.54% (1 mo. USD LIBOR + 0.59%), 09/25/2023(c)		2,562,806		2,570,905
Fannie Mae REMICs,
5.00%, 08/25/2019		51,048		51,335
3.00%, 10/25/2025		298,822		298,588
2.50%, 03/25/2026		338,378		336,174
7.00%, 09/18/2027		242,265		261,445
1.50%, 01/25/2028		4,203,317		3,997,885
6.50%, 03/25/2032		708,021		780,789
5.75%, 10/25/2035		300,847		322,489
2.39% (1 mo. USD LIBOR + 0.30%), 05/25/2036(c)		2,410,923		2,404,407
4.25%, 02/25/2037		583,701		593,590
2.54% (1 mo. USD LIBOR + 0.45%), 03/25/2037(c)		1,136,973		1,141,641
2.59% (1 mo. USD LIBOR + 0.50%), 03/25/2037 to 05/25/2041(c)		3,308,994		3,317,040
2.49% (1 mo. USD LIBOR + 0.40%), 06/25/2038 to 09/25/2046(c)		6,050,507		6,079,474
6.57%, 06/25/2039(d)		2,996,779		3,323,117
4.00%, 02/25/2040 to 07/25/2040		2,203,285		2,242,520
2.64% (1 mo. USD LIBOR + 0.55%), 02/25/2041(c)		2,352,512		2,367,568

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)
2.61% (1 mo. USD LIBOR + 0.52%), 11/25/2041(c)	$	1,196,821	$	1,207,553
2.23% (1 mo. USD LIBOR + 0.32%), 08/25/2044(c)		2,534,349		2,532,177
2.31% (1 mo. USD LIBOR + 0.40%), 11/25/2046(c)		3,875,914		3,881,989
2.39% (1 mo. USD LIBOR + 0.48%), 02/25/2056(c)		4,794,418		4,803,332
2.33% (1 mo. USD LIBOR + 0.42%), 12/25/2056(c)		4,837,419		4,843,854
Freddie Mac REMICs,
3.00%, 10/15/2018 to 04/15/2026		459,371		460,329
2.57% (1 mo. USD LIBOR + 0.50%), 12/15/2035 to 03/15/2040(c)		4,266,485		4,287,439
2.37% (1 mo. USD LIBOR + 0.30%), 03/15/2036 to 09/15/2044(c)		10,826,386		10,821,269
2.26% (1 mo. USD LIBOR + 0.35%), 11/15/2036(c)		3,597,636		3,591,141
2.44% (1 mo. USD LIBOR + 0.37%), 03/15/2037(c)		1,222,173		1,223,876
2.47% (1 mo. USD LIBOR + 0.40%), 05/15/2037 to 06/15/2037(c)		2,614,903		2,623,017
2.93% (1 mo. USD LIBOR + 0.86%), 11/15/2039(c)		669,275		684,173
2.52% (1 mo. USD LIBOR + 0.45%), 03/15/2040 to 02/15/2042(c)		12,056,252		12,125,382
Freddie Mac STRIPS, 2.26% (1 mo. USD LIBOR + 0.35%), 10/15/2037(c)		2,808,138		2,805,652
Freddie Mac Whole Loan Securities Trust, 3.50%, 05/25/2047		2,001,562		2,001,935
Ginnie Mae REMICs,
6.00%, 01/16/2025		294,790		308,918
5.72%, 08/20/2034(d)		1,095,890		1,187,841
5.88%, 01/20/2039(d)		3,745,263		4,075,211
2.89% (1 mo. USD LIBOR + 0.80%), 09/16/2039(c)		1,209,050		1,228,349
4.49%, 07/20/2041(d)		798,740		820,206
3.01%, 09/20/2041(d)		3,122,444		3,249,896
2.33% (1 mo. USD LIBOR + 0.25%), 01/20/2042(c)		593,242		593,081
				99,445,587
Federal Home Loan Mortgage Corp. (FHLMC)–8.61%
Pass Through Ctfs.,
5.00%, 07/01/2018 to 01/01/2040		1,119,528		1,197,790
6.00%, 09/01/2018 to 07/01/2038		284,624		304,696
6.50%, 05/01/2019 to 12/01/2035		2,228,337		2,472,999
4.50%, 09/01/2020 to 08/01/2041		7,596,559		7,994,254
10.00%, 03/01/2021		1,937		1,949

	Principal Amount		Value
Federal Home Loan Mortgage Corp. (FHLMC)–(continued)
9.00%, 06/01/2021 to 06/01/2022	$	32,000	$	32,708
7.00%, 12/01/2021 to 11/01/2035		2,769,771		3,033,060
8.00%, 12/01/2021 to 09/01/2036		843,793		888,960
7.50%, 09/01/2022 to 06/01/2035		907,595		994,161
8.50%, 11/17/2022 to 08/01/2031		358,821		385,321
5.50%, 12/01/2022		92,789		93,979
3.50%, 08/01/2026		601,556		609,527
3.00%, 05/01/2027 to 02/01/2032		6,131,716		6,105,564
7.05%, 05/20/2027		100,939		107,633
6.03%, 10/20/2030		710,500		772,924
Pass Through Ctfs., ARM,
3.64% (1 yr. USD LIBOR + 1.88%), 09/01/2035(c)		3,412,175		3,610,585
4.00% (1 yr. USD LIBOR + 1.87%), 07/01/2036(c)		3,084,620		3,255,493
3.31% (1 yr. USD LIBOR + 1.56%), 10/01/2036(c)		1,652,815		1,723,078
3.66% (1 yr. USD LIBOR + 1.91%), 10/01/2036(c)		126,953		133,853
3.76% (1 yr. USD LIBOR + 1.97%), 11/01/2037(c)		1,085,376		1,137,818
3.90% (1 yr. USD LIBOR + 2.05%), 01/01/2038(c)		86,610		91,289
4.06% (1 yr. USD LIBOR + 1.84%), 07/01/2038(c)		800,422		841,672
3.75% (1 yr. USD LIBOR + 1.78%), 06/01/2043(c)		1,550,656		1,621,841
2.89% (1 yr. USD LIBOR + 1.64%), 01/01/2048(c)		6,285,614		6,255,467
				43,666,621
Federal National Mortgage Association (FNMA)–9.89%
Pass Through Ctfs.,
5.00%, 07/01/2018 to 12/01/2033		244,430		251,601
7.00%, 12/01/2018 to 06/01/2036		2,823,411		2,996,848
6.50%, 02/01/2019 to 11/01/2037		2,171,846		2,367,049
4.50%, 04/01/2019 to 08/01/2041		5,635,297		5,918,920
8.00%, 02/01/2021 to 10/01/2037		2,634,817		3,001,278
8.50%, 02/01/2021 to 08/01/2037		857,692		956,027
5.50%, 03/01/2021 to 05/01/2035		1,407,867		1,527,621
6.00%, 08/01/2021 to 10/01/2038		1,535,226		1,683,225
7.50%, 11/01/2022 to 08/01/2037		4,015,246		4,474,531

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)
6.75%, 07/01/2024	$	250,322	$	276,021
6.95%, 10/01/2025		16,349		16,521
3.50%, 03/01/2027 to 08/01/2027		7,860,532		7,981,371
3.00%, 05/01/2027 to 07/01/2032		11,452,211		11,415,092
Pass Through Ctfs., ARM,
3.70% (1 yr. U.S. Treasury Yield Curve Rate + 2.36%), 10/01/2034(c)		1,843,407		1,959,464
3.83% (1 yr. U.S. Treasury Yield Curve Rate + 2.20%), 05/01/2035(c)		279,284		294,702
3.74% (1 yr. USD LIBOR + 1.74%), 03/01/2038(c)		64,950		67,949
2.78% (1 yr. USD LIBOR + 1.75%), 02/01/2042(c)		975,474		1,024,959
2.16% (1 yr. USD LIBOR + 1.52%), 08/01/2043(c)		2,168,452		2,164,331
2.28% (1 yr. U.S. Treasury Yield Curve Rate + 1.88%), 05/01/2044(c)		1,767,776		1,775,630
				50,153,140
Government National Mortgage Association (GNMA)–2.98%
Pass Through Ctfs.,
6.50%, 10/15/2018 to 09/15/2034		2,957,287		3,219,800
10.00%, 06/15/2019		9		9
7.00%, 07/15/2019 to 12/15/2036		764,057		822,279
6.00%, 09/15/2020 to 08/15/2033		490,703		531,622
7.50%, 09/15/2022 to 10/15/2035		1,987,284		2,199,402
8.00%, 01/15/2023 to 01/15/2037		1,078,129		1,217,911
5.00%, 02/15/2025		158,915		165,988
8.50%, 02/15/2025 to 01/15/2037		138,082		143,542
6.95%, 08/20/2025 to 08/20/2027		210,433		212,281
6.38%, 10/20/2027 to 02/20/2028		219,764		235,290
6.10%, 12/20/2033		3,653,692		4,040,737
3.50%, 10/20/2042		2,306,276		2,298,163
				15,087,024
Total U.S. Government Sponsored Agency Mortgage-Backed Securities (Cost $208,013,228)				208,352,372
Non-U.S. Government Sponsored Agency Securities–10.98%
Collateralized Mortgage Obligations–8.84%
Banc of America Commercial Mortgage Trust, Series 2015-UBS7, Class XA, IO, Variable Rate Pass Through Ctfs., 1.01%, 09/15/2048(d)		16,347,352		790,422

	Principal Amount		Value
Collateralized Mortgage Obligations–(continued)
Bear Stearns Adjustable Rate Mortgage Trust, Series 2004-10, Class 12A1, Variable Rate Pass Through Ctfs., 3.60%, 01/25/2035(d)	$	596,366	$	608,535
Chase Mortgage Trust,
Series 2016-1, Class M3, Variable Rate Pass Through Ctfs., 3.75%, 04/25/2045(d)(e)		2,418,762		2,382,854
Series 2016-2, Class M3, Variable Rate Pass Through Ctfs., 3.75%, 12/25/2045(d)(e)		2,815,895		2,767,513
Commercial Mortgage Trust,
Series 2015-CR23, Class CMB, Variable Rate Pass Through Ctfs., 3.81%, 05/10/2048(d)(e)		4,740,000		4,747,792
Series 2015-CR24, Class B, Variable Rate Pass Through Ctfs., 4.53%, 08/10/2048(d)		6,200,000		6,337,519
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 $7,492,994)(e)		7,239,607		7,316,528
La Hipotecaria Panamanian Mortgage Trust (El Salvador), Series 2010-1GA, Class A, Floating Rate Pass Through Ctfs., 2.25% (PNMR – 3.00%), 09/08/2039 (Acquired 11/05/2010; Cost $11,643,844)(c)(e)		11,270,508		11,404,345
LSTAR Commercial Mortgage Trust, Series 2014-2, Class A2, Pass Through Ctfs., 2.77%, 01/20/2041(e)		431,523		429,789
Towd Point Mortgage Trust, Series 2015-1, Class AES, Variable Rate Pass Through Ctfs., 3.00%, 10/25/2053(d)(e)		2,235,339		2,228,452
Wells Fargo Commercial Mortgage Trust, Series 2015-C28, Class B, Variable Rate Pass Through Ctfs., 4.27%, 05/15/2048(d)		5,900,000		5,814,947
				44,828,696
Bonds & Notes–2.14%
Israel Government Agency for International Development (AID) Bond, Unsec. Gtd. Global Bonds, 5.13%, 11/01/2024		3,800,000		4,277,784
Private Export Funding Corp.,
Series BB, Sec. Gtd. Notes, 4.30%, 12/15/2021		1,540,000		1,610,771
Series HH, Sr. Sec. Gtd. Notes, 1.45%, 08/15/2019		5,000,000		4,942,810
				10,831,365
Total Non-U.S. Government Sponsored Agency Securities (Cost $55,818,578)				55,660,061

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

Invesco V.I. Government Securities Fund

	Principal Amount		Value
U.S. Government Sponsored Agency Securities–2.03%
Federal Home Loan Bank (FHLB)–1.25%
Unsec. Bonds, 3.38%, 06/12/2020	$	6,220,000	$	6,307,092
Financing Corp. (FICO)–0.40%
Series E, Sec. Bonds, 9.65%, 11/02/2018		1,985,000		2,037,924
Tennessee Valley Authority (TVA)–0.38%
Sr. Unsec. Global Notes, 1.88%, 08/15/2022		2,000,000		1,935,026
Total U.S. Government Sponsored Agency Securities (Cost $10,370,428)				10,280,042

	Shares		Value
Money Market Funds–0.79%
Invesco Government & Agency Portfolio– Institutional Class, 1.80% (Cost $3,997,030)(f)		3,997,030	$	3,997,030
TOTAL INVESTMENTS IN SECURITIES–99.64% (Cost $509,610,216)				505,226,886
OTHER ASSETS LESS LIABILITIES–0.36%				1,826,377
NET ASSETS–100.00%			$	507,053,263

Investment Abbreviations:

ACES	– Automatically Convertible Extendable Security
ARM	– Adjustable Rate Mortgage
Ctfs.	– Certificates
Gtd.	– Guaranteed
IO	– Interest Only
LIBOR	– London Interbank Offered Rate

mo.	– month
PNMR	– Panamanian Mortgage Reference Rate
REMICs	– Real Estate Mortgage Investment Conduits
Sec	– Secured
Sr.	– Senior

STRIPS	– Separately Traded Registered Interest and Principal Security
Unsec.	– Unsecured
USD	– U.S. Dollar
yr.	– year

Notes to Schedule of Investments:

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

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

^(c)  Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2018.

^(d)  Interest rate is redetermined periodically based on the cash flows generated by the pool of assets backing the security, less any applicable fees. The rate shown is the rate in effect on June 30, 2018.

^(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, 2018 was $31,277,273, which represented 6.17% 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, 2018.

Portfolio Composition

By security type, based on Net Assets

as of June 30, 2018

U.S. Treasury Securities	44.8	%
U.S. Government Sponsored Agency Mortgage- Backed Securities	41.1
Non-U.S. Government Sponsored Agency Securities	11.0
U.S. Government Sponsored Agency Securities	2.0
Money Market Funds Plus Other Assets Less Liabilities	1.1

Open Futures Contracts
	Number of Contracts		Expiration Month		Notional Value			Value			Unrealized Appreciation (Depreciation)
Long Futures Contracts
U.S. Treasury 10 Year Notes		6		September-2018	$	721,125		$	5,282		$	5,282
U.S. Treasury Ultra Bonds		103		September-2018		16,434,937			379,099			379,099
Subtotal — Long Future Contracts									384,381			384,381
Short Futures Contracts
U.S. Treasury 2 Year Notes		63		September-2018		(13,345,172	)		2,375			2,375
U.S. Treasury 5 Year Notes		74		September-2018		(8,407,672	)		(22,129	)		(22,129	)
U.S. Treasury 10 Year Ultra Bonds		94		September-2018		(12,054,031	)		(104,527	)		(104,527	)
Subtotal — Short Future Contracts									(124,281	)		(124,281	)
Total Futures Contracts — Interest Rate Risk								$	260,100		$	260,100

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, 2018

(Unaudited)

Statement of Operations

For the six months ended June 30, 2018

(Unaudited)

Assets:
Investments in securities, at value (Cost $505,613,186)	$	501,229,856
Investments in affiliated money market funds, at value		3,997,030
Receivable for:
Fund shares sold		4,122
Dividends and interest		2,147,820
Principal paydowns		626,313
Investment for trustee deferred compensation and retirement plans		245,110
Other assets		15,735
Total assets		508,265,986
Liabilities:
Other investments:
Variation margin payable — futures contracts		2,734
Payable for:
Fund shares reacquired		588,800
Accrued fees to affiliates		315,108
Accrued trustees’ and officers’ fees and benefits		5,632
Accrued other operating expenses		32,863
Trustee deferred compensation and retirement plans		267,586
Total liabilities		1,212,723
Net assets applicable to shares outstanding	$	507,053,263
Net assets consist of:
Shares of beneficial interest	$	513,584,677
Undistributed net investment income		15,375,862
Undistributed net realized gain (loss)		(17,784,046	)
Net unrealized appreciation (depreciation)		(4,123,230	)
	$	507,053,263
Net Assets:
Series I	$	308,695,776
Series II	$	198,357,487
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		27,254,741
Series II		17,697,478
Series I:
Net asset value per share	$	11.33
Series II:
Net asset value per share	$	11.21

Investment income:
Interest	$	7,246,250
Dividends from affiliated money market funds		41,929
Total investment income		7,288,179
Expenses:
Advisory fees		1,194,763
Administrative services fees		437,552
Custodian fees		10,476
Distribution fees — Series II		249,912
Transfer agent fees		11,356
Trustees’ and officers’ fees and benefits		14,407
Reports to shareholders		3,104
Professional services fees		13,121
Other		21,263
Total expenses		1,955,954
Less: Fees waived		(2,899	)
Net expenses		1,953,055
Net investment income		5,335,124
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		(1,010,774	)
Futures contracts		(772,152	)
Option contracts written		28,426
Swap agreements		(382,865	)
		(2,137,365	)
Change in net unrealized appreciation (depreciation) of:
Investment securities		(7,696,914	)
Futures contracts		136,098
Swap agreements		70,652
		(7,490,164	)
Net realized and unrealized gain (loss)		(9,627,529	)
Net increase (decrease) in net assets resulting from operations	$	(4,292,405	)

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, 2018 and the year ended December 31, 2017

(Unaudited)

	June 30, 2018			December 31, 2017
Operations:
Net investment income	$	5,335,124		$	10,356,098
Net realized gain (loss)		(2,137,365	)		(86,759	)
Change in net unrealized appreciation (depreciation)		(7,490,164	)		(387,548	)
Net increase (decrease) in net assets resulting from operations		(4,292,405	)		9,881,791
Distributions to shareholders from net investment income:
Series I		—			(7,221,984	)
Series ll		—			(3,882,382	)
Total distributions from net investment income		—			(11,104,366	)
Share transactions–net:
Series l		(7,147,605	)		(34,554,472	)
Series ll		(6,890,901	)		2,536,879
Net increase (decrease) in net assets resulting from share transactions		(14,038,506	)		(32,017,593	)
Net increase (decrease) in net assets		(18,330,911	)		(33,240,168	)
Net assets:
Beginning of period		525,384,174			558,624,342
End of period (includes undistributed net investment income of $15,375,862 and $10,040,738, respectively)	$	507,053,263		$	525,384,174

Notes to Financial Statements

June 30, 2018

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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 investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

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

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

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

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

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Paydown gains and losses on mortgage and asset-backed securities are recorded as adjustments to interest income. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

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

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

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

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. Government Securities 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. 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. Call Options Purchased and Written — The Fund may write covered call options and/or buy call options. A covered call option gives the purchaser of such option the right to buy, and the writer the obligation to sell, the underlying security or foreign currency at the stated exercise price during the option period. Options written by the Fund normally will have expiration dates between three and nine months from the date written. The exercise price of a call option may be below, equal to, or above the current market value of the underlying security at the time the option is written.

Additionally, the Fund may enter into an option on a swap agreement, also called a “swaption”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the Counterparties.

When the Fund writes a covered call option, an amount equal to the premium received by the Fund is recorded as an asset and an equivalent liability in the Statement of Assets and Liabilities. The amount of the liability is subsequently “marked-to-market” to reflect the current market value of the option written. If a written covered call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written covered call option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. Realized and unrealized gains and losses on call options written are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Option contracts written. A risk in writing a covered call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised.

When the Fund buys a call option, an amount equal to the premium paid by the Fund is recorded as an investment on the Statement of Assets and Liabilities. The amount of the investment is subsequently “marked-to-market” to reflect the current value of the option purchased. Realized and unrealized gains and losses on call options purchased are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.

L. Put Options Purchased — The Fund may purchase put options including options on securities indexes, or foreign currency and/or futures contracts. By purchasing a put option, the Fund obtains the right (but not the obligation) to sell the option’s underlying instrument at a fixed strike price. In return for this right, the Fund pays an option premium. The option’s underlying instrument may be a security, securities index, or a futures contract.

Invesco V.I. Government Securities Fund

Additionally, the Fund may enter into an option on a swap agreement, also called a “swaption”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the Counterparties.

Put options may be used by the Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund’s resulting losses. At the same time, because the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the securities hedged. Realized and unrealized gains and losses on put options purchased are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.

M. 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.

N. Swap Agreements — 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.

Invesco V.I. Government Securities Fund

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.

O. 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.

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

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

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $250 million		0.50%
Over $250 million		0.45%

For the six months ended June 30, 2018, 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 Capital Management LLC, formerly Invesco PowerShares Capital Management LLC, and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2019, 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, 2019. 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, 2020, 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, 2018, the Adviser waived advisory fees of $2,899.

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

Invesco V.I. Government Securities Fund

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, 2018, Invesco was paid $60,377 for accounting and fund administrative services and was reimbursed $377,175 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, 2018, 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. The fees are accrued daily and paid monthly. 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, 2018, 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, 2018. 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.

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period. During the six months ended June 30, 2018, there were no material transfers between valuation levels.

	Level 1			Level 2		Level 3		Total
Investments in Securities
U.S. Treasury Securities	$	—		$	226,937,381	$	—	$	226,937,381
U.S. Government Sponsored Agency Mortgage-Backed Securities		—			208,352,372		—		208,352,372
Non-U.S. Government Sponsored Agency Securities		—			55,660,061		—		55,660,061
U.S. Government Sponsored Agency Securities		—			10,280,042		—		10,280,042
Money Market Funds		3,997,030			—		—		3,997,030
Total Investments in Securities		3,997,030			501,229,856		—		505,226,886
Other Investments — Assets*
Futures Contracts		386,756			—		—		386,756
Other Investments — Liabilities*
Futures Contracts		(126,656	)		—		—		(126,656	)
Total Other Investments		260,100			—		—		260,100
Total Investments	$	4,257,130		$	501,229,856	$	—	$	505,486,986

* Unrealized appreciation (depreciation).

Invesco V.I. Government Securities Fund

NOTE 4—Derivative Investments

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

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

Value of Derivative Investments at Period-End

The table below summarizes the value of the Fund’s derivative investments, detailed by primary risk exposure, held as of June 30, 2018:

	Value
Derivative Assets	Interest Rate Risk
Unrealized appreciation on futures contracts — Exchange-Traded(a)	$	386,756
Derivatives not subject to master netting agreements		(386,756	)
Total Derivative Assets subject to master netting agreements	$	—

	Value
Derivative Liabilities	Interest Rate Risk
Unrealized depreciation on futures contracts — Exchange-Traded(a)	$	(126,656	)
Derivatives not subject to master netting agreements		126,656
Total Derivative Liabilities subject to master netting agreements	$	—

^(a)  The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities.

Effect of Derivative Investments for the six months ended June 30, 2018

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	$	(772,152	)
Options purchased(a)		288,988
Options written		28,426
Swap agreements		(382,865	)
Change in Net Unrealized Appreciation (Depreciation):
Futures contracts		136,098
Options purchased(a)		(39,041	)
Swap agreements		70,652
Total	$	(669,894	)

^(a)  Options purchased are included in the net realized gain (loss) from investment securities and the change in net unrealized appreciation (depreciation) of investment securities.

The table below summarizes the six months average notional value of futures contracts, the five month average notional value of options purchased and swap agreements and the two months average notional value of options written outstanding during the period.

	Futures Contracts		Options Purchased		Options Written		Swap Agreements
Average notional value	$	48,867,438	$	34,798,000	$	43,500,000	$	10,235,800

Invesco V.I. Government Securities 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 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. 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, 2017, as follows:

Capital Loss Carryforward*
Expiration	Short-Term		Long-Term		Total
Not subject to expiration	$	8,472,407	$	6,798,460	$	15,270,867

* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

NOTE 8—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2018 was $6,653,763 and $42,753,779, respectively. During the same period, purchases and sales of U.S. Treasury obligations were $54,802,400 and $25,869,093, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	4,152,530
Aggregate unrealized (depreciation) of investments		(8,651,574	)
Net unrealized appreciation (depreciation) of investments	$	(4,499,044	)

Cost of investments for tax purposes is $509,986,030.

Invesco V.I. Government Securities Fund

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended June 30,2018(a)						Year ended December 31,2017
	Shares			Amount			Shares			Amount
Sold:
Series I		2,451,558		$	27,744,365			4,245,551		$	49,001,619
Series II		610,296			6,830,642			1,931,968			22,005,900
Issued as reinvestment of dividends:
Series I		—			—			632,952			7,221,984
Series II		—			—			343,270			3,882,382
Reacquired:
Series I		(3,090,964	)		(34,891,970	)		(7,906,368	)		(90,778,075	)
Series II		(1,229,060	)		(13,721,543	)		(2,048,051	)		(23,351,403	)
Net increase (decrease) in share activity		(1,258,170	)	$	(14,038,506	)		(2,800,678	)	$	(32,017,593	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 77% 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 06/30/18	$	11.41	$	0.12	$	(0.20	)	$	(0.08	)	$	—		$	11.33		(0.70	)%	$	308,696		0.68	%(d)		0.68	%(d)		2.22	%(d)		12	%
Year ended 12/31/17		11.44		0.22		(0.01	)		0.21			(0.24	)		11.41		1.87			318,298		0.70			0.70			1.97			35
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
Series II
Six months ended 06/30/18		11.31		0.11		(0.21	)		(0.10	)		—			11.21		(0.88	)		198,357		0.93	(d)		0.93	(d)		1.97	(d)		12
Year ended 12/31/17		11.33		0.19		(0.00	)		0.19			(0.21	)		11.31		1.72			207,086		0.95			0.95			1.72			35
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

^(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 $306,042 and $201,586 for 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, 2018 through June 30, 2018.

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 (01/01/18)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/18)1		Expenses Paid During Period2		Ending Account Value (06/30/18)		Expenses Paid During Period2
Series I	$	1,000.00	$	993.00	$	3.36	$	1,021.42	$	3.41		0.68	%
Series II		1,000.00		991.20		4.59		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, 2018 through June 30, 2018, 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

At meetings held on June 5-6, 2018, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Government Securities Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate Sub-Advisory Contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2018. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’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 detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider. 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 throughout the year, 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 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 6, 2018.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, 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, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also reviewed and considered the benefits to shareholders of investing in a fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by

Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries 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 investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2017 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 third 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 year period and reasonably comparable to 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 and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for

Invesco V.I. Government Securities Fund

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 non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. 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 considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.

The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other similarly managed mutual funds or client accounts.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements.

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 considered the methodology used for calculating profitability and noted the periodic review of such methodology by an independent consultant. 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, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers 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 administrative, 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

	Semiannual Report to Shareholders	June 30, 2018
	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 semi-annual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The Fund’s Form N-Q (or any successor Form) filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q (or any successor Form) 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 (or any successor Form), 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             07132018      1443

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/17 to 6/30/18, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-1.41	%
Series II Shares	-1.54
S&P 500 Index▼ (Broad Market Index)	2.65
Russell 1000 Value Index▼ (Style-Specific Index)	-1.69
Lipper VUF Large-Cap Value Funds Index∎ (Peer Group Index)	-1.48
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 6/30/18
Series I Shares
Inception (12/23/96)	8.99	%
10 Years	8.96
5 Years	10.46
1 Year	7.74
Series II Shares
Inception (9/18/00)	6.79	%
10 Years	8.69
5 Years	10.18
1 Year	7.47

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 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 0.76% and 1.01%, 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.

Invesco V.I. Growth and Income Fund

Schedule of Investments^(a)

June 30, 2018

(Unaudited)

	Shares		Value
Common Stocks–96.04%
Aerospace & Defense–1.85%
General Dynamics Corp.		183,992	$	34,297,949
Asset Management & Custody Banks–2.38%
Northern Trust Corp.		192,259		19,781,529
State Street Corp.		260,249		24,226,579
				44,008,108
Automobile Manufacturers–2.42%
General Motors Co.		1,135,330		44,732,002
Biotechnology–1.78%
Amgen Inc.		110,122		20,327,420
Celgene Corp.(b)		158,293		12,571,630
				32,899,050
Building Products–0.87%
Johnson Controls International PLC		480,050		16,057,673
Cable & Satellite–1.93%
Charter Communications, Inc.–Class A(b)		72,006		21,112,879
Comcast Corp.–Class A		446,373		14,645,498
				35,758,377
Communications Equipment–2.75%
Cisco Systems, Inc.		828,804		35,663,436
Juniper Networks, Inc.		551,973		15,135,100
				50,798,536
Diversified Banks–13.58%
Bank of America Corp.		2,610,496		73,589,882
Citigroup Inc.		1,313,239		87,881,954
JPMorgan Chase & Co.		600,136		62,534,171
Wells Fargo & Co.		491,092		27,226,141
				251,232,148
Diversified Metals & Mining–0.82%
BHP Billiton Ltd. (Australia)		606,326		15,196,126
Drug Retail–1.12%
Walgreens Boots Alliance, Inc.		344,617		20,682,189
Electric Utilities–0.44%
FirstEnergy Corp.		227,306		8,162,558
Fertilizers & Agricultural Chemicals–1.60%
Mosaic Co. (The)		546,092		15,317,880
Nutrien Ltd. (Canada)		260,797		14,182,141
				29,500,021
Health Care Distributors–1.40%
McKesson Corp.		194,468		25,942,031

	Shares		Value
Health Care Equipment–3.24%
Baxter International Inc.		210,188	$	15,520,282
Medtronic PLC		284,784		24,380,358
Zimmer Biomet Holdings, Inc.		179,819		20,039,030
				59,939,670
Health Care Services–2.04%
CVS Health Corp.		586,994		37,773,064
Home Improvement Retail–1.25%
Kingfisher PLC (United Kingdom)		5,905,139		23,146,999
Hotels, Resorts & Cruise Lines–1.54%
Carnival Corp.		497,665		28,521,181
Industrial Machinery–1.16%
Ingersoll-Rand PLC		238,314		21,383,915
Insurance Brokers–2.61%
Aon PLC		151,770		20,818,291
Marsh & McLennan Cos., Inc.		137,998		11,311,696
Willis Towers Watson PLC		106,136		16,090,218
				48,220,205
Integrated Oil & Gas–6.58%
BP PLC (United Kingdom)		4,442,354		33,826,329
Occidental Petroleum Corp.		530,108		44,359,437
Royal Dutch Shell PLC–Class A (United Kingdom)		1,257,877		43,592,778
				121,778,544
Integrated Telecommunication Services–0.87%
Verizon Communications Inc.		319,726		16,085,415
Internet Software & Services–1.34%
eBay Inc.(b)		685,655		24,861,850
Investment Banking & Brokerage–3.70%
Charles Schwab Corp. (The)		34,321		1,753,803
Goldman Sachs Group, Inc. (The)		88,495		19,519,342
Morgan Stanley		994,761		47,151,672
				68,424,817
IT Consulting & Other Services–1.42%
Cognizant Technology Solutions Corp.–Class A		331,405		26,177,681
Managed Health Care–0.99%
Anthem, Inc.		77,172		18,369,251
Multi-Line Insurance–2.10%
American International Group, Inc.		732,982		38,862,706
Oil & Gas Equipment & Services–2.40%
Baker Hughes, a GE Co.		379,036		12,519,559
TechnipFMC PLC (United Kingdom)		1,002,173		31,808,971
				44,328,530

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

Invesco V.I. Growth and Income Fund

	Shares		Value
Oil & Gas Exploration & Production–7.97%
Anadarko Petroleum Corp.		545,180	$	39,934,435
Apache Corp.		627,248		29,323,844
Canadian Natural Resources Ltd. (Canada)		909,296		32,818,206
Devon Energy Corp.		1,029,113		45,239,807
				147,316,292
Other Diversified Financial Services–1.60%
AXA Equitable Holdings, Inc.(b)		598,360		12,332,200
Voya Financial, Inc.		366,942		17,246,274
				29,578,474
Packaged Foods & Meats–1.52%
Mondelez International, Inc.–Class A		685,680		28,112,880
Pharmaceuticals–5.96%
Bristol-Myers Squibb Co.		280,402		15,517,447
Merck & Co., Inc.		475,385		28,855,869
Novartis AG (Switzerland)		340,205		25,768,672
Pfizer Inc.		659,929		23,942,224
Sanofi (France)		202,034		16,175,975
				110,260,187
Railroads–1.45%
CSX Corp.		419,151		26,733,451
Regional Banks–5.56%
Citizens Financial Group, Inc.		1,077,469		41,913,544
Fifth Third Bancorp		772,514		22,171,152
First Horizon National Corp.		704,762		12,572,954
PNC Financial Services Group, Inc. (The)		194,345		26,256,009
				102,913,659

	Shares		Value
Semiconductors–2.94%
Intel Corp.		487,811	$	24,249,085
QUALCOMM Inc.		537,203		30,147,832
				54,396,917
Systems Software–2.64%
Oracle Corp.		956,054		42,123,739
Symantec Corp.		323,021		6,670,384
				48,794,123
Tobacco–2.22%
Philip Morris International Inc.		509,024		41,098,598
Total Common Stocks (Cost $1,519,288,782)				1,776,345,177
Money Market Funds–3.29%
Invesco Government & Agency Portfolio–Institutional Class, 1.80%(c)		21,317,411		21,317,411
Invesco Liquid Assets Portfolio–Institutional Class, 2.02%(c)		15,222,710		15,227,277
Invesco Treasury Portfolio–Institutional Class, 1.76%(c)		24,362,755		24,362,755
Total Money Market Funds (Cost $60,905,709)				60,907,443
TOTAL INVESTMENTS IN SECURITIES–99.33% (Cost $1,580,194,491)				1,837,252,620
OTHER ASSETS LESS LIABILITIES–0.67%				12,406,797
NET ASSETS–100.00%			$	1,849,659,417

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, 2018.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2018

Financials	31.5	%
Energy	16.9
Health Care	15.4
Information Technology	11.1
Consumer Discretionary	7.2
Industrials	5.3
Consumer Staples	4.9
Materials	2.4
Telecommunication Services	0.9
Utilities	0.4
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. Growth and Income Fund

Open Forward Foreign Currency Contracts
Settlement Date	Counterparty	Contract to						Unrealized Appreciation (Depreciation)
		Deliver			Receive
07/13/2018	Bank of New York Mellon (The)		AUD	7,444,167		USD	5,665,659	$	155,024
07/13/2018	Bank of New York Mellon (The)		CAD	14,938,597		USD	11,501,048		135,216
07/13/2018	Bank of New York Mellon (The)		CHF	9,183,898		USD	9,343,675		58,632
07/13/2018	Bank of New York Mellon (The)		EUR	5,030,647		USD	5,896,220		15,795
07/13/2018	Bank of New York Mellon (The)		GBP	31,742,108		USD	42,491,494		571,522
07/13/2018	State Street Bank and Trust Co.		AUD	7,444,167		USD	5,672,366		161,732
07/13/2018	State Street Bank and Trust Co.		CAD	14,938,597		USD	11,505,433		139,601
07/13/2018	State Street Bank and Trust Co.		CHF	9,183,898		USD	9,358,290		73,247
07/13/2018	State Street Bank and Trust Co.		EUR	5,030,647		USD	5,909,953		29,528
07/13/2018	State Street Bank and Trust Co.		GBP	31,742,108		USD	42,549,978		630,007
Subtotal									1,970,304
07/13/2018	State Street Bank and Trust Co.		CHF	671,600		USD	673,854		(5,142	)
Total Forward Foreign Currency Contracts — Currency Risk								$	1,965,162

Abbreviations:

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

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, 2018

(Unaudited)

Statement of Operations

For the six months ended June 30, 2018

(Unaudited)

Assets:
Investments in securities, at value (Cost $1,519,288,782)	$	1,776,345,177
Investments in affiliated money market funds, at value (Cost $60,905,709)		60,907,443
Other investments:
Unrealized appreciation on forward foreign currency contracts outstanding		1,970,304
Cash		107,240
Foreign currencies, at value (Cost $504)		1,096
Receivable for:
Investments sold		13,506,673
Fund shares sold		1,386,005
Dividends		3,230,536
Investment for trustee deferred compensation and retirement plans		211,857
Other assets		1,859
Total assets		1,857,668,190
Liabilities:
Other investments:
Unrealized depreciation on forward foreign currency contracts outstanding		5,142
Payable for:
Investments purchased		5,486,088
Fund shares reacquired		456,040
Accrued fees to affiliates		1,762,037
Accrued trustees’ and officers’ fees and benefits		9,539
Accrued other operating expenses		51,323
Trustee deferred compensation and retirement plans		238,604
Total liabilities		8,008,773
Net assets applicable to shares outstanding	$	1,849,659,417
Net assets consist of:
Shares of beneficial interest	$	1,260,614,102
Undistributed net investment income		46,428,560
Undistributed net realized gain		283,618,452
Net unrealized appreciation		258,998,303
	$	1,849,659,417
Net Assets:
Series I	$	180,571,347
Series II	$	1,669,088,070
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		8,068,856
Series II		74,811,502
Series I:
Net asset value per share	$	22.38
Series II:
Net asset value per share	$	22.31

Investment income:
Dividends (net of foreign withholding taxes of $450,239)	$	22,378,606
Dividends from affiliated money market funds		427,555
Total investment income		22,806,161
Expenses:
Advisory fees		5,424,140
Administrative services fees		1,646,512
Custodian fees		33,044
Distribution fees — Series II		2,179,138
Transfer agent fees		8,201
Trustees’ and officers’ fees and benefits		24,634
Professional services fees		17,253
Reports to shareholders		2,338
Other		7,593
Total expenses		9,342,853
Less: Fees waived		(32,173	)
Net expenses		9,310,680
Net investment income		13,495,481
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (includes net gains from securities sold to affiliates of $282,160)		117,592,633
Foreign currencies		(75,149	)
Forward foreign currency contracts		355,695
		117,873,179
Change in net unrealized appreciation (depreciation) of:
Investment securities		(164,986,715	)
Foreign currencies		(42,015	)
Forward foreign currency contracts		4,729,167
		(160,299,563	)
Net realized and unrealized gain (loss)		(42,426,384	)
Net increase (decrease) in net assets resulting from operations	$	(28,930,903	)

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, 2018 and the year ended December 31, 2017

(Unaudited)

	June 30, 2018			December 31, 2017
Operations:
Net investment income	$	13,495,481		$	33,140,004
Net realized gain		117,873,179			170,194,828
Change in net unrealized appreciation (depreciation)		(160,299,563	)		57,350,489
Net increase (decrease) in net assets resulting from operations		(28,930,903	)		260,685,321
Distributions to shareholders from net investment income:
Series I		—			(2,699,090	)
Series ll		—			(23,299,802	)
Total distributions from net investment income		—			(25,998,892	)
Distributions to shareholders from net realized gains:
Series l		—			(7,416,214	)
Series ll		—			(74,973,902	)
Total distributions from net realized gains		—			(82,390,116	)
Share transactions–net:
Series l		(4,184,983	)		5,625,071
Series ll		(127,563,775	)		(153,738,313	)
Net increase (decrease) in net assets resulting from share transactions		(131,748,758	)		(148,113,242	)
Net increase (decrease) in net assets		(160,679,661	)		4,183,071
Net assets:
Beginning of period		2,010,339,078			2,006,156,007
End of period (includes undistributed net investment income of $46,428,560 and $32,933,079, respectively)	$	1,849,659,417		$	2,010,339,078

Notes to Financial Statements

June 30, 2018

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

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

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

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

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

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

Invesco V.I. Growth and Income 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 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 accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets	Rate
First $500 million		0.60%
Over $500 million		0.55%

Invesco V.I. Growth and Income Fund

For the six months ended June 30, 2018, the effective advisory fees incurred by the Fund was 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 Capital Management LLC, formerly Invesco PowerShares Capital Management LLC, and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least April 30, 2019, 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, 2019. 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, 2020, 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, 2018, the Adviser waived advisory fees of $32,173.

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, 2018, Invesco was paid $202,139 for accounting and fund administrative services and was reimbursed $1,444,373 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, 2018, 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. The fees are accrued daily and paid monthly. 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, 2018, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2018, the Fund incurred $8,660 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, 2018. 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.

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period.

Invesco V.I. Growth and Income Fund

During the six months ended June 30, 2018, there were transfers from Level 1 to Level 2 of $69,361,450, due to foreign fair value adjustments.

	Level 1		Level 2			Level 3		Total
Investments in Securities
Common Stocks	$	1,641,785,297	$	134,559,880		$	—	$	1,776,345,177
Money Market Funds		60,907,443		—			—		60,907,443
Total Investments in Securities		1,702,692,740		134,559,880			—		1,837,252,620
Other Investments - Assets*
Forward Foreign Currency Contracts		—		1,970,304			—		1,970,304
Other Investments - Liabilities*
Forward Foreign Currency Contracts		—		(5,142	)		—		(5,142	)
Total Other Investments		—		1,965,162			—		1,965,162
Total Investments	$	1,702,692,740	$	136,525,042		$	—	$	1,839,217,782

* 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, 2018:

	Value
Derivative Assets	Currency Risk
Unrealized appreciation on forward foreign currency contracts outstanding	$	1,970,304
Derivatives not subject to master netting agreements		—
Total Derivative Assets subject to master netting agreements	$	1,970,304

	Value
Derivative Liabilities	Currency Risk
Unrealized depreciation on forward foreign currency contracts outstanding	$	(5,142	)
Derivatives not subject to master netting agreements		—
Total Derivative Liabilities subject to master netting agreements	$	(5,142	)

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, 2018.

	Financial Derivative Assets		Financial Derivative Liabilities					Collateral (Received)/Pledged
Counterparty	Forward Foreign Currency Contracts		Forward Foreign Currency Contracts			Net Value of Derivatives		Non-Cash		Cash		Net Amount
Bank of New York Mellon (The)	$	936,189	$	—		$	936,189	$	—	$	—	$	936,189
State Street Bank and Trust Co.		1,034,115		(5,142	)		1,028,973		—		—		1,028,973
Total	$	1,970,304	$	(5,142	)	$	1,965,162	$	—	$	—	$	1,965,162

Invesco V.I. Growth and Income Fund

Effect of Derivative Investments for the six months ended June 30, 2018

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
	Currency Risk
Realized Gain:
Forward foreign currency contracts	$	355,695
Change in Net Unrealized Appreciation:
Forward foreign currency contracts		4,729,167
Total	$	5,084,862

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

	Forward Foreign Currency Contracts
Average notional value	$	210,323,565

NOTE 5—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, 2018, the Fund engaged in securities sales of $478,455, which resulted in net realized gains of $282,160.

NOTE 6—Trustees’ and Officers’ Fees and Benefits

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

NOTE 7—Cash Balances

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

NOTE 8—Tax Information

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

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, 2017.

Invesco V.I. Growth and Income Fund

NOTE 9—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2018 was $297,549,962 and $421,137,872, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	340,787,174
Aggregate unrealized (depreciation) of investments		(84,002,099	)
Net unrealized appreciation of investments	$	256,785,075

Cost of investments for tax purposes is $1,582,432,707.

NOTE 10—Share Information

	Summary of Share Activity
	Six months ended June 30, 2018(a)						Year ended December 31, 2017
	Shares			Amount			Shares			Amount
Sold:
Series I		481,811		$	11,021,637			1,248,121		$	26,984,341
Series II		2,992,762			66,999,642			1,126,956			24,398,016
Issued as reinvestment of dividends:
Series I		—			—			472,016			10,115,304
Series II		—			—			4,592,229			98,273,704
Reacquired:
Series I		(662,926	)		(15,206,620	)		(1,454,161	)		(31,474,574	)
Series II		(8,647,916	)		(194,563,417	)		(12,689,269	)		(276,410,033	)
Net increase (decrease) in share activity		(5,836,269	)	$	(131,748,758	)		(6,704,108	)	$	(148,113,242	)

^(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.

Invesco V.I. Growth and Income 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 06/30/18	$	22.70	$	0.18		$	(0.50	)	$	(0.32	)	$	—		$	—		$	—		$	22.38		(1.41	)%	$	180,571		0.74	%(d)		0.74	%(d)		1.63	%(d)		16	%
Year ended 12/31/17		21.05		0.41	(e)		2.52			2.93			(0.34	)		(0.94	)		(1.28	)		22.70		14.32			187,254		0.76			0.76			1.90	(e)		17
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	(f)		2.02			2.61			(0.50	)		(3.25	)		(3.75	)		25.15		10.28			161,866		0.78			0.83			2.22	(f)		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
Series II
Six months ended 06/30/18		22.66		0.16			(0.51	)		(0.35	)		—			—			—			22.31		(1.54	)		1,669,088		0.99	(d)		0.99	(d)		1.38	(d)		16
Year ended 12/31/17		21.02		0.36	(e)		2.51			2.87			(0.29	)		(0.94	)		(1.23	)		22.66		14.04			1,823,085		1.01			1.01			1.65	(e)		17
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	(f)		2.01			2.53			(0.42	)		(3.25	)		(3.67	)		25.09		9.96			1,828,854		1.03			1.08			1.97	(f)		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

^(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 $185,548 and $1,757,758 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 $0.30 and 1.42%, and $0.25 and 1.17%, for Series I and Series II, respectively.

^(f)  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, 2018 through June 30, 2018.

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.

	Beginning Account Value (01/01/18)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
Class			Ending Account Value (06/30/18)1		Expenses Paid During Period2		Ending Account Value (06/30/18)		Expenses Paid During Period2
Series I	$	1,000.00	$	985.90	$	3.64	$	1,021.12	$	3.71		0.74	%
Series II		1,000.00		984.60		4.87		1,019.89		4.96		0.99

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2018 through June 30, 2018, 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

At meetings held on June 5-6, 2018, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Growth and Income Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate Sub-Advisory Contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2018. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’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 detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider. 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 throughout the year, 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 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 6, 2018.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, 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, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also reviewed and considered the benefits to shareholders of investing in a fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by

Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries 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 investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2017 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, the first quintile for the three year period and the second quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series I shares of the Fund was reasonably comparable to the performance of the Index for the one and five year periods and above the performance of the Index for the three year period. The Board noted that the Fund’s overweight exposure to and stock selection in a specific sector negatively impacted performance. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

Invesco V.I. Growth and Income Fund

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for 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 non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. 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 considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. 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 differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including management of cash flows as a result of redemptions and purchases, necessary infrastructure such as officers, office space, technology, legal and distribution, oversight of service providers, costs and business risks associated with launching new funds and sponsoring and maintaining the product line, preparation of annual registration statement updates and financial information and compliance with federal and state laws and regulations.

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 similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2017.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements.

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 considered the methodology used for calculating profitability and noted the periodic review of such methodology by an independent consultant. 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, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers 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 administrative, 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 Invesco representing 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 an affiliated broker receives commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Growth and Income Fund

	Semiannual Report to Shareholders	June 30, 2018
	Invesco V.I. Health Care Fund
	Effective April 30, 2018, Invesco V.I. Global Health Care Fund was renamed Invesco V.I. 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 (or any successor Form). The Fund’s Form N-Q (or any successor Form) filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q (or any successor Form) 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 (or any successor Form), 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             08082018      1033

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/17 to 6/30/18, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	3.33	%
Series II Shares	3.17
MSCI World Index▼ (Broad Market Index)	0.43
MSCI World Health Care Index▼ (Style-Specific Index)	1.52
Lipper VUF Health/Biotechnology Funds Classification Average∎ (Peer Group)	5.80
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 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.

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. 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.

Average Annual Total Returns As of 6/30/18
Series I Shares
Inception (5/21/97)	8.44	%
10 Years	9.36
5 Years	9.20
1 Year	4.59
Series II Shares
Inception (4/30/04)	7.61	%
10 Years	9.09
5 Years	8.93
1 Year	4.30

Invesco V.I. Health Care Fund

Schedule of Investments^(a)

June 30, 2018

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–96.53%
Biotechnology–22.55%
Abeona Therapeutics, Inc.(b)		12,644	$	202,304
ACADIA Pharmaceuticals Inc.(b)		27,440		419,009
Alexion Pharmaceuticals, Inc.(b)		34,221		4,248,537
Amarin Corp. PLC–ADR (Ireland)(b)		205,993		636,518
Amicus Therapeutics, Inc.(b)		65,550		1,023,891
Array BioPharma Inc.(b)		118,453		1,987,641
Ascendis Pharma A/S–ADR (Denmark)(b)		15,659		1,041,637
Audentes Therapeutics, Inc.(b)		12,273		468,951
Avrobio, Inc.(b)		15,465		441,680
BioCryst Pharmaceuticals, Inc.(b)		96,821		554,784
Biogen Inc.(b)		16,108		4,675,186
BioMarin Pharmaceutical Inc.(b)		44,651		4,206,124
bluebird bio, Inc.(b)		8,802		1,381,474
Celgene Corp.(b)		34,219		2,717,673
Clovis Oncology Inc.(b)		35,515		1,614,867
DBV Technologies S.A.–ADR (France)(b)		94,845		1,829,560
Exact Sciences Corp.(b)		39,210		2,344,366
Heron Therapeutics, Inc.(b)		46,632		1,811,653
Incyte Corp.(b)		21,828		1,462,476
Kadmon Holdings, Inc.(b)		144,059		574,796
Loxo Oncology, Inc.(b)		6,159		1,068,463
Momenta Pharmaceuticals, Inc.(b)		58,350		1,193,258
Neurocrine Biosciences, Inc.(b)		15,163		1,489,613
REGENXBIO Inc.(b)		21,212		1,521,961
Rocket Pharmaceuticals, Inc.(b)		9,853		193,414
Sarepta Therapeutics, Inc.(b)		6,725		888,911
Seattle Genetics, Inc.(b)		15,138		1,005,012
Vertex Pharmaceuticals Inc. (b)		24,333		4,135,637
				45,139,396
Drug Retail–0.45%
Raia Drogasil S.A. (Brazil)		52,760		891,927
Health Care Equipment–16.39%
Abbott Laboratories		67,261		4,102,248
Baxter International Inc.		47,375		3,498,170
Boston Scientific Corp.(b)		126,187		4,126,315
Edwards Lifesciences Corp.(b)		14,668		2,135,221
Koninklijke Philips N.V. (Netherlands)		62,453		2,646,926
Medtronic PLC		38,708		3,313,792
Olympus Corp. (Japan)		54,000		2,017,271
Siemens Healthineers AG–REGS (Germany)(b)(c)		33,345		1,376,616
Wright Medical Group N.V.(b)		133,153		3,456,652
Zimmer Biomet Holdings, Inc.		55,059		6,135,775
				32,808,986
Health Care Facilities–1.28%
HCA Healthcare, Inc.		24,932		2,558,023

	Shares		Value
Health Care Supplies–2.90%
Align Technology, Inc.(b)		6,791	$	2,323,473
DENTSPLY SIRONA Inc.		79,525		3,480,809
				5,804,282
Health Care Technology–1.08%
HMS Holdings Corp.(b)		55,423		1,198,245
Inspire Medical Systems, Inc.(b)		20,634		735,808
Ping An Healthcare and Technology Co. Ltd.–REGS (China)(b)(c)		37,200		237,076
				2,171,129
Life Sciences Tools & Services–6.72%
Agilent Technologies, Inc.		16,723		1,034,150
Eurofins Scientific S.E. (Luxembourg)		3,931		2,183,424
Illumina, Inc.(b)		7,505		2,096,072
Thermo Fisher Scientific, Inc.		39,284		8,137,288
				13,450,934
Managed Health Care–14.52%
Anthem, Inc.		16,753		3,987,716
Centene Corp.(b)		30,795		3,794,252
Cigna Corp.		10,565		1,795,522
Hapvida Participacoes e Investimentos S.A.–REGS (Brazil)(b)(c)		155,200		1,183,495
HealthEquity, Inc.(b)		20,589		1,546,234
Humana Inc.		20,628		6,139,512
Notre Dame Intermedica Participacoes S.A. (Brazil)(b)		155,383		868,117
Qualicorp Consultoria e Corretora de Seguros S.A. (Brazil)		109,000		517,561
UnitedHealth Group Inc.		37,625		9,230,917
				29,063,326
Pharmaceuticals–30.64%
Aclaris Therapeutics, Inc.(b)		59,273		1,183,682
Aerie Pharmaceuticals, Inc.(b)		18,915		1,277,708
Allergan PLC		18,049		3,009,129
Assembly Biosciences, Inc.(b)		12,099		474,402
AstraZeneca PLC -ADR (United Kingdom)		181,177		6,361,124
Bayer AG (Germany)		43,082		4,746,451
Bristol-Myers Squibb Co.		37,866		2,095,504
Eli Lilly and Co.		62,411		5,325,531
Indivior PLC (United Kingdom)(b)		309,813		1,553,506
Jazz Pharmaceuticals PLC(b)		9,871		1,700,773
Johnson & Johnson		63,341		7,685,797
Merck & Co., Inc.		85,051		5,162,596
Nippon Shinyaku Co., Ltd. (Japan)		30,100		1,870,714
Novartis AG -ADR (Switzerland)		104,312		7,879,729
Novo Nordisk A/S -Class B (Denmark)		96,803		4,470,589
Odonate Therapeutics, Inc.(b)		42,502		938,444
Roche Holding AG (Switzerland)		13,062		2,906,493

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

Invesco V.I. Health Care Fund

	Shares		Value
Pharmaceuticals–(continued)
Supernus Pharmaceuticals Inc.(b)		26,660	$	1,595,601
Zogenix, Inc.(b)		24,755		1,094,171
				61,331,944
Total Common Stocks & Other Equity Interests (Cost $165,289,027)				193,219,947
Money Market Funds–3.11%
Invesco Government & Agency Portfolio–Institutional Class, 1.80%(d)		2,177,749		2,177,749
Invesco Liquid Assets Portfolio–Institutional Class, 2.02%(d)		1,555,078		1,555,544
Invesco Treasury Portfolio–Institutional Class, 1.76%(d)		2,488,855		2,488,855
Total Money Market Funds (Cost $6,222,093)				6,222,148
TOTAL INVESTMENTS IN SECURITIES–99.64% (Cost $171,511,120)				199,442,095
OTHER ASSETS LESS LIABILITIES–0.36%				726,401
NET ASSETS–100.00%			$	200,168,496

Investment Abbreviations:

ADR	– American Depositary Receipt
REGS	– Regulation S

Notes to Schedule of Investments:

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

^(b)  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, 2018 was $2,797,187, which represented 1.40% of the Fund’s Net Assets.

^(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, 2018.

Portfolio Composition

By country, based on Net Assets
as of June 30, 2018

United States	73.9	%
Switzerland	5.4
United Kingdom	4.0
Germany	3.1
Denmark	2.8
Countries each less than 2.0% of portfolio	7.3
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. Health Care Fund

Statement of Assets and Liabilities

June 30, 2018

(Unaudited)

Statement of Operations

For the six months ended June 30, 2018

(Unaudited)

Assets:
Investments in securities, at value (Cost $165,289,027)	$	193,219,947
Investments in affiliated money market funds, at value (Cost $6,222,093)		6,222,148
Foreign currencies, at value (Cost $50,105)		50,454
Receivable for:
Investments sold		588,336
Fund shares sold		53,955
Dividends		363,192
Investment for trustee deferred compensation and retirement plans		76,466
Other assets		14,346
Total assets		200,588,844
Liabilities:
Payable for:
Investments purchased		47,247
Fund shares reacquired		133,928
Accrued fees to affiliates		115,485
Accrued trustees’ and officers’ fees and benefits		4,449
Accrued other operating expenses		33,311
Trustee deferred compensation and retirement plans		85,928
Total liabilities		420,348
Net assets applicable to shares outstanding	$	200,168,496
Net assets consist of:
Shares of beneficial interest	$	141,175,917
Undistributed net investment income		246,957
Undistributed net realized gain		30,817,129
Net unrealized appreciation		27,928,493
	$	200,168,496
Net Assets:
Series I	$	137,472,895
Series II	$	62,695,601
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		5,032,642
Series II		2,406,595
Series I:
Net asset value per share	$	27.32
Series II:
Net asset value per share	$	26.05

Investment income:
Dividends (net of foreign withholding taxes of $109,792)	$	1,364,467
Dividends from affiliated money market funds		42,844
Total investment income		1,407,311
Expenses:
Advisory fees		758,715
Administrative services fees		176,397
Custodian fees		12,198
Distribution fees — Series II		79,647
Transfer agent fees		17,386
Trustees’ and officers’ fees and benefits		11,999
Reports to shareholders		6,251
Professional services fees		23,112
Other		2,528
Total expenses		1,088,233
Less: Fees waived		(3,519	)
Net expenses		1,084,714
Net investment income		322,597
Realized and unrealized gain from:
Net realized gain from:
Investment securities		5,535,623
Foreign currencies		4,537
		5,540,160
Change in net unrealized appreciation of:
Investment securities		625,752
Foreign currencies		1,470
		627,222
Net realized and unrealized gain		6,167,382
Net increase in net assets resulting from operations	$	6,489,979

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

Invesco V.I. Health Care Fund

Statement of Changes in Net Assets

For the six months ended June 30, 2018 and the year ended December 31, 2017

(Unaudited)

	June 30, 2018			December 31, 2017
Operations:
Net investment income (loss)	$	322,597		$	(332,593	)
Net realized gain		5,540,160			25,713,301
Change in net unrealized appreciation		627,222			6,965,617
Net increase in net assets resulting from operations		6,489,979			32,346,325
Distributions to shareholders from net investment income:
Series I		—			(542,045	)
Series ll		—			(59,680	)
Total distributions from net investment income		—			(601,725	)
Distributions to shareholders from net realized gains:
Series l		—			(7,529,290	)
Series ll		—			(3,703,036	)
Total distributions from net realized gains		—			(11,232,326	)
Share transactions-net:
Series l		(11,081,517	)		(15,342,320	)
Series ll		(6,518,796	)		(8,488,857	)
Net increase (decrease) in net assets resulting from share transactions		(17,600,313	)		(23,831,177	)
Net increase (decrease) in net assets		(11,110,334	)		(3,318,903	)
Net assets:
Beginning of period		211,278,830			214,597,733
End of period (includes undistributed net investment income (loss) of $246,957 and $(75,640), respectively)	$	200,168,496		$	211,278,830

Notes to Financial Statements

June 30, 2018

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco V.I. Health Care Fund (the “Fund”), formerly Invesco V.I. Global Health Care 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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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. Health Care 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. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

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

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

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

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

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

Invesco V.I. Health Care 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 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 performance is vulnerable to factors affecting the health care industry, including government regulation, obsolescence caused by scientific advances and technological innovations.

Invesco V.I. Health Care Fund

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $250 million		0	.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, 2018, 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 Capital Management LLC, formerly Invesco PowerShares Capital Management LLC, and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2019, 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, 2019. 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, 2020, 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, 2018, the Adviser waived advisory fees of $3,519.

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, 2018, Invesco was paid $24,794 for accounting and fund administrative services and was reimbursed $151,603 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, 2018, 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. The fees are accrued daily and paid monthly. 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, 2018, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2018, the Fund incurred $1,254 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. Health Care 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, 2018. 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.

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period. During the six months ended June 30, 2018, there were transfers from Level 1 to Level 2 of $5,553,419 and from Level 2 to Level 1 of $7,509,092 due to foreign fair value adjustments.

	Level 1		Level 2		Level 3		Total
Investments in Securities
Common Stocks & Other Equity Interests	$	177,441,739	$	15,778,208	$	—	$	193,219,947
Money Market Funds		6,222,148		—		—		6,222,148
Total Investments	$	183,663,887	$	15,778,208	$	—	$	199,442,095

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, 2017.

Invesco V.I. Health Care Fund

NOTE 7—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2018 was $39,385,039 and $52,909,089, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	37,558,476
Aggregate unrealized (depreciation) of investments		(9,692,758	)
Net unrealized appreciation of investments	$	27,865,718

Cost of investments for tax purposes is $171,576,377.

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended June 30, 2018(a)						Year ended December 31, 2017
	Shares			Amount			Shares			Amount
Sold:
Series I		250,133		$	6,733,322			570,966		$	15,191,152
Series II		56,339			1,429,385			122,136			3,109,327
Issued as reinvestment of dividends:
Series I		—			—			300,385			8,071,335
Series II		—			—			146,580			3,762,716
Reacquired:
Series I		(665,346	)		(17,814,839	)		(1,453,869	)		(38,604,807	)
Series II		(313,109	)		(7,948,181	)		(604,171	)		(15,360,900	)
Net increase (decrease) in share activity		(671,983	)	$	(17,600,313	)		(917,973	)	$	(23,831,177	)

^(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.

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 06/30/2018	$	26.44	$	0.05		$	0.83		$	0.88		$	—		$	—		$	—		$	27.32		3.33	%	$	137,473		1.00	%(d)		1.00	%(d)		0.39	%(d)		20	%
Year ended 12/31/17		24.11		(0.02	)		3.86			3.84			(0.10	)		(1.41	)		(1.51	)		26.44		15.83			144,038		1.00			1.01			(0.08	)		37
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
Series II
Six Months Ended 06/30/2018		25.25		0.02			0.78			0.80			—			—			—			26.05		3.17			62,696		1.25	(d)		1.25	(d)		0.14	(d)		20
Year ended 12/31/17		23.07		(0.08	)		3.69			3.61			(0.02	)		(1.41	)		(1.43	)		25.25		15.55			67,240		1.26			1.26			(0.33	)		37
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

^(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 $139,755 and $64,245 for Series I and II shares, respectively.

Invesco V.I. 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, 2018 through June 30, 2018.

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 (01/01/18)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/18)1		Expenses Paid During Period2		Ending Account Value (06/30/18)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,033.30	$	5.04	$	1,019.84	$	5.01		1.00	%
Series II		1,000.00		1,031.70		6.30		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, 2018 through June 30, 2018, 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. Health Care Fund

Approval of Investment Advisory and Sub-Advisory Contracts

At meetings held on June 5-6, 2018, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Health Care Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate Sub-Advisory Contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2018. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’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 detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider. 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 throughout the year, 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 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 6, 2018.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, 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, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also reviewed and considered the benefits to shareholders of investing in a fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by

Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries 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 investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2017 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 II 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 II shares of the Fund was below the performance of the Index for the one, three and five year periods. The Board noted that the Fund’s underweight and overweight exposure to and security selection in certain health care industries negatively impacted performance. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s

Invesco V.I. Health Care Fund

Broadridge expense group. 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 non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. 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 considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that the Fund’s total expense ratio was in the fourth quintile of its expense group and discussed with management reasons for such relative total expenses.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. 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 differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including management of cash flows as a result of redemptions and purchases, necessary infrastructure such as officers, office space, technology, legal and distribution, oversight of service providers, costs and business risks associated with launching new funds and sponsoring and maintaining the product line, preparation of annual registration statement updates and financial information and compliance with federal and state laws and regulations.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund shares directly in

economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements.

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 considered the methodology used for calculating profitability and noted the periodic review of such methodology by an independent consultant. 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, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers 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 administrative, 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 Invesco representing 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 an affiliated broker receives commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Health Care Fund

	Semiannual Report to Shareholders	June 30, 2018
	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 (or any successor Form). The Fund’s Form N-Q (or any successor Form) filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q (or any successor Form) 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 (or any successor Form), 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             07182018    0834

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/17 to 6/30/18, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-0.73	%
Series II Shares	-0.91
Bloomberg Barclays U.S. Aggregate Bond Index▼ (Broad Market Index)	-1.62
Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Cap Index▼ (Style-Specific Index)	0.16
Lipper VUF High Yield Bond Funds Classification Average∎ (Peer Group)	-0.19
Source(s): ▼FactSet Research Systems Inc.; ∎Lipper Inc.

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

    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.

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 1.01% and 1.26%, 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 1.02% and 1.27%, 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.

Average Annual Total Returns As of 6/30/18
Series I Shares
Inception (5/1/98)	4.19	%
10 Years	6.61
5 Years	4.20
1 Year	1.40
Series II Shares
Inception (3/26/02)	6.60	%
10 Years	6.34
5 Years	3.93
1 Year	1.18

    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, 2020. See current prospectus for more information.

Invesco V.I. High Yield Fund

Schedule of Investments^(a)

June 30, 2018

(Unaudited)

	Principal Amount		Value
U.S. Dollar Denominated Bonds & Notes–88.78%
Advertising–0.25%
Lamar Media Corp., Sr. Unsec. Gtd. Global Notes, 5.75%, 02/01/2026	$	465,000	$	473,179
Aerospace & Defense–1.98%
BBA U.S. Holdings, Inc., Sr. Unsec. Notes, 5.38%, 05/01/2026(b)		215,000		216,346
Bombardier Inc. (Canada), Sr. Unsec. Notes,
6.13%, 01/15/2023(b)		428,000		431,210
7.50%, 03/15/2025(b)		832,000		870,480
TransDigm Inc., Sr. Unsec. Gtd. Sub. Global Notes, 6.50%, 07/15/2024		157,000		160,140
6.50%, 05/15/2025		1,570,000		1,591,587
TransDigm UK Holdings PLC, Sr. Unsec. Sub. Gtd. Notes, 6.88%, 05/15/2026(b)		400,000		406,500
				3,676,263
Agricultural & Farm Machinery–0.53%
Titan International, Inc., Sr. Sec. Gtd. First Lien Notes, 6.50%, 11/30/2023(b)		989,000		989,000
Agricultural Products–0.22%
Kernel Holding SA (Ukraine), REGS, Sr. Unsec. Gtd. Euro Notes, 8.75%, 01/31/2022(b)		418,000		412,054
Air Freight & Logistics–0.10%
XPO Logistics, Inc., Sr. Unsec. Gtd. Notes, 6.50%, 06/15/2022(b)		175,000		180,031
Airlines–0.23%
Air Canada (Canada), Sr. Unsec. Gtd. Notes, 7.75%, 04/15/2021(b)		400,000		429,000
Alternative Carriers–0.71%
Level 3 Financing, Inc., Sr. Unsec. Gtd. Global Notes,
5.25%, 03/15/2026		753,000		718,061
5.38%, 05/01/2025		615,000		593,475
				1,311,536
Aluminum–0.59%
Novelis Corp.,
Sr. Unsec. Gtd. Notes, 5.88%, 09/30/2026(b)		58,000		55,680
6.25%, 08/15/2024(b)		1,046,000		1,048,615
				1,104,295
Apparel Retail–0.96%
Hot Topic, Inc., Sr. Sec. Gtd. First Lien Notes, 9.25%, 06/15/2021(b)		882,000		845,618
L Brands, Inc., Sr. Unsec. Gtd. Global Notes,
5.63%, 02/15/2022		473,000		482,460
6.75%, 07/01/2036		101,000		89,385

	Principal Amount		Value
Apparel Retail–(continued)
6.88%, 11/01/2035	$	404,000	$	361,580
				1,779,043
Auto Parts & Equipment–0.59%
Dana Financing Luxembourg S.a.r.l., Sr. Unsec. Gtd. Notes, 5.75%, 04/15/2025(b)		270,000		266,625
Dana Inc., Sr. Unsec. Notes, 5.50%, 12/15/2024		498,000		494,265
Flexi-Van Leasing, Inc., Sec. Second Lien Notes, 10.00%, 02/15/2023(b)		346,000		327,835
				1,088,725
Automobile Manufacturers–0.52%
J.B. Poindexter & Co., Inc., Sr. Unsec. Bonds, 7.13%, 04/15/2026(b)		936,000		964,080
Motors Liquidation Co., Sr. Unsec. Deb., 0.00%, 07/15/2033(c)(d)		1,060,000		0
				964,080
Automotive Retail–0.74%
Lithia Motors, Inc., Sr. Unsec. Gtd. Notes, 5.25%, 08/01/2025(b)		248,000		242,420
Murphy Oil USA, Inc., Sr. Unsec. Gtd. Global Notes, 5.63%, 05/01/2027		472,000		463,150
Penske Automotive Group Inc., Sr. Unsec. Sub. Gtd. Notes, 5.50%, 05/15/2026		689,000		676,943
				1,382,513
Broadcasting–2.35%
Clear Channel Worldwide Holdings Inc.,
Series B, Sr. Unsec. Gtd. Global Notes, 6.50%, 11/15/2022		694,000		711,350
Sr. Unsec. Gtd. Sub. Global Notes,
7.63%, 03/15/2020		747,000		745,349
Netflix, Inc.,
Sr. Unsec. Global Notes, 5.75%, 03/01/2024		505,000		520,150
Sr. Unsec. Notes, 5.88%, 11/15/2028(b)		467,000		473,865
Nexstar Broadcasting, Inc.,
Sr. Unsec. Gtd. Notes, 5.63%, 08/01/2024(b)		540,000		521,775
Sirius XM Radio Inc.,
Sr. Unsec. Gtd. Notes, 5.38%, 04/15/2025(b)		4,000		3,955
5.38%, 07/15/2026(b)		220,000		212,300
6.00%, 07/15/2024(b)		568,000		580,070
Tribune Media Co., Sr. Unsec. Gtd. Global Notes, 5.88%, 07/15/2022		581,000		589,279
				4,358,093

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

Invesco V.I. High Yield Fund

	Principal Amount		Value
Building Products–0.44%
Standard Industries Inc.,
Sr. Unsec. Notes, 5.00%, 02/15/2027(b)	$	515,000	$	481,525
6.00%, 10/15/2025(b)		216,000		217,620
William Lyon Homes, Inc., Sr. Unsec. Notes, 6.00%, 09/01/2023(b)		124,000		123,034
				822,179
Cable & Satellite–8.74%
Altice France S.A. (France),
Sr. Sec. Gtd. First Lien Bonds, 6.00%, 05/15/2022(b)		505,000		508,787
Sr. Sec. Gtd. First Lien Notes, 7.38%, 05/01/2026(b)		764,000		749,828
AMC Networks Inc.,
Sr. Unsec. Gtd. Global Notes, 4.75%, 08/01/2025		127,000		122,398
5.00%, 04/01/2024		500,000		493,750
CCO Holdings LLC/CCO Holdings Capital Corp.,
Sr. Unsec. Global Notes, 5.75%, 09/01/2023		620,000		626,200
5.75%, 01/15/2024		40,000		40,200
Sr. Unsec. Notes, 5.75%, 02/15/2026(b)		1,920,000		1,891,200
CSC Holdings LLC,
Sr. Unsec. Gtd. Notes, 6.63%, 10/15/2025(b)		200,000		205,250
Sr. Unsec. Notes, 10.13%, 01/15/2023(b)		1,755,000		1,939,275
10.88%, 10/15/2025(b)		445,000		514,108
DISH DBS Corp.,
Sr. Unsec. Gtd. Global Notes, 5.88%, 11/15/2024		1,446,000		1,229,100
7.75%, 07/01/2026		163,000		143,440
7.88%, 09/01/2019		1,111,000		1,155,440
Hughes Satellite Systems Corp., Sr. Unsec. Gtd. Global Notes, 7.63%, 06/15/2021		942,000		1,005,585
Intelsat Jackson Holdings S.A. (Luxembourg),
Sr. Unsec. Gtd. Global Bonds, 5.50%, 08/01/2023		1,563,000		1,406,231
Sr. Unsec. Gtd. Global Notes, 7.25%, 10/15/2020		650,000		650,000
7.50%, 04/01/2021		476,000		474,810
Telenet Finance Luxembourg Notes S.a r.l. (Belgium), Sr. Sec. First Lien Notes, 5.50%, 03/01/2028(b)		400,000		366,000
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH (Germany), Sr. Sec. Gtd. First Lien Bonds, 5.00%, 01/15/2025(b)		885,000		900,487
UPCB Finance IV Ltd. (Netherlands), Sr. Sec. First Lien Notes, 5.38%, 01/15/2025(b)		450,000		429,795

	Principal Amount		Value
Cable & Satellite–(continued)
Virgin Media Finance PLC (United Kingdom), Sr. Unsec. Gtd. Notes, 6.00%, 10/15/2024(b)	$	450,000	$	429,773
Virgin Media Secured Finance PLC (United Kingdom), Sr. Sec. Gtd. First Lien Notes, 5.50%, 08/15/2026(b)		300,000		281,580
VTR Finance B.V. (Chile), Sr. Sec. First Lien Notes, 6.88%, 01/15/2024(b)		490,000		494,141
Ziggo Bond Finance B.V. (Netherlands), Sr. Unsec. Notes, 5.88%, 01/15/2025(b)		200,000		187,878
				16,245,256
Casinos & Gaming–1.93%
Boyd Gaming Corp.,
Sr. Unsec. Gtd. Global Notes, 6.88%, 05/15/2023		690,000		725,362
Sr. Unsec. Gtd. Notes, 6.00%, 08/15/2026(b)		226,000		224,023
Codere Finance 2 (Luxembourg) S.A. (Spain), Sr. Sec. Gtd. First Lien Notes, 7.63%, 11/01/2021(b)		448,000		411,799
MGM Resorts International,
Sr. Unsec. Gtd. Notes, 6.00%, 03/15/2023		530,000		547,225
7.75%, 03/15/2022		169,000		184,633
Scientific Games International Inc., Sr. Unsec. Gtd. Global Notes, 10.00%, 12/01/2022		1,045,000		1,116,844
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., Sr. Unsec. Gtd. Notes, 5.50%, 03/01/2025(b)		385,000		379,225
				3,589,111
Commodity Chemicals–0.41%
Koppers Inc., Sr. Unsec. Gtd. Notes, 6.00%, 02/15/2025(b)		460,000		461,150
Nufarm Australia Ltd./Nufarm Americas Inc. (Australia), Sr. Unsec. Gtd. Notes, 5.75%, 04/30/2026(b)		306,000		297,203
				758,353
Construction Machinery & Heavy Trucks–0.57%
Meritor Inc., Sr. Unsec. Gtd. Notes, 6.25%, 02/15/2024		592,000		599,400
Terex Corp., Sr. Unsec. Gtd. Notes, 5.63%, 02/01/2025(b)		456,000		454,290
				1,053,690
Consumer Finance–1.96%
Ally Financial Inc.,
Sr. Unsec. Global Notes, 4.63%, 03/30/2025		454,000		448,892
5.13%, 09/30/2024		1,591,000		1,622,820
Discover Financial Services, Inc., Series C, Jr. Unsec. Sub. Global Notes, 5.50%(e)		385,000		376,338
Navient Corp.,
Sr. Unsec. Medium-Term Notes, 7.25%, 01/25/2022		345,000		362,250

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

Invesco V.I. High Yield Fund

	Principal Amount		Value
Consumer Finance–(continued)
8.00%, 03/25/2020	$	785,000	$	830,137
				3,640,437
Copper–0.65%
First Quantum Minerals Ltd. (Zambia),
Sr. Unsec. Gtd. Notes, 7.00%, 02/15/2021(b)		380,000		384,513
7.50%, 04/01/2025(b)		840,000		832,146
				1,216,659
Data Processing & Outsourced Services���1.12%
First Data Corp., Sr. Unsec. Gtd. Notes, 7.00%, 12/01/2023(b)		1,992,000		2,079,807
Diversified Banks–1.33%
Barclays Bank PLC (United Kingdom), Unsec. Sub. Global Notes, 7.63%, 11/21/2022		200,000		215,675
Dresdner Funding Trust I (Germany), REGS, Jr. Unsec. Sub. Euro Notes, 8.15%, 06/30/2031(b)		465,000		581,237
JPMorgan Chase & Co., Series I, Jr. Unsec. Sub. Global Variable Rate Notes, 5.83% (3 mo. USD LIBOR + 3.47%)(e)(f)		445,000		449,806
Royal Bank of Scotland Group PLC (The) (United Kingdom), Unsec. Sub. Global Bonds, 5.13%, 05/28/2024		1,219,000		1,230,647
				2,477,365
Diversified Chemicals–0.41%
Chemours Co. (The),
Sr. Unsec. Gtd. Global Notes, 6.63%, 05/15/2023		222,000		233,100
7.00%, 05/15/2025		220,000		237,050
Trinseo Materials Operating S.C.A./Trinseo Materials Finance, Inc., Sr. Unsec. Gtd. Notes, 5.38%, 09/01/2025(b)		285,000		283,219
				753,369
Diversified Metals & Mining–1.36%
Freeport-McMoRan Inc., Sr. Unsec. Gtd. Global Notes, 5.40%, 11/14/2034		1,118,000		1,020,175
HudBay Minerals, Inc. (Canada), Sr. Unsec. Gtd. Notes, 7.63%, 01/15/2025(b)		396,000		416,790
Teck Resources Ltd. (Canada), Sr. Unsec. Gtd. Global Notes, 4.75%, 01/15/2022		163,000		164,156
Sr. Unsec. Notes, 6.13%, 10/01/2035		528,000		533,280
Vedanta Resources PLC (India), Sr. Unsec. Notes, 6.38%, 07/30/2022(b)		407,000		388,685
				2,523,086
Diversified Support Services–0.13%
Jaguar Holding Co. II/Pharmaceutical Product Development, LLC, Sr. Unsec. Gtd. Notes, 6.38%, 08/01/2023(b)		250,000		249,425

	Principal Amount		Value
Electric Utilities–0.11%
Drax Finco PLC (United Kingdom), Sr. Sec. Gtd. Notes, 6.63%, 11/01/2025(b)	$	200,000	$	199,500
Electrical Components & Equipment–0.32%
EnerSys, Sr. Unsec. Gtd. Notes, 5.00%, 04/30/2023(b)		598,000		597,253
Electronic Equipment & Instruments–0.23%
Itron, Inc., Sr. Unsec. Gtd. Notes, 5.00%, 01/15/2026(b)		452,000		430,394
Environmental & Facilities Services–1.17%
Advanced Disposal Services, Inc., Sr. Unsec. Gtd. Notes, 5.63%, 11/15/2024(b)		408,000		406,980
Core & Main LP, Sr. Unsec. Notes, 6.13%, 08/15/2025(b)		641,000		610,552
Hulk Finance Corp. (Canada), Sr. Unsec. Notes, 7.00%, 06/01/2026(b)		672,000		645,120
Waste Pro USA, Inc., Sr. Unsec. Notes, 5.50%, 02/15/2026(b)		392,000		377,790
Wrangler Buyer Corp., Sr. Unsec. Notes, 6.00%, 10/01/2025(b)		134,000		127,300
				2,167,742
Fertilizers & Agricultural Chemicals–0.26%
OCI N.V. (Netherlands), Sr. Sec. Gtd. Notes, 6.63%, 04/15/2023(b)		481,000		490,187
Food Distributors–0.36%
US Foods, Inc., Sr. Unsec. Gtd. Notes, 5.88%, 06/15/2024(b)		653,000		667,693
Food Retail–2.02%
1011778 BC ULC/ New Red Finance, Inc. (Canada), Sec. Gtd. Second Lien Notes, 5.00%, 10/15/2025(b)		2,008,000		1,910,010
Albertsons Cos. LLC/ Safeway Inc./New Albertson’s L.P./Albertson’s LLC, Sr. Unsec. Gtd. Global Notes, 6.63%, 06/15/2024		783,000		741,892
Ingles Markets, Inc., Sr. Unsec. Global Notes, 5.75%, 06/15/2023		1,105,000		1,093,950
				3,745,852
Gas Utilities–1.33%
AmeriGas Partners, L.P./AmeriGas Finance Corp., Sr. Unsec. Global Notes, 5.88%, 08/20/2026		1,092,000		1,070,160
Ferrellgas L.P./Ferrellgas Finance Corp., Sr. Unsec. Global Notes, 6.50%, 05/01/2021		297,000		273,982
Suburban Propane Partners, L.P./Suburban Energy Finance Corp., Sr. Unsec. Global Notes, 5.50%, 06/01/2024		1,155,000		1,126,125
				2,470,267
Health Care Equipment–0.62%
Eagle Holding Co. II, LLC, Sr. Unsec. PIK Notes, 8.38% PIK Rate, 7.63% Cash Rate, 05/15/2022(b)(g)		526,000		532,680

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 Equipment–(continued)
Hill-Rom Holdings, Inc., Sr. Unsec. Gtd. Notes, 5.00%, 02/15/2025(b)	$	645,000	$	628,875
				1,161,555
Health Care Facilities–3.44%
Acadia Healthcare Co., Inc., Sr. Unsec. Gtd. Global Notes, 6.50%, 03/01/2024		385,000		396,550
Community Health Systems, Inc.,
Sec. Gtd. Notes, 8.13%, 06/30/2024(b)		15,000		12,469
Sr. Sec. Gtd. First Lien Global Notes, 5.13%, 08/01/2021		425,000		395,250
Sr. Sec. Gtd. First Lien Notes, 6.25%, 03/31/2023		502,000		461,840
Sr. Unsec. Gtd. Global Notes, 6.88%, 02/01/2022		139,202		71,689
Encompass Health Corp., Sr. Unsec. Gtd. Global Notes, 5.75%, 09/15/2025		640,000		649,600
HCA, Inc.,
Sr. Sec. Gtd. First Lien Notes, 5.25%, 04/15/2025		1,838,000		1,842,595
Sr. Unsec. Gtd. Global Notes, 7.50%, 02/15/2022		334,000		364,060
Sr. Unsec. Gtd. Notes, 5.38%, 02/01/2025		640,000		631,808
5.88%, 02/15/2026		910,000		920,237
LifePoint Health, Inc.,
Sr. Unsec. Gtd. Global Notes, 5.38%, 05/01/2024		555,000		536,269
Sr. Unsec. Gtd. Notes, 5.88%, 12/01/2023		110,000		109,863
				6,392,230
Health Care REITs–0.41%
MPT Operating Partnership L.P./MPT Finance Corp., Sr. Unsec. Gtd. Global Notes, 5.00%, 10/15/2027		795,000		761,213
Health Care Services–2.91%
DaVita Inc., Sr. Unsec. Gtd. Global Notes, 5.00%, 05/01/2025		672,000		634,200
Envision Healthcare Corp., Sr. Unsec. Gtd. Notes, 6.25%, 12/01/2024(b)		222,000		237,540
Heartland Dental, LLC, Sr. Unsec. Notes, 8.50%, 05/01/2026(b)		519,000		506,025
MPH Acquisition Holdings LLC, Sr. Unsec. Gtd. Notes, 7.13%, 06/01/2024(b)		1,169,000		1,201,147
Surgery Center Holdings, Inc.,
Sr. Unsec. Gtd. Notes, 6.75%, 07/01/2025(b)		233,000		222,224
8.88%, 04/15/2021(b)		103,000		106,476
Team Health Holdings, Inc., Sr. Unsec. Gtd. Notes, 6.38%, 02/01/2025(b)		460,000		397,900
Tenet Healthcare Corp.,
Sr. Unsec. Global Notes, 6.75%, 06/15/2023		1,464,000		1,462,170

	Principal Amount			Value
Health Care Services–(continued)
8.13%, 04/01/2022	$	615,000		$	644,213
					5,411,895
Home Furnishings–0.06%
Prestige Brands, Inc., Sr. Unsec. Gtd. Notes, 6.38%, 03/01/2024(b)		115,000			114,425
Home Improvement Retail–0.51%
Hillman Group Inc. (The), Sr. Unsec. Gtd. Notes, 6.38%, 07/15/2022(b)		980,000			943,250
Homebuilding–2.00%
Ashton Woods USA LLC/Ashton Woods Finance Co.,
Sr. Unsec. Notes, 6.75%, 08/01/2025(b)		180,000			171,900
6.88%, 02/15/2021(b)		446,000			450,460
Beazer Homes USA, Inc.,
Sr. Unsec. Gtd. Global Notes, 6.75%, 03/15/2025		402,000			385,920
8.75%, 03/15/2022		415,000			441,975
KB Home,
Sr. Unsec. Gtd. Notes, 7.50%, 09/15/2022		236,000			255,656
8.00%, 03/15/2020		119,000			127,033
Lennar Corp.,
Sr. Unsec. Gtd. Global Notes, 5.25%, 06/01/2026		183,000			180,255
5.38%, 10/01/2022		554,000			567,850
8.38%, 01/15/2021		112,000	��		122,920
Meritage Homes Corp., Sr. Unsec. Gtd. Global Notes, 6.00%, 06/01/2025		200,000			203,500
SRS Distribution Inc., Sr. Unsec. Gtd. Notes, 8.25%, 07/01/2026(b)		315,000			313,425
Taylor Morrison Communities Inc./ Taylor Morrison Holdings II, Inc., Sr. Unsec. Gtd. Notes, 5.88%, 04/15/2023(b)		498,000			498,000
					3,718,894
Household Products–1.31%
Reynolds Group Issuer Inc./LLC,
Sr. Sec. Gtd. First Lien Notes, 5.13%, 07/15/2023(b)		450,000			444,938
Sr. Unsec. Gtd. Notes, 7.00%, 07/15/2024(b)		1,261,000			1,290,161
Spectrum Brands, Inc., Sr. Unsec. Gtd. Global Notes, 5.75%, 07/15/2025		705,000			699,712
					2,434,811
Independent Power Producers & Energy Traders–1.04%
AES Corp. (The), Sr. Unsec. Notes, 5.50%, 04/15/2025		635,000			642,937
Calpine Corp., Sr. Unsec. Global Notes, 5.50%, 02/01/2024		334,000			308,115
NRG Energy, Inc.,
Sr. Unsec. Gtd. Global Notes, 6.25%, 05/01/2024		495,000			509,850
6.63%, 01/15/2027		175,000			180,688

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

Invesco V.I. High Yield Fund

	Principal Amount		Value
Independent Power Producers & Energy Traders–(continued)
Vistra Energy Corp., Sr. Unsec. Gtd. Global Notes, 7.38%, 11/01/2022	$	285,000	$	298,537
				1,940,127
Industrial Machinery–0.68%
Cleaver-Brooks, Inc., Sr. Sec. Notes, 7.88%, 03/01/2023(b)		659,000		680,418
Mueller Industries, Inc., Unsec. Sub. Deb., 6.00%, 03/01/2027		429,000		422,565
Mueller Water Products Inc., Sr. Unsec. Notes, 5.50%, 06/15/2026(b)		153,000		154,530
				1,257,513
Insurance Brokers–0.12%
HUB International Ltd., Sr. Unsec. Notes, 7.00%, 05/01/2026(b)		220,000		217,800
Integrated Oil & Gas–0.89%
California Resources Corp., Sec. Gtd. Second Lien Notes, 8.00%, 12/15/2022(b)		469,000		427,962
Petrobras Global Finance B.V. (Brazil), Sr. Unsec. Gtd. Global Notes, 5.75%, 02/01/2029		645,000		568,006
Petróleos Mexicanos (Mexico),
Sr. Unsec. Gtd. Global Notes, 6.88%, 08/04/2026		213,000		224,396
Sr. Unsec. Gtd. Notes, 5.35%, 02/12/2028(b)		449,000		426,101
				1,646,465
Integrated Telecommunication Services–1.66%
CenturyLink, Inc.,
Series S, Sr. Unsec. Notes,
6.45%, 06/15/2021		635,000		656,063
Series Y, Sr. Unsec. Global Notes,
7.50%, 04/01/2024		696,000		716,880
Cincinnati Bell Inc., Sr. Unsec. Gtd. Notes, 7.00%, 07/15/2024(b)		629,000		577,107
Frontier Communications Corp.,
Sr. Unsec. Global Notes, 10.50%, 09/15/2022		542,000		494,575
11.00%, 09/15/2025		264,000		212,441
Telecom Italia Capital S.A. (Italy),
Sr. Unsec. Gtd. Global Notes, 6.38%, 11/15/2033		95,000		94,050
7.20%, 07/18/2036		312,000		324,761
				3,075,877
Internet Software & Services–1.06%
Equinix, Inc., Sr. Unsec. Notes, 5.88%, 01/15/2026		1,356,000		1,377,018
Rackspace Hosting, Inc., Sr. Unsec. Gtd. Notes, 8.63%, 11/15/2024(b)		584,000		588,380
				1,965,398

	Principal Amount		Value
Leisure Facilities–0.49%
Cedar Fair L.P./Canada’s Wonderland Co./Magnum Management Corp.,
Sr. Unsec. Gtd. Global Notes, 5.38%, 06/01/2024	$	225,000	$	228,375
5.38%, 04/15/2027		200,000		197,500
Six Flags Entertainment Corp., Sr. Unsec. Gtd. Notes, 4.88%, 07/31/2024(b)		500,000		487,100
				912,975
Leisure Products–0.59%
Mattel, Inc.,
Sr. Unsec. Global Notes, 5.45%, 11/01/2041		202,000		164,125
Sr. Unsec. Gtd. Notes, 6.75%, 12/31/2025(b)		851,000		830,789
Sr. Unsec. Notes, 6.20%, 10/01/2040		112,000		96,040
				1,090,954
Life Sciences Tools & Services–0.08%
Charles River Laboratories International, Inc., Sr. Unsec. Gtd. Notes, 5.50%, 04/01/2026(b)		149,000		149,700
Managed Health Care–0.64%
Centene Corp., Sr. Unsec. Notes, 4.75%, 01/15/2025		315,000		314,213
Molina Healthcare, Inc., Sr. Unsec. Gtd. Notes, 4.88%, 06/15/2025(b)		340,000		331,500
WellCare Health Plans Inc., Sr. Unsec. Notes, 5.25%, 04/01/2025		549,000		547,627
				1,193,340
Metal & Glass Containers–0.86%
Ardagh Packaging Finance PLC/Ardagh Holdings USA Inc. (Ireland),
Sr. Unsec. Gtd. Notes, 6.00%, 02/15/2025(b)		500,000		488,125
7.25%, 05/15/2024(b)		310,000		323,563
Berry Global, Inc.,
Sec. Gtd. Second Lien Global Notes, 6.00%, 10/15/2022		90,000		92,970
Sec. Gtd. Second Lien Notes, 5.50%, 05/15/2022		198,000		200,010
Flex Acquisition Co., Inc.,
Sr. Unsec. Notes, 7.88%, 07/15/2026(b)		369,000		368,483
OI European Group B.V.,
Sr. Unsec. Gtd. Notes, 4.00%, 03/15/2023(b)		130,000		121,550
				1,594,701
Movies & Entertainment–0.39%
AMC Entertainment Holdings, Inc., Sr. Unsec. Gtd. Sub. Global Notes, 5.75%, 06/15/2025		735,000		723,056
Oil & Gas Drilling–1.08%
Ensco PLC,
Sr. Unsec. Global Notes, 4.50%, 10/01/2024		24,000		19,860
7.75%, 02/01/2026		520,000		493,194

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 Drilling–(continued)
Noble Holding International Ltd. (United Kingdom), Sr. Unsec. Gtd. Global Notes, 7.75%, 01/15/2024	$	472,000	$	449,580
Precision Drilling Corp. (Canada),
Sr. Unsec. Gtd. Global Notes, 5.25%, 11/15/2024		514,000		488,300
7.75%, 12/15/2023		94,000		99,405
Transocean Inc., Sr. Unsec. Gtd. Global Notes, 7.50%, 04/15/2031		483,000		450,397
				2,000,736
Oil & Gas Equipment & Services–0.87%
Archrock Partners, L.P./Archrock Partners Finance Corp., Sr. Unsec. Gtd. Global Notes, 6.00%, 10/01/2022		490,000		487,550
SESI, L.L.C., Sr. Unsec. Gtd. Global Notes, 7.13%, 12/15/2021		521,000		530,769
Weatherford International Ltd.,
Sr. Unsec. Gtd. Notes, 6.50%, 08/01/2036		524,000		412,650
8.25%, 06/15/2023		178,000		177,037
				1,608,006
Oil & Gas Exploration & Production–7.45%
Ascent Resources Utica Holdings, LLC /ARU Finance Corp., Sr. Unsec. Notes, 10.00%, 04/01/2022(b)		483,000		533,715
Callon Petroleum Co., Sr. Unsec. Gtd. Global Notes, 6.13%, 10/01/2024		1,032,000		1,050,060
Continental Resources Inc., Sr. Unsec. Gtd. Global Notes, 3.80%, 06/01/2024		362,000		353,465
Denbury Resources Inc., Sr. Unsec. Gtd. Sub. Notes, 5.50%, 05/01/2022		323,000		298,775
EP Energy LLC/Everest Acquisition Finance Inc., Sr. Sec. Gtd. First Lien Notes, 8.00%, 11/29/2024(b)		420,000		426,300
Gulfport Energy Corp., Sr. Unsec. Gtd. Global Notes, 6.00%, 10/15/2024		947,000		916,222
Jagged Peak Energy LLC, Sr. Unsec. Gtd. Notes, 5.88%, 05/01/2026(b)		320,000		314,400
Newfield Exploration Co., Sr. Unsec. Global Notes, 5.63%, 07/01/2024		341,000		361,034
Oasis Petroleum Inc., Sr. Unsec. Gtd. Global Notes, 6.88%, 01/15/2023		1,119,000		1,139,981
Parsley Energy LLC/Parsley Finance Corp., Sr. Unsec. Gtd. Notes, 6.25%, 06/01/2024(b)		919,000		955,760
QEP Resources, Inc.,
Sr. Unsec. Global Notes, 5.25%, 05/01/2023		725,000		712,312
Sr. Unsec. Notes, 6.88%, 03/01/2021		210,000		224,175
Range Resources Corp.,
Sr. Unsec. Gtd. Global Notes, 4.88%, 05/15/2025		641,000		604,143
5.88%, 07/01/2022		446,000		453,805
RSP Permian, Inc., Sr. Unsec. Gtd. Global Notes, 5.25%, 01/15/2025		429,000		460,746

	Principal Amount		Value
Oil & Gas Exploration & Production–(continued)
SM Energy Co.,
Sr. Unsec. Global Notes, 6.13%, 11/15/2022	$	553,000	$	569,590
6.75%, 09/15/2026		185,000		186,388
Southwestern Energy Co.,
Sr. Unsec. Gtd. Global Notes, 4.10%, 03/15/2022		502,000		481,920
7.50%, 04/01/2026		341,000		354,640
Tullow Oil PLC (Ghana), Sr. Unsec. Notes, 7.00%, 03/01/2025(b)		321,000		304,148
Whiting Petroleum Corp., Sr. Unsec. Gtd. Global Notes, 6.25%, 04/01/2023		1,303,000		1,338,832
WildHorse Resource Development Corp., Sr. Unsec. Gtd. Global Notes, 6.88%, 02/01/2025		808,000		828,200
WPX Energy Inc., Sr. Unsec. Notes, 5.25%, 09/15/2024		980,000		968,975
				13,837,586
Oil & Gas Refining & Marketing–0.46%
Parkland Fuel Corp. (Canada), Sr. Unsec. Notes, 6.00%, 04/01/2026(b)		376,000		371,300
Sunoco LP/Sunoco Finance Corp., Sr. Unsec. Gtd. Notes, 4.88%, 01/15/2023(b)		496,000		477,400
				848,700
Oil & Gas Storage & Transportation–2.72%
Antero Resources Corp., Sr. Unsec. Gtd. Global Notes, 5.63%, 06/01/2023		635,000		646,113
Energy Transfer Equity, L.P., Sr. Sec. First Lien Notes, 5.88%, 01/15/2024		713,000		732,607
Energy Transfer Partners, L.P., Series A, Jr. Unsec. Sub. Global Notes, 6.25%(e)		385,000		357,328
Holly Energy Partners L.P./Holly Energy Finance Corp., Sr. Unsec. Gtd. Notes, 6.00%, 08/01/2024(b)		457,000		463,855
NGPL PipeCo. LLC, Sr. Unsec. Bonds, 4.88%, 08/15/2027(b)		105,000		104,081
Plains All American Pipeline, L.P., Series B, Jr. Unsec. Sub. Notes, 6.13%(e)		456,000		429,780
SemGroup Corp., Sr. Unsec. Gtd. Global Notes, 6.38%, 03/15/2025		535,000		510,925
Targa Resources Partners L.P./Targa Resources Partners Finance Corp.,
Sr. Unsec. Gtd. Global Bonds, 5.13%, 02/01/2025		484,000		479,160
Sr. Unsec. Gtd. Notes, 5.88%, 04/15/2026(b)		743,000		749,501
Williams Cos., Inc. (The),
Sr. Unsec. Global Notes, 4.55%, 06/24/2024		235,000		236,175
Sr. Unsec. Notes, 7.88%, 09/01/2021		311,000		347,543
				5,057,068
Other Diversified Financial Services–0.89%
Lincoln Finance Ltd. (Netherlands), Sr. Sec. Gtd. First Lien Notes, 7.38%, 04/15/2021(b)		492,000		509,773

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

Invesco V.I. High Yield Fund

	Principal Amount		Value
Other Diversified Financial Services–(continued)
Lions Gate Capital Holdings LLC, Sr. Unsec. Gtd. Notes, 5.88%, 11/01/2024(b)	$	466,000	$	474,011
LPL Holdings Inc., Sr. Unsec. Gtd. Notes, 5.75%, 09/15/2025(b)		509,000		496,275
VFH Parent LLC/Orchestra Co-Issuer Inc., Sec. Gtd. Second Lien Notes, 6.75%, 06/15/2022(b)		171,000		177,626
				1,657,685
Packaged Foods & Meats–1.03%
B&G Foods, Inc., Sr. Unsec. Gtd. Notes, 5.25%, 04/01/2025		389,000		367,605
JBS Investments GmbH (Brazil), Gtd. Notes, 7.25%, 04/03/2024(b)		525,000		510,452
JBS USA Lux S.A./JBS USA Finance Inc. (Brazil), Sr. Unsec. Gtd. Notes, 5.75%, 06/15/2025(b)		180,000		168,300
Lamb Weston Holdings, Inc., Sr. Unsec. Gtd. Notes, 4.63%, 11/01/2024(b)		420,000		410,550
TreeHouse Foods, Inc., Sr. Unsec. Gtd. Notes, 6.00%, 02/15/2024(b)		448,000		459,872
				1,916,779
Paper Packaging–0.29%
Plastipak Holdings Inc., Sr. Unsec. Notes, 6.25%, 10/15/2025(b)		580,000		536,500
Paper Products–0.74%
Mercer International Inc. (Canada),
Sr. Unsec. Global Notes, 6.50%, 02/01/2024		259,000		262,885
7.75%, 12/01/2022		57,000		59,921
Sr. Unsec. Notes, 5.50%, 01/15/2026(b)		162,000		157,545
Rayonier A.M. Products Inc., Sr. Unsec. Gtd. Notes, 5.50%, 06/01/2024(b)		948,000		895,860
				1,376,211
Pharmaceuticals–1.81%
Endo DAC/Endo Finance LLC/Endo Finco Inc., Sr. Unsec. Gtd. Notes, 6.00%, 07/15/2023(b)		240,000		198,600
Teva Pharmaceutical Finance IV, B.V. (Israel), Sr. Unsec. Gtd. Global Notes, 3.65%, 11/10/2021		500,000		479,181
Teva Pharmaceutical Finance Netherlands III B.V. (Israel), Sr. Unsec. Gtd. Global Notes, 6.00%, 04/15/2024		287,000		286,952
Valeant Pharmaceuticals International, Inc., Sr. Sec. Gtd. First Lien Notes, 5.50%, 11/01/2025(b)		348,000		344,259
Sr. Unsec. Gtd. Notes, 5.63%, 12/01/2021(b)		16,000		15,800
5.88%, 05/15/2023(b)		200,000		188,625
6.13%, 04/15/2025(b)		410,000		379,250
7.25%, 07/15/2022(b)		485,000		496,717
7.50%, 07/15/2021(b)		950,000		966,625
				3,356,009

	Principal Amount		Value
Publishing–0.59%
Meredith Corp., Sr. Unsec. Gtd. Notes, 6.88%, 02/01/2026(b)	$	1,105,000	$	1,092,569
Restaurants–0.63%
Carrols Restaurant Group, Inc., Sec. Gtd. Second Lien Global Notes, 8.00%, 05/01/2022		296,000		309,320
IRB Holding Corp., Sr. Unsec. Gtd. Notes, 6.75%, 02/15/2026(b)		665,000		636,737
KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC, Sr. Unsec. Gtd. Notes, 4.75%, 06/01/2027(b)		241,000		228,348
				1,174,405
Security & Alarm Services–1.05%
ADT Corp. (The), Sr. Sec. Gtd. First Lien Global Notes, 6.25%, 10/15/2021		250,000		260,000
Brink’s Co. (The), Sr. Unsec. Gtd. Notes, 4.63%, 10/15/2027(b)		345,000		319,987
Prime Security Services Borrower, LLC/Prime Finance, Inc., Sec. Gtd. Second Lien Notes, 9.25%, 05/15/2023(b)		1,288,000		1,378,160
				1,958,147
Semiconductors–0.70%
Micron Technology, Inc., Sr. Unsec. Global Notes, 5.50%, 02/01/2025		618,000		646,583
NXP B.V./NXP Funding LLC (Netherlands), Sr. Unsec. Gtd. Notes, 4.63%, 06/01/2023(b)		650,000		659,230
				1,305,813
Specialized Consumer Services–0.77%
ServiceMaster Co., LLC (The),
Sr. Unsec. Gtd. Notes, 5.13%, 11/15/2024(b)		272,000		264,520
Sr. Unsec. Notes, 7.45%, 08/15/2027		1,086,000		1,159,305
				1,423,825
Specialized Finance–1.29%
AerCap Global Aviation Trust (Ireland), Jr. Unsec. Gtd. Sub. Notes, 6.50%, 06/15/2045(b)		434,000		449,190
Aircastle Ltd.,
Sr. Unsec. Global Notes, 7.63%, 04/15/2020		160,000		169,400
Sr. Unsec. Notes, 5.00%, 04/01/2023		396,000		399,433
5.50%, 02/15/2022		162,000		166,994
CIT Group Inc.,
Sr. Unsec. Global Notes, 5.00%, 08/01/2023		706,000		715,955
Unsec. Sub. Global Notes, 6.13%, 03/09/2028		94,000		96,820
MSCI Inc.,
Sr. Unsec. Gtd. Notes, 5.25%, 11/15/2024(b)		245,000		248,675

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

Invesco V.I. High Yield Fund

	Principal Amount		Value
Specialized Finance–(continued)
5.75%, 08/15/2025(b)	$	140,000	$	144,900
				2,391,367
Specialized REITs–0.33%
Iron Mountain Inc., Sr. Unsec. Sub. Gtd. Global Notes, 5.75%, 08/15/2024		377,000		372,288
Iron Mountain US Holdings, Inc., Sr. Unsec. Gtd. Notes, 5.38%, 06/01/2026(b)		248,000		236,840
				609,128
Specialty Chemicals–0.91%
Axalta Coating Systems, LLC, Sr. Unsec. Gtd. Notes, 4.88%, 08/15/2024(b)		472,000		469,640
Platform Specialty Products Corp., Sr. Unsec. Gtd. Notes, 5.88%, 12/01/2025(b)		856,000		837,810
Valvoline Inc., Sr. Unsec. Gtd. Global Notes, 5.50%, 07/15/2024		388,000		392,850
				1,700,300
Steel–1.58%
ArcelorMittal (Luxembourg), Sr. Unsec. Global Notes, 7.00%, 10/15/2039		425,000		490,344
Cleveland-Cliffs Inc., Sr. Unsec. Gtd. Global Notes, 5.75%, 03/01/2025		749,000		712,486
SunCoke Energy Partners, L.P./ SunCoke Energy Partners Finance Corp., Sr. Unsec. Gtd. Notes, 7.50%, 06/15/2025(b)		469,000		479,553
United States Steel Corp., Sr. Unsec. Global Notes, 6.88%, 08/15/2025		1,231,000		1,244,479
				2,926,862
Technology Distributors–0.11%
CDW LLC/CDW Finance Corp., Sr. Unsec. Gtd. Notes, 5.00%, 09/01/2025		215,000		212,313
Technology Hardware, Storage & Peripherals–1.48%
CommScope Technologies LLC, Sr. Unsec. Gtd. Notes, 6.00%, 06/15/2025(b)		502,000		515,177
Dell International LLC/ EMC Corp., Sr. Sec. Gtd. First Lien Notes, 8.35%, 07/15/2046(b)		198,000		239,024
Sr. Unsec. Gtd. Notes, 7.13%, 06/15/2024(b)		1,447,000		1,534,311
Diebold Nixdorf, Inc., Sr. Unsec. Gtd. Global Notes, 8.50%, 04/15/2024		475,000		456,751
				2,745,263
Textiles–0.44%
Eagle Intermediate Global Holding B.V./Ruyi US Finance LLC (China), Sr. Sec. Gtd. First Lien Bonds, 7.50%, 05/01/2025(b)		814,000		815,018
Trading Companies & Distributors–1.22%
BMC East, LLC, Sr. Sec. Gtd. First Lien Notes, 5.50%, 10/01/2024(b)		649,000		631,153
H&E Equipment Services, Inc., Sr. Unsec. Gtd. Global Notes, 5.63%, 09/01/2025		791,000		779,135

	Principal Amount		Value
Trading Companies & Distributors–(continued)
Herc Rentals Inc., Sec. Gtd. Second Lien Notes, 7.75%, 06/01/2024(b)	$	647,000	$	693,907
United Rentals North America, Inc.,
Sr. Unsec. Gtd. Global Notes, 5.50%, 07/15/2025		41,000		41,461
Sr. Unsec. Gtd. Notes, 5.88%, 09/15/2026		120,000		121,350
				2,267,006
Trucking–0.92%
Avis Budget Car Rental LLC/Avis Budget Finance Inc., Sr. Unsec. Gtd. Notes, 5.25%, 03/15/2025(b)		305,000		278,694
6.38%, 04/01/2024(b)		150,000		147,750
Hertz Corp. (The), Sec. Gtd. Second Lien Notes, 7.63%, 06/01/2022(b)		193,000		185,762
Kenan Advantage Group Inc. (The), Sr. Unsec. Notes, 7.88%, 07/31/2023(b)		1,068,000		1,094,700
				1,706,906
Wireless Telecommunication Services–5.04%
Altice Financing S.A. (Luxembourg), Sr. Sec. Gtd. First Lien Bonds, 7.50%, 05/15/2026(b)		430,000		416,971
Sr. Sec. Gtd. First Lien Notes, 6.63%, 02/15/2023(b)		600,000		592,800
Altice Luxembourg S.A. (Luxembourg), Sr. Unsec. Gtd. Notes, 7.75%, 05/15/2022(b)		950,000		922,687
Altice US Finance I Corp., Sr. Sec. Gtd. First Lien Notes, 5.50%, 05/15/2026(b)		440,000		425,700
CB Escrow Corp., Sr. Unsec. Notes, 8.00%, 10/15/2025(b)		94,000		88,125
Digicel Group Ltd. (Jamaica), Sr. Unsec. Notes, 8.25%, 09/30/2020(b)		399,000		302,741
Oztel Holdings SPC Ltd. (Oman), Sr. Sec. Gtd. Notes, 5.63%, 10/24/2023(b)		477,000		470,441
SBA Communications Corp., Sr. Unsec. Global Notes, 4.88%, 09/01/2024		325,000		311,688
Sprint Corp.,
Sr. Unsec. Gtd. Global Notes, 7.25%, 09/15/2021		1,416,000		1,476,180
7.63%, 02/15/2025		625,000		642,188
7.88%, 09/15/2023		1,814,000		1,885,426
T-Mobile USA, Inc.,
Sr. Unsec. Gtd. Global Bonds, 6.50%, 01/15/2026		1,118,000		1,154,000
Sr. Unsec. Gtd. Global Notes, 6.38%, 03/01/2025		647,000		672,880
				9,361,827
Total U.S. Dollar Denominated Bonds & Notes (Cost $173,925,621)				164,917,645
	Shares
Exchange-Traded Funds–4.74%
iShares® 0-5 Year High Yield Corporate Bond ETF		94,500		4,405,590

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

Invesco V.I. High Yield Fund

	Shares		Value
Exchange-Traded Funds–(continued)
SPDR® Bloomberg Barclays Short Term High Yield Bond ETF		161,500	$	4,407,335
Total Exchange-Traded Funds (Cost $8,888,265)				8,812,925
	Principal Amount
Variable Rate Senior Loan Interests–1.06%(h)
Food Retail–1.06%
Albertson’s LLC, Bridge Term Loan, –%, 04/18/2019(c)	$	575,000		575,000
Term Loan B-4, 4.84% (3 mo. USD LIBOR + 2.75%), 08/25/2021		1,413,722		1,402,158
Total Variable Rate Senior Loan Interests (Cost $1,948,261)				1,977,158
Non-U.S. Dollar Denominated Bonds & Notes–0.92%(i)
Beverage & Tobacco–0.12%
Sunshine Mid B.V. (Netherlands), Sr. Unsec. Gtd. Bonds, 6.50%, 05/15/2026(b)	EUR	200,000		222,139
Cable & Satellite–0.12%
Tele Columbus AG (Germany), Sr. Sec. Notes, 3.88%, 05/02/2025(b)	EUR	200,000		222,548
Diversified Chemicals–0.30%
Chemours Co. (The), Sr. Unsec. Gtd. Euro Bonds, 4.00%, 05/15/2026	EUR	475,000		553,601
Food Retail–0.23%
Iceland Bondco PLC (United Kingdom), REGS, Sr. Sec. Gtd. First Lien Euro Notes, 4.63%, 03/15/2025(b)	GBP	350,000		418,079
Packaged Foods & Meats–0.09%
Darling Global Finance B.V., Sr. Unsec. Gtd. Bonds, 3.63%, 05/15/2026(b)	EUR	150,000		175,959
Textiles–0.06%
Eagle Intermediate Global Holding B.V./Ruyi US Finance LLC (China), Sr. Sec. Gtd. First Lien Bonds, 5.38%, 05/01/2023(b)	EUR	100,000		116,236
Total Non-U.S. Dollar Denominated Bonds & Notes (Cost $1,806,926)				1,708,562
U.S. Treasury Bills–0.61%(j)
0.00%, 07/26/2018(k)	$	70,000		69,920
1.59%, 07/26/2018		325,000		324,627
1.73%, 07/26/2018(k)		160,000		159,816
1.79%, 07/26/2018(k)		555,000		554,363
1.80%, 07/26/2018(k)		17,000		16,980
Total U.S. Treasury Bills (Cost $1,125,653)				1,125,706

	Shares		Value
Preferred Stocks–0.50%
Diversified Banks–0.44%
Wells Fargo & Co., Class A, Series L, $75.00 Conv. Pfd.		640	$	806,054
Specialized Finance–0.06%
CIT Group Inc., Series A, 5.80% Pfd.		120,000		118,800
Total Preferred Stocks (Cost $944,008)				924,854
Common Stocks & Other Equity Interests–0.00%
Automobile Manufacturers–0.00%
Motors Liquidation Co. GUC Trust(l)		1		10
Broadcasting–0.00%
Adelphia Recovery Trust-Series ACC-1(m)		318,570		159
Adelphia Recovery Trust-Series Arahova(m)		109,170		109
				268
Diversified Support Services–0.00%
ACC Claims Holdings, LLC (l)		269,616		2,427
Total Common Stocks & Other Equity Interests (Cost $143,574)				2,705
Money Market Funds–2.30%
Invesco Government & Agency Portfolio–Institutional Class, 1.80%(n)		1,494,746		1,494,746
Invesco Liquid Assets Portfolio–Institutional Class, 2.02%(n)		1,068,236		1,068,557
Invesco Treasury Portfolio–Institutional Class, 1.76%(n)		1,708,281		1,708,281
Total Money Market Funds (Cost $4,271,229)				4,271,584
TOTAL INVESTMENTS IN SECURITIES–98.91% (Cost $193,053,537)				183,741,139
OTHER ASSETS LESS LIABILITIES–1.09%				2,028,500
NET ASSETS–100.00%			$	185,769,639

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

Invesco V.I. High Yield Fund

Investment Abbreviations:

Conv.	–Convertible
Deb.	–Debentures
ETF	–Exchange-Traded Fund
EUR	–Euro
GBP	–British Pound
Gtd.	–Guaranteed
GUC	–General Unsecured Creditors
LIBOR	–London Interbank Offered Rate
Pfd.	–Preferred

PIK	–Pay-in-Kind
REGS	–Regulation S
REIT	–Real Estate Investment Trust
Sec.	–Secured
SPDR®	–Standard & Poor’s Depositary Receipt
Sr.	–Senior
Sub.	–Subordinated
Unsec.	–Unsecured
USD	–U.S. Dollar

Notes to Schedule of Investments:

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

^(b)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at June 30, 2018 was $77,392,215, which represented 41.66% of the Fund’s Net Assets.

^(c)  Security valued using significant unobservable inputs (Level 3). See Note 3.

^(d)  Defaulted security. Currently, the issuer is partially or fully in default with respect to interest payments. The value of this security at June 30, 2018 represented less than 1% of the Fund’s Net Assets.

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

^(f)  Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on June 30, 2018.

^(g)  All or a portion of this security is Pay-in-Kind. Pay-in-Kind securities pay interest income in the form of securities.

^(h)  Variable rate senior loan interests are, at present, not readily marketable, not registered under the 1933 Act, and may be subject to contractual and legal restrictions on sale. Variable rate senior loan interests in the Fund’s portfolio generally have variable rates which adjust to a base, such as the London Interbank Offered Rate (“LIBOR”), on set dates, typically every 30 days but not greater than one year; and/or have interest rates that float at a margin above a widely recognized base lending rate such as the Prime Rate of a designated U.S. bank.

⁽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 1P.

^(l)  Non-income producing security.

^(m)  Acquired as part of the Adelphia Communications bankruptcy reorganization.

⁽ⁿ⁾  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, 2018.

Open Forward Foreign Currency Contracts
Settlement Date	Counterparty	Contract to						Unrealized Appreciation
		Deliver			Receive
08/31/2018	Barclays Bank PLC		EUR	706,478		USD	832,277	$	3,305
08/31/2018	Barclays Bank PLC		GBP	353,033		USD	472,627		5,357
08/31/2018	Goldman Sachs International		EUR	250,000		USD	294,169		822
Total Forward Foreign Currency Contracts—Currency Risk								$	9,484

Open Centrally Cleared Credit Default Swap Agreements
Reference Entity	Buy/Sell Protection		(Pay)/Receive Fixed Rate			Payment Frequency		Maturity Date		Implied Credit Spread(o)			Notional Value		Upfront Payments Paid (Received)		Value		Unrealized Appreciation (Depreciation)(p)
Markit CDX North America High Yield Index, Series 30, Version 1		Sell		5.00	%		Quarterly		06/20/2023		3.59	%	USD	10,740,000	$	689,208	$	617,056	$	(72,152	)
Markit iTraxx Europe Crossover Index, Series 29		Sell		5.00			Quarterly		06/20/2023		3.19		EUR	3,500,000		375,729		327,181		(48,548	)
Total Centrally Cleared Credit Default Swap Agreements—Credit Risk															$	1,064,937	$	944,237	$	(120,700	)

^(o)  Implied credit spreads represent the current level, as of June 30, 2018, at which protection could be bought or sold given the terms of the existing credit default swap agreement and serve as an indicator of the current status of the payment/performance risk of the credit default swap agreement. An implied credit spread that has widened or increased since entry into the initial agreement may indicate a deteriorating credit profile and increased risk of default for the reference entity. A declining or narrowing spread may indicate an improving credit profile or decreased risk of default for the reference entity. Alternatively, credit spreads may increase or decrease reflecting the general tolerance for risk in the credit markets generally.

^(p)  The daily variation margin receivable at period-end is recorded in the Statement of Assets and Liabilities.

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

Invesco V.I. High Yield Fund

Open Over-The-Counter Total Return Swap Agreements – Credit Risk

Counterparty

Pay/ Receive

Reference Entity

Payment Frequency

(Pay)/Receive Floating Rate

Payment Frequency

Maturity Date

Notional Value

Upfront Payments Paid (Received)

Value

Unrealized Appreciation

Goldman Sachs International

Receive

Markit iBoxx USD Liquid High Yield Index

Quarterly

3 Month USD LIBOR

At Maturity

09/20/2018

USD

5,800,000

$

—

$

110,177

$

110,177

Abbreviations:

EUR	– Euro
LIBOR	– London Interbank Offered Rate

GBP	– British Pound Sterling
USD	– U.S. Dollar

Portfolio Composition

By credit quality, based on Total Investments as of June 30, 2018

AA	0.6	%
BBB	4.2
BB	39.5
B	40.2
CCC	6.5
Non-Rated	9.0

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, 2018

(Unaudited)

Statement of Operations

For the six months ended June 30, 2018

(Unaudited)

Assets:
Investments in securities, at value (Cost $188,782,308)	$	179,469,555
Investments in affiliated money market funds, at value (Cost $4,271,229)		4,271,584
Other investments:
Variation margin receivable — centrally cleared swap agreements		2,792
Unrealized appreciation on forward foreign currency contracts outstanding		9,484
Unrealized appreciation on swap agreements — OTC		110,177
Foreign currencies, at value (Cost $286,571)		280,983
Receivable for:
Investments sold		216,824
Fund shares sold		10,434
Dividends and interest		2,873,099
Principal paydowns		3,570
Investment for trustee deferred compensation and retirement plans		80,687
Other assets		8,439
Total assets		187,337,628
Liabilities:
Other investments:
Swaps payable — OTC		8,977
Payable for:
Investments purchased		795,919
Fund shares reacquired		192,801
Amount due custodian		25,067
Accrued fees to affiliates		128,658
Accrued trustees’ and officers’ fees and benefits		4,111
Accrued other operating expenses		327,000
Trustee deferred compensation and retirement plans		85,456
Total liabilities		1,567,989
Net assets applicable to shares outstanding	$	185,769,639
Net assets consist of:
Shares of beneficial interest	$	193,308,403
Undistributed net investment income		12,534,078
Undistributed net realized gain (loss)		(10,753,697	)
Net unrealized appreciation (depreciation)		(9,319,145	)
	$	185,769,639
Net Assets:
Series I	$	91,957,646
Series II	$	93,811,993
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		16,829,884
Series II		17,329,849
Series I:
Net asset value per share	$	5.46
Series II:
Net asset value per share	$	5.41

Investment income:
Interest (net of foreign withholding taxes of $150)	$	5,081,783
Dividends		135,796
Dividends from affiliated money market funds		36,623
Total investment income		5,254,202
Expenses:
Advisory fees		556,076
Administrative services fees		157,627
Custodian fees		15,590
Distribution fees — Series II		113,650
Transfer agent fees		14,574
Trustees’ and officers’ fees and benefits		11,682
Reports to shareholders		5,896
Professional services fees		460,281
Other		11,250
Total expenses		1,346,626
Less: Fees waived		(2,399	)
Net expenses		1,344,227
Net investment income		3,909,975
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		(301,473	)
Foreign currencies		23,607
Forward foreign currency contracts		21,626
Option contracts purchased		(31,822	)
Option contracts written		(75,934	)
Swap agreements		230,697
		(133,299	)
Change in net unrealized appreciation (depreciation) of:
Investment securities		(5,819,324	)
Foreign currencies		(16,014	)
Forward foreign currency contracts		24,648
Swap agreements		(176,772	)
		(5,987,462	)
Net realized and unrealized gain (loss)		(6,120,761	)
Net increase (decrease) in net assets resulting from operations	$	(2,210,786	)

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, 2018 and the year ended December 31, 2017

(Unaudited)

	June 30, 2018			December 31, 2017
Operations:
Net investment income	$	3,909,975		$	8,625,415
Net realized gain (loss)		(133,299	)		1,465,141
Change in net unrealized appreciation (depreciation)		(5,987,462	)		766,828
Net increase (decrease) in net assets resulting from operations		(2,210,786	)		10,857,384
Distributions to shareholders from net investment income:
Series I		—			(4,535,246	)
Series ll		—			(3,468,057	)
Total distributions from net investment income		—			(8,003,303	)
Share transactions-net:
Series l		12,914,496			(15,580,462	)
Series ll		2,892,404			7,275,758
Net increase (decrease) in net assets resulting from share transactions		15,806,900			(8,304,704	)
Net increase (decrease) in net assets		13,596,114			(5,450,623	)
Net assets:
Beginning of period		172,173,525			177,624,148
End of period (includes undistributed net investment income of $12,534,078 and $8,624,103, respectively)	$	185,769,639		$	172,173,525

Notes to Financial Statements

June 30, 2018

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

Invesco V.I. High Yield Fund

listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining net asset value (“NAV”) per share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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

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

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

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

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

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

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

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

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

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

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

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

D. Distributions — Distributions from net investment income 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. High Yield 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 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. Call Options Purchased and Written — The Fund may write covered call options and/or buy call options. A covered call option gives the purchaser of such option the right to buy, and the writer the obligation to sell, the underlying security or foreign currency at the stated exercise price during the option period. Options written by the Fund normally will have expiration dates between three and nine months from the date written. The exercise price of a call option may be below, equal to, or above the current market value of the underlying security at the time the option is written.

Additionally, the Fund may enter into an option on a swap agreement, also called a “swaption”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based premium. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the Counterparties.

When the Fund writes a covered call option, an amount equal to the premium received by the Fund is recorded as an asset and an equivalent liability in the Statement of Assets and Liabilities. The amount of the liability is subsequently “marked-to-market” to reflect the current market value of the option written. If a written covered call option expires on the stipulated expiration date, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written covered call option is exercised, the Fund realizes a gain or a loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. Realized and unrealized gains and losses on call options written are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Option contracts written. A risk in writing a covered call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised.

When the Fund buys a call option, an amount equal to the premium paid by the Fund is recorded as an investment on the Statement of Assets and Liabilities. The amount of the investment is subsequently “marked-to-market” to reflect the current value of the option purchased. Realized and unrealized gains and losses on call options purchased are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.

O. Put Options Purchased and Written — The Fund may purchase and write put options including options on securities indexes, or foreign currency and/or futures contracts. By purchasing a put option, the Fund obtains the right (but not the obligation) to sell the option’s underlying instrument at a fixed strike price. In return for this right, the Fund pays an option premium. The option’s underlying instrument may be a security, securities index, or a futures contract.

Put options may be used by the Fund to hedge securities it owns by locking in a minimum price at which the Fund can sell. If security prices fall, the put option could be exercised to offset all or a portion of the Fund’s resulting losses. At the same time, because the maximum the Fund has at risk is the cost of the option, purchasing put options does not eliminate the potential for the Fund to profit from an increase in the value of the underlying portfolio securities. The Fund may write put options to earn additional income in the form of option premiums if it expects the price of the underlying instrument to remain stable or rise during the option period so that the option will not be exercised. The risk in this strategy is that the price of the underlying securities may decline by an amount greater than the premium received. Put options written are reported as a liability in the Statement of Assets and Liabilities. Realized and unrealized gains and losses on put options purchased and put options written are included in the Statement of Operations as Net realized gain (loss) from and Change in net unrealized appreciation (depreciation) of Investment securities and Option contracts written, respectively. A risk in buying an option is that the Fund pays a premium whether or not the option is exercised. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased.

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

Invesco V.I. High Yield Fund

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.

Notional amounts of each individual credit default swap agreement outstanding as of June 30, 2018 for which the Fund is the seller of protection are disclosed in the open swap agreements table. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or entities.

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

R. Other Risks — 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”.

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

Invesco V.I. High Yield Fund

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $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, 2018, the effective advisory fees incurred by the Fund was 0.625%.

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

The Adviser has contractually agreed, through at least June 30, 2019, 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, 2019. 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, 2020, 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, 2018, the Adviser waived advisory fees of $2,399.

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, 2018, Invesco was paid $24,794 for accounting and fund administrative services and was reimbursed $132,833 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, 2018, 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. The fees are accrued daily and paid monthly. 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, 2018, 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. High Yield 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, 2018. 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.

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period. During the six months ended June 30, 2018, there were no material transfers between valuation levels.

	Level 1		Level 2			Level 3		Total
Investments in Securities
U.S. Dollar Denominated Bonds & Notes	$	—	$	164,917,645		$	—	$	164,917,645
Exchange-Traded Funds		8,812,925		—			—		8,812,925
Variable Rate Senior Loan Interests		—		1,402,158			575,000		1,977,158
Non-U.S. Dollar Denominated Bonds & Notes		—		1,708,562			—		1,708,562
U.S. Treasury Securities		—		1,125,706			—		1,125,706
Preferred Stocks		806,054		118,800			—		924,854
Common Stocks & Other Equity Interests		278		2,427			0		2,705
Money Market Funds		4,271,584		—			—		4,271,584
Total Investments in Securities		13,890,841		169,275,298			575,000		183,741,139
Other Investments – Assets*
Forward Foreign Currency Contracts		—		9,484			—		9,484
Swap Agreements		—		110,177			—		110,177
		—		119,661			—		119,661
Other Investments – Liabilities*
Swap Agreements		—		(120,700	)		—		(120,700	)
Total Other Investments		—		(1,039	)		—		(1,039	)
Total Investments	$	13,890,841	$	169,274,259		$	575,000	$	183,740,100

* 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, 2018:

Derivative Assets	Value
	Credit Risk			Currency Risk		Total
Unrealized appreciation on swap agreements—OTC	$	110,177		$	—	$	110,177
Unrealized appreciation on forward foreign currency contracts outstanding		—			9,484		9,484
Total Derivative Assets		110,177			9,484		119,661
Derivatives not subject to master netting agreements		—			—		—
Total Derivative Assets subject to master netting agreements	$	110,177		$	9,484	$	119,661
Derivative Liabilities	Value
	Credit Risk			Currency Risk		Total
Unrealized depreciation on swap agreements—Centrally Cleared(a)	$	(120,700	)	$	—	$	(120,700	)
Derivatives not subject to master netting agreements		120,700			—		120,700
Total Derivative Liabilities subject to master netting agreements	$	—		$	—	$	—

^(a)  The daily variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities.

Invesco V.I. High Yield 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, 2018.

	Financial Derivative Assets						Financial Derivative Liabilities										Collateral (Received)/Pledged
Counterparty	Forward Foreign Currency Contracts		Swap Agreements		Total Assets		Forward Foreign Currency Contracts		Swap Agreements			Total Liabilities			Net Value of Derivatives		Non-Cash		Cash		Net Amount
Barclays Bank PLC	$	8,662	$	—	$	8,662	$	—	$	—		$	—		$	8,662	$	—	$	—	$	8,662
Goldman Sachs International		822		110,177		110,999		—		(8,977	)		(8,977	)		102,022		—		—		102,022
Total	$	9,484	$	110,177	$	119,661	$	—	$	(8,977	)	$	(8,977	)	$	110,684	$	—	$	—	$	110,684

Effect of Derivative Investments for the six months ended June 30, 2018

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	$	—		$	21,626	$	—		$	21,626
Options purchased(a)		—			—		(31,822	)		(31,822	)
Options written		(37,250	)		—		(38,684	)		(75,934	)
Swap agreements		230,697			—		—			230,697
Change in Net Unrealized Appreciation (Depreciation):
Forward foreign currency contracts		—			24,648		—			24,648
Swap agreements		(176,772	)		—		—			(176,772	)
Total	$	16,675		$	46,274	$	(70,506	)	$	(7,557	)

^(a)  Options purchased are included in the net realized gain (loss) from investment securities.

The table below summarizes the six month average notional value of forward foreign currency contracts, the five day average notional value of options purchased, the twenty seven day average notional value of options written and the six month average notional value of swap agreements outstanding during the period.

	Forward Foreign Currency Contracts		Options Purchased		Options Written		Swap Agreements
Average notional value	$	1,525,231	$	21,400,000	$	18,592,593	$	17,656,158

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. High Yield Fund

NOTE 7—Unfunded Loan Commitments

As of June 30, 2018, the Fund had unfunded loan commitments, which could be extended at the option of the borrower, pursuant to the following loan agreements with the following borrowers:

Borrower	Type		Principal Amount		Value
Albertson’s LLC		Bridge Term Loan	$	575,000	$	575,000

NOTE 8—Tax Information

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

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

The Fund had a capital loss carryforward as of December 31, 2017, as follows:

Capital Loss Carryforward*
Expiration	Short-Term		Long-Term		Total
Not subject to expiration	$	4,402,615	$	6,102,632	$	10,505,247

* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

NOTE 9—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2018 was $74,447,278 and $56,491,017, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	9,455,403
Aggregate unrealized (depreciation) of investments		(18,869,804	)
Net unrealized appreciation (depreciation) of investments	$	(9,414,401	)

Cost of investments for tax purposes is $194,219,438.

NOTE 10—Share Information

	Summary of Share Activity
	Six months ended June 30, 2018(a)						Year ended December 31, 2017
	Shares			Amount			Shares			Amount
Sold:
Series I		10,318,163		$	56,916,355			11,501,884		$	63,906,862
Series II		2,068,879			11,272,893			2,531,262			13,924,938
Issued as reinvestment of dividends:
Series I		—			—			829,113			4,535,246
Series II		—			—			637,511			3,468,057
Reacquired:
Series I		(8,082,372	)		(44,001,859	)		(15,263,276	)		(84,022,570	)
Series II		(1,541,412	)		(8,380,489	)		(1,841,220	)		(10,117,237	)
Net increase (decrease) in share activity		2,763,258		$	15,806,900			(1,604,726	)	$	(8,304,704	)

^(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.

Invesco V.I. High Yield 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			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 06/30/18	$	5.51	$	0.12	$	(0.17	)	$	(0.05	)	$	—		$	5.46		(0.91	)%	$	91,958		1.39	%(d)		1.39	%(d)		4.52	%(d)		33	%
Year ended 12/31/17		5.40		0.26		0.08			0.34			(0.23	)		5.51		6.30			80,372		0.99			1.00			4.73			73
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
Series II
Six months ended 06/30/18		5.46		0.12		(0.17	)		(0.05	)		—			5.41		(0.92	)		93,812		1.64	(d)		1.64	(d)		4.27	(d)		33
Year ended 12/31/17		5.36		0.25		0.07			0.32			(0.22	)		5.46		5.93			91,802		1.24			1.25			4.48			73
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

^(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 $87,745 and $91,674 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, 2018 through June 30, 2018.

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 (01/01/18)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/18)1		Expenses Paid During Period2		Ending Account Value (06/30/18)		Expenses Paid During Period2
Series I	$	1,000.00	$	992.70	$	6.87	$	1,017.90	$	6.95		1.39	%
Series II		1,000.00		990.90		8.10		1,016.66		8.20		1.64

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2018 through June 30, 2018, 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

At meetings held on June 5-6, 2018, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. High Yield Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate Sub-Advisory Contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2018. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’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 detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider. 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 throughout the year, 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 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 6, 2018.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, 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, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also reviewed and considered the benefits to shareholders of investing in a fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by

Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries 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 investment performance over multiple time periods ending December 31, 2017 to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds High Yield Bond Funds Classification Average 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, 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 reasonably comparable to the performance of the Index for the one and five year periods and below the performance of the Index for the three year period. The Board noted that the Fund’s defensive positioning in the market, including its cash position and underweight exposure to certain securities, negatively impacted Fund performance. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted

Invesco V.I. High Yield Fund

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 non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. 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 considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that the Fund’s total expense ratio was in the fourth quintile of its expense group and discussed with management reasons for such relative total expenses.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. 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 differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including management of cash flows as a result of redemptions and purchases, necessary infrastructure such as officers, office space, technology, legal and distribution, oversight of service providers, costs and business risks associated with launching new funds and sponsoring and maintaining the product line, preparation of annual registration statement updates and financial information and compliance with federal and state laws and regulations.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that Invesco Advisers retains overall responsibility for, and provides services to, sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described herein other than day-to-day portfolio management.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from

economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements.

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 considered the methodology used for calculating profitability and noted the periodic review of such methodology by an independent consultant. 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, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers 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 administrative, 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

	Semiannual Report to Shareholders	June 30, 2018
	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 (or any successor Form). The Fund’s Form N-Q (or any successor Form) filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q (or any successor Form) 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 (or any successor Form), 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             07132018       1109

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/17 to 6/30/18, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-5.74	%
Series II Shares	-5.85
MSCI All Country World ex-U.S. Index▼ (Broad Market Index)	-3.77
Custom Invesco International Growth Index∎ (Style-Specific Index)	-2.28
Lipper VUF International Large-Cap Growth Funds Index◆ (Peer Group Index)	-1.84
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 0.93% and 1.18%, 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 0.94% and 1.19%, 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 6/30/18
Series I Shares
Inception (5/5/93)	7.00	%
10 Years	4.14
5 Years	5.78
1 Year	1.50
Series II Shares
Inception (9/19/01)	7.10	%
10 Years	3.88
5 Years	5.52
1 Year	1.28

    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, 2020. See current prospectus for more information.

Invesco V.I. International Growth Fund

Schedule of Investments

June 30, 2018

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–96.49%
Australia–4.59%
Amcor Ltd.		4,110,324	$	43,910,882
Brambles Ltd.		2,447,222		16,108,743
CSL Ltd.		131,424		18,792,404
				78,812,029
Brazil–3.30%
B3 S.A. — Brasil, Bolsa, Balcão		4,766,834		25,266,643
Banco Bradesco S.A.–ADR		2,954,423		20,267,342
Kroton Educacional S.A.		4,558,413		10,998,726
				56,532,711
Canada–9.67%
Canadian National Railway Co.		276,005		22,574,593
CGI Group Inc.–Class A(a)		923,164		58,499,120
Fairfax Financial Holdings Ltd.		14,268		7,994,725
Great-West Lifeco Inc.		613,140		15,073,161
Nutrien Ltd.		229,289		12,473,378
PrairieSky Royalty Ltd.		1,185,125		23,392,404
Suncor Energy, Inc.		636,419		25,898,240
				165,905,621
China–5.03%
Baidu, Inc.–ADR(a)		90,090		21,891,870
Henan Shuanghui Investment & Development Co., Ltd.–Class A		5,876,686		23,402,526
Kweichow Moutai Co., Ltd.–Class A		224,483		24,756,877
Wuliangye Yibin Co., Ltd.–Class A		1,424,697		16,264,817
				86,316,090
Denmark–1.66%
Carlsberg A/S–Class B		242,181		28,526,264
France–7.61%
Essilor International S.A.		138,333		19,529,151
Pernod Ricard S.A.		180,188		29,406,857
Schneider Electric S.E.		450,251		37,448,034
Vinci S.A.		259,512		24,922,713
Vivendi S.A.		785,019		19,202,915
				130,509,670
Germany–9.54%
Allianz S.E.		165,315		34,171,644
Deutsche Boerse AG		380,885		50,769,287
Deutsche Post AG		565,389		18,465,927
GEA Group AG		377,439		12,732,849
SAP S.E.		410,809		47,466,480
				163,606,187
Hong Kong–3.39%
CK Hutchison Holdings Ltd.		3,043,768		32,123,769
Galaxy Entertainment Group Ltd.		3,389,000		26,012,357
				58,136,126

	Shares		Value
Italy–2.46%
Intesa Sanpaolo S.p.A.		7,825,735	$	22,649,793
Intesa Sanpaolo S.p.A.–Rts.(a)		7,590,951		0
Mediobanca Banca di Credito Finanziario S.p.A.		2,102,120		19,478,611
				42,128,404
Japan–6.90%
Asahi Group Holdings, Ltd.		526,200		26,961,214
FANUC Corp.		105,100		20,891,829
Hoya Corp.		446,200		25,344,704
Japan Tobacco Inc.		418,100		11,689,426
Kao Corp.		266,100		20,284,151
Keyence Corp.		23,300		13,142,665
				118,313,989
Mexico–2.36%
Fomento Economico Mexicano, S.A.B. de C.V.–ADR		460,850		40,458,022
Netherlands–3.14%
ING Groep N.V.		1,459,975		20,947,871
Wolters Kluwer N.V.		584,288		32,885,835
				53,833,706
Singapore–1.73%
United Overseas Bank Ltd.		1,509,000		29,718,253
South Korea–3.66%
NAVER Corp.		61,042		41,709,751
Samsung Electronics Co., Ltd.		506,579		21,149,465
				62,859,216
Spain–1.45%
Amadeus IT Group S.A.		315,060		24,821,891
Sweden–2.59%
Investor AB–Class B		1,090,698		44,359,979
Switzerland–6.99%
Cie Financiere Richemont S.A.		319,953		27,105,400
Julius Baer Group Ltd.		479,504		28,169,497
Kuehne + Nagel International AG		120,371		18,080,479
Novartis AG		409,769		31,037,765
UBS Group AG		1,012,701		15,580,480
				119,973,621
Taiwan–2.24%
Taiwan Semiconductor Manufacturing Co. Ltd.–ADR		1,052,631		38,484,189
Thailand–0.84%
Kasikornbank PCL–NVDR		2,454,200		14,389,081
Turkey–0.89%
Akbank T.A.S.		9,372,355		15,299,078

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

Invesco V.I. International Growth Fund

	Shares			Value
United Kingdom–12.46%
British American Tobacco PLC		546,167		$	27,607,835
Compass Group PLC		1,512,572			32,225,375
Informa PLC		2,385,802			26,292,325
Lloyds Banking Group PLC		28,814,255			23,977,319
Reckitt Benckiser Group PLC		340,836			28,065,228
RELX PLC		1,772,314			37,951,898
Royal Dutch Shell PLC–Class B		541,269			19,361,121
Unilever N.V.		330,012			18,394,799
					213,875,900
United States–3.99%
Broadcom Inc.		202,834			49,215,642
Philip Morris International Inc.		238,566	��		19,261,819
					68,477,461
Total Common Stocks & Other Equity Interests (Cost $1,221,445,351)					1,655,337,488

	Shares		Value
Money Market Funds–3.61%
Invesco Government & Agency Portfolio–Institutional Class, 1.80%(b)		21,683,547	$	21,683,547
Invesco Liquid Assets Portfolio–Institutional Class, 2.02%(b)		15,495,550		15,500,198
Invesco Treasury Portfolio–Institutional Class, 1.76%(b)		24,781,196		24,781,196
Total Money Market Funds (Cost $61,960,297)				61,964,941
TOTAL INVESTMENTS IN SECURITIES–100.10% (Cost $1,283,405,648)				1,717,302,429
OTHER ASSETS LESS LIABILITIES–(0.10)%				(1,740,603	)
NET ASSETS–100.00%			$	1,715,561,826

Investment Abbreviations:

ADR	– American Depositary Receipt
NVDR	– Non-Voting Depositary Receipt
Rts.	– Rights

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, 2018.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2018

Financials	22.6	%
Information Technology	18.4
Consumer Staples	18.4
Industrials	16.0
Consumer Discretionary	8.3
Health Care	5.5
Energy	4.0
Materials	3.3
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. International Growth Fund

Statement of Assets and Liabilities

June 30, 2018

(Unaudited)

Statement of Operations

For the six months ended June 30, 2018

(Unaudited)

Assets:
Investments in securities, at value (Cost $1,221,445,351)	$	1,655,337,488
Investments in affiliated money market funds, at value (Cost $61,960,297)		61,964,941
Foreign currencies, at value (Cost $14,639,848)		14,886,020
Receivable for:
Investments sold		7,030,240
Fund shares sold		907,206
Dividends		5,991,991
Investment for trustee deferred compensation and retirement plans		261,436
Other assets		189
Total assets		1,746,379,511
Liabilities:
Payable for:
Investments purchased		24,612,182
Fund shares reacquired		1,592,642
Accrued foreign taxes		457,610
Amount due custodian		2,267,448
Accrued fees to affiliates		1,458,640
Accrued trustees' and officers' fees and benefits		8,418
Accrued other operating expenses		130,566
Trustee deferred compensation and retirement plans		290,179
Total liabilities		30,817,685
Net assets applicable to shares outstanding	$	1,715,561,826
Net assets consist of:
Shares of beneficial interest	$	1,200,930,229
Undistributed net investment income		31,426,236
Undistributed net realized gain		49,938,930
Net unrealized appreciation		433,266,431
	$	1,715,561,826
Net Assets:
Series I	$	547,188,850
Series II	$	1,168,372,976
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		14,557,785
Series II		31,567,298
Series I:
Net asset value per share	$	37.59
Series II:
Net asset value per share	$	37.01

Investment income:
Dividends (net of foreign withholding taxes of $3,077,397)	$	31,429,040
Dividends from affiliated money market funds		794,560
Total investment income		32,223,600
Expenses:
Advisory fees		6,846,378
Administrative services fees		1,652,560
Custodian fees		354,945
Distribution fees — Series II		1,677,585
Transfer agent fees		41,948
Trustees' and officers' fees and benefits		23,777
Reports to shareholders		4,143
Professional services fees		33,167
Other		14,698
Total expenses		10,649,201
Less: Fees waived		(69,048	)
Net expenses		10,580,153
Net investment income		21,643,447
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (net of foreign taxes of $394,434)		54,492,282
Foreign currencies		(1,308,101	)
		53,184,181
Change in net unrealized appreciation (depreciation) of:
Investment securities (net of foreign taxes of $984,991)		(184,952,263	)
Foreign currencies		(716,365	)
		(185,668,628	)
Net realized and unrealized gain (loss)		(132,484,447	)
Net increase (decrease) in net assets resulting from operations	$	(110,841,000	)

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, 2018 and the year ended December 31, 2017

(Unaudited)

	June 30, 2018			December 31, 2017
Operations:
Net investment income	$	21,643,447		$	22,677,714
Net realized gain		53,184,181			63,556,696
Change in net unrealized appreciation (depreciation)		(185,668,628	)		307,045,299
Net increase (decrease) in net assets resulting from operations		(110,841,000	)		393,279,709
Distributions to shareholders from net investment income:
Series I		—			(8,599,101	)
Series ll		—			(17,155,517	)
Total distributions from net investment income		—			(25,754,618	)
Share transactions–net:
Series l		(46,815,000	)		(25,091,564	)
Series ll		(203,399,862	)		25,903,929
Net increase (decrease) in net assets resulting from share transactions		(250,214,862	)		812,365
Net increase (decrease) in net assets		(361,055,862	)		368,337,456
Net assets:
Beginning of period		2,076,617,688			1,708,280,232
End of period (includes undistributed net investment income of $31,426,236 and $9,782,789, respectively)	$	1,715,561,826		$	2,076,617,688

Notes to Financial Statements

June 30, 2018

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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

Invesco V.I. International Growth 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. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities' (including foreign exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the NYSE. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that the investment adviser determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees.

Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities' prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

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

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

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

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

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

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

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

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

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

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid 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.

Invesco V.I. International Growth Fund

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 accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund's average daily net assets as follows:

Average Daily Net Assets	Rate
First $250 million		0.75%
Over $250 million		0.70%

For the six months ended June 30, 2018, 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 Capital Management LLC, formerly Invesco PowerShares Capital Management LLC, and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the

Invesco V.I. International Growth Fund

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, 2019, 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, 2019. 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, 2020, 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, 2018, the Adviser waived advisory fees of $69,048.

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, 2018, Invesco was paid $202,859 for accounting and fund administrative services and was reimbursed $1,449,701 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, 2018, 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. The fees are accrued daily and paid monthly. 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, 2018, 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, 2018. 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.

The Fund's policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period.

Invesco V.I. International Growth Fund

During the six months ended June 30, 2018, there were transfers from Level 1 to Level 2 of $241,990,660 and from Level 2 to Level 1 of $260,495,348, due to foreign fair value adjustments.

	Level 1		Level 2		Level 3		Total
Investments in Securities
Australia	$	—	$	78,812,029	$	—	$	78,812,029
Brazil		56,532,711		—		—		56,532,711
Canada		165,905,621		—		—		165,905,621
China		21,891,870		64,424,220		—		86,316,090
Denmark		28,526,264		—		—		28,526,264
France		19,529,151		110,980,519		—		130,509,670
Germany		163,606,187		—		—		163,606,187
Hong Kong		—		58,136,126		—		58,136,126
Italy		—		42,128,404		—		42,128,404
Japan		59,542,469		58,771,520		—		118,313,989
Mexico		40,458,022		—		—		40,458,022
Netherlands		—		53,833,706		—		53,833,706
Singapore		—		29,718,253		—		29,718,253
South Korea		—		62,859,216		—		62,859,216
Spain		—		24,821,891		—		24,821,891
Sweden		—		44,359,979		—		44,359,979
Switzerland		—		119,973,621		—		119,973,621
Taiwan		38,484,189		—		—		38,484,189
Thailand		—		14,389,081		—		14,389,081
Turkey		—		15,299,078		—		15,299,078
United Kingdom		143,894,605		69,981,295		—		213,875,900
United States		68,477,461		—		—		68,477,461
Money Market Funds		61,964,941		—		—		61,964,941
Total Investments	$	868,813,491	$	848,488,938	$	—	$	1,717,302,429

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, 2017.

Invesco V.I. International Growth Fund

NOTE 7—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2018 was $355,119,708 and $502,530,997, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	454,475,232
Aggregate unrealized (depreciation) of investments		(56,914,963	)
Net unrealized appreciation of investments	$	397,560,269

Cost of investments for tax purposes is $1,319,742,160.

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended June 30, 2018(a)						Year ended December 31, 2017
	Shares			Amount			Shares			Amount
Sold:
Series I		1,071,700		$	42,383,448			2,055,141		$	75,392,382
Series II		1,862,447			72,492,539			5,918,465			210,230,623
Issued as reinvestment of dividends:
Series I		—			—			220,254			8,521,626
Series II		—			—			449,451	��		17,155,517
Reacquired:
Series I		(2,254,273	)		(89,198,448	)		(2,968,744	)		(109,005,572	)
Series II		(7,131,194	)		(275,892,401	)		(5,526,752	)		(201,482,211	)
Net increase (decrease) in share activity		(6,451,320	)	$	(250,214,862	)		147,815		$	812,365

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 35% of the outstanding shares of the Fund. 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			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 06/30/18	$	39.89	$	0.47	$	(2.77	)	$	(2.30	)	$	—		$	37.59		(5.77	)%	$	547,189		0.92	%(d)		0.93	%(d)		2.41	%(d)		19	%
Year ended 12/31/17		32.89		0.49		7.06			7.55			(0.55	)		39.89		23.00			627,894		0.92			0.93			1.34			34
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
Series II
Six months ended 06/30/18		39.33		0.42		(2.74	)		(2.32	)		—			37.01		(5.90	)		1,168,373		1.17	(d)		1.18	(d)		2.16	(d)		19
Year ended 12/31/17		32.44		0.40		6.96			7.36			(0.47	)		39.33		22.73			1,448,723		1.17			1.18			1.09			34
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

^(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 $601,272 and $1,353,190 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, 2018 through June 30, 2018.

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 (01/01/18)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/18)1		Expenses Paid During Period2		Ending Account Value (06/30/18)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,076.80	$	4.74	$	1,020.23	$	4.61		0.92	%
Series II		1,000.00		1,075.70		6.02		1,018.99		5.86		1.17

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2018 through June 30, 2018, 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

At meetings held on June 5-6, 2018, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. International Growth Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc., Invesco Canada Ltd. and separate Sub-Advisory Contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2018. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’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 detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider. 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 throughout the year, 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 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 6, 2018.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, 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, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also reviewed and considered the benefits to shareholders of investing in a fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by

Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries 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 investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2017 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 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 reasonably comparable to the performance of the Index for the one and five year periods, and below the performance of the Index for the three year period. The Board noted that not owning and selling certain names as a result of the valuation component of the Fund’s investment process, overweight and underweight exposure to certain regions, and the Fund’s cash position all detracted from Fund performance. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

Invesco V.I. International Growth Fund

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for 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 non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. 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 considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. 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 differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including management of cash flows as a result of redemptions and purchases, necessary infrastructure such as officers, office space, technology, legal and distribution, oversight of service providers, costs and business risks associated with launching new funds and sponsoring and maintaining the product line, preparation of annual registration statement updates and financial information and compliance with federal and state laws and regulations.

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 similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2017.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements.

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 considered the methodology used for calculating profitability and noted the periodic review of such methodology by an independent consultant. 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, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers 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 administrative, 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 Invesco representing 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 an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. International Growth Fund

	Semiannual Report to Shareholders	June 30, 2018
	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 semi-annual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The Fund’s Form N-Q (or any successor Form) filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q (or any successor Form) 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 (or any successor Form), 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            07132018       1243

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/17 to 6/30/18, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-1.99	%
Series II Shares	-2.09
Russell 1000 Value Index▼ (Broad Market Index)	-1.69
Bloomberg Barclays U.S. Government/Credit Index▼ (Style-Specific Index)	-1.90
Lipper VUF Mixed-Asset Target Allocation Growth Funds Index∎ (Peer Group Index)	0.26
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.

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 1.14% and 1.39%, 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.

Average Annual Total Returns As of 6/30/18
Series I Shares
Inception (12/30/94)	7.23	%
10 Years	4.88
5 Years	7.67
1 Year	4.18
Series II Shares
Inception (4/30/04)	8.78	%
10 Years	4.61
5 Years	7.42
1 Year	3.98

Invesco V.I. Managed Volatility Fund

Schedule of Investments^(a)

June 30, 2018

(Unaudited)

	Shares		Value
Common Stocks–61.83%
Aerospace & Defense–1.23%
General Dynamics Corp.		2,772	$	516,729
Asset Management & Custody Banks–1.54%
Northern Trust Corp.		2,780		286,034
State Street Corp.		3,889		362,027
				648,061
Automobile Manufacturers–1.62%
General Motors Co.		17,251		679,689
Biotechnology–1.13%
Amgen Inc.		1,483		273,747
Celgene Corp.(b)		2,542		201,886
				475,633
Building Products–0.52%
Johnson Controls International PLC		6,549		219,064
Cable & Satellite–1.28%
Charter Communications, Inc.–Class A(b)		1,096		321,358
Comcast Corp.–Class A		6,600		216,546
				537,904
Communications Equipment–1.64%
Cisco Systems, Inc.		11,295		486,024
Juniper Networks, Inc.		7,419		203,429
				689,453
Diversified Banks–8.80%
Bank of America Corp.		38,917		1,097,070
Citigroup Inc.		18,689		1,250,668
JPMorgan Chase & Co.		8,961		933,736
Wells Fargo & Co.		7,428		411,809
				3,693,283
Diversified Metals & Mining–0.52%
BHP Billiton Ltd. (Australia)		8,675		217,418
Drug Retail–0.74%
Walgreens Boots Alliance, Inc.		5,179		310,818
Electric Utilities–0.30%
FirstEnergy Corp.		3,507		125,936
Fertilizers & Agricultural Chemicals–1.04%
Mosaic Co. (The)		8,101		227,233
Nutrien Ltd. (Canada)		3,812		207,297
				434,530
Health Care Distributors–0.98%
McKesson Corp.		3,084		411,406

	Shares		Value
Health Care Equipment–2.12%
Baxter International Inc.		2,962	$	218,714
Medtronic PLC		4,175		357,422
Zimmer Biomet Holdings, Inc.		2,818		314,038
				890,174
Health Care Services–1.35%
CVS Health Corp.		8,790		565,637
Home Improvement Retail–0.90%
Kingfisher PLC (United Kingdom)		96,083		376,627
Hotels, Resorts & Cruise Lines–1.01%
Carnival Corp.		7,400		424,094
Industrial Machinery–0.71%
Ingersoll-Rand PLC		3,336		299,339
Insurance Brokers–1.65%
Aon PLC		2,153		295,327
Marsh & McLennan Cos., Inc.		2,003		164,186
Willis Towers Watson PLC		1,537		233,009
				692,522
Integrated Oil & Gas–4.04%
BP PLC (United Kingdom)		65,684		500,151
Occidental Petroleum Corp.		7,062		590,948
Royal Dutch Shell PLC–Class A (United Kingdom)		17,448		604,675
				1,695,774
Integrated Telecommunication Services–0.58%
Verizon Communications Inc.		4,865		244,758
Internet Software & Services–0.86%
eBay Inc.(b)		9,913		359,445
Investment Banking & Brokerage–2.37%
Charles Schwab Corp. (The)		500		25,550
Goldman Sachs Group, Inc. (The)		1,258		277,477
Morgan Stanley		14,543		689,338
				992,365
IT Consulting & Other Services–0.90%
Cognizant Technology Solutions Corp.–Class A		4,763		376,229
Managed Health Care–0.62%
Anthem, Inc.		1,089		259,215
Multi-Line Insurance–1.38%
American International Group, Inc.		10,913		578,607
Oil & Gas Equipment & Services–1.53%
Baker Hughes, a GE Co.		5,227		172,648
TechnipFMC PLC (United Kingdom)		14,837		470,926
				643,574

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

Invesco V.I. Managed Volatility Fund

	Shares		Value
Oil & Gas Exploration & Production–5.08%
Anadarko Petroleum Corp.		8,330	$	610,172
Apache Corp.		8,934		417,665
Canadian Natural Resources Ltd. (Canada)		11,527		416,031
Devon Energy Corp.		15,662		688,502
				2,132,370
Other Diversified Financial Services–1.10%
AXA Equitable Holdings, Inc.(b)		9,156		188,705
Voya Financial, Inc.		5,772		271,284
				459,989
Packaged Foods & Meats–1.00%
Mondelez International, Inc.–Class A		10,203		418,323
Pharmaceuticals–3.74%
Bristol-Myers Squibb Co.		4,738		262,201
Merck & Co., Inc.		6,432		390,423
Novartis AG (Switzerland)		4,614		349,485
Pfizer Inc.		9,092		329,858
Sanofi (France)		2,947		235,953
				1,567,920
Railroads–0.95%
CSX Corp.		6,238		397,860
Regional Banks–3.57%
Citizens Financial Group, Inc.		15,312		595,637
Fifth Third Bancorp		11,510		330,337
First Horizon National Corp.		10,197		181,914
PNC Financial Services Group, Inc. (The)		2,897		391,385
				1,499,273
Semiconductors–1.84%
Intel Corp.		6,806		338,326
QUALCOMM Inc.		7,750		434,930
				773,256
Systems Software–1.75%
Oracle Corp.		14,291		629,661
Symantec Corp.		5,012		103,498
				733,159
Tobacco–1.44%
Philip Morris International Inc.		7,458		602,159
Total Common Stocks (Cost $21,099,412)				25,942,593
	Principal Amount
Bonds & Notes–23.87%
Air Freight & Logistics–0.01%
United Parcel Service, Inc., Sr. Unsec. Notes, 3.40%, 11/15/2046	$	4,000		3,531

	Principal Amount		Value
Airlines–0.17%
American Airlines Pass Through Trust, Series 2014-1, Class A, Sr. Sec. First Lien Pass Through Ctfs., 3.70%, 04/01/2028	$	20,100	$	19,673
United Airlines Pass Through Trust,
Series 2014-2, Class A, Sr. Sec. First Lien Pass Through Ctfs.,
3.75%, 09/03/2026		25,719		25,600
Series 2018-1, Class AA, Sr. Sec. First Lien Pass Through Ctfs.,
3.50%, 09/01/2031		17,000		16,535
Virgin Australia Pass Through Trust (Australia), Series 2013-1, Class A, Sec. Gtd. Pass Through Ctfs., 5.00%, 04/23/2025(c)		7,608		7,744
				69,552
Application Software–1.06%
Citrix Systems, Inc., Sr. Unsec. Conv. Notes, 0.50%, 04/15/2019		117,000		170,176
Nuance Communications, Inc.,
Sr. Unsec. Conv. Bonds,
1.00%, 12/15/2022(d)		127,000		114,300
Sr. Unsec. Conv. Global Bonds,
1.25%, 04/01/2025		49,000		46,310
RealPage, Inc., Sr. Unsec. Conv. Bonds, 1.50%, 11/15/2022		24,000		34,127
Workday, Inc., Sr. Unsec. Conv. Notes, 0.25%, 10/01/2022(c)		75,000		78,921
				443,834
Asset Management & Custody Banks–0.77%
Apollo Management Holdings L.P., Sr. Unsec. Gtd. Notes, 4.00%, 05/30/2024(c)		40,000		39,766
Blackstone Holdings Finance Co. LLC, Sr. Unsec. Gtd. Notes, 5.00%, 06/15/2044(c)		150,000		158,494
Brookfield Asset Management Inc. (Canada), Sr. Unsec. Notes, 4.00%, 01/15/2025		25,000		24,743
Carlyle Holdings Finance LLC, Sr. Unsec. Gtd. Notes, 3.88%, 02/01/2023(c)		15,000		14,981
KKR Group Finance Co. III LLC, Sr. Unsec. Gtd. Bonds, 5.13%, 06/01/2044(c)		85,000		84,129
				322,113
Automobile Manufacturers–0.56%
Ford Motor Credit Co. LLC, Sr. Unsec. Global Notes, 4.13%, 08/04/2025		200,000		195,274
General Motors Co., Sr. Unsec. Global Notes, 6.60%, 04/01/2036		16,000		17,353
General Motors Financial Co., Inc., Sr. Unsec. Gtd. Global Notes, 5.25%, 03/01/2026		21,000		21,794
				234,421
Biotechnology–0.92%
AbbVie Inc., Sr. Unsec. Global Notes, 4.50%, 05/14/2035		38,000		37,348

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

Invesco V.I. Managed Volatility Fund

	Principal Amount		Value
Biotechnology–(continued)
BioMarin Pharmaceutical Inc., Sr. Unsec. Sub. Conv. Notes, 1.50%, 10/15/2020	$	117,000	$	139,186
Celgene Corp., Sr. Unsec. Global Notes, 4.63%, 05/15/2044		100,000		93,091
Gilead Sciences, Inc., Sr. Unsec. Global Notes, 4.40%, 12/01/2021		25,000		25,858
Neurocrine Biosciences, Inc., Sr. Unsec. Conv. Notes, 2.25%, 05/15/2024		62,000		89,636
				385,119
Brewers–0.50%
Anheuser-Busch InBev Finance, Inc. (Belgium),
Sr. Unsec. Gtd. Global Notes,
2.65%, 02/01/2021		30,000		29,598
3.30%, 02/01/2023		25,000		24,809
4.70%, 02/01/2036		45,000		45,713
4.90%, 02/01/2046		47,000		48,506
Heineken NV (Netherlands), Sr. Unsec. Notes, 3.50%, 01/29/2028(c)		35,000		33,736
Molson Coors Brewing Co., Sr. Unsec. Gtd. Global Notes,
1.45%, 07/15/2019		13,000		12,798
4.20%, 07/15/2046		16,000		14,410
				209,570
Broadcasting–1.01%
Liberty Media Corp.,
Sr. Unsec. Conv. Deb.,
2.25%, 10/05/2021(d)		55,000		29,025
Sr. Unsec. Conv. Notes,
1.38%, 10/15/2023		299,000		372,694
Liberty Formula One,
Sr. Unsec. Conv. Bonds,
1.00%, 01/30/2023		20,000		23,441
				425,160
Cable & Satellite–0.72%
Charter Communications Operating, LLC/Charter Communications Operating Capital Corp., Sr. Sec. Gtd. First Lien Global Notes, 4.46%, 07/23/2022		60,000		60,722
Comcast Corp., Sr. Unsec. Gtd. Global Notes, 3.90%, 03/01/2038		10,000		9,122
DISH Network Corp., Sr. Unsec. Conv. Bonds, 3.38%, 08/15/2026		147,000		142,751
GCI Liberty, Inc., Sr. Unsec. Conv. Deb., 1.75%, 10/05/2023(c)(d)		85,000		87,885
				300,480
Communications Equipment–0.91%
Ciena Corp., Sr. Unsec. Conv. Bonds, 4.00%, 12/15/2020		75,000		106,002
Finisar Corp., Sr. Unsec. Conv. Bonds, 0.50%, 12/15/2021(d)		39,000		35,496

	Principal Amount		Value
Communications Equipment–(continued)
Viavi Solutions Inc.,
Sr. Unsec. Conv. Deb.,
0.63%, 08/15/2018(d)	$	98,000	$	98,951
Sr. Unsec. Conv. Notes,
1.75%, 06/01/2023(c)		71,000		73,221
1.00%, 03/01/2024		68,000		68,799
				382,469
Consumer Finance–0.10%
American Express Co., Unsec. Sub. Global Notes, 3.63%, 12/05/2024		18,000		17,746
Capital One Financial Corp., Sr. Unsec. Global Notes, 3.20%, 01/30/2023		15,000		14,577
Synchrony Financial, Sr. Unsec. Global Notes, 3.95%, 12/01/2027		10,000		9,239
				41,562
Data Processing & Outsourced Services–0.07%
Visa Inc., Sr. Unsec. Global Notes, 4.15%, 12/14/2035		30,000		31,123
Diversified Banks–1.88%
Bank of America Corp.,
Sr. Unsec. Medium-Term Global Notes,
3.50%, 04/19/2026		25,000		24,198
Sr. Unsec. Medium-Term Notes,
3.25%, 10/21/2027		10,000		9,327
Bank of Nova Scotia (The) (Canada), Sr. Unsec. Global Notes, 2.05%, 10/30/2018		15,000		14,975
Citigroup Inc.,
Sr. Unsec. Global Notes,
3.67%, 07/24/2028		15,000		14,277
Unsec. Sub. Notes,
4.00%, 08/05/2024		60,000		59,045
4.75%, 05/18/2046		15,000		14,306
Commonwealth Bank of Australia (Australia), Sr. Unsec. Notes, 2.25%, 03/10/2020(c)		40,000		39,436
Coöperatieve Rabobank U.A. (Netherlands), Jr. Unsec. Sub. Notes, 11.00%(c)(e)		75,000		80,625
JPMorgan Chase & Co.,
Sr. Unsec. Global Notes,
3.20%, 06/15/2026		15,000		14,194
3.51%, 01/23/2029		15,000		14,242
4.26%, 02/22/2048		10,000		9,428
3.90%, 01/23/2049		15,000		13,490
Series V, Jr. Unsec. Sub. Global Notes,
5.00%(e)		150,000		150,937
Royal Bank of Canada (Canada), Sr. Unsec. Global Notes, 2.00%, 12/10/2018		105,000		104,769
U.S. Bancorp, Series W, Unsec. Sub. Medium-Term Notes, 3.10%, 04/27/2026		10,000		9,438
Wells Fargo & Co.,
Sr. Unsec. Medium-Term Notes,
3.55%, 09/29/2025		30,000		29,099
Unsec. Sub. Medium-Term Notes,
4.10%, 06/03/2026		95,000		93,153
4.65%, 11/04/2044		100,000		95,402
				790,341

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 Capital Markets–0.62%
Credit Suisse AG (Switzerland), Sr. Unsec. Conv. Medium-Term Notes, 0.50%, 06/24/2024(c)	$	260,000	$	259,818
Diversified Chemicals–0.10%
Eastman Chemical Co., Sr. Unsec. Global Notes, 2.70%, 01/15/2020		43,000		42,757
Drug Retail–0.13%
Walgreens Boots Alliance Inc., Sr. Unsec. Global Notes,
3.30%, 11/18/2021		32,000		31,825
4.50%, 11/18/2034		24,000		22,730
				54,555
Electric Utilities–0.13%
NextEra Energy Capital Holdings Inc., Sr. Unsec. Gtd. Deb., 3.55%, 05/01/2027		11,000		10,589
Southern Electric Generating Co., Sr. Unsec. Gtd. Notes, 2.20%, 12/01/2018(c)		45,000		44,896
				55,485
Environmental & Facilities Services–0.06%
Waste Management, Inc., Sr. Unsec. Gtd. Global Notes, 3.90%, 03/01/2035		25,000		24,373
Fertilizers & Agricultural Chemicals–0.04%
Monsanto Co., Sr. Unsec. Global Notes, 2.13%, 07/15/2019		15,000		14,868
Food Retail–0.00%
Alimentation Couche-Tard Inc. (Canada), Sr. Unsec. Gtd. Notes, 4.50%, 07/26/2047(c)		2,000		1,893
General Merchandise Stores–0.05%
Dollar General Corp., Sr. Unsec. Global Notes, 3.25%, 04/15/2023		20,000		19,668
Health Care Equipment–1.50%
Becton, Dickinson and Co.,
Sr. Unsec. Global Notes,
4.88%, 05/15/2044		170,000		167,339
Sr. Unsec. Notes,
2.68%, 12/15/2019		15,000		14,892
DexCom, Inc., Sr. Unsec. Conv. Notes, 0.75%, 05/15/2022(c)		88,000		102,262
Insulet Corp., Sr. Unsec. Conv. Notes, 1.38%, 11/15/2024(c)		13,000		14,635
Medtronic, Inc., Sr. Unsec. Gtd. Global Notes,
3.15%, 03/15/2022		58,000		57,550
4.38%, 03/15/2035		20,000		20,708
NuVasive, Inc., Sr. Unsec. Conv. Notes, 2.25%, 03/15/2021		80,000		86,887
Wright Medical Group N.V.,
Sr. Unsec. Conv. Bonds,
2.25%, 11/15/2021		39,000		52,106

	Principal Amount		Value
Health Care Equipment–(continued)
Wright Medical Group, Inc.,
Sr. Unsec. Gtd. Conv. Notes,
1.63%, 06/15/2023(c)	$	113,000	$	112,661
				629,040
Health Care REITs–0.06%
HCP, Inc., Sr. Unsec. Global Notes, 3.88%, 08/15/2024		25,000		24,472
Health Care Services–0.68%
Convertible Trust — Healthcare, Series 2018-1, Sr. Unsec. Medium-Term Notes, 0.25%, 02/05/2024		168,000		166,842
CVS Health Corp.,
Sr. Unsec. Global Bonds,
3.38%, 08/12/2024		20,000		19,325
Sr. Unsec. Global Notes,
4.10%, 03/25/2025		16,000		15,935
Express Scripts Holding Co., Sr. Unsec. Gtd. Global Notes, 2.25%, 06/15/2019		30,000		29,790
Laboratory Corp. of America Holdings,
Sr. Unsec. Notes,
3.20%, 02/01/2022		33,000		32,664
4.70%, 02/01/2045		22,000		21,588
				286,144
Home Improvement Retail–0.06%
Home Depot, Inc. (The), Sr. Unsec. Global Notes, 2.00%, 04/01/2021		27,000		26,344
Hotel & Resort REITs–0.02%
Hospitality Properties Trust, Sr. Unsec. Notes, 4.50%, 06/15/2023		10,000		10,054
Insurance Brokers–0.01%
Willis North America, Inc., Sr. Unsec. Gtd. Global Notes, 3.60%, 05/15/2024		5,000		4,836
Integrated Oil & Gas–0.08%
Occidental Petroleum Corp., Sr. Unsec. Global Notes, 3.40%, 04/15/2026		15,000		14,653
Suncor Energy Inc. (Canada), Sr. Unsec. Notes, 3.60%, 12/01/2024		18,000		17,797
				32,450
Integrated Telecommunication Services–1.41%
AT&T Inc., Sr. Unsec. Global Notes,
3.00%, 06/30/2022		28,000		27,168
3.40%, 05/15/2025		15,000		14,128
4.50%, 05/15/2035		25,000		23,176
5.15%, 03/15/2042		150,000		142,458
4.80%, 06/15/2044		40,000		36,397
Orange S.A. (France), Sr. Unsec. Global Notes, 1.63%, 11/03/2019		55,000		53,995
Telefónica Emisiones, S.A.U. (Spain), Sr. Unsec. Gtd. Global Notes, 7.05%, 06/20/2036		150,000		180,696

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)
Verizon Communications Inc., Sr. Unsec. Global Notes, 4.40%, 11/01/2034	$	120,000	$	112,168
				590,186
Internet & Direct Marketing Retail–0.54%
Amazon.com, Inc., Sr. Unsec. Global Notes, 4.80%, 12/05/2034		9,000		9,890
Ctrip.com International, Ltd. (China), Sr. Unsec. Conv. Bonds, 1.25%, 09/15/2019(d)		113,000		116,251
Liberty Expedia Holdings, Inc., Sr. Unsec. Conv. Deb., 1.00%, 07/05/2022(c)(d)		53,000		52,472
QVC, Inc., Sr. Sec. Gtd. First Lien Global Notes, 5.45%, 08/15/2034		50,000		46,279
				224,892
Investment Banking & Brokerage–1.02%
Goldman Sachs Group, Inc. (The),
Sr. Unsec. Global Notes,
4.02%, 10/31/2038		10,000		9,123
Unsec. Sub. Notes,
4.25%, 10/21/2025		27,000		26,620
GS Finance Corp., Series 0001, Sr. Unsec. Conv. Medium-Term Notes, 0.25%, 07/08/2024		198,000		183,465
Morgan Stanley, Sr. Unsec. Medium-Term Global Notes,
2.38%, 07/23/2019		175,000		174,026
4.00%, 07/23/2025		35,000		34,915
				428,149
Life & Health Insurance–0.75%
Athene Global Funding, Sec. Notes,
2.88%, 10/23/2018(c)		31,000		30,996
4.00%, 01/25/2022(c)		45,000		45,333
Jackson National Life Global Funding,
Sr. Sec. Notes,
2.10%, 10/25/2021(c)		10,000		9,582
3.25%, 01/30/2024(c)		15,000		14,711
Nationwide Financial Services Inc., Sr. Unsec. Notes, 5.30%, 11/18/2044(c)		50,000		53,548
Reliance Standard Life Global Funding II,
Sr. Sec. First Lien Notes,
2.15%, 10/15/2018(c)		125,000		124,819
3.05%, 01/20/2021(c)		20,000		19,774
Teachers Insurance and Annuity Association of America, Unsec. Sub. Notes, 4.27%, 05/15/2047(c)		17,000		16,284
				315,047
Movies & Entertainment–0.15%
Live Nation Entertainment, Inc., Sr. Unsec. Conv. Notes, 2.50%, 03/15/2023(c)		62,000		64,351
Multi-Line Insurance–0.18%
American Financial Group, Inc., Sr. Unsec. Notes, 4.50%, 06/15/2047		20,000		18,963

	Principal Amount		Value
Multi-Line Insurance–(continued)
American International Group, Inc.,
Sr. Unsec. Global Notes,
2.30%, 07/16/2019	$	20,000	$	19,884
4.38%, 01/15/2055		40,000		34,685
				73,532
Multi-Utilities–0.04%
NiSource Inc., Sr. Unsec. Global Notes, 4.38%, 05/15/2047		9,000		8,769
Sempra Energy, Sr. Unsec. Global Notes, 3.80%, 02/01/2038		8,000		7,283
				16,052
Office REITs–0.41%
Government Properties Income Trust, Sr. Unsec. Global Notes, 4.00%, 07/15/2022		25,000		24,720
Highwoods Realty L.P., Sr. Unsec. Notes, 3.20%, 06/15/2021		150,000		147,968
				172,688
Oil & Gas Equipment & Services–0.72%
Ensco Jersey Finance Ltd., Sr. Unsec. Gtd. Conv. Bonds, 3.00%, 01/31/2024		73,000		67,973
Helix Energy Solutions Group, Inc., Sr. Unsec. Conv. Notes, 4.25%, 05/01/2022		40,000		41,855
Nabors Industries Inc., Sr. Unsec. Gtd. Conv. Bonds, 0.75%, 01/15/2024		40,000		31,571
Oil States International, Inc., Sr. Unsec. Conv. Notes, 1.50%, 02/15/2023(c)		46,000		48,085
Weatherford International Ltd., Sr. Unsec. Gtd. Conv. Notes, 5.88%, 07/01/2021		114,000		112,476
				301,960
Oil & Gas Exploration & Production–0.17%
Anadarko Petroleum Corp., Sr. Unsec. Notes, 6.60%, 03/15/2046		18,000		21,693
Chesapeake Energy Corp., Sr. Unsec. Gtd. Conv. Bonds, 5.50%, 09/15/2026		37,000		37,695
ConocoPhillips Co., Sr. Unsec. Gtd. Global Notes, 4.15%, 11/15/2034		13,000		13,023
				72,411
Oil & Gas Storage & Transportation–0.89%
Enable Midstream Partners, LP, Sr. Unsec. Global Notes, 2.40%, 05/15/2019		200,000		198,781
Energy Transfer Partners, L.P., Sr. Unsec. Gtd. Notes,
4.20%, 09/15/2023		2,000		1,999
4.90%, 03/15/2035		19,000		17,419
Enterprise Products Operating LLC,
Sr. Unsec. Gtd. Global Notes,
4.25%, 02/15/2048		10,000		9,334
Sr. Unsec. Gtd. Notes,
2.55%, 10/15/2019		20,000		19,871
Kinder Morgan Inc., Sr. Unsec. Gtd. Notes, 5.30%, 12/01/2034		23,000		22,709

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)
MPLX LP, Sr. Unsec. Global Bonds,
4.50%, 07/15/2023	$	65,000	$	66,424
Sr. Unsec. Global Notes,
5.50%, 02/15/2023		25,000		25,504
4.50%, 04/15/2038		11,000		10,186
				372,227
Other Diversified Financial Services–0.12%
ERAC USA Finance LLC, Sr. Unsec. Gtd. Notes, 2.35%, 10/15/2019(c)		50,000		49,453
Packaged Foods & Meats–0.11%
General Mills, Inc., Sr. Unsec. Global Notes, 2.20%, 10/21/2019		45,000		44,486
Mead Johnson Nutrition Co. (United Kingdom), Sr. Unsec. Gtd. Global Notes, 4.13%, 11/15/2025		3,000		3,058
				47,544
Pharmaceuticals–1.26%
Allergan Funding SCS, Sr. Unsec. Gtd. Global Notes, 4.85%, 06/15/2044		150,000		145,065
Bayer US Finance LLC (Germany), Sr. Unsec. Gtd. Notes, 3.00%, 10/08/2021(c)		200,000		196,882
Jazz Investments I Ltd., Sr. Unsec. Gtd. Conv. Bonds, 1.88%, 08/15/2021		76,000		82,904
Medicines Co. (The), Sr. Unsec. Conv. Bonds, 2.75%, 07/15/2023		37,000		37,388
Mylan N.V., Sr. Unsec. Gtd. Global Notes, 3.15%, 06/15/2021		17,000		16,819
Pacira Pharmaceuticals, Inc., Sr. Unsec. Conv. Notes, 2.38%, 04/01/2022		26,000		24,228
Supernus Pharmaceuticals, Inc., Sr. Unsec. Conv. Notes, 0.63%, 04/01/2023(c)		22,000		26,921
				530,207
Property & Casualty Insurance–0.30%
Allstate Corp. (The), Sr. Unsec. Bonds, 3.28%, 12/15/2026		10,000		9,621
Liberty Mutual Group Inc., Sr. Unsec. Gtd. Bonds, 4.85%, 08/01/2044(c)		115,000		115,633
				125,254
Railroads–0.06%
Union Pacific Corp., Sr. Unsec. Notes, 4.15%, 01/15/2045		25,000		24,123
Regional Banks–0.03%
Citizens Financial Group, Inc., Sr. Unsec. Global Notes, 2.38%, 07/28/2021		15,000		14,513
Renewable Electricity–0.36%
Oglethorpe Power Corp., Sr. Sec. First Mortgage Bonds, 4.55%, 06/01/2044		150,000		149,873
Semiconductors–1.05%
Broadcom Corp./Broadcom Cayman Finance Ltd., Sr. Unsec. Gtd. Global Notes, 3.63%, 01/15/2024		50,000		48,442
Microchip Technology Inc., Sr. Unsec. Sub. Conv. Notes, 1.63%, 02/15/2027		74,000		86,368

	Principal Amount		Value
Semiconductors–(continued)
Micron Technology, Inc., Series G, Sr. Unsec. Conv. Global Bonds, 3.00%, 11/15/2028(d)	$	98,000	$	176,729
ON Semiconductor Corp., Sr. Unsec. Gtd. Conv. Bonds, 1.00%, 12/01/2020		76,000		100,174
Silicon Laboratories Inc., Sr. Unsec. Conv. Bonds, 1.38%, 03/01/2022		21,000		25,711
Texas Instruments Inc., Sr. Unsec. Notes, 2.63%, 05/15/2024		5,000		4,789
				442,213
Specialized Finance–0.43%
Air Lease Corp., Sr. Unsec. Global Notes,
2.63%, 09/04/2018		45,000		44,984
3.00%, 09/15/2023		24,000		22,746
4.25%, 09/15/2024		35,000		34,782
Aviation Capital Group LLC,
Sr. Unsec. Notes,
2.88%, 09/17/2018(c)		35,000		35,008
4.88%, 10/01/2025(c)		40,000		41,605
				179,125
Specialized REITs–0.47%
Crown Castle International Corp., Sr. Unsec. Global Bonds, 3.80%, 02/15/2028		15,000		14,057
Crown Castle Towers LLC, Sr. Sec. Gtd. First Lien Notes, 4.88%, 08/15/2020(c)		178,000		182,649
				196,706
Specialty Chemicals–0.01%
Sherwin-Williams Co. (The), Sr. Unsec. Global Notes, 4.50%, 06/01/2047		3,000		2,872
Systems Software–0.43%
FireEye, Inc.,
Series A, Sr. Unsec. Conv. Bonds,
1.00%, 06/01/2020(d)		76,000		72,770
Series B, Sr. Unsec. Conv. Bonds,
1.63%, 06/01/2022(d)		77,000		70,717
Microsoft Corp., Sr. Unsec. Global Notes, 3.50%, 02/12/2035		37,000		35,897
				179,384
Technology Distributors–0.07%
Avnet, Inc., Sr. Unsec. Global Notes, 4.63%, 04/15/2026		30,000		29,600
Technology Hardware, Storage & Peripherals–0.64%
Apple Inc., Sr. Unsec. Global Notes,
2.15%, 02/09/2022		39,000		37,799
3.35%, 02/09/2027		10,000		9,772
Dell International LLC/ EMC Corp., Sr. Sec. Gtd. First Lien Notes, 5.45%, 06/15/2023(c)		26,000		27,220
SanDisk Corp., Sr. Unsec. Gtd. Conv. Bonds, 0.50%, 10/15/2020		140,000		132,719

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 Hardware, Storage & Peripherals–(continued)
Western Digital Corp., Sr. Unsec. Gtd. Conv. Notes, 1.50%, 02/01/2024(c)	$	61,000	$	61,825
				269,335
Wireless Telecommunication Services–0.03%
Rogers Communications Inc. (Canada), Sr. Unsec. Gtd. Global Notes, 4.30%, 02/15/2048		15,000		14,359
Total Bonds & Notes (Cost $9,819,829)				10,012,088
U.S. Treasury Securities–8.67%
U.S. Treasury Notes–7.82%
1.25%, 01/31/2019		710,000		706,103
2.50%, 05/31/2020		2,128,000		2,127,127
2.63%, 06/15/2021		290,000		290,040
2.75%, 05/31/2023		24,200		24,224
2.88%, 05/31/2025		39,300		39,448
2.88%, 05/15/2028		94,100		94,260
				3,281,202
U.S. Treasury Bonds–0.85%
4.50%, 02/15/2036		75,000		91,666
3.00%, 02/15/2048		265,200		265,873
				357,539
Total U.S. Treasury Securities (Cost $3,641,188)				3,638,741

	Shares		Value
Preferred Stocks–0.24%
Asset Management & Custody Banks–0.24%
AMG Capital Trust II, $2.58 Conv. Pfd. (Cost $106,269)		1,700	$	101,628
Money Market Funds–5.35%
Invesco Government & Agency Portfolio–Institutional Class, 1.80%(f)		785,972		785,972
Invesco Liquid Assets Portfolio–Institutional Class, 2.02%(f)		561,295		561,463
Invesco Treasury Portfolio–Institutional Class, 1.76%(f)		898,253		898,253
Total Money Market Funds (Cost $2,245,517)				2,245,688
TOTAL INVESTMENTS IN SECURITIES–99.96% (Cost $36,912,215)				41,940,738
OTHER ASSETS LESS LIABILITIES–0.04%				16,961
NET ASSETS–100.00%			$	41,957,699

Investment Abbreviations:

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, 2018 was $2,452,254, which represented 5.84% 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, 2018.

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, 2018

Financials	26.5	%
Health Care	14.3
Energy	12.5
Information Technology	11.2
U.S. Treasury Securities	8.7
Consumer Discretionary	7.9
Industrials	4.1
Consumer Staples	3.9
Telecommunication Services	2.0
Materials	1.7
Real Estate	1.0
Utilities	0.8
Money Market Funds Plus Other Assets Less Liabilities	5.4

Open Forward Foreign Currency Contracts
Settlement Date		Contract to						Unrealized Appreciation (Depreciation)
	Counterparty	Deliver			Receive
07/13/2018	Bank of New York Mellon (The)		AUD	108,361		USD	82,472	$	2,257
07/13/2018	Bank of New York Mellon (The)		CAD	192,660		USD	148,327		1,744
07/13/2018	Bank of New York Mellon (The)		CHF	126,701		USD	128,905		809
07/13/2018	Bank of New York Mellon (The)		EUR	74,650		USD	87,495		234
07/13/2018	Bank of New York Mellon (The)		GBP	476,246		USD	637,525		8,575
07/13/2018	State Street Bank and Trust Co.		AUD	108,361		USD	82,570		2,354
07/13/2018	State Street Bank and Trust Co.		CAD	192,660		USD	148,383		1,800
07/13/2018	State Street Bank and Trust Co.		CHF	126,701		USD	129,107		1,011
07/13/2018	State Street Bank and Trust Co.		EUR	74,650		USD	87,698		438
07/13/2018	State Street Bank and Trust Co.		GBP	476,246		USD	638,403		9,452
Subtotal — Appreciation									28,674
07/13/2018	State Street Bank and Trust Co.		AUD	2,661		USD	1,964		(6	)
07/13/2018	State Street Bank and Trust Co.		CAD	4,793		USD	3,613		(34	)
07/13/2018	State Street Bank and Trust Co.		CHF	12,078		USD	12,133		(78	)
07/13/2018	State Street Bank and Trust Co.		EUR	1,828		USD	2,131		(6	)
07/13/2018	State Street Bank and Trust Co.		GBP	10,224		USD	13,448		(54	)
07/13/2018	State Street Bank and Trust Co.		USD	4,970		AUD	6,495		(162	)
07/13/2018	State Street Bank and Trust Co.		USD	8,533		CAD	11,042		(132	)
07/13/2018	State Street Bank and Trust Co.		USD	7,330		CHF	7,209		(41	)
07/13/2018	State Street Bank and Trust Co.		USD	4,986		EUR	4,226		(46	)
07/13/2018	State Street Bank and Trust Co.		USD	33,288		GBP	24,795		(542	)
Subtotal — Depreciation									(1,101	)
Total Forward Foreign Currency Contracts — Currency Risk								$	27,573

Abbreviations:

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

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, 2018

(Unaudited)

Statement of Operations

For the six months ended June 30, 2018

(Unaudited)

Assets:
Investments in securities, at value (Cost $34,666,698)	$	39,695,050
Investments in affiliated money market funds, at value (Cost $2,245,517)		2,245,688
Other investments:
Unrealized appreciation on forward foreign currency contracts outstanding		28,674
Foreign currencies, at value (Cost $54,343)		54,084
Receivable for:
Investments sold		230,150
Fund shares sold		48,284
Dividends and interest		140,025
Investment for trustee deferred compensation and retirement plans		69,879
Other assets		6,682
Total assets		42,518,516
Liabilities:
Other investments:
Unrealized depreciation on forward foreign currency contracts outstanding		1,101
Payable for:
Investments purchased		379,710
Fund shares reacquired		44,880
Accrued fees to affiliates		18,802
Accrued trustees’ and officers’ fees and benefits		4,194
Accrued other operating expenses		37,834
Trustee deferred compensation and retirement plans		74,296
Total liabilities		560,817
Net assets applicable to shares outstanding	$	41,957,699
Net assets consist of:
Shares of beneficial interest	$	34,187,681
Undistributed net investment income		841,038
Undistributed net realized gain		1,873,652
Net unrealized appreciation		5,055,328
	$	41,957,699
Net Assets:
Series I	$	40,613,271
Series II	$	1,344,428
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		3,172,929
Series II		106,334
Series I:
Net asset value per share	$	12.80
Series II:
Net asset value per share	$	12.64

Investment income:
Dividends (net of foreign withholding taxes of $6,198)	$	334,146
Dividends from affiliated money market funds		17,536
Interest		183,245
Total investment income		534,927
Expenses:
Advisory fees		131,900
Administrative services fees		57,759
Custodian fees		16,498
Distribution fees — Series II		1,762
Transfer agent fees		10,479
Trustees’ and officers’ fees and benefits		11,221
Reports to shareholders		5,938
Professional services fees		32,035
Other		7,509
Total expenses		275,101
Less: Fees waived		(1,295	)
Net expenses		273,806
Net investment income		261,121
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities (includes net gains from securities sold to affiliates of $4,650)		960,426
Foreign currencies		(707	)
Forward foreign currency contracts		6,587
Futures contracts		(227,898	)
		738,408
Change in net unrealized appreciation (depreciation) of:
Investment securities		(1,924,661	)
Foreign currencies		(1,348	)
Forward foreign currency contracts		66,805
		(1,859,204	)
Net realized and unrealized gain (loss)		(1,120,796	)
Net increase (decrease) in net assets resulting from operations	$	(859,675	)

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, 2018 and the year ended December 31, 2017

(Unaudited)

	June 30, 2018			December 31, 2017
Operations:
Net investment income	$	261,121		$	702,760
Net realized gain		738,408			2,639,827
Change in net unrealized appreciation (depreciation)		(1,859,204	)		1,552,948
Net increase (decrease) in net assets resulting from operations		(859,675	)		4,895,535
Distributions to shareholders from net investment income:
Series I		—			(610,486	)
Series ll		—			(16,351	)
Total distributions from net investment income		—			(626,837	)
Share transactions–net:
Series l		(2,660,355	)		(10,218,192	)
Series ll		(72,429	)		(145,427	)
Net increase (decrease) in net assets resulting from share transactions		(2,732,784	)		(10,363,619	)
Net increase (decrease) in net assets		(3,592,459	)		(6,094,921	)
Net assets:
Beginning of period		45,550,158			51,645,079
End of period (includes undistributed net investment income of $841,038 and $579,917, respectively)	$	41,957,699		$	45,550,158

Notes to Financial Statements

June 30, 2018

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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”).

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. Managed Volatility Fund

trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

B. Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income (net of withholding tax, if any) is recorded on the accrual basis from settlement date. Bond premiums and discounts are amortized and/or accreted over the lives of the respective securities. Pay-in-kind interest income and non-cash dividend income received in the form of securities in-lieu of cash are recorded at the fair value of the securities received. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date.

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

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

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

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

D. Distributions — Distributions from net investment income 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.

Invesco V.I. Managed Volatility Fund

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 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.

Invesco V.I. Managed Volatility Fund

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

The Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Fund accrues daily and pays monthly an advisory fee to the Adviser 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 Capital Management LLC, formerly Invesco PowerShares Capital Management LLC, and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2019, 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, 2019. 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, 2020, 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, 2018, the Adviser waived advisory fees of $1,295.

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, 2018, Invesco was paid $24,794 for accounting and fund administrative services and was reimbursed $32,965 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, 2018, 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. The fees are accrued daily and paid monthly. 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, 2018, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2018, the Fund incurred $209 in brokerage commissions with Invesco Capital Markets, Inc., an affiliate of the Adviser and IDI, for portfolio transactions executed on behalf of the Fund.

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

NOTE 3—Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available 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, 2018. 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. Managed Volatility Fund

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period. During the six months ended June 30, 2018, there were no material transfers between valuation levels.

	Level 1		Level 2			Level 3			Total
Investments in Securities
Common Stocks & Other Equity Interests	$	24,034,910	$	1,907,683		$	—		$	25,942,593
Bonds & Notes		—		10,012,088			—			10,012,088
U.S. Treasury Securities		—		3,638,741			—			3,638,741
Preferred Stocks		101,628		—			—			101,628
Money Market Funds		2,245,688		—			—	��		2,245,688
Total Investments in Securities		26,382,226		15,558,512			—			41,940,738
Other Investments — Assets*
Forward Foreign Currency Contracts		—		28,674			—			28,674
Other Investments — Liabilities*
Forward Foreign Currency Contracts		—		(1,101	)		—			(1,101	)
Total Other Investments		—		27,573			—			27,573
Total Investments	$	26,382,226	$	15,586,085		$	—		$	41,968,311

* 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, 2018:

	Value
Derivative Assets	Currency Risk
Unrealized appreciation on forward foreign currency contracts outstanding	$	28,674
Derivatives not subject to master netting agreements		—
Total Derivative Assets subject to master netting agreements	$	28,674

	Value
Derivative Liabilities	Currency Risk
Unrealized depreciation on forward foreign currency contracts outstanding	$	(1,101	)
Derivatives not subject to master netting agreements		—
Total Derivative Liabilities subject to master netting agreements	$	(1,101	)

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, 2018.

	Financial Derivative Assets		Financial Derivative Liabilities					Collateral (Received)/Pledged
Counterparty	Forward Foreign Currency Contracts		Forward Foreign Currency Contracts			Net Value of Derivatives		Non-Cash		Cash		Net Amount
Bank of New York Mellon (The)	$	13,619	$	—		$	13,619	$	—	$	—	$	13,619
State Street Bank and Trust Co.		15,055		(1,101	)		13,954		—		—		13,954
Total	$	28,674	$	(1,101	)	$	27,573	$	—	$	—	$	27,573

Invesco V.I. Managed Volatility Fund

Effect of Derivative Investments for the six months ended June 30, 2018

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	$	6,587	$	—		$	6,587
Futures contracts		—		(227,898	)		(227,898	)
Change in Net Unrealized Appreciation (Depreciation):
Forward foreign currency contracts		66,805		—			66,805
Total	$	73,392	$	(227,898	)	$	(154,506	)

The table below summarizes the average notional value of forward foreign currency contracts and the 25 day average notional value of futures contracts outstanding during the period.

	Forward Foreign Currency Contracts		Futures Contracts
Average notional value	$	3,123,662	$	7,215,858

NOTE 5—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, 2018, the Fund engaged in securities sales of $7,346, which resulted in net realized gains of $4,650.

NOTE 6—Trustees’ and Officers’ Fees and Benefits

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

NOTE 7—Cash Balances

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

NOTE 8—Tax Information

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

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, 2017.

Invesco V.I. Managed Volatility Fund

NOTE 9—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2018 was $6,439,900 and $8,673,775, respectively. During the same period, purchases and sales of U.S. Treasury obligations were $15,470,943 and $15,145,195, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	5,848,639
Aggregate unrealized (depreciation) of investments		(1,036,485	)
Net unrealized appreciation of investments	$	4,812,154

Cost of investments for tax purposes is $37,156,157.

NOTE 10—Share Information

	Summary of Share Activity
	Six months ended June 30, 2018(a)						Year ended December 31, 2017
	Shares			Amount			Shares			Amount
Sold:
Series I		76,987		$	999,809			283,126		$	3,509,281
Series II		2,891			36,956			13,842			167,061
Issued as reinvestment of dividends:
Series I		—			—			48,606			610,486
Series II		—			—			1,316			16,351
Reacquired:
Series I		(280,720	)		(3,660,164	)		(1,147,686	)		(14,337,959	)
Series II		(8,498	)		(109,385	)		(26,720	)		(328,839	)
Net increase (decrease) in share activity		(209,340	)	$	(2,732,784	)		(827,516	)	$	(10,363,619	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 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.

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 06/30/18	$	13.06	$	0.08		$	(0.34	)	$	(0.26	)	$	—		$	—		$	—		$	12.80		(1.99	)%	$	40,613		1.23	%(d)		1.24	%(d)		1.20	%(d)		52	%
Year ended 12/31/17		11.97		0.18	(e)		1.08			1.26			(0.17	)		—			(0.17	)		13.06		10.56			44,104		1.13			1.13			1.42	(e)		91
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
Series II
Six months ended 06/30/18		12.92		0.06			(0.34	)		(0.28	)		—			—			—			12.64		(2.17	)		1,344		1.48	(d)		1.49	(d)		0.95	(d)		52
Year ended 12/31/17		11.84		0.15	(e)		1.07			1.22			(0.14	)		—			(0.14	)		12.92		10.33			1,446		1.38			1.38			1.17	(e)		91
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

^(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 $42,910 and $1,421 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 year ended December 31, 2017. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.14 and 1.11% and $0.11 and 0.86% 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, 2018 through June 30, 2018.

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 (01/01/18)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/18)1		Expenses Paid During Period2		Ending Account Value (06/30/18)		Expenses Paid During Period2
Series I	$	1,000.00	$	980.10	$	6.04	$	1,018.70	$	6.16		1.23	%
Series II		1,000.00		979.10		7.26		1,017.46		7.40		1.48

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2018 through June 30, 2018, 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

At meetings held on June 5-6, 2018, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Managed Volatility Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate Sub-Advisory Contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2018. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’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 detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider. 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 throughout the year, 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 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 6, 2018.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, 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, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also reviewed and considered the benefits to shareholders of investing in a fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by

Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries 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 investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2017 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 fifth quintile of its performance universe for the one year period, the fourth quintile for the three year period and the second quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series I shares of the Fund was below the performance of the Index for the one and three year periods and reasonably comparable to the performance of the Index for the five year period. The Board noted that the Fund had changed its investment strategy in 2014 and that performance prior to that date was not reflective of the Fund’s current strategy. Additionally, the Board noted that the Fund’s style of equity investing compared to its peers impacted relative performance. The Trustees also reviewed more recent Fund

Invesco V.I. Managed Volatility Fund

performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for 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 non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. 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 considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that there were only four funds (including the Fund) in the expense group.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. 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 differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including management of cash flows as a result of redemptions and purchases, necessary infrastructure such as officers, office space, technology, legal and distribution, oversight of service providers, costs and business risks associated with launching new funds and sponsoring and maintaining the product line, preparation of annual registration statement updates and financial information and compliance with federal and state laws and regulations.

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 similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2017.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well

as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. 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. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements.

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 considered the methodology used for calculating profitability and noted the periodic review of such methodology by an independent consultant. 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, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers 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 administrative, 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 Invesco representing 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 an affiliated broker receives commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Managed Volatility Fund

	Semiannual Report to Shareholders	June 30, 2018
	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 (or any successor Form). The Fund’s Form N-Q (or any successor Form) filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q (or any successor Form) 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 (or any successor Form), 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            07132018      1114

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/17 to 6/30/18, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-2.57	%
Series II Shares	-2.69
S&P 500 Index▼ (Broad Market Index)	2.65
Russell Midcap Index▼ (Style-Specific Index)	2.35
Lipper VUF Mid-Cap Core Funds Index∎ (Peer Group Index)	1.73
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 6/30/18
Series I Shares
Inception (9/10/01)	7.33%
10 Years	6.69
5 Years	7.75
1 Year	4.27
Series II Shares
Inception (9/10/01)	7.07%
10 Years	6.43
5 Years	7.47
1 Year	3.98

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 0.97% and 1.22%, 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. 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, 2020. See current prospectus for more information.

Invesco V.I. Mid Cap Core Equity Fund

Schedule of Investments^(a)

June 30, 2018

(Unaudited)

	Shares		Value
Common Stocks–81.69%
Apparel, Accessories & Luxury Goods–1.23%
Samsonite International S.A.(b)		898,200	$	3,165,668
Application Software–1.06%
Synopsys, Inc.(b)		31,929		2,732,165
Asset Management & Custody Banks–1.65%
St. James’s Place PLC (United Kingdom)		280,715		4,251,346
Biotechnology–1.25%
BioMarin Pharmaceutical Inc.(b)		34,082		3,210,524
Building Products–0.50%
Allegion PLC		16,639		1,287,193
Commodity Chemicals–1.37%
Orion Engineered Carbons S.A. (Luxembourg)		13,466		415,426
Valvoline, Inc.		143,881		3,103,513
				3,518,939
Communications Equipment–3.25%
CommScope Holding Co., Inc.(b)		133,212		3,890,456
Motorola Solutions, Inc.		38,524		4,483,038
				8,373,494
Data Processing & Outsourced Services–2.81%
Jack Henry & Associates, Inc.		43,532		5,674,832
PagSeguro Digital Ltd.–Class A (Brazil)(b)		56,194		1,559,383
				7,234,215
Electronic Components–1.69%
Amphenol Corp.–Class A		50,057		4,362,468
Electronic Equipment & Instruments–1.39%
Keysight Technologies, Inc.(b)		60,666		3,581,114
Electronic Manufacturing Services–0.89%
IPG Photonics Corp.(b)		10,405		2,295,655
Environmental & Facilities Services–2.23%
Republic Services, Inc.		52,609		3,596,351
Tetra Tech, Inc.		36,743		2,149,466
				5,745,817
Financial Exchanges & Data–2.03%
Moody’s Corp.		30,644		5,226,641
General Merchandise Stores–2.43%
Dollar General Corp.		63,564		6,267,410
Health Care Equipment–4.36%
ResMed Inc.		27,631		2,862,019
Wright Medical Group N.V.(b)		129,837		3,370,568
Zimmer Biomet Holdings, Inc.		44,802		4,992,735
				11,225,322

	Shares		Value
Health Care Supplies–0.81%
DENTSPLY SIRONA Inc.		47,698	$	2,087,741
Homebuilding–2.09%
D.R. Horton, Inc.		131,582		5,394,862
Industrial Machinery–13.03%
Colfax Corp.(b)		108,585		3,328,130
Crane Co.		16,472		1,319,901
Dover Corp.		35,294		2,583,521
Fortive Corp.		60,989		4,702,862
Gates Industrial Corp. PLC(b)		5,570		90,624
Ingersoll-Rand PLC		28,864		2,589,967
ITT Inc.		89,367		4,671,213
Lincoln Electric Holdings, Inc.		14,811		1,299,813
Nordson Corp.		24,396		3,132,690
Parker-Hannifin Corp.		23,414		3,649,072
Stanley Black & Decker Inc.		37,192		4,939,470
Timken Co. (The)		29,137		1,268,916
				33,576,179
Internet Software & Services–1.06%
Just Eat PLC (United Kingdom)(b)		264,874		2,723,234
IT Consulting & Other Services–2.23%
EPAM Systems, Inc.(b)		46,120		5,734,100
Life & Health Insurance–1.27%
Torchmark Corp.		40,159		3,269,344
Life Sciences Tools & Services–1.54%
Agilent Technologies, Inc.		64,126		3,965,552
Marine–0.64%
Kirby Corp.(b)		19,678		1,645,081
Movies & Entertainment–1.74%
Viacom Inc.–Class B		148,633		4,482,771
Multi-Utilities–1.34%
CMS Energy Corp.		72,944		3,448,792
Office Services & Supplies–0.67%
Société BIC S.A. (France)		18,755		1,738,877
Oil & Gas Equipment & Services–2.56%
Apergy Corp.(b)		27,260		1,138,105
Cactus, Inc.–Class A(b)		6,958		235,111
Core Laboratories N.V.		41,386		5,223,327
				6,596,543
Oil & Gas Exploration & Production–2.56%
Concho Resources Inc.(b)		33,443		4,626,839
Seven Generations Energy Ltd.–Class A (Canada)(b)		179,239		1,975,487
				6,602,326

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
Packaged Foods & Meats–1.45%
JM Smucker Co. (The)		10,734	$	1,153,690
McCormick & Co., Inc.		22,367		2,596,585
				3,750,275
Paper Packaging–1.02%
Packaging Corp. of America		23,466		2,623,264
Property & Casualty Insurance–2.73%
Arch Capital Group Ltd.(b)		101,721		2,691,538
Progressive Corp. (The)		73,332		4,337,588
				7,029,126
Railroads–1.01%
Genesee & Wyoming Inc.–Class A(b)		31,914		2,595,247
Regional Banks–2.77%
Comerica Inc.		28,118		2,556,489
First Republic Bank		47,352		4,583,200
				7,139,689
Semiconductor Equipment–4.86%
KLA-Tencor Corp.		37,293		3,823,651
MKS Instruments, Inc.		17,772		1,700,781
Teradyne, Inc.		183,618		6,990,337
				12,514,769
Semiconductors–6.07%
Analog Devices, Inc.		29,666		2,845,563
Cypress Semiconductor Corp.		95,557		1,488,778

	Shares		Value
Semiconductors–(continued)
MACOM Technology Solutions Holdings, Inc.(b)		145,788	$	3,358,956
Microchip Technology Inc.		42,597		3,874,197
Xilinx, Inc.		62,348		4,068,830
				15,636,324
Specialty Chemicals–0.94%
International Flavors & Fragrances Inc.		19,488		2,415,733
Steel–1.16%
Reliance Steel & Aluminum Co.		17,511		1,532,913
Steel Dynamics, Inc.		31,514		1,448,068
				2,980,981
Total Common Stocks (Cost $153,115,748)				210,428,781
Money Market Funds–20.64%
Invesco Government & Agency Portfolio–Institutional Class, 1.80%(c)		17,752,617		17,752,617
Invesco Liquid Assets Portfolio–Institutional Class, 2.02%(c)		12,676,486		12,680,289
Invesco Treasury Portfolio–Institutional Class, 1.76%(c)		22,741,153		22,741,153
Total Money Market Funds (Cost $53,170,829)				53,174,059
TOTAL INVESTMENTS IN SECURITIES–102.33% (Cost $206,286,577)				263,602,840
OTHER ASSETS LESS LIABILITIES–(2.33)%				(6,001,598	)
NET ASSETS–100.00%			$	257,601,242

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, 2018.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2018

Information Technology	25.3	%
Industrials	18.1
Financials	10.4
Health Care	8.0
Consumer Discretionary	7.5
Energy	5.1
Materials	4.5
Consumer Staples	1.5
Utilities	1.3
Money Market Funds Plus Other Assets Less Liabilities	18.3

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, 2018

(Unaudited)

Statement of Operations

For the six months ended June 30, 2018

(Unaudited)

Assets:
Investments in securities, at value (Cost $153,115,748)	$	210,428,781
Investments in affiliated money market funds, at value (Cost $53,170,829)		53,174,059
Foreign currencies, at value (Cost $834)		827
Receivable for:
Investments sold		11,894,447
Fund shares sold		28,595
Dividends		306,867
Investment for trustee deferred compensation and retirement plans		121,231
Other assets		1,385
Total assets		275,956,192
Liabilities:
Payable for:
Investments purchased		17,889,309
Fund shares reacquired		138,701
Accrued fees to affiliates		159,168
Accrued trustees’ and officers’ fees and benefits		4,893
Accrued other operating expenses		29,572
Trustee deferred compensation and retirement plans		133,307
Total liabilities		18,354,950
Net assets applicable to shares outstanding	$	257,601,242
Net assets consist of:
Shares of beneficial interest	$	145,082,015
Undistributed net investment income		1,445,762
Undistributed net realized gain		53,757,259
Net unrealized appreciation		57,316,206
	$	257,601,242
Net Assets:
Series I	$	175,390,946
Series II	$	82,210,296
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		12,491,683
Series II		5,988,286
Series I:
Net asset value per share	$	14.04
Series II:
Net asset value per share	$	13.73

Investment income:
Dividends (net of foreign withholding taxes of $24,999)	$	1,560,116
Dividends from affiliated money market funds		523,858
Total investment income		2,083,974
Expenses:
Advisory fees		1,078,181
Administrative services fees		259,666
Custodian fees		8,982
Distribution fees — Series II		142,156
Transfer agent fees		15,997
Trustees’ and officers’ fees and benefits		13,078
Reports to shareholders		307
Professional services fees		21,190
Other		2,319
Total expenses		1,541,876
Less: Fees waived		(42,777	)
Net expenses		1,499,099
Net investment income		584,875
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		18,944,921
Foreign currencies		(1,123	)
		18,943,798
Change in net unrealized appreciation (depreciation) of:
Investment securities		(28,373,285	)
Foreign currencies		(127	)
		(28,373,412	)
Net realized and unrealized gain (loss)		(9,429,614	)
Net increase (decrease) in net assets resulting from operations	$	(8,844,739	)

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, 2018 and the year ended December 31, 2017

(Unaudited)

	June 30, 2018			December 31, 2017
Operations:
Net investment income	$	584,875		$	891,482
Net realized gain		18,943,798			34,934,135
Change in net unrealized appreciation (depreciation)		(28,373,412	)		9,878,571
Net increase (decrease) in net assets resulting from operations		(8,844,739	)		45,704,188
Distributions to shareholders from net investment income:
Series I		—			(1,002,873	)
Series ll		—			(437,528	)
Total distributions from net investment income		—			(1,440,401	)
Distributions to shareholders from net realized gains:
Series l		—			(3,883,265	)
Series ll		—			(2,880,476	)
Total distributions from net realized gains		—			(6,763,741	)
Share transactions–net:
Series l		(12,211,530	)		(25,346,439	)
Series ll		(54,738,864	)		(4,339,452	)
Net increase (decrease) in net assets resulting from share transactions		(66,950,394	)		(29,685,891	)
Net increase (decrease) in net assets		(75,795,133	)		7,814,155
Net assets:
Beginning of period		333,396,375			325,582,220
End of period (includes undistributed net investment income of $1,445,762 and $860,887, respectively)	$	257,601,242		$	333,396,375

Notes to Financial Statements

June 30, 2018

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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. Mid Cap 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. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

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

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

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

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

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

Invesco V.I. Mid Cap Core Equity 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 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 accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets	Rate
First $500 million		0	.725%
Next $500 million		0	.70%
Next $500 million		0	.675%
Over $1.5 billion		0	.65%

Invesco V.I. Mid Cap Core Equity Fund

For the six months ended June 30, 2018, 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 Capital Management LLC, formerly Invesco PowerShares Capital Management LLC, and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2019, 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, 2019. 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, 2020, 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, 2018, the Adviser waived advisory fees of $42,777.

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, 2018, Invesco was paid $36,684 for accounting and fund administrative services and was reimbursed $222,982 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, 2018, 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. The fees are accrued daily and paid monthly. 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, 2018, 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, 2018. 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. Mid Cap Core Equity Fund

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period. During the six months ended June 30, 2018, there were transfers from Level 1 to Level 2 of $3,165,668 and from Level 2 to Level 1 of $6,974,580, due to foreign fair value adjustments.

	Level 1		Level 2		Level 3		Total
Investments in Securities
Common Stocks	$	207,263,113	$	3,165,668	$	—	$	210,428,781
Money Market Funds		53,174,059		—		—		53,174,059
Total Investments	$	260,437,172	$	3,165,668	$	—	$	263,602,840

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, 2017.

NOTE 7—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2018 was $40,813,184 and $72,413,184, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	66,332,975
Aggregate unrealized (depreciation) of investments		(9,017,784	)
Net unrealized appreciation of investments	$	57,315,191

Cost of investments for tax purposes is $206,287,649.

Invesco V.I. Mid Cap Core Equity Fund

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended June 30, 2018(a)						Year ended December 31, 2017
	Shares			Amount			Shares			Amount
Sold:
Series I		136,320		$	1,938,692			246,444		$	3,379,997
Series II		339,943			4,777,040			1,068,806			14,280,075
Issued as reinvestment of dividends:
Series I		—			—			355,873			4,886,138
Series II		—			—			246,692			3,318,004
Reacquired:
Series I		(985,908	)		(14,150,222	)		(2,449,096	)		(33,612,574	)
Series II		(4,351,856	)		(59,515,904	)		(1,632,724	)		(21,937,531	)
Net increase (decrease) in share activity		(4,861,501	)	$	(66,950,394	)		(2,164,005	)	$	(29,685,891	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 69% 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 06/30/18	$	14.41	$	0.03		$	(0.40	)	$	(0.37	)	$	—		$	—		$	—		$	14.04		(2.57	)%	$	175,391		0.91	%(d)		0.94	%(d)		0.49	%(d)		18	%
Year ended 12/31/17		12.87		0.05			1.85			1.90			(0.07	)		(0.29	)		(0.36	)		14.41		14.92			192,277		0.94			0.96			0.37			45
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
Series II
Six months ended 06/30/18		14.11		0.02			(0.40	)		(0.38	)		—			—			—			13.73		(2.69	)		82,210		1.16	(d)		1.19	(d)		0.24	(d)		18
Year ended 12/31/17		12.61		0.02			1.81			1.83			(0.04	)		(0.29	)		(0.33	)		14.11		14.65			141,120		1.19			1.21			0.12			45
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

^(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 $ 185,227 and $114,667 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, 2018 through June 30, 2018.

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 (01/01/18)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/18)1		Expenses Paid During Period2		Ending Account Value (06/30/18)		Expenses Paid During Period2
Series I	$	1,000.00	$	974.30	$	4.45	$	1,020.28	$	4.56		0.91	%
Series II		1,000.00		973.10		5.67		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, 2018 through June 30, 2018, 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

At meetings held on June 5-6, 2018, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Mid Cap Core Equity Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate Sub-Advisory Contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2018. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’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 detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider. 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 throughout the year, 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 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 6, 2018.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, 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, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also reviewed and considered the benefits to shareholders of investing in a fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by

Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries 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 investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2017 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 third quintile of its performance universe for the one year period, the fourth quintile for the three year period and the fifth quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series I shares of the Fund was reasonably comparable to the performance of the Index for the one year period and below the performance of the Index for the three and five year periods. The Board noted that the Fund’s defensive positioning, overweight position and stock selection in certain sectors and its cash position detracted from Fund performance. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

Invesco V.I. Mid Cap Core Equity Fund

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was reasonably comparable to 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 non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. 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 considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. 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 differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including management of cash flows as a result of redemptions and purchases, necessary infrastructure such as officers, office space, technology, legal and distribution, oversight of service providers, costs and business risks associated with launching new funds and sponsoring and maintaining the product line, preparation of annual registration statement updates and financial information and compliance with federal and state laws and regulations.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s

expense ratio as it grows in size. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements.

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 considered the methodology used for calculating profitability and noted the periodic review of such methodology by an independent consultant. 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, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers 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 administrative, 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 Invesco representing 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 an affiliated broker receives commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Mid Cap Core Equity Fund

	Semiannual Report to Shareholders	June 30, 2018
	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 semi-annual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The Fund’s Form N-Q (or any successor Form) filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q (or any successor Form) 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 (or any successor Form), 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             07132018      1535

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/17 to 6/30/18, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	8.01	%
Series II Shares	7.78
S&P 500 Index▼ (Broad Market Index)	2.65
Russell Midcap Growth Index▼ (Style-Specific Index)	5.40
Lipper VUF Mid-Cap Growth Funds Index∎ (Peer Group Index)	7.19
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.

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 1.00% 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. 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

Average Annual Total Returns As of 6/30/18
Series I Shares
10 Years	8.89	%
5 Years	12.11
1 Year	16.15
Series II Shares
Inception (9/25/00)	2.04	%
10 Years	8.70
5 Years	11.83
1 Year	15.81

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, 2018

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–98.89%
Aerospace & Defense–3.09%
Huntington Ingalls Industries, Inc.		9,735	$	2,110,451
Raytheon Co.		13,456		2,599,430
TransDigm Group, Inc.		7,146		2,466,370
				7,176,251
Air Freight & Logistics–1.18%
XPO Logistics, Inc.(b)		27,369		2,741,826
Alternative Carriers–1.06%
Zayo Group Holdings, Inc.(b)		67,322		2,455,907
Apparel Retail–1.71%
Burlington Stores, Inc.(b)		26,416		3,976,401
Apparel, Accessories & Luxury Goods–0.71%
PVH Corp.		11,063		1,656,352
Application Software–4.70%
Guidewire Software Inc.(b)		40,046		3,555,284
SS&C Technologies Holdings, Inc.		78,539		4,076,174
Tyler Technologies, Inc.(b)		14,869		3,302,405
				10,933,863
Auto Parts & Equipment–1.10%
Aptiv PLC		27,796		2,546,947
Biotechnology–4.62%
BioMarin Pharmaceutical Inc.(b)		33,164		3,124,049
Neurocrine Biosciences, Inc.(b)		36,272		3,563,361
Sage Therapeutics, Inc.(b)		7,937		1,242,378
Sarepta Therapeutics, Inc.(b)		21,154		2,796,136
				10,725,924
Building Products–0.72%
A.O. Smith Corp.		28,250		1,670,988
Casinos & Gaming–1.34%
Wynn Resorts Ltd.		18,598		3,112,189
Communications Equipment–1.73%
Arista Networks Inc.(b)		3,711		955,546
F5 Networks, Inc.(b)		17,785		3,067,023
				4,022,569
Construction Materials–0.59%
Summit Materials, Inc.–Class A(b)		51,992		1,364,790
Data Processing & Outsourced Services–6.84%
Black Knight, Inc.(b)		72,745		3,895,495
Broadridge Financial Solutions, Inc.		24,973		2,874,392
Fidelity National Information Services, Inc.		36,596		3,880,274
FleetCor Technologies Inc.(b)		6,427		1,353,848
Worldpay, Inc.–Class A(b)		47,640		3,895,999
				15,900,008

	Shares		Value
Distillers & Vintners–0.74%
Constellation Brands, Inc.–Class A		7,845	$	1,717,035
Education Services–0.76%
Bright Horizons Family Solutions Inc.(b)		17,286		1,772,161
Electrical Components & Equipment–0.44%
Sensata Technologies Holding PLC(b)		21,693		1,032,153
Electronic Components–1.22%
Amphenol Corp.–Class A		32,528		2,834,815
Electronic Equipment & Instruments–0.53%
FLIR Systems, Inc.		23,740		1,233,768
Electronic Manufacturing Services–0.78%
Flex Ltd.(b)		128,739		1,816,507
Environmental & Facilities Services–1.57%
Republic Services, Inc.		53,378		3,648,920
Financial Exchanges & Data–4.40%
London Stock Exchange Group PLC (United Kingdom)		45,764		2,696,371
MarketAxess Holdings, Inc.		12,287		2,431,106
Nasdaq, Inc.		28,025		2,557,842
S&P Global Inc.		12,407		2,529,663
				10,214,982
General Merchandise Stores–1.45%
Dollar Tree, Inc.(b)		39,628		3,368,380
Health Care Equipment–5.73%
Boston Scientific Corp.(b)		118,078		3,861,150
DexCom Inc.(b)		38,802		3,685,414
LivaNova PLC(b)		26,951		2,690,249
Penumbra, Inc.(b)		22,367		3,090,001
				13,326,814
Health Care Services–0.93%
Laboratory Corp. of America Holdings(b)		12,047		2,162,798
Home Entertainment Software–2.90%
Electronic Arts Inc.(b)		27,575		3,888,627
Nintendo Co., Ltd. (Japan)		4,100		1,338,272
Take-Two Interactive Software, Inc.(b)		12,804		1,515,481
				6,742,380
Hotels, Resorts & Cruise Lines–1.90%
Hilton Worldwide Holdings Inc.		29,520		2,336,803
Royal Caribbean Cruises Ltd.		20,031		2,075,212
				4,412,015
Industrial Conglomerates–1.46%
Roper Technologies, Inc.		12,274		3,386,519

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–2.98%
Fortive Corp.		19,758	$	1,523,540
Ingersoll-Rand PLC		25,208		2,261,914
John Bean Technologies Corp.		13,498		1,199,972
Stanley Black & Decker Inc.		14,657		1,946,596
				6,932,022
Insurance Brokers–0.94%
Brown & Brown, Inc.		78,745		2,183,599
Internet Software & Services–2.64%
GoDaddy, Inc.–Class A(b)		49,326		3,482,416
LogMeIn, Inc.		25,774		2,661,165
				6,143,581
Investment Banking & Brokerage–3.67%
E*TRADE Financial Corp.(b)		79,797		4,880,385
TD Ameritrade Holding Corp.		66,546		3,644,724
				8,525,109
IT Consulting & Other Services–1.14%
Gartner, Inc.(b)		19,961		2,652,817
Life Sciences Tools & Services–2.50%
Mettler-Toledo International Inc.(b)		6,190		3,581,719
Syneos Health, Inc.(b)		47,283		2,217,573
				5,799,292
Managed Health Care–2.94%
Centene Corp.(b)		32,999		4,065,807
Humana Inc.		9,328		2,776,292
				6,842,099
Movies & Entertainment–0.96%
Live Nation Entertainment, Inc.(b)		45,708		2,220,038
Oil & Gas Equipment & Services–0.87%
Halliburton Co.		44,816		2,019,409
Oil & Gas Exploration & Production–0.96%
Parsley Energy, Inc.–Class A(b)		73,470		2,224,672
Oil & Gas Storage & Transportation–1.55%
Cheniere Energy, Inc.(b)		55,414		3,612,439
Packaged Foods & Meats–1.23%
Pinnacle Foods Inc.		43,857		2,853,336
Pharmaceuticals–1.21%
Zoetis Inc.		33,022		2,813,144
Railroads–0.56%
Genesee & Wyoming Inc.–Class A(b)		15,872		1,290,711
Regional Banks–0.72%
Zions Bancorp.		31,565		1,663,160

	Shares		Value
Research & Consulting Services–3.17%
CoStar Group Inc.(b)		11,779	$	4,860,369
IHS Markit Ltd.(b)		48,697		2,512,278
				7,372,647
Restaurants–1.74%
Domino’s Pizza, Inc.		14,294		4,033,338
Semiconductor Equipment–1.81%
Entegris, Inc.		57,359		1,944,470
Teradyne, Inc.		59,461		2,263,680
				4,208,150
Semiconductors–3.00%
Analog Devices, Inc.		26,026		2,496,414
Microchip Technology Inc.		49,185		4,473,376
				6,969,790
Specialized Consumer Services–1.48%
ServiceMaster Global Holdings, Inc.(b)		57,811		3,438,020
Specialized REITs–2.39%
Equinix, Inc.		4,468		1,920,748
SBA Communications Corp.–Class A(b)		21,956		3,625,375
				5,546,123
Specialty Chemicals–2.15%
Celanese Corp.–Series A		20,295		2,253,963
Sherwin-Williams Co. (The)		6,706		2,733,164
				4,987,127
Systems Software–2.89%
Red Hat, Inc.(b)		14,150		1,901,336
ServiceNow, Inc.(b)		27,981		4,825,883
				6,727,219
Technology Hardware, Storage & Peripherals–1.19%
NetApp, Inc.		35,290		2,771,324
Total Common Stocks & Other Equity Interests (Cost $169,294,191)				229,782,428
Money Market Funds–1.10%
Invesco Government & Agency Portfolio–Institutional Class, 1.80%(c)		896,723		896,723
Invesco Liquid Assets Portfolio–Institutional Class, 2.02%(c)		639,371		639,562
Invesco Treasury Portfolio–Institutional Class, 1.76%(c)		1,024,826		1,024,826
Total Money Market Funds (Cost $2,560,991)				2,561,111
TOTAL INVESTMENTS IN SECURITIES–99.99% (Cost $171,855,182)				232,343,539
OTHER ASSETS LESS LIABILITIES–0.01%				32,937
NET ASSETS–100.00%			$	232,376,476

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. Mid Cap Growth Fund

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

^(c)  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, 2018.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2018

Information Technology	31.4	%
Health Care	17.9
Industrials	15.2
Consumer Discretionary	13.1
Financials	9.7
Energy	3.4
Materials	2.7
Real Estate	2.4
Consumer Staples	2.0
Telecommunication Services	1.1
Money Market Funds Plus Other Assets Less Liabilities	1.1

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, 2018

(Unaudited)

Statement of Operations

For the six months ended June 30, 2018

(Unaudited)

Assets:
Investments in securities, at value (Cost $169,294,191)	$	229,782,428
Investments in affiliated money market funds, at value (Cost $2,560,991)		2,561,111
Cash		11,437
Foreign currencies, at value (Cost $16,179)		16,148
Receivable for:
Investments sold		171,866
Fund shares sold		130,738
Dividends		71,924
Investment for trustee deferred compensation and retirement plans		121,785
Other assets		6,649
Total assets		232,874,086
Liabilities:
Payable for:
Fund shares reacquired		168,233
Accrued fees to affiliates		166,701
Accrued trustees’ and officers’ fees and benefits		4,297
Accrued other operating expenses		26,854
Trustee deferred compensation and retirement plans		131,525
Total liabilities		497,610
Net assets applicable to shares outstanding	$	232,376,476
Net assets consist of:
Shares of beneficial interest	$	130,220,887
Undistributed net investment income (loss)		(680,786	)
Undistributed net realized gain		42,348,048
Net unrealized appreciation		60,488,327
	$	232,376,476
Net Assets:
Series I	$	111,516,202
Series II	$	120,860,274
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		18,370,559
Series II		20,267,700
Series I:
Net asset value per share	$	6.07
Series II:
Net asset value per share	$	5.96

Investment income:
Dividends (net of foreign withholding taxes of $1,866)	$	757,814
Dividends from affiliated money market funds (includes securities lending income of $105)		16,033
Total investment income		773,847
Expenses:
Advisory fees		872,566
Administrative services fees		203,556
Custodian fees		11,058
Distribution fees — Series II		152,106
Transfer agent fees		32,074
Trustees’ and officers’ fees and benefits		7,661
Reports to shareholders		5,769
Professional services fees		28,123
Other		3,381
Total expenses		1,316,294
Less: Fees waived		(1,207	)
Net expenses		1,315,087
Net investment income (loss)		(541,240	)
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		20,211,952
Foreign currencies		(301	)
		20,211,651
Change in net unrealized appreciation (depreciation) of:
Investment securities		(1,761,677	)
Foreign currencies		(86	)
		(1,761,763	)
Net realized and unrealized gain		18,449,888
Net increase in net assets resulting from operations	$	17,908,648

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, 2018 and the year ended December 31, 2017

(Unaudited)

	June 30, 2018			December 31, 2017
Operations:
Net investment income (loss)	$	(541,240	)	$	(1,076,145	)
Net realized gain		20,211,651			24,180,705
Change in net unrealized appreciation (depreciation)		(1,761,763	)		22,465,950
Net increase in net assets resulting from operations		17,908,648			45,570,510
Distributions to shareholders from net realized gains:
Series l		—			(6,675,715	)
Series ll		—			(7,683,442	)
Total distributions from net realized gains		—			(14,359,157	)
Share transactions–net:
Series l		(6,262,771	)		(2,907,769	)
Series ll		(10,913,184	)		(8,386,056	)
Net increase (decrease) in net assets resulting from share transactions		(17,175,955	)		(11,293,825	)
Net increase in net assets		732,693			19,917,528
Net assets:
Beginning of period		231,643,783			211,726,255
End of period (includes undistributed net investment income (loss) of $(680,786) and $(139,546), respectively)	$	232,376,476		$	231,643,783

Notes to Financial Statements

June 30, 2018

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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 unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual

Invesco V.I. Mid Cap Growth Fund

trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

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

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

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

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

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid 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.

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. Mid Cap Growth Fund

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $500 million		0.75%
Next $500 million		0.70%
Over $1 billion		0.65%

For the six months ended June 30, 2018, 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 Capital Management LLC, formerly Invesco PowerShares Capital Management LLC, and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2019, 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, 2019. 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, 2020, 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, 2018, the Adviser waived advisory fees of $1,207.

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, 2018, Invesco was paid $29,238 for accounting and fund administrative services and was reimbursed $174,318 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, 2018, 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. The fees are accrued daily and paid monthly. 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, 2018, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2018, the Fund incurred $911 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. Mid Cap Growth 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, 2018. 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.

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period. During the six months ended June 30, 2018, there were no material transfers between valuation levels.

	Level 1		Level 2		Level 3		Total
Investments in Securities
Common Stock & Other Equity Interests	$	225,747,785	$	4,034,643	$	—	$	229,782,428
Money Market Funds		2,561,111		—		—		2,561,111
Total Investments	$	228,308,896	$	4,034,643	$	—	$	232,343,539

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, 2017.

NOTE 7—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2018 was $65,784,166 and $86,016,501, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	62,457,726
Aggregate unrealized (depreciation) of investments		(3,215,133	)
Net unrealized appreciation of investments	$	59,242,593

Cost of investments for tax purposes is $173,100,946.

Invesco V.I. Mid Cap Growth Fund

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended June 30, 2018(a)						Year ended December 31, 2017
	Shares			Amount			Shares			Amount
Sold:
Series I		788,173		$	4,683,406			2,110,516		$	11,337,794
Series II		677,104			3,950,132			1,772,258			9,394,698
Issued as reinvestment of dividends:
Series I		—			—			1,252,479			6,675,715
Series II		—			—			1,463,513			7,683,442
Reacquired:
Series I		(1,843,478	)		(10,946,177	)		(3,864,213	)		(20,921,278	)
Series II		(2,555,827	)		(14,863,316	)		(4,767,695	)		(25,464,196	)
Net increase (decrease) in share activity		(2,934,028	)	$	(17,175,955	)		(2,033,142	)	$	(11,293,825	)

^(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.

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 06/30/18	$	5.62	$	(0.01	)	$	0.46	$	0.45	$	—		$	—		$	—		$	6.07		8.01	%	$	111,516		1.00	%(d)		1.00	%(d)		(0.33	)%(d)		29	%
Year ended 12/31/17		4.89		(0.02	)		1.10		1.08		—			(0.35	)		(0.35	)		5.62		22.49			109,197		1.00			1.00			(0.34	)		46
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
Series II
Six months ended 06/30/18		5.53		(0.02	)		0.45		0.43		—			—			—			5.96		7.78			120,860		1.25	(d)		1.25	(d)		(0.58	)(d)		29
Year ended 12/31/17		4.83		(0.03	)		1.08		1.05		—			(0.35	)		(0.35	)		5.53		22.14			122,447		1.25			1.25			(0.59	)		46
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

^(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 $111,919 and $122,693 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, 2018 through June 30, 2018.

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 (01/01/18)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/18)1		Expenses Paid During Period2		Ending Account Value (06/30/18)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,080.10	$	5.16	$	1,019.84	$	5.01		1.00	%
Series II		1,000.00		1,077.80		6.44		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, 2018 through June 30, 2018, 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

At meetings held on June 5-6, 2018, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Mid Cap Growth Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc., Invesco Canada Ltd. and separate Sub-Advisory Contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2018. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’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 detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider. 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 throughout the year, 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 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 6, 2018.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, 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, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also reviewed and considered the benefits to shareholders of investing in a fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by

Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries 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 investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2017 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, 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 below the performance of the Index for the one and three year periods, and reasonably comparable to the performance of the Index for the five year period. The Board noted that the Fund’s holdings in certain sectors detracted from Fund performance. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s

Invesco V.I. Mid Cap Growth Fund

Broadridge expense group. 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 non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. 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 considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that the Fund’s total expense ratio was in the fifth quintile of its expense group and discussed with management reasons for such relative total expenses.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.

The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other similarly managed mutual funds or client accounts.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements.

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 considered the methodology used for calculating profitability and noted the periodic review of such methodology by an independent consultant. 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, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers 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 administrative, 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 Invesco representing 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 an affiliated broker receives commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Mid Cap Growth Fund

	Semiannual Report to Shareholders	June 30, 2018
	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 (or any successor Form). The Fund’s Form N-Q (or any successor Form) filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q (or any successor Form) 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 (or any successor Form), 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         07132018    1537

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/17 to 6/30/18, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	2.43%
Series II Shares	2.28
S&P 500 Index▼ (Broad Market/Style-Specific Index)	2.65
Lipper VUF S&P 500 Funds Index⬛ (Peer Group Index)	2.50
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 6/30/18
Series I Shares
Inception (5/18/98)	6.22	%
10 Years	9.83
5 Years	12.96
1 Year	13.88
Series II Shares
Inception (6/5/00)	4.91	%
10 Years	9.55
5 Years	12.69
1 Year	13.55

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 0.48% and 0.73%, 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, 2018

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–99.62%
Advertising–0.12%
Interpublic Group of Cos., Inc. (The)		1,461	$	34,246
Omnicom Group Inc.		859		65,516
				99,762
Aerospace & Defense–2.66%
Arconic Inc.		1,638		27,862
Boeing Co. (The)		2,054		689,138
General Dynamics Corp.		1,035		192,934
Harris Corp.		442		63,887
Huntington Ingalls Industries, Inc.		166		35,987
L3 Technologies, Inc.		291		55,965
Lockheed Martin Corp.		931		275,045
Northrop Grumman Corp.		653		200,928
Raytheon Co.		1,076		207,862
Rockwell Collins, Inc.		611		82,289
Textron Inc.		959		63,208
TransDigm Group, Inc.		183		63,161
United Technologies Corp.		2,791		348,959
				2,307,225
Agricultural & Farm Machinery–0.20%
Deere & Co.		1,215		169,857
Agricultural Products–0.11%
Archer-Daniels-Midland Co.		2,088		95,693
Air Freight & Logistics–0.66%
C.H. Robinson Worldwide, Inc.		521		43,587
Expeditors International of Washington, Inc.		654		47,807
FedEx Corp.		919		208,668
United Parcel Service, Inc.–Class B		2,586		274,711
				574,773
Airlines–0.43%
Alaska Air Group, Inc.		458		27,659
American Airlines Group Inc.		1,571		59,635
Delta Air Lines, Inc.		2,428		120,283
Southwest Airlines Co.		2,000		101,760
United Continental Holdings Inc.(b)		883		61,572
				370,909
Alternative Carriers–0.08%
CenturyLink Inc.		3,671		68,427
Apparel Retail–0.50%
Foot Locker, Inc.		451		23,745
Gap, Inc. (The)		841		27,240
L Brands, Inc.		933		34,409
Ross Stores, Inc.		1,426		120,854
TJX Cos., Inc. (The)		2,360		224,625
				430,873

	Shares		Value
Apparel, Accessories & Luxury Goods–0.37%
Hanesbrands, Inc.(c)		1,329	$	29,265
Michael Kors Holdings Ltd.(b)		562		37,429
PVH Corp.		291		43,568
Ralph Lauren Corp.		213		26,778
Tapestry, Inc.		1,082		50,540
Under Armour, Inc.–Class A(b)(c)		669		15,039
Under Armour, Inc.–Class C(b)(c)		722		15,220
VF Corp.		1,228		100,107
				317,946
Application Software–1.51%
Adobe Systems Inc.(b)		1,847		450,317
ANSYS, Inc.(b)		312		54,344
Autodesk, Inc.(b)		821		107,625
Cadence Design Systems, Inc.(b)		1,075		46,558
Citrix Systems, Inc.(b)		482		50,533
Intuit Inc.		913		186,530
salesforce.com, inc.(b)		2,645		360,778
Synopsys, Inc.(b)		564		48,262
				1,304,947
Asset Management & Custody Banks–1.08%
Affiliated Managers Group, Inc.		206		30,626
Ameriprise Financial, Inc.		545		76,234
Bank of New York Mellon Corp. (The)		3,791		204,449
BlackRock, Inc.		461		230,057
Franklin Resources, Inc.		1,214		38,909
Invesco Ltd.(d)		1,519		40,345
Northern Trust Corp.		793		81,592
State Street Corp.		1,372		127,719
T. Rowe Price Group Inc.		912		105,874
				935,805
Auto Parts & Equipment–0.14%
Aptiv PLC		992		90,897
BorgWarner, Inc.		738		31,852
				122,749
Automobile Manufacturers–0.40%
Ford Motor Co.		14,686		162,574
General Motors Co.		4,759		187,505
				350,079
Automotive Retail–0.27%
Advance Auto Parts, Inc.		275		37,318
AutoZone, Inc.(b)		99		66,422
CarMax, Inc.(b)		667		48,604
O’Reilly Automotive, Inc.(b)		307		83,986
				236,330

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–2.52%
AbbVie Inc.		5,686	$	526,808
Alexion Pharmaceuticals, Inc.(b)		827		102,672
Amgen Inc.		2,495		460,552
Biogen Inc.(b)		789		228,999
Celgene Corp.(b)		2,651		210,542
Gilead Sciences, Inc.		4,878		345,558
Incyte Corp.(b)		655		43,885
Regeneron Pharmaceuticals, Inc.(b)		287		99,012
Vertex Pharmaceuticals Inc.(b)		955		162,312
				2,180,340
Brewers–0.05%
Molson Coors Brewing Co.–Class B		689		46,880
Broadcasting–0.14%
CBS Corp.–Class B		1,288		72,411
Discovery, Inc.–Class A(b)(c)		580		15,950
Discovery, Inc.–Class C(b)		1,269		32,360
				120,721
Building Products–0.29%
A.O. Smith Corp.		542		32,059
Allegion PLC		361		27,927
Fortune Brands Home & Security, Inc.		547		29,369
Johnson Controls International PLC		3,458		115,670
Masco Corp.		1,164		43,557
				248,582
Cable & Satellite–0.92%
Charter Communications, Inc.–Class A(b)		693		203,195
Comcast Corp.–Class A		17,212		564,726
DISH Network Corp.–Class A(b)		866		29,106
				797,027
Casinos & Gaming–0.13%
MGM Resorts International		1,903		55,244
Wynn Resorts Ltd.		320		53,549
				108,793
Commodity Chemicals–0.15%
LyondellBasell Industries N.V.–Class A		1,207		132,589
Communications Equipment–1.04%
Cisco Systems, Inc.		17,645		759,264
F5 Networks, Inc.(b)		230		39,664
Juniper Networks, Inc.		1,283		35,180
Motorola Solutions, Inc.		604		70,287
				904,395
Computer & Electronics Retail–0.08%
Best Buy Co., Inc.		919		68,539
Construction & Engineering–0.09%
Fluor Corp.		531		25,902
Jacobs Engineering Group Inc.		457		29,015
Quanta Services, Inc.(b)		573		19,138
				74,055

	Shares		Value
Construction Machinery & Heavy Trucks–0.53%
Caterpillar Inc.		2,242	$	304,172
Cummins Inc.		580		77,140
PACCAR Inc.		1,313		81,354
				462,666
Construction Materials–0.13%
Martin Marietta Materials, Inc.		233		52,036
Vulcan Materials Co.		493		63,627
				115,663
Consumer Electronics–0.03%
Garmin Ltd.		419		25,559
Consumer Finance–0.70%
American Express Co.		2,679		262,542
Capital One Financial Corp.		1,815		166,799
Discover Financial Services		1,308		92,096
Synchrony Financial		2,643		88,223
				609,660
Copper–0.10%
Freeport-McMoRan Inc.		5,074		87,577
Data Processing & Outsourced Services–3.21%
Alliance Data Systems Corp.		179		41,743
Automatic Data Processing, Inc.		1,654		221,868
Broadridge Financial Solutions, Inc.		442		50,874
Fidelity National Information Services, Inc.		1,236		131,053
Fiserv, Inc.(b)		1,542		114,247
FleetCor Technologies Inc.(b)		335		70,568
Global Payments Inc.		593		66,114
Mastercard Inc.–Class A		3,439		675,832
Paychex, Inc.		1,193		81,542
PayPal Holdings, Inc.(b)		4,187		348,651
Total System Services, Inc.		616		52,064
Visa Inc.–Class A		6,701		887,547
Western Union Co. (The)		1,701		34,581
				2,776,684
Department Stores–0.13%
Kohl’s Corp.		638		46,510
Macy’s, Inc.		1,158		43,344
Nordstrom, Inc.		450		23,301
				113,155
Distillers & Vintners–0.21%
Brown-Forman Corp.–Class B		975		47,785
Constellation Brands, Inc.–Class A		629		137,669
				185,454
Distributors–0.10%
Genuine Parts Co.		547		50,209
LKQ Corp.(b)		1,176		37,515
				87,724

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 Banks–4.82%
Bank of America Corp.		35,381	$	997,390
Citigroup Inc.		9,567		640,224
JPMorgan Chase & Co.		12,774		1,331,051
U.S. Bancorp		5,860		293,117
Wells Fargo & Co.		16,455		912,265
				4,174,047
Diversified Chemicals–0.73%
DowDuPont Inc.		8,707		573,966
Eastman Chemical Co.		542		54,178
				628,144
Diversified Support Services–0.12%
Cintas Corp.		327		60,518
Copart, Inc.(b)		758		42,872
				103,390
Drug Retail–0.22%
Walgreens Boots Alliance, Inc.		3,199		191,988
Electric Utilities–1.84%
Alliant Energy Corp.		863		36,522
American Electric Power Co., Inc.		1,836		127,143
Duke Energy Corp.		2,629		207,901
Edison International		1,216		76,936
Entergy Corp.		674		54,453
Evergy, Inc.		1,013		56,880
Eversource Energy		1,182		69,277
Exelon Corp.		3,603		153,488
FirstEnergy Corp.		1,668		59,898
NextEra Energy, Inc.		1,768		295,309
PG&E Corp.		1,922		81,800
Pinnacle West Capital Corp.		424		34,158
PPL Corp.		2,591		73,973
Southern Co. (The)		3,794		175,700
Xcel Energy, Inc.		1,896		86,609
				1,590,047
Electrical Components & Equipment–0.49%
AMETEK, Inc.		863		62,274
Eaton Corp. PLC		1,643		122,798
Emerson Electric Co.		2,370		163,862
Rockwell Automation, Inc.		470		78,128
				427,062
Electronic Components–0.21%
Amphenol Corp.–Class A		1,140		99,351
Corning Inc.		3,115		85,694
				185,045
Electronic Equipment & Instruments–0.03%
FLIR Systems, Inc.		527		27,388
Electronic Manufacturing Services–0.17%
IPG Photonics Corp.(b)		140		30,888

	Shares		Value
Electronic Manufacturing Services–(continued)
TE Connectivity Ltd.		1,310	$	117,979
				148,867
Environmental & Facilities Services–0.23%
Republic Services, Inc.		840		57,422
Stericycle, Inc.(b)		329		21,481
Waste Management, Inc.		1,489		121,115
				200,018
Fertilizers & Agricultural Chemicals–0.14%
CF Industries Holdings, Inc.		886		39,338
FMC Corp.		510		45,497
Mosaic Co. (The)		1,332		37,363
				122,198
Financial Exchanges & Data–0.93%
Cboe Global Markets, Inc.		427		44,438
CME Group Inc.–Class A		1,276		209,162
Intercontinental Exchange, Inc.		2,174		159,898
Moody’s Corp.		625		106,600
MSCI Inc.		333		55,088
Nasdaq, Inc.		434		39,611
S&P Global Inc.		947		193,084
				807,881
Food Distributors–0.14%
Sysco Corp.		1,792		122,376
Food Retail–0.10%
Kroger Co. (The)		3,049		86,744
Footwear–0.44%
NIKE, Inc.–Class B		4,812		383,420
General Merchandise Stores–0.37%
Dollar General Corp.		962		94,853
Dollar Tree, Inc.(b)		884		75,140
Target Corp.		1,999		152,164
				322,157
Gold–0.09%
Newmont Mining Corp.		1,991		75,081
Health Care Distributors–0.29%
AmerisourceBergen Corp.		606		51,674
Cardinal Health, Inc.		1,174		57,326
Henry Schein, Inc.(b)		583		42,349
McKesson Corp.		757		100,984
				252,333
Health Care Equipment–2.87%
Abbott Laboratories		6,577		401,131
ABIOMED, Inc.(b)		157		64,221
Baxter International Inc.		1,855		136,973
Becton, Dickinson and Co.		1,001		239,800

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 Equipment–(continued)
Boston Scientific Corp.(b)		5,176	$	169,255
Danaher Corp.		2,305		227,457
Edwards Lifesciences Corp.(b)		790		115,000
Hologic, Inc.(b)		1,023		40,664
IDEXX Laboratories, Inc.(b)		324		70,613
Intuitive Surgical, Inc.(b)		424		202,876
Medtronic PLC		5,080		434,899
ResMed Inc.		542		56,140
Stryker Corp.		1,202		202,970
Varian Medical Systems, Inc.(b)		340		38,665
Zimmer Biomet Holdings, Inc.		757		84,360
				2,485,024
Health Care Facilities–0.17%
HCA Healthcare, Inc.		1,044		107,115
Universal Health Services, Inc.–Class B		323		35,995
				143,110
Health Care REITs–0.24%
HCP, Inc.		1,762		45,495
Ventas, Inc.		1,329		75,686
Welltower Inc.		1,382		86,638
				207,819
Health Care Services–0.68%
CVS Health Corp.		3,813		245,367
DaVita Inc.(b)		523		36,317
Envision Healthcare Corp.(b)		459		20,201
Express Scripts Holding Co.(b)		2,107		162,681
Laboratory Corp. of America Holdings(b)		379		68,042
Quest Diagnostics Inc.		515		56,619
				589,227
Health Care Supplies–0.20%
Align Technology, Inc.(b)		268		91,694
Cooper Cos., Inc. (The)		182		42,852
DENTSPLY SIRONA Inc.		856		37,467
				172,013
Health Care Technology–0.08%
Cerner Corp.(b)		1,179		70,492
Home Entertainment Software–0.50%
Activision Blizzard, Inc.		2,856		217,970
Electronic Arts Inc.(b)		1,150		162,173
Take-Two Interactive Software, Inc.(b)		426		50,421
				430,564
Home Furnishings–0.08%
Leggett & Platt, Inc.		502		22,409
Mohawk Industries, Inc.(b)		235		50,354
				72,763
Home Improvement Retail–1.31%
Home Depot, Inc. (The)		4,328		844,393
Lowe’s Cos., Inc.		3,083		294,642
				1,139,035

	Shares		Value
Homebuilding–0.16%
D.R. Horton, Inc.		1,276	$	52,316
Lennar Corp.–Class A		1,019		53,498
PulteGroup Inc.		983		28,261
				134,075
Hotel & Resort REITs–0.07%
Host Hotels & Resorts Inc.		2,818		59,375
Hotels, Resorts & Cruise Lines–0.48%
Carnival Corp.		1,515		86,825
Hilton Worldwide Holdings Inc.		1,051		83,197
Marriott International Inc.–Class A		1,112		140,779
Norwegian Cruise Line Holdings Ltd.(b)		769		36,335
Royal Caribbean Cruises Ltd.		637		65,993
				413,129
Household Appliances–0.04%
Whirlpool Corp.		241		35,241
Household Products–1.38%
Church & Dwight Co., Inc.		910		48,376
Clorox Co. (The)		482		65,190
Colgate-Palmolive Co.		3,268		211,799
Kimberly-Clark Corp.		1,309		137,890
Procter & Gamble Co. (The)		9,435		736,496
				1,199,751
Housewares & Specialties–0.05%
Newell Brands, Inc.		1,811		46,706
Human Resource & Employment Services–0.04%
Robert Half International, Inc.		471		30,662
Hypermarkets & Super Centers–0.93%
Costco Wholesale Corp.		1,645		343,772
Walmart Inc.		5,420		464,223
				807,995
Independent Power Producers & Energy Traders–0.08%
AES Corp. (The)		2,442		32,747
NRG Energy, Inc.		1,126		34,568
				67,315
Industrial Conglomerates–1.61%
3M Co.		2,223		437,309
General Electric Co.(e)		32,588		443,523
Honeywell International Inc.		2,808		404,492
Roper Technologies, Inc.		386		106,501
				1,391,825
Industrial Gases–0.34%
Air Products and Chemicals, Inc.		821		127,854
Praxair, Inc.		1,077		170,328
				298,182
Industrial Machinery–0.75%
Dover Corp.		586		42,895
Flowserve Corp.		504		20,362

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
Industrial Machinery–(continued)
Fortive Corp.		1,143	$	88,137
Illinois Tool Works Inc.		1,147		158,905
Ingersoll-Rand PLC		932		83,628
Parker-Hannifin Corp.		495		77,146
Pentair PLC (United Kingdom)		629		26,468
Snap-on Inc.		214		34,394
Stanley Black & Decker Inc.		578		76,764
Xylem, Inc.		670		45,145
				653,844
Industrial REITs–0.20%
Duke Realty Corp.		1,357		39,394
Prologis, Inc.		1,990		130,723
				170,117
Insurance Brokers–0.46%
Aon PLC		918		125,922
Arthur J. Gallagher & Co.		676		44,129
Marsh & McLennan Cos., Inc.		1,895		155,333
Willis Towers Watson PLC		492		74,587
				399,971
Integrated Oil & Gas–2.84%
Chevron Corp.		7,169		906,377
Exxon Mobil Corp.		15,885		1,314,166
Occidental Petroleum Corp.		2,873		240,412
				2,460,955
Integrated Telecommunication Services–1.91%
AT&T Inc.		27,235		874,516
Verizon Communications Inc.		15,518		780,710
				1,655,226
Internet & Direct Marketing Retail–4.21%
Amazon.com, Inc.(b)		1,511		2,568,398
Booking Holdings Inc.(b)		181		366,903
Expedia Group, Inc.		453		54,446
Netflix, Inc.(b)		1,630		638,031
TripAdvisor, Inc.(b)		401		22,340
				3,650,118
Internet Software & Services–5.32%
Akamai Technologies, Inc.(b)		634		46,428
Alphabet Inc.–Class A(b)		1,119		1,263,564
Alphabet Inc.–Class C(b)		1,138		1,269,610
eBay Inc.(b)		3,467		125,713
Facebook, Inc.–Class A(b)		8,999		1,748,686
Twitter, Inc.(b)		2,456		107,253
VeriSign, Inc.(b)		359		49,334
				4,610,588
Investment Banking & Brokerage–1.00%
Charles Schwab Corp. (The)		4,505		230,206
E*TRADE Financial Corp.(b)		993		60,732
Goldman Sachs Group, Inc. (The)		1,318		290,711

	Shares		Value
Investment Banking & Brokerage–(continued)
Morgan Stanley		5,113	$	242,356
Raymond James Financial, Inc.		483		43,156
				867,161
IT Consulting & Other Services–1.32%
Accenture PLC–Class A		2,412		394,579
Cognizant Technology Solutions Corp.–Class A		2,195		173,383
DXC Technology Co.		1,064		85,769
Gartner, Inc.(b)		344		45,718
International Business Machines Corp.		3,199		446,900
				1,146,349
Leisure Products–0.07%
Hasbro, Inc.		428		39,508
Mattel, Inc.(c)		1,328		21,806
				61,314
Life & Health Insurance–0.72%
Aflac, Inc.		2,910		125,188
Brighthouse Financial, Inc.(b)		369		14,786
Lincoln National Corp.		814		50,671
MetLife, Inc.		3,813		166,247
Principal Financial Group, Inc.		1,005		53,215
Prudential Financial, Inc.		1,575		147,278
Torchmark Corp.		395		32,157
Unum Group		825		30,517
				620,059
Life Sciences Tools & Services–0.85%
Agilent Technologies, Inc.		1,204		74,455
Illumina, Inc.(b)		551		153,889
IQVIA Holdings Inc.(b)		537		53,603
Mettler-Toledo International Inc.(b)		94		54,391
PerkinElmer, Inc.		411		30,098
Thermo Fisher Scientific, Inc.		1,509		312,574
Waters Corp.(b)		298		57,690
				736,700
Managed Health Care–2.01%
Aetna Inc.		1,226		224,971
Anthem, Inc.		954		227,081
Centene Corp.(b)		769		94,748
Cigna Corp.		912		154,994
Humana Inc.		516		153,577
UnitedHealth Group Inc.		3,605		884,451
				1,739,822
Metal & Glass Containers–0.05%
Ball Corp.		1,306		46,428
Motorcycle Manufacturers–0.03%
Harley-Davidson, Inc.		628		26,426
Movies & Entertainment–1.04%
Twenty-First Century Fox, Inc.–Class A		3,936		195,580
Twenty-First Century Fox, Inc.–Class B		1,639		80,753

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
Movies & Entertainment–(continued)
Viacom Inc.–Class B		1,341	$	40,445
Walt Disney Co. (The)		5,578		584,630
				901,408
Multi-Line Insurance–0.36%
American International Group, Inc.		3,356		177,935
Assurant, Inc.		195		20,181
Hartford Financial Services Group, Inc. (The)		1,332		68,105
Loews Corp.		981		47,363
				313,584
Multi-Sector Holdings–1.59%
Berkshire Hathaway Inc.–Class B(b)		7,221		1,347,800
Jefferies Financial Group Inc.		1,136		25,832
				1,373,632
Multi-Utilities–0.95%
Ameren Corp.		905		55,069
CenterPoint Energy, Inc.		1,609		44,585
CMS Energy Corp.		1,053		49,786
Consolidated Edison, Inc.		1,158		90,301
Dominion Energy, Inc.		2,447		166,837
DTE Energy Co.		680		70,468
NiSource Inc.		1,282		33,691
Public Service Enterprise Group Inc.		1,884		102,000
SCANA Corp.		541		20,839
Sempra Energy		990		114,949
WEC Energy Group, Inc.		1,177		76,093
				824,618
Office REITs–0.23%
Alexandria Real Estate Equities, Inc.		386		48,702
Boston Properties, Inc.		575		72,117
SL Green Realty Corp.		331		33,275
Vornado Realty Trust		644		47,604
				201,698
Oil & Gas Drilling–0.03%
Helmerich & Payne, Inc.		405		25,823
Oil & Gas Equipment & Services–0.76%
Baker Hughes, a GE Co.		1,577		52,088
Halliburton Co.		3,286		148,067
National Oilwell Varco Inc.		1,418		61,541
Schlumberger Ltd.		5,196		348,288
TechnipFMC PLC (United Kingdom)		1,636		51,927
				661,911
Oil & Gas Exploration & Production–1.63%
Anadarko Petroleum Corp.		1,923		140,860
Apache Corp.		1,423		66,525
Cabot Oil & Gas Corp.		1,687		40,151
Cimarex Energy Co.		362		36,830
Concho Resources Inc.(b)		555		76,784
ConocoPhillips		4,386		305,353

	Shares		Value
Oil & Gas Exploration & Production–(continued)
Devon Energy Corp.		1,964	$	86,338
EOG Resources, Inc.		2,171		270,138
EQT Corp.		945		52,145
Hess Corp.		981		65,619
Marathon Oil Corp.		3,172		66,168
Newfield Exploration Co.(b)		745		22,536
Noble Energy, Inc.		1,837		64,809
Pioneer Natural Resources Co.		635		120,167
				1,414,423
Oil & Gas Refining & Marketing–0.68%
Andeavor		527		69,132
HollyFrontier Corp.		661		45,232
Marathon Petroleum Corp.		1,732		121,517
Phillips 66		1,567		175,990
Valero Energy Corp.		1,617		179,212
				591,083
Oil & Gas Storage & Transportation–0.36%
Kinder Morgan, Inc.		7,085		125,192
ONEOK, Inc.		1,532		106,979
Williams Cos., Inc. (The)		3,089		83,743
				315,914
Packaged Foods & Meats–1.01%
Campbell Soup Co.(c)		717		29,067
Conagra Brands, Inc.		1,495		53,416
General Mills, Inc.		2,225		98,478
Hershey Co. (The)		525		48,857
Hormel Foods Corp.(c)		1,026		38,177
JM Smucker Co. (The)		431		46,324
Kellogg Co.		928		64,839
Kraft Heinz Co. (The)		2,229		140,026
McCormick & Co., Inc.		451		52,357
Mondelez International, Inc.–Class A		5,554		227,714
Tyson Foods, Inc.–Class A		1,110		76,424
				875,679
Paper Packaging–0.27%
Avery Dennison Corp.		333		33,999
International Paper Co.		1,541		80,255
Packaging Corp. of America		357		39,909
Sealed Air Corp.		624		26,489
WestRock Co.		951		54,226
				234,878
Personal Products–0.17%
Coty Inc.–Class A		1,795		25,309
Estee Lauder Cos. Inc. (The)–Class A		837		119,432
				144,741
Pharmaceuticals–4.36%
Allergan PLC		1,271		211,901
Bristol-Myers Squibb Co.		6,132		339,345
Eli Lilly and Co.		3,583		305,737

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
Pharmaceuticals–(continued)
Johnson & Johnson		10,063	$	1,221,044
Merck & Co., Inc.		10,093		612,645
Mylan N.V.(b)		1,921		69,425
Nektar Therapeutics(b)		611		29,835
Perrigo Co. PLC		482		35,143
Pfizer Inc.		21,948		796,274
Zoetis Inc.		1,819		154,961
				3,776,310
Property & Casualty Insurance–0.79%
Allstate Corp. (The)		1,323		120,750
Chubb Ltd.		1,747		221,904
Cincinnati Financial Corp.		566		37,843
Progressive Corp. (The)		2,174		128,592
Travelers Cos., Inc. (The)		1,012		123,808
XL Group Ltd. (Bermuda)		958		53,600
				686,497
Publishing–0.03%
News Corp.–Class A		1,400		21,700
News Corp.–Class B		442		7,006
				28,706
Railroads–0.95%
CSX Corp.		3,284		209,454
Kansas City Southern		391		41,430
Norfolk Southern Corp.		1,060		159,922
Union Pacific Corp.		2,909		412,147
				822,953
Real Estate Services–0.06%
CBRE Group, Inc.–Class A(b)		1,127		53,803
Regional Banks–1.31%
BB&T Corp.		2,925		147,537
Citizens Financial Group, Inc.		1,819		70,759
Comerica Inc.		644		58,552
Fifth Third Bancorp		2,590		74,333
Huntington Bancshares Inc.		4,195		61,918
KeyCorp		4,021		78,570
M&T Bank Corp.		544		92,562
People’s United Financial, Inc.		1,283		23,209
PNC Financial Services Group, Inc. (The)		1,760		237,776
Regions Financial Corp.		4,252		75,601
SunTrust Banks, Inc.		1,748		115,403
SVB Financial Group(b)		196		56,597
Zions Bancorp.		746		39,307
				1,132,124
Reinsurance–0.04%
Everest Re Group, Ltd.		154		35,494
Research & Consulting Services–0.26%
Equifax Inc.		447		55,924
IHS Markit Ltd.(b)		1,351		69,698

	Shares		Value
Research & Consulting Services–(continued)
Nielsen Holdings PLC		1,251	$	38,694
Verisk Analytics, Inc.–Class A(b)		578		62,216
				226,532
Residential REITs–0.39%
Apartment Investment & Management Co.–Class A		597		25,253
AvalonBay Communities, Inc.		514		88,352
Equity Residential		1,374		87,510
Essex Property Trust, Inc.		245		58,572
Mid-America Apartment Communities, Inc.		431		43,389
UDR, Inc.		1,019		38,253
				341,329
Restaurants–1.04%
Chipotle Mexican Grill, Inc.(b)		92		39,686
Darden Restaurants, Inc.		469		50,211
McDonald’s Corp.		2,945		461,452
Starbucks Corp.		5,177		252,897
Yum! Brands, Inc.		1,211		94,724
				898,970
Retail REITs–0.49%
Federal Realty Investment Trust		272		34,422
GGP Inc.		2,358		48,174
Kimco Realty Corp.		1,562		26,538
Macerich Co. (The)		411		23,357
Realty Income Corp.		1,060		57,017
Regency Centers Corp.		554		34,392
Simon Property Group, Inc.		1,161		197,591
				421,491
Semiconductor Equipment–0.39%
Applied Materials, Inc.		3,781		174,644
KLA-Tencor Corp.		584		59,878
Lam Research Corp.		615		106,303
				340,825
Semiconductors–3.64%
Advanced Micro Devices, Inc.(b)(c)		3,055		45,795
Analog Devices, Inc.		1,391		133,425
Broadcom Inc.		1,541		373,908
Intel Corp.		17,480		868,931
Microchip Technology Inc.(c)		874		79,490
Micron Technology, Inc.(b)		4,351		228,166
NVIDIA Corp.		2,276		539,184
Qorvo, Inc.(b)		480		38,482
QUALCOMM Inc.		5,562		312,140
Skyworks Solutions, Inc.		680		65,722
Texas Instruments Inc.		3,673		404,948
Xilinx, Inc.		950		61,997
				3,152,188
Soft Drinks–1.50%
Coca-Cola Co. (The)		14,340		628,952
Monster Beverage Corp.(b)		1,543		88,414

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
Soft Drinks–(continued)
PepsiCo, Inc.		5,309	$	577,991
				1,295,357
Specialized Consumer Services–0.02%
H&R Block, Inc.		794		18,087
Specialized REITs–1.16%
American Tower Corp.–Class A		1,656		238,746
Crown Castle International Corp.		1,547		166,798
Digital Realty Trust, Inc.		766		85,470
Equinix, Inc.		297		127,677
Extra Space Storage Inc.		478		47,709
Iron Mountain Inc.		1,050		36,761
Public Storage		558		126,588
SBA Communications Corp.–Class A(b)		434		71,662
Weyerhaeuser Co.		2,820		102,817
				1,004,228
Specialty Chemicals–0.50%
Albemarle Corp.(c)		412		38,864
Ecolab Inc.		970		136,120
International Flavors & Fragrances Inc.		299		37,064
PPG Industries, Inc.		934		96,884
Sherwin-Williams Co. (The)		307		125,124
				434,056
Specialty Stores–0.16%
Tiffany & Co.		386		50,798
Tractor Supply Co.		457		34,956
Ulta Beauty, Inc.(b)		214		49,960
				135,714
Steel–0.09%
Nucor Corp.		1,186		74,125
Systems Software–4.06%
CA, Inc.		1,167		41,604
Microsoft Corp.		28,828		2,842,729
Oracle Corp.		11,181		492,635
Red Hat, Inc.(b)		666		89,490
Symantec Corp.		2,314		47,784
				3,514,242
Technology Hardware, Storage & Peripherals–4.48%
Apple Inc.		18,441		3,413,613
Hewlett Packard Enterprise Co.		5,729		83,701

	Shares		Value
Technology Hardware, Storage & Peripherals–(continued)
HP Inc.		6,158	$	139,725
NetApp, Inc.		999		78,451
Seagate Technology PLC		1,062		59,971
Western Digital Corp.		1,121		86,777
Xerox Corp.		812		19,488
				3,881,726
Tires & Rubber–0.03%
Goodyear Tire & Rubber Co. (The)		930		21,660
Tobacco–1.01%
Altria Group, Inc.		7,097		403,038
Philip Morris International Inc.		5,832		470,876
				873,914
Trading Companies & Distributors–0.18%
Fastenal Co.		1,073		51,643
United Rentals, Inc.(b)		314		46,353
W.W. Grainger, Inc.		189		58,288
				156,284
Trucking–0.04%
J.B. Hunt Transport Services, Inc.		318		38,653
Water Utilities–0.07%
American Water Works Co., Inc.		665		56,778
Total Common Stocks & Other Equity Interests (Cost $26,419,030)				86,320,443
Money Market Funds–0.47%
Invesco Treasury Portfolio–Institutional Class, 1.76% (Cost $406,778)(f)		406,778		406,778
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)–100.09% (Cost $26,825,808)				86,727,221
Investments Purchased with Cash Collateral from Securities on Loan
Money Market Funds–0.29%
Invesco Government & Agency Portfolio–Institutional Class, 1.80% (Cost $253,998)(f)(g)		253,998		253,998
TOTAL INVESTMENTS IN SECURITIES–100.38% (Cost $27,079,806)				86,981,219
OTHER ASSETS LESS LIABILITIES–(0.38)%				(333,326	)
NET ASSETS–100.00%			$	86,647,893

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. S&P 500 Index Fund

Notes to Schedule of Investments:

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

^(b) Non-income producing security.

^(c) All or a portion of this security was out on loan at June 30, 2018.

^(d) 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, 2018 represented less than 1% of the Fund’s Net Assets. See Note 5.

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

^(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, 2018.

^(g) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1I.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2018

Information Technology	25.9	%
Health Care	14.0
Financials	13.8
Consumer Discretionary	12.9
Industrials	9.5
Consumer Staples	6.9
Energy	6.3
Utilities	2.9
Real Estate	2.8
Materials	2.6
Telecommunication Services	2.0
Money Market Funds Plus Other Assets Less Liabilities	0.4

Open Futures Contracts — Equity Risk
Long Futures Contracts	Number of Contracts		Expiration Month		Notional Value		Value			Unrealized Appreciation (Depreciation)
E-Mini S&P 500 Index		3		September–2018	$	408,240	$	(8,226	)	$	(8,226	)

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, 2018

(Unaudited)

Statement of Operations

For the six months ended June 30, 2018

(Unaudited)

Assets:
Investments in securities, at value (Cost $26,382,790)*	$	86,280,098
Investments in affiliates, at value (Cost $697,016)		701,121
Other investments:
Variation margin — futures contracts		306
Receivable for:
Investments sold		81,747
Dividends		72,825
Investment for trustee deferred compensation and retirement plans		35,257
Total assets		87,171,354
Liabilities:
Payable for:
Investments purchased		42,870
Collateral upon return of securities loaned		253,998
Fund shares reacquired		38,865
Amount due custodian		38,143
Accrued fees to affiliates		65,521
Accrued trustees’ and officers’ fees and benefits		3,932
Accrued other operating expenses		38,654
Trustee deferred compensation and retirement plans		41,478
Total liabilities		523,461
Net assets applicable to shares outstanding	$	86,647,893
Net assets consist of:
Shares of beneficial interest	$	15,133,184
Undistributed net investment income		1,737,044
Undistributed net realized gain		9,884,478
Net unrealized appreciation		59,893,187
	$	86,647,893
Net Assets:
Series I	$	36,162,859
Series II	$	50,485,034
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		1,905,462
Series II		2,678,381
Series I:
Net asset value per share	$	18.98
Series II:
Net asset value per share	$	18.85

* At June 30, 2018, securities with an aggregate value of $246,362 were on loan to brokers.

Investment income:
Dividends	$	836,181
Dividends from affiliates (includes securities lending income of $431)		9,016
Total investment income		845,197
Expenses:
Advisory fees		53,845
Administrative services fees		92,023
Custodian fees		15,324
Distribution fees — Series II		66,407
Transfer agent fees		2,394
Trustees’ and officers’ fees and benefits		11,020
Licensing fees		8,974
Reports to shareholders		4,750
Professional services fees		24,070
Other		7,513
Total expenses		286,320
Less: Fees waived		(554	)
Net expenses		285,766
Net investment income		559,431
Realized and unrealized gain (loss) from:
Net realized gain from:
Investment securities		5,900,536
Futures contracts		36,759
		5,937,295
Change in net unrealized appreciation (depreciation) of:
Investment securities		(4,325,797	)
Futures contracts		(14,113	)
		(4,339,910	)
Net realized and unrealized gain		1,597,385
Net increase in net assets resulting from operations	$	2,156,816

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, 2018 and the year ended December 31, 2017

(Unaudited)

	June 30, 2018			December 31, 2017
Operations:
Net investment income	$	559,431		$	1,186,720
Net realized gain		5,937,295			6,771,653
Change in net unrealized appreciation (depreciation)		(4,339,910	)		9,368,744
Net increase in net assets resulting from operations		2,156,816			17,327,117
Distributions to shareholders from net investment income:
Series I		—			(599,367	)
Series ll		—			(759,177	)
Total distributions from net investment income		—			(1,358,544	)
Distributions to shareholders from net realized gains:
Series l		—			(2,671,157	)
Series ll		—			(3,981,717	)
Total distributions from net realized gains		—			(6,652,874	)
Share transactions–net:
Series l		(3,229,961	)		(189,787	)
Series ll		(5,819,048	)		(2,610,593	)
Net increase (decrease) in net assets resulting from share transactions		(9,049,009	)		(2,800,380	)
Net increase (decrease) in net assets		(6,892,193	)		6,515,319
Net assets:
Beginning of period		93,540,086			87,024,767
End of period (includes undistributed net investment income of $1,737,044 and $1,177,613, respectively)	$	86,647,893		$	93,540,086

Notes to Financial Statements

June 30, 2018

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

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

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

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

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

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

Invesco V.I. S&P 500 Index 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 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. 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 affiliates on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

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. Collateral — To the extent the Fund has designated or segregated a security as collateral and that security is subsequently sold, it is the Fund’s practice to replace such collateral no later than the next business day. This practice does not apply to securities pledged as collateral for securities lending transactions.

Invesco V.I. S&P 500 Index Fund

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Daily Net Assets	Rate
First $2 billion		0.12%
Over $2 billion		0.10%

For the six months ended June 30, 2018, 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 Capital Management LLC, formerly Invesco PowerShares Capital Management LLC, and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2019, 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, 2019. 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, 2020, 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, 2018, the Adviser waived advisory fees of $554.

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, 2018, Invesco was paid $24,795 for accounting and fund administrative services and was reimbursed $67,228 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, 2018, 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. The fees are accrued daily and paid monthly. 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, 2018, 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.

Invesco V.I. S&P 500 Index Fund

The following is a summary of the tiered valuation input levels, as of June 30, 2018. 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.

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period. During the six months ended June 30, 2018, there were no material transfers between valuation levels.

	Level 1			Level 2		Level 3		Total
Investments in Securities
Common Stocks & Other Equity Interests	$	86,320,443		$	—	$	—	$	86,320,443
Money Market Funds		660,776			—		—		660,776
Total Investments in Securities		86,981,219			—		—		86,981,219
Other Investments — Liabilities*
Futures Contracts		(8,226	)		—		—		(8,226	)
Total Investments	$	86,972,993		$	—	$	—	$	86,972,993

* 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, 2018:

	Value
Derivative Liabilities	Equity Risk
Unrealized depreciation on futures contracts — Exchange-Traded(a)	$	(8,226	)
Derivatives not subject to master netting agreements		8,226
Total Derivative Liabilities subject to master netting agreements	$	—

^(a)  Only current day’s variation margin receivable (payable) at period-end is recorded in the Statement of Assets and Liabilities.

Effect of Derivative Investments for the six months ended June 30, 2018

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

	Location of Gain (Loss) on Statement of Operations
	Equity Risk
Realized Gain:
Futures contracts	$	36,759
Change in Net Unrealized Appreciation (Depreciation):
Futures contracts		(14,113	)
Total	$	22,646

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

	Futures Contracts
Average notional value	$	6,382,670

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, 2018.

	Value 12/31/17		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain		Value 06/30/18		Dividend Income
Invesco, Ltd.	$	60,766	$	—	$	(4,664	)	$	(16,714	)	$	957	$	40,345	$	927

Invesco V.I. S&P 500 Index Fund

NOTE 6—Trustees’ and Officers’ Fees and Benefits

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

NOTE 7—Cash Balances

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

NOTE 8—Tax Information

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

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, 2017.

NOTE 9—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2018 was $1,289,579 and $9,225,304, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	58,335,448
Aggregate unrealized (depreciation) of investments		(838,914	)
Net unrealized appreciation of investments	$	57,496,534

Cost of investments for tax purposes is $29,476,459.

Invesco V.I. S&P 500 Index Fund

NOTE 10—Share Information

	Summary of Share Activity
	Six months ended June 30, 2018(a)						Year ended December 31, 2017
	Shares			Amount			Shares			Amount
Sold:
Series I		87,631		$	1,670,455			84,246		$	1,475,450
Series II		19,513			370,076			155,899			2,840,138
Issued as reinvestment of dividends:
Series I		—			—			189,428			3,269,530
Series II		—			—			275,954			4,740,894
Reacquired:
Series I		(256,757	)		(4,900,416	)		(273,913	)		(4,934,767	)
Series II		(330,261	)		(6,189,124	)		(570,729	)		(10,191,625	)
Net increase (decrease) in share activity		(479,874	)	$	(9,049,009	)		(139,115	)	$	(2,800,380	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 91% 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 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 06/30/18	$	18.53	$	0.19	$	0.26		$	0.45	$	—		$	—		$	—		$	18.98		2.43	%	$	36,163		0.49	%(d)		0.49	%(d)		0.85	%(d)		1	%
Year ended 12/31/17		16.78		0.26		3.18			3.44		(0.31	)		(1.38	)		(1.69	)		18.53		21.26			38,450		0.48			0.48			1.46			3
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
Series II
Six months ended 06/30/18		18.43		0.07		0.35			0.42		—			—			—			18.85		2.28			50,485		0.74	(d)		0.74	(d)		0.60	(d)		1
Year ended 12/31/17		16.69		0.22		3.17			3.39		(0.27	)		(1.38	)		(1.65	)		18.43		21.00			55,090		0.73			0.73			1.21			3
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

^(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 $36,920 and $53,566 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, 2018 through June 30, 2018.

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 (01/01/18)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/18)1		Expenses Paid During Period2		Ending Account Value (06/30/18)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,024.30	$	2.46	$	1,022.36	$	2.46		0.49	%
Series II		1,000.00		1,022.80		3.71		1,021.12		3.71		0.74

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2018 through June 30, 2018, 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

At meetings held on June 5-6, 2018, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. S&P 500 Index Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc., Invesco Canada Ltd. and separate Sub-Advisory Contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2018. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’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 detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider. 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 throughout the year, 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 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 6, 2018.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, 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, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also reviewed and considered the benefits to shareholders of investing in a fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by

Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries 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 investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2017 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 reasonably comparable to the performance of the Index for the one, three and five year periods. The Board noted that the Fund is passively managed and discussed reasons for differences in the Fund’s performance versus its peers and the Index. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s

Invesco V.I. S&P 500 Index Fund

Broadridge expense group. 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 non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. 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 considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. 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 differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including management of cash flows as a result of redemptions and purchases, necessary infrastructure such as officers, office space, technology, legal and distribution, oversight of service providers, costs and business risks associated with launching new funds and sponsoring and maintaining the product line, preparation of annual registration statement updates and financial information and compliance with federal and state laws and regulations.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds. The Board noted that the Fund may also benefit from

economies of scale through initial fee setting, fee waivers and expense reimbursements.

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 considered the methodology used for calculating profitability and noted the periodic review of such methodology by an independent consultant. 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, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers 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 administrative, 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 Invesco representing 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 an affiliated broker may receive commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers may use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. S&P 500 Index Fund

	Semiannual Report to Shareholders	June 30, 2018
	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 semi-annual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The Fund’s Form N-Q (or any successor Form) filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q (or any successor Form) 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 (or any successor Form), 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            08062018      1454

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/17 to 6/30/18, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	4.70	%
Series II Shares	4.57
S&P 500 Index▼ (Broad Market Index)	2.65
Russell 2000 Index▼ (Style-Specific Index)	7.66
Lipper VUF Small-Cap Core Funds Index∎ (Peer Group Index)	5.83
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.

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 0.97% 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. 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.

Average Annual Total Returns As of 6/30/18
Series I Shares
Inception (8/29/03)	8.99	%
10 Years	8.49
5 Years	9.15
1 Year	13.66
Series II Shares
Inception (8/29/03)	8.73	%
10 Years	8.22
5 Years	8.88
1 Year	13.37

    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, 2018

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–97.29%
Aerospace & Defense–1.92%
BWX Technologies, Inc.		43,782	$	2,728,494
Cubic Corp.		46,849		3,007,706
				5,736,200
Air Freight & Logistics–1.10%
Forward Air Corp.		55,770		3,294,892
Alternative Carriers–1.71%
Iridium Communications Inc.(b)		317,113		5,105,519
Apparel Retail–1.19%
American Eagle Outfitters, Inc.		152,840		3,553,530
Application Software–1.61%
Blackbaud, Inc.		46,817		4,796,402
RingCentral, Inc.–Class A(b)		107		7,527
				4,803,929
Auto Parts & Equipment–1.31%
Visteon Corp.(b)		30,416		3,930,964
Biotechnology–3.70%
Array BioPharma Inc.(b)		240,850		4,041,463
Neurocrine Biosciences, Inc.(b)		46,938		4,611,189
Retrophin, Inc.(b)		88,480		2,411,965
				11,064,617
Building Products–2.11%
Apogee Enterprises, Inc.		58,709		2,828,013
Trex Co., Inc.(b)		55,826		3,494,149
				6,322,162
Casinos & Gaming–2.17%
Boyd Gaming Corp.		87,791		3,042,836
Penn National Gaming, Inc.(b)		103,118		3,463,734
				6,506,570
Communications Equipment–0.99%
Lumentum Holdings Inc.(b)		50,957		2,950,410
Construction & Engineering–1.83%
Dycom Industries, Inc.(b)		29,320		2,771,033
Primoris Services Corp.		99,502		2,709,440
				5,480,473
Construction Materials–0.95%
Eagle Materials Inc.		27,133		2,848,151
Consumer Finance–0.94%
SLM Corp.(b)		246,092		2,817,753
Data Processing & Outsourced Services–2.82%
Euronet Worldwide, Inc.(b)		31,390		2,629,540

	Shares		Value
Data Processing & Outsourced Services–(continued)
Genpact Ltd.		76,744	$	2,220,204
Jack Henry & Associates, Inc.		27,532		3,589,072
				8,438,816
Diversified Support Services–1.16%
Mobile Mini, Inc.		74,175		3,478,807
Education Services–0.92%
Strayer Education, Inc.		24,297		2,745,804
Electrical Components & Equipment–0.97%
EnerSys		38,989		2,910,139
Electronic Components–0.74%
Belden Inc.		36,168		2,210,588
Electronic Equipment & Instruments–4.12%
Coherent, Inc.(b)		13,580		2,124,184
FLIR Systems, Inc.		67,454		3,505,584
National Instruments Corp.		72,208		3,031,292
Zebra Technologies Corp.–Class A(b)		25,510		3,654,307
				12,315,367
Environmental & Facilities Services–1.68%
ABM Industries Inc.		69,334		2,023,166
Waste Connections, Inc.		39,797		2,995,918
				5,019,084
Footwear–1.14%
Wolverine World Wide, Inc.		98,004		3,407,599
General Merchandise Stores–0.71%
Big Lots, Inc.		51,144		2,136,796
Health Care Equipment–3.90%
Hill-Rom Holdings, Inc.		35,819		3,128,431
Nevro Corp.(b)		31,175		2,489,324
STERIS PLC		33,753		3,544,403
Wright Medical Group N.V.(b)		96,147		2,495,976
				11,658,134
Health Care Facilities–0.67%
Acadia Healthcare Co., Inc.(b)		48,927		2,001,604
Health Care REITs–0.75%
Healthcare Trust of America, Inc.–Class A		83,788		2,258,924
Health Care Supplies–0.68%
Lantheus Holdings, Inc.(b)		138,812		2,019,715
Home Entertainment Software–1.74%
Take-Two Interactive Software, Inc.(b)		43,888		5,194,584
Industrial Machinery–2.94%
Albany International Corp.–Class A		56,213		3,381,212
SPX Corp.(b)		154,096		5,401,065
				8,782,277

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

Invesco V.I. Small Cap Equity Fund

	Shares		Value
Internet Software & Services–1.27%
Instructure Inc.(b)		89,577	$	3,811,501
Investment Banking & Brokerage–3.47%
E*TRADE Financial Corp.(b)		70,464		4,309,578
Lazard Ltd.–Class A		66,467		3,250,901
Piper Jaffray Cos.		36,730		2,822,701
				10,383,180
Life & Health Insurance–0.74%
CNO Financial Group, Inc.		116,513		2,218,408
Life Sciences Tools & Services–0.88%
Cambrex Corp.(b)		50,236		2,627,343
Managed Health Care–1.45%
HealthEquity, Inc.(b)		57,883		4,347,013
Multi-Line Insurance–2.05%
American Financial Group, Inc.		28,228		3,029,711
Horace Mann Educators Corp.		69,586		3,103,536
				6,133,247
Office REITs–0.92%
Highwoods Properties, Inc.		54,535		2,766,561
Oil & Gas Equipment & Services–1.70%
Core Laboratories N.V.		26,432		3,335,983
Forum Energy Technologies, Inc.(b)		140,962		1,740,880
				5,076,863
Oil & Gas Exploration & Production–4.19%
Energen Corp.(b)		57,032		4,153,070
Newfield Exploration Co.(b)		73,009		2,208,522
Parsley Energy, Inc.–Class A(b)		75,746		2,293,589
RSP Permian, Inc.(b)		88,228		3,883,797
				12,538,978
Packaged Foods & Meats–1.02%
Pinnacle Foods Inc.		46,784		3,043,767
Paper Packaging–0.92%
Graphic Packaging Holding Co.		189,079		2,743,536
Pharmaceuticals–2.42%
Phibro Animal Health Corp.–Class A		79,032		3,639,423
Supernus Pharmaceuticals Inc.(b)		60,328		3,610,631
				7,250,054
Property & Casualty Insurance–3.25%
Argo Group International Holdings, Ltd.		54,972		3,196,622
Aspen Insurance Holdings Ltd. (Bermuda)		57,453		2,338,337
Hanover Insurance Group Inc. (The)		35,044		4,189,861
				9,724,820
Real Estate Operating Companies–0.78%
Kennedy-Wilson Holdings, Inc.		111,017		2,348,010
Regional Banks–9.82%
Bank of the Ozarks, Inc.		66,570		2,998,313
BankUnited, Inc.		76,482		3,124,290

	Shares		Value
Regional Banks–(continued)
Great Western Bancorp, Inc.		84,654	$	3,554,621
IBERIABANK Corp.		42,535		3,224,153
Pinnacle Financial Partners, Inc.		49,092		3,011,794
Synovus Financial Corp.		78,563		4,150,483
UMB Financial Corp.		9,720		740,956
Webster Financial Corp.		72,027		4,588,120
Western Alliance Bancorp(b)		70,394		3,985,004
				29,377,734
Restaurants–1.71%
Papa John’s International, Inc.		38,246		1,939,837
Wendy’s Co. (The)		184,627		3,171,892
				5,111,729
Semiconductor Equipment–1.79%
Brooks Automation, Inc.		71,250		2,324,175
Teradyne, Inc.		79,423		3,023,634
				5,347,809
Semiconductors–0.52%
Power Integrations, Inc.		21,393		1,562,759
Specialized Consumer Services–1.47%
ServiceMaster Global Holdings, Inc.(b)		74,118		4,407,797
Specialized REITs–1.22%
CubeSmart		113,038		3,642,084
Specialty Chemicals–3.01%
Minerals Technologies Inc.		42,066		3,169,673
PolyOne Corp.		76,930		3,324,915
Sensient Technologies Corp.		35,189		2,517,773
				9,012,361
Specialty Stores–0.81%
Michaels Cos., Inc. (The)(b)		126,006		2,415,535
Systems Software–1.07%
CommVault Systems, Inc.(b)		48,751		3,210,253
Technology Distributors–0.76%
Tech Data Corp.(b)		27,739		2,277,927
Tires & Rubber–0.63%
Cooper Tire & Rubber Co.		72,041		1,894,678
Trading Companies & Distributors–0.89%
Univar Inc.(b)		101,513		2,663,701
Trucking–2.06%
Knight-Swift Transportation Holdings Inc.		75,655		2,890,778
Old Dominion Freight Line, Inc.		21,964		3,271,757
				6,162,535
Total Common Stocks & Other Equity Interests (Cost $214,868,103)				291,093,591

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

Invesco V.I. Small Cap Equity Fund

	Shares		Value
Money Market Funds–2.55%
Invesco Government & Agency Portfolio–Institutional Class, 1.80%(c)		4,459,414	$	4,459,414
Invesco Liquid Assets Portfolio–Institutional Class, 2.02%(c)		3,184,818		3,185,774
Total Money Market Funds (Cost $7,644,640)				7,645,188
TOTAL INVESTMENTS IN SECURITIES–99.84% (Cost $222,512,743)				298,738,779
OTHER ASSETS LESS LIABILITIES–0.16%				467,424
NET ASSETS–100.00%			$	299,206,203

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, 2018.

Portfolio Composition

By sector, based on Net Assets

as of June 30, 2018

Financials	20.3	%
Information Technology	17.4
Industrials	16.6
Health Care	13.7
Consumer Discretionary	12.1
Energy	5.9
Materials	4.9
Real Estate	3.7
Telecommunication Services	1.7
Consumer Staples	1.0
Money Market Funds Plus Other Assets Less Liabilities	2.7

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, 2018

(Unaudited)

Statement of Operations

For the six months ended June 30, 2018

(Unaudited)

Assets:
Investments in securities, at value (Cost $214,868,103)	$	291,093,591
Investments in affiliated money market funds, at value (Cost $7,644,640)		7,645,188
Receivable for:
Investments sold		1,868,616
Fund shares sold		74,030
Dividends		187,391
Investment for trustee deferred compensation and retirement plans		78,850
Total assets		300,947,666
Liabilities:
Payable for:
Investments purchased		883,952
Fund shares reacquired		144,178
Amount due custodian		375,594
Accrued fees to affiliates		216,112
Accrued trustees’ and officers’ fees and benefits		5,104
Accrued other operating expenses		28,471
Trustee deferred compensation and retirement plans		88,052
Total liabilities		1,741,463
Net assets applicable to shares outstanding	$	299,206,203
Net assets consist of:
Shares of beneficial interest	$	189,433,154
Undistributed net investment income (loss)		(208,474	)
Undistributed net realized gain		33,755,487
Net unrealized appreciation		76,226,036
	$	299,206,203
Net Assets:
Series I	$	141,351,818
Series II	$	157,854,385
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		6,745,158
Series II		7,926,189
Series I:
Net asset value per share	$	20.96
Series II:
Net asset value per share	$	19.92

Investment income:
Dividends (net of foreign withholding taxes of $3,867)	$	1,470,521
Dividends from affiliated money market funds (includes securities lending income of $6,044)		56,101
Total investment income		1,526,622
Expenses:
Advisory fees		1,125,955
Administrative services fees		264,805
Custodian fees		8,613
Distribution fees — Series II		196,537
Transfer agent fees		18,568
Trustees’ and officers’ fees and benefits		13,219
Reports to shareholders		3,960
Professional services fees		26,544
Other		3,546
Total expenses		1,661,747
Less: Fees waived		(2,781	)
Net expenses		1,658,966
Net investment income (loss)		(132,344	)
Realized and unrealized gain (loss) from:
Net realized gain from investment securities		15,325,094
Change in net unrealized appreciation (depreciation) of investment securities		(1,255,422	)
Net realized and unrealized gain		14,069,672
Net increase in net assets resulting from operations	$	13,937,328

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, 2018 and the year ended December 31, 2017

(Unaudited)

	June 30, 2018			December 31, 2017
Operations:
Net investment income (loss)	$	(132,344	)	$	(449,792	)
Net realized gain		15,325,094			19,070,078
Change in net unrealized appreciation (depreciation)		(1,255,422	)		20,825,514
Net increase in net assets resulting from operations		13,937,328			39,445,800
Distributions to shareholders from net realized gains:
Series l		—			(6,502,386	)
Series ll		—			(7,130,030	)
Total distributions from net realized gains		—			(13,632,416	)
Share transactions–net:
Series l		(14,924,302	)		(25,705,703	)
Series ll		(6,561,120	)		(3,963,272	)
Net increase (decrease) in net assets resulting from share transactions		(21,485,422	)		(29,668,975	)
Net increase (decrease) in net assets		(7,548,094	)		(3,855,591	)
Net assets:
Beginning of period		306,754,297			310,609,888
End of period (includes undistributed net investment income (loss) of $(208,474) and $(76,130), respectively)	$	299,206,203		$	306,754,297

Notes to Financial Statements

June 30, 2018

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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. Small Cap Equity Fund

trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

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

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

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

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

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid 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 accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets	Rate
First $250 million		0	.745%
Next $250 million		0	.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, 2018, 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 Capital Management LLC, formerly Invesco PowerShares Capital Management LLC, and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2019, 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, 2019. 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, 2020, 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, 2018, the Adviser waived advisory fees of $2,781.

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, 2018, Invesco was paid $37,369 for accounting and fund administrative services and was reimbursed $227,436 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, 2018, 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. The fees are accrued daily and paid monthly. 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, 2018, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2018, the Fund incurred $2,727 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, 2018, 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.

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period. During the six months ended June 30, 2018, there were no material transfers between valuation levels.

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, 2018, the Fund engaged in securities purchases of $163,745.

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, 2017.

NOTE 8—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2018 was $19,252,323 and $47,304,993, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	85,627,586
Aggregate unrealized (depreciation) of investments		(9,454,062	)
Net unrealized appreciation of investments	$	76,173,524

Cost of investments for tax purposes is $222,565,255.

Invesco V.I. Small Cap Equity Fund

NOTE 9—Share Information

	Summary of Share Activity
	Six months ended June 30, 2018(a)						Year ended December 31, 2017
	Shares			Amount			Shares			Amount
Sold:
Series I		317,703		$	6,512,814			746,673		$	14,287,755
Series II		218,004			4,255,828			553,660			10,143,965
Issued as reinvestment of dividends:
Series I		—			—			346,979			6,502,386
Series II		—			—			399,666			7,130,030
Reacquired:
Series I		(1,036,203	)		(21,437,116	)		(2,427,148	)		(46,495,844	)
Series II		(552,864	)		(10,816,948	)		(1,162,843	)		(21,237,267	)
Net increase (decrease) in share activity		(1,053,360	)	$	(21,485,422	)		(1,543,013	)	$	(29,668,975	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 69% 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 06/30/18	$	20.02	$	0.00		$	0.94		$	0.94		$	—		$	—		$	—		$	20.96		4.70	%	$	141,352		0.97	%(d)		0.97	%(d)		0.04	%(d)		6	%
Year ended 12/31/17		18.38		(0.01	)		2.53			2.52			—			(0.88	)		(0.88	)		20.02		14.06			149,405		0.97			0.97			(0.02	)		20
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
Series II
Six months ended 06/30/18		19.05		(0.02	)		0.89			0.87			—			—			—			19.92		4.57			157,854		1.22	(d)		1.22	(d)		(0.21	)(d)		6
Year ended 12/31/17		17.58		(0.05	)		2.40			2.35			—			(0.88	)		(0.88	)		19.05		13.73			157,349		1.22			1.22			(0.27	)		20
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

^(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 $147,368 and $158,533 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, 2018 through June 30, 2018.

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 (01/01/18)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/18)1		Expenses Paid During Period2		Ending Account Value (06/30/18)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,047.00	$	4.92	$	1,019.98	$	4.86		0.97	%
Series II		1,000.00		1,045.70		6.19		1,018.74		6.11		1.22

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2018 through June 30, 2018, 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

At meetings held on June 5-6, 2018, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Small Cap Equity Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc., Invesco Canada Ltd. and separate Sub-Advisory Contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2018. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’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 detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider. 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 throughout the year, 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 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 6, 2018.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, 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, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also reviewed and considered the benefits to shareholders of investing in a fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by

Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries 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 investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2017 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 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 reasonably comparable to the performance of the Index for the one year period, and below the performance of the Index for the three and five year periods. The Board discussed detractors to Fund performance and noted that underperformance during 2016 and the outperformance of low quality names negatively impacted the Fund’s longer-term performance. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

Invesco V.I. Small Cap Equity Fund

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for 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 non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. 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 considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. 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 differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including management of cash flows as a result of redemptions and purchases, necessary infrastructure such as officers, office space, technology, legal and distribution, oversight of service providers, costs and business risks associated with launching new funds and sponsoring and maintaining the product line, preparation of annual registration statement updates and financial information and compliance with federal and state laws and regulations.

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 similarly managed third-party mutual funds advised or sub-advised by Invesco Advisers and its affiliates, based on asset balances as of December 31, 2017.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund benefits from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements.

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 considered the methodology used for calculating profitability and noted the periodic review of such methodology by an independent consultant. 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, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers 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 administrative, 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 Invesco representing 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 an affiliated broker receives commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Small Cap Equity Fund

	Semiannual Report to Shareholders	June 30, 2018
	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 (or any successor Form). The Fund’s Form N-Q (or any successor Form) filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q (or any successor Form) 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 (or any successor Form), 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            07132018      1540

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/17 to 6/30/18, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	13.10	%
Series II Shares	12.97
NASDAQ Composite Index▼ (Broad Market/Style-Specific Index)	9.37
Lipper VUF Science & Technology Funds Classification Average∎ (Peer Group)	9.46

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.

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 1.06% and 1.31%, 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.

Average Annual Total Returns
As of 6/30/18
Series I Shares
Inception (5/20/97)	6.58	%
10 Years	11.12
5 Years	16.59
1 Year	24.74
Series II Shares
Inception (4/30/04)	8.81	%
10 Years	10.84
5 Years	16.30
1 Year	24.42

Invesco V.I. Technology Fund

Schedule of Investments^(a)

June 30, 2018

(Unaudited)

	Shares		Value
Common Stocks & Other Equity Interests–98.97%
Aerospace & Defense–1.44%
Raytheon Co.		10,332	$	1,995,936
Application Software–3.38%
Adobe Systems Inc.(b)		6,335		1,544,537
salesforce.com, inc.(b)		22,908		3,124,651
				4,669,188
Biotechnology–1.85%
Alexion Pharmaceuticals, Inc.(b)		14,138		1,755,233
Celgene Corp.(b)		10,086		801,030
				2,556,263
Cable & Satellite–1.04%
Charter Communications, Inc.–Class A(b)		4,886		1,432,624
Communications Equipment–3.58%
Cisco Systems, Inc.		56,310		2,423,019
Palo Alto Networks, Inc.(b)		12,298		2,526,870
				4,949,889
Consumer Electronics–2.94%
Sony Corp. (Japan)		79,200		4,063,988
Data Processing & Outsourced Services–6.55%
Mastercard Inc.–Class A		15,041		2,955,857
PayPal Holdings, Inc.(b)		22,166		1,845,763
Visa Inc.–Class A		32,168		4,260,652
				9,062,272
Electronic Equipment & Instruments–0.55%
Keysight Technologies, Inc.(b)		12,855		758,831
Health Care Equipment–3.16%
Boston Scientific Corp.(b)		20,643		675,026
Intuitive Surgical, Inc.(b)		4,838		2,314,887
Stryker Corp.		8,177		1,380,768
				4,370,681
Home Entertainment Software–17.01%
Activision Blizzard, Inc.		59,241		4,521,273
Electronic Arts Inc.(b)		34,579		4,876,330
Nintendo Co., Ltd. (Japan)		12,100		3,949,536
Sea Ltd.–ADR (Thailand)(b)(c)		95,904		1,438,560
Take-Two Interactive Software, Inc.(b)		41,117		4,866,608
UbiSoft Entertainment S.A. (France)(b)		35,380		3,870,690
				23,522,997
Internet & Direct Marketing Retail–13.07%
Amazon.com, Inc.(b)		8,064		13,707,187
Booking Holdings Inc.(b)		768		1,556,805
Netflix, Inc.(b)		7,163		2,803,813
				18,067,805

	Shares		Value
Internet Software & Services–18.08%
Alibaba Group Holding Ltd.–ADR (China)(b)		38,273	$	7,100,790
Alphabet Inc.–Class A(b)		5,964		6,734,489
Alphabet Inc.–Class C(b)		2,312		2,579,383
Baidu, Inc.–ADR (China)(b)		7,602		1,847,286
Facebook, Inc.–Class A(b)		34,642		6,731,633
				24,993,581
Life Sciences Tools & Services–3.52%
Illumina, Inc.(b)		7,522		2,100,820
IQVIA Holdings Inc.(b)		13,759		1,373,423
Thermo Fisher Scientific, Inc.		6,720		1,391,981
				4,866,224
Managed Health Care–3.05%
UnitedHealth Group Inc.		17,207		4,221,565
Semiconductor Equipment–3.67%
Applied Materials, Inc.		50,049		2,311,763
ASML Holding N.V.–New York Shares (Netherlands)		13,931		2,757,920
				5,069,683
Semiconductors–5.27%
Broadcom Inc.		7,953		1,929,716
Integrated Device Technology, Inc.(b)		102,670		3,273,119
NVIDIA Corp.		5,892		1,395,815
Semtech Corp.(b)		14,683		690,835
				7,289,485
Systems Software–6.00%
Microsoft Corp.		68,151		6,720,370
ServiceNow, Inc.(b)		9,154		1,578,790
				8,299,160
Technology Hardware, Storage & Peripherals–4.81%
Apple Inc.		35,974		6,659,147
Total Common Stocks & Other Equity Interests (Cost $70,928,663)				136,849,319
Money Market Funds–1.00%
Invesco Government & Agency Portfolio–Institutional Class, 1.80%(d)		481,868		481,868
Invesco Liquid Assets Portfolio–Institutional Class, 2.02%(d)		344,288		344,391
Invesco Treasury Portfolio–Institutional Class, 1.76%(d)		550,707		550,707
Total Money Market Funds (Cost $1,376,863)				1,376,966
TOTAL INVESTMENTS IN SECURITIES (excluding investments purchased with cash collateral from securities on loan)–99.97% (Cost $72,305,526)				138,226,285

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

Invesco V.I. Technology Fund

	Shares		Value
Investments Purchased with Cash Collateral from Securities on Loan
Money Market Funds–0.07%
Invesco Government & Agency Portfolio–Institutional Class, 1.80% (Cost $98,115)(d)(e)		98,115	$	98,115
TOTAL INVESTMENTS IN SECURITIES–100.04% (Cost $72,403,641)				138,324,400
OTHER ASSETS LESS LIABILITIES–(0.04)%				(61,893	)
NET ASSETS–100.00%			$	138,262,507

Investment Abbreviations:

ADR – American Depositary Receipt

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

^(c)  All or a portion of this security was out on loan at June 30, 2018.

^(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, 2018.

^(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, 2018

Information Technology	68.9	%
Consumer Discretionary	17.0
Health Care	11.6
Industrials	1.5
Money Market Funds Plus Other Assets Less Liabilities	1.0

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, 2018

(Unaudited)

Statement of Operations

For the six months ended June 30, 2018

(Unaudited)

Assets:
Investments in securities, at value (Cost $70,928,663)*	$	136,849,319
Investments in affiliated money market funds, at value (Cost $1,474,978)		1,475,081
Foreign currencies, at value (Cost $47,847)		47,931
Receivable for:
Investments sold		2,519,842
Fund shares sold		4,206
Dividends		3,953
Investment for trustee deferred compensation and retirement plans		66,635
Total assets		140,966,967
Liabilities:
Payable for:
Investments purchased		2,418,607
Collateral upon return of securities loaned		98,115
Fund shares reacquired		18,874
Accrued fees to affiliates		59,622
Accrued trustees’ and officers’ fees and benefits		4,061
Accrued other operating expenses		32,108
Trustee deferred compensation and retirement plans		73,073
Total liabilities		2,704,460
Net assets applicable to shares outstanding	$	138,262,507
Net assets consist of:
Shares of beneficial interest	$	61,846,202
Undistributed net investment income (loss)		(324,694	)
Undistributed net realized gain		10,824,908
Net unrealized appreciation		65,916,091
	$	138,262,507
Net Assets:
Series I	$	126,905,572
Series II	$	11,356,935
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		4,885,011
Series II		459,246
Series I:
Net asset value per share	$	25.98
Series II:
Net asset value per share	$	24.73

* At June 30, 2018, securities with an aggregate value of $94,844 were on loan to brokers.

Investment income:
Dividends (net of foreign withholding taxes of $11,635)	$	427,397
Dividends from affiliated money market funds (includes securities lending income of $396)		14,967
Total investment income		442,364
Expenses:
Advisory fees		502,210
Administrative services fees		124,784
Custodian fees		11,077
Distribution fees — Series II		13,270
Transfer agent fees		13,895
Trustees’ and officers’ fees and benefits		11,292
Reports to shareholders		4,846
Professional services fees		22,065
Other		1,446
Total expenses		704,885
Less: Fees waived		(999	)
Net expenses		703,886
Net investment income (loss)		(261,522	)
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		5,242,363
Foreign currencies		(5,279	)
		5,237,084
Change in net unrealized appreciation (depreciation) of:
Investment securities		11,016,150
Foreign currencies		(4,668	)
		11,011,482
Net realized and unrealized gain		16,248,566
Net increase in net assets resulting from operations	$	15,987,044

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, 2018 and the year ended December 31, 2017

(Unaudited)

	June 30, 2018			December 31, 2017
Operations:
Net investment income (loss)	$	(261,522	)	$	(496,234	)
Net realized gain		5,237,084			6,458,329
Change in net unrealized appreciation		11,011,482			26,955,776
Net increase in net assets resulting from operations		15,987,044			32,917,871
Distributions to shareholders from net realized gains:
Series l		—			(5,644,440	)
Series ll		—			(458,282	)
Total distributions from net realized gains		—			(6,102,722	)
Share transactions–net:
Series l		(1,210,125	)		814,302
Series ll		694,779			729,904
Net increase (decrease) in net assets resulting from share transactions		(515,346	)		1,544,206
Net increase in net assets		15,471,698			28,359,355
Net assets:
Beginning of period		122,790,809			94,431,454
End of period (includes undistributed net investment income (loss) of $(324,694) and $(63,172), respectively)	$	138,262,507		$	122,790,809

Notes to Financial Statements

June 30, 2018

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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. Technology 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. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

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

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

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

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

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid 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. Technology 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. 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

Invesco V.I. Technology Fund

Counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks may be in excess of the amounts reflected in the Statement of Assets and Liabilities.

L. Other Risks — The Fund’s 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 accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets	Rate
First $250 million		0.75%
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, 2018, 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 Capital Management LLC, formerly Invesco PowerShares Capital Management LLC, and Invesco Asset Management (India) Private Limited (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, will pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Fund based on the percentage of assets allocated to such Affiliated Sub-Adviser(s).

The Adviser has contractually agreed, through at least June 30, 2019, 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, 2019. 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, 2020, 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, 2018, the Adviser waived advisory fees of $999.

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, 2018, Invesco was paid $24,794 for accounting and fund administrative services and was reimbursed $99,990 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, 2018, 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. The fees are accrued daily and paid monthly. 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, 2018, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2018, the Fund incurred $215 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. Technology 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, 2018. 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.

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period. During the six months ended June 30, 2018, there were transfers from Level 1 to Level 2 of $3,870,690, due to foreign fair value adjustments.

	Level 1		Level 2		Level 3		Total
Investments in Securities
Common Stocks & Equity Securities	$	124,965,105	$	11,884,214	$	—	$	136,849,319
Money Market Funds		1,475,081		—		—		1,475,081
Total Investments	$	126,440,186	$	11,884,214	$	—	$	138,324,400

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, 2017.

Invesco V.I. Technology Fund

NOTE 7—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2018 was $34,801,775 and $36,123,199, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	66,046,531
Aggregate unrealized (depreciation) of investments		(366,267	)
Net unrealized appreciation of investments	$	65,680,264

Cost of investments for tax purposes is $72,644,136.

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended June 30, 2018(a)						Year ended December 31, 2017
	Shares			Amount			Shares			Amount
Sold:
Series I		506,421		$	12,794,543			997,886		$	21,692,361
Series II		54,078			1,305,500			66,105			1,382,819
Issued as reinvestment of dividends:
Series I		—			—			253,797			5,644,440
Series II		—			—			21,607			458,282
Reacquired:
Series I		(556,191	)		(14,004,668	)		(1,214,728	)		(26,522,499	)
Series II		(25,972	)		(610,721	)		(53,315	)		(1,111,197	)
Net increase (decrease) in share activity		(21,664	)	$	(515,346	)		71,352		$	1,544,206

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 60% 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			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 06/30/18	$	22.97	$	(0.05	)	$	3.06		$	3.01		$	—		$	25.98		13.10	%	$	126,906		1.03	%(d)		1.03	%(d)		(0.37	)%(d)		26	%
Year ended 12/31/17		17.89		(0.09	)		6.34			6.25			(1.17	)		22.97		35.13			113,352		1.06			1.06			(0.41	)		43
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
Series II
Six months ended 06/30/18		21.89		(0.07	)		2.91			2.84			—			24.73		12.97			11,357		1.28	(d)		1.28	(d)		(0.62	)(d)		26
Year ended 12/31/17		17.14		(0.14	)		6.06			5.92			(1.17	)		21.89		34.74			9,439		1.31			1.31			(0.66	)		43
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

^(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 $124,329 and $10,704 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, 2018 through June 30, 2018.

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.

	Beginning Account Value (01/01/18)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
Class			Ending Account Value (06/30/18)1		Expenses Paid During Period2		Ending Account Value (01/01/18)		Expenses Paid During Period2
Series I	$	1,000.00	$	1,131.00	$	5.44	$	1,019.69	$	5.16		1.03	%
Series II		1,000.00		1,129.70		6.76		1,018.45		6.41		1.28

¹  The actual ending account value is based on the actual total return of the Fund for the period January 1, 2018 through June 30, 2018, 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

At meetings held on June 5-6, 2018, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Technology Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc., Invesco Canada Ltd. and separate Sub-Advisory Contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2018. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’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 detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider. 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 throughout the year, 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 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 6, 2018.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, 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, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also reviewed and considered the benefits to shareholders of investing in a fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by

Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries 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 investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2017 to the performance of funds in the Broadridge performance universe and against the Lipper Variable Underlying Funds Science & Technology Funds Classification Average 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 fifth quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series I shares of the Fund was reasonably comparable to the performance of the Index for the one year period, and below the performance of the Index for the three and five year periods. The Board noted that underweight and overweight exposure to certain technology sub-sectors negatively impacted Fund performance. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C. Advisory and Sub-Advisory Fees and Fund Expenses

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

Invesco V.I. Technology Fund

management fee rates of funds in the Fund’s Broadridge expense group. 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 non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. 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 considered comparative information regarding the Fund’s total expense ratio and its various components.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.

The Board also considered the fees charged by Invesco Advisers and the Affiliated Sub-Advisers to other similarly managed client accounts. 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 differences in the scope of services it provides to the Invesco Funds relative to certain other types of client accounts, including management of cash flows as a result of redemptions and purchases, necessary infrastructure such as officers, office space, technology, legal and distribution, oversight of service providers, costs and business risks associated with launching new funds and sponsoring and maintaining the product line, preparation of annual registration statement updates and financial information and compliance with federal and state laws and regulations.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds. The Board

noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements.

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 considered the methodology used for calculating profitability and noted the periodic review of such methodology by an independent consultant. 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, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers 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 administrative, 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 Invesco representing 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 an affiliated broker receives commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Technology Fund

	Semiannual Report to Shareholders	June 30, 2018
	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 semi-annual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q (or any successor Form). The Fund’s Form N-Q (or any successor Form) filings are available on the SEC website, sec.gov. Copies of the Fund’s Forms N-Q (or any successor Form) 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 (or any successor Form), 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             07182018      1429

Fund Performance

Performance summary
Fund vs. Indexes
Cumulative total returns, 12/31/17 to 6/30/18, excluding variable product issuer charges. If variable product issuer charges were included, returns would be lower.
Series I Shares	-3.17	%
Series II Shares	-3.17
S&P 500 Index▼ (Broad Market Index)	2.65
S&P 1500 Value Index▼ (Style-Specific Index)	-1.62
Lipper VUF Multi-Cap Value Funds Index∎ (Peer Group Index)	-0.14
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.

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. 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.

Average Annual Total Returns As of 6/30/18
Series I Shares
Inception (9/10/01)	4.71	%
10 Years	6.15
5 Years	8.28
1 Year	6.80
Series II Shares
Inception (9/10/01)	4.46	%
10 Years	5.89
5 Years	8.05
1 Year	6.57

Performance includes litigation proceeds. Had these proceeds not been received, total returns would have been lower.

    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. Value Opportunities Fund

Schedule of Investments^(a)

June 30, 2018

(Unaudited)

	Shares		Value
Common Stocks–98.21%
Advertising–4.93%
Interpublic Group of Cos., Inc. (The)		134,700	$	3,157,368
Omnicom Group Inc.		25,815		1,968,910
				5,126,278
Agricultural & Farm Machinery–0.47%
AGCO Corp.		7,989		485,092
Asset Management & Custody Banks–2.43%
Affiliated Managers Group, Inc.		17,040		2,533,337
Auto Parts & Equipment–1.05%
Dana Inc.		54,327		1,096,862
Building Products–2.02%
Owens Corning		33,100		2,097,547
Construction & Engineering–3.59%
AECOM(b)		113,004		3,732,522
Consumer Finance–7.44%
SLM Corp.(b)		353,500		4,047,575
Synchrony Financial		110,632		3,692,896
				7,740,471
Diversified Banks–9.06%
Bank of America Corp.		118,274		3,334,144
Citigroup Inc.		53,572		3,585,038
JPMorgan Chase & Co.		24,019		2,502,780
				9,421,962
Electronic Components–3.44%
Belden Inc.		58,556		3,578,943
Electronic Equipment & Instruments–1.24%
FLIR Systems, Inc.		24,900		1,294,053
Electronic Manufacturing Services–0.58%
Flex Ltd.(b)		42,665		602,003
Environmental & Facilities Services–3.08%
Stericycle, Inc.(b)		49,046		3,202,213
Health Care Distributors–6.43%
Cardinal Health, Inc.		61,400		2,998,162
McKesson Corp.		27,700		3,695,180
				6,693,342
Health Care Facilities–5.12%
Acadia Healthcare Co., Inc.(b)		73,600		3,010,976
Brookdale Senior Living Inc.(b)		254,751		2,315,687
				5,326,663
Homebuilding–1.07%
D.R. Horton, Inc.		27,200		1,115,200

	Shares		Value
Hotels, Resorts & Cruise Lines–2.03%
Norwegian Cruise Line Holdings Ltd.(b)		44,800	$	2,116,800
Household Products–1.70%
Spectrum Brands Holdings, Inc.		21,616		1,764,298
Industrial Conglomerates–1.31%
Carlisle Cos. Inc.		12,600		1,364,706
Industrial Machinery–2.05%
ITT Inc.		40,800		2,132,616
Investment Banking & Brokerage–6.41%
E*TRADE Financial Corp.(b)		34,200		2,091,672
LPL Financial Holdings, Inc.		60,893		3,990,927
TD Ameritrade Holding Corp.		10,600		580,562
				6,663,161
Leisure Products–2.92%
Mattel, Inc.		184,732		3,033,300
Life & Health Insurance–2.29%
MetLife, Inc.		54,717		2,385,661
Managed Health Care–4.79%
Anthem, Inc.		15,600		3,713,268
Cigna Corp.		7,500		1,274,625
				4,987,893
Oil & Gas Exploration & Production–1.28%
Apache Corp.		28,500		1,332,375
Other Diversified Financial Services–1.60%
AXA Equitable Holdings, Inc.(b)		80,600		1,661,166
Pharmaceuticals–4.50%
Mylan N.V.(b)		94,100		3,400,774
Novartis AG (Switzerland)		16,852		1,276,447
				4,677,221
Real Estate Services–2.79%
Realogy Holdings Corp.		127,113		2,898,177
Research & Consulting Services–3.26%
Dun & Bradstreet Corp. (The)		27,619		3,387,470
Steel–2.21%
Allegheny Technologies, Inc.(b)		91,378		2,295,415
Systems Software–3.07%
Oracle Corp.		72,495		3,194,130
Thrifts & Mortgage Finance–4.05%
MGIC Investment Corp.(b)		250,521		2,685,585
Radian Group Inc.		94,276		1,529,157
				4,214,742
Total Common Stocks (Cost $83,594,082)				102,155,619

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

Invesco V.I. Value Opportunities Fund

	Shares		Value
Money Market Funds–1.70%
Invesco Government & Agency Portfolio–Institutional Class, 1.80%(c)		773,638	$	773,638
Invesco Liquid Assets Portfolio–Institutional Class, 2.02%(c)		552,412		552,578
Invesco Treasury Portfolio–Institutional Class, 1.76%(c)		439,889		439,889
Total Money Market Funds (Cost $1,765,998)				1,766,105
TOTAL INVESTMENTS IN SECURITIES–99.91% (Cost $85,360,080)				103,921,724
OTHER ASSETS LESS LIABILITIES–0.09%				93,329
NET ASSETS–100.00%			$	104,015,053

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, 2018.

Portfolio Composition

By sector, based on Net

Assets as of June 30, 2018

Financials	33.3	%
Health Care	20.8
Industrials	15.8
Consumer Discretionary	12.0
Information Technology	8.3
Real Estate	2.8
Materials	2.2
Consumer Staples	1.7
Energy	1.3
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. Value Opportunities Fund

Statement of Assets and Liabilities

June 30, 2018

(Unaudited)

Statement of Operations

For the six months ended June 30, 2018

(Unaudited)

Assets:
Investments in securities, at value (Cost $83,594,082)	$	102,155,619
Investments in affiliated money market funds, at value (Cost $1,765,998)		1,766,105
Foreign currencies, at value (Cost $3,028)		3,238
Receivable for:
Fund shares sold		141,746
Dividends		101,794
Investment for trustee deferred compensation and retirement plans		113,858
Total assets		104,282,360
Liabilities:
Payable for:
Fund shares reacquired		50,600
Accrued fees to affiliates		59,327
Accrued trustees’ and officers’ fees and benefits		4,363
Accrued other operating expenses		28,728
Trustee deferred compensation and retirement plans		124,289
Total liabilities		267,307
Net assets applicable to shares outstanding	$	104,015,053
Net assets consist of:
Shares of beneficial interest	$	68,436,105
Undistributed net investment income		229,510
Undistributed net realized gain		16,787,916
Net unrealized appreciation		18,561,522
	$	104,015,053
Net Assets:
Series I	$	76,914,371
Series II	$	27,100,682
Shares outstanding, no par value, with an unlimited number of shares authorized:
Series I		10,472,930
Series II		3,703,187
Series I:
Net asset value per share	$	7.34
Series II:
Net asset value per share	$	7.32

Investment income:
Dividends (net of foreign withholding taxes of $8,242)	$	687,437
Dividends from affiliated money market funds		16,552
Total investment income		703,989
Expenses:
Advisory fees		397,792
Administrative services fees		110,782
Custodian fees		8,365
Distribution fees — Series II		39,423
Transfer agent fees		12,890
Trustees’ and officers’ fees and benefits		11,732
Reports to shareholders		5,350
Professional services fees		22,896
Other		984
Total expenses		610,214
Less: Fees waived		(1,288	)
Net expenses		608,926
Net investment income		95,063
Realized and unrealized gain (loss) from:
Net realized gain (loss) from:
Investment securities		7,374,258
Foreign currencies		(496	)
		7,373,762
Change in net unrealized appreciation (depreciation) of:
Investment securities		(10,536,272	)
Foreign currencies		(920	)
		(10,537,192	)
Net realized and unrealized gain (loss)		(3,163,430	)
Net increase (decrease) in net assets resulting from operations	$	(3,068,367	)

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, 2018 and the year ended December 31, 2017

(Unaudited)

	June 30, 2018			December 31, 2017
Operations:
Net investment income	$	95,063		$	281,297
Net realized gain		7,373,762			11,542,936
Change in net unrealized appreciation (depreciation)		(10,537,192	)		8,200,593
Net increase (decrease) in net assets resulting from operations		(3,068,367	)		20,024,826
Distributions to shareholders from net investment income:
Series I		—			(326,616	)
Series ll		—			(5,339	)
Total distributions from net investment income		—			(331,955	)
Share transactions-net:
Series l		(7,989,416	)		(11,866,628	)
Series ll		(7,487,136	)		(25,426,253	)
Net increase (decrease) in net assets resulting from share transactions		(15,476,552	)		(37,292,881	)
Net increase (decrease) in net assets		(18,544,919	)		(17,600,010	)
Net assets:
Beginning of period		122,559,972			140,159,982
End of period (includes undistributed net investment income of $229,510 and $134,447, respectively)	$	104,015,053		$	122,559,972

Notes to Financial Statements

June 30, 2018

(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. Information presented in these financial statements pertains only to the Fund. Matters affecting the Fund or each class will be voted on exclusively by the shareholders of the Fund or each class. 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. Value Opportunities Fund

trading characteristics and other market data. Pricing services generally value debt obligations assuming orderly transactions of institutional round lot size, but a fund may hold or transact in the same securities in smaller, odd lot sizes. Odd lots often trade at lower prices than institutional round lots. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

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

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

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

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

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

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

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

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

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

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

D. Distributions — Distributions from net investment income and net realized capital gain, if any, are generally declared and paid 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. Value Opportunities 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 accrues daily and pays monthly an advisory fee to the Adviser based on the annual rate of the Fund’s average daily net assets as follows:

Average Daily Net Assets	Rate
First $250 million		0	.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, 2018, the effective advisory fees incurred by the Fund was 0.695%.

Invesco V.I. Value Opportunities Fund

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

The Adviser has contractually agreed, through at least June 30, 2019, 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, 2019. 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, 2020, 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, 2018, the Adviser waived advisory fees of $1,288.

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, 2018, Invesco was paid $24,795 for accounting and fund administrative services and was reimbursed $85,987 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, 2018, 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. The fees are accrued daily and paid monthly. 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, 2018, expenses incurred under the Plan are detailed in the Statement of Operations as Distribution fees.

For the six months ended June 30, 2018, the Fund incurred $706 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, 2018. 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. Value Opportunities Fund

The Fund’s policy is to recognize transfers in and out of the valuation levels as of the end of the reporting period. During the six months ended June 30, 2018, there were no material transfers between valuation levels.

	Level 1		Level 2		Level 3		Total
Investments in Securities
Common Stocks	$	100,879,172	$	1,276,447	$	—	$	102,155,619
Money Market Funds		1,766,105		—		—		1,766,105
Total Investments	$	102,645,277	$	1,276,447	$	—	$	103,921,724

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, 2017.

NOTE 7—Investment Transactions

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the six months ended June 30, 2018 was $19,928,005 and $35,775,757, respectively. Cost of investments, including any derivatives, on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investments on a Tax Basis
Aggregate unrealized appreciation of investments	$	21,601,562
Aggregate unrealized (depreciation) of investments		(3,755,914	)
Net unrealized appreciation of investments	$	17,845,648

Cost of investments for tax purposes is $86,076,076.

Invesco V.I. Value Opportunities Fund

NOTE 8—Share Information

	Summary of Share Activity
	Six months ended June 30, 2018(a)						Year ended December 31, 2017
	Shares			Amount			Shares			Amount
Sold:
Series I		97,972		$	742,862			691,703		$	4,815,992
Series II		125,207			942,332			249,911			1,718,280
Issued as reinvestment of dividends:
Series I		—			—			46,527			326,616
Series II		—			—			762			5,339
Reacquired:
Series I		(1,136,047	)		(8,732,278	)		(2,465,512	)		(17,009,236	)
Series II		(1,094,667	)		(8,429,468	)		(4,012,341	)		(27,149,872	)
Net increase (decrease) in share activity		(2,007,535	)	$	(15,476,552	)		(5,488,950	)	$	(37,292,881	)

^(a)  There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 69% 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 06/30/18	$	7.58	$	0.01		$	(0.25	)	$	(0.24	)	$	—		$	—		$	—		$	7.34		(3.17	)%	$	76,914		1.00	%(d)		1.00	%(d)		0.23	%(d)		18	%
Year ended 12/31/17		6.48		0.02			1.11	(e)		1.13			(0.03	)		—			(0.03	)		7.58		17.44	(e)		87,232		0.98			0.98			0.30			28
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	(f)		0.44			0.62			(0.14	)		—			(0.14	)		9.84		6.62			110,865		1.03			1.04			1.87	(f)		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
Series II
Six months ended 06/30/18		7.56		0.00			(0.24	)		(0.24	)		—			—			—			7.32		(3.17	)		27,101		1.25	(d)		1.25	(d)		(0.02	)(d)		18
Year ended 12/31/17		6.45		0.00			1.11	(e)		1.11			0.00			—			0.00			7.56		17.23	(e)		35,328		1.23			1.23			0.05			28
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	(f)		0.44			0.59			(0.11	)		—			(0.11	)		9.79		6.39			80,217		1.28			1.29			1.62	(f)		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

^(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 $83,621 and $31,800 for Series I and Series II shares, respectively.

^(e)  Includes litigation proceeds received during the period. Had these litigation proceeds not been received, Net gains (losses) on securities (both realized and unrealized) per share would have been $1.09 and $1.09 on Series l and Series ll shares, respectively. Total returns would have been lower.

^(f)  Net Investment income per share and the ratio of net investment income to average net assets include significant dividends received during the year ended December 31, 2014. 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% and $0.09 and 0.98% for Series I and Series II, 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, 2018 through June 30, 2018.

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 (01/01/18)		ACTUAL				HYPOTHETICAL (5% annual return before expenses)				Annualized Expense Ratio
			Ending Account Value (06/30/18)1		Expenses Paid During Period2		Ending Account Value (06/30/18)		Expenses Paid During Period2
Series I	$	1,000.00	$	968.30	$	4.88	$	1,019.84	$	5.01		1.00	%
Series II		1,000.00		968.30		6.10		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, 2018 through June 30, 2018, 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

At meetings held on June 5-6, 2018, the Board of Trustees (the Board or the Trustees) of AIM Variable Insurance Funds (Invesco Variable Insurance Funds) as a whole, and the independent Trustees, who comprise over 75% of the Board, voting separately, approved the continuance of the Invesco V.I. Value Opportunities Fund’s (the Fund) Master Investment Advisory Agreement with Invesco Advisers, Inc. (Invesco Advisers and the investment advisory agreement) and the Master Intergroup Sub-Advisory Contract for Mutual Funds with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. and separate Sub-Advisory Contracts with Invesco Capital Management LLC and Invesco Asset Management (India) Private Limited (collectively, the Affiliated Sub-Advisers and the sub-advisory contracts) for another year, effective July 1, 2018. After evaluating the factors discussed below, among others, the Board approved the renewal of the Fund’s investment advisory agreement and the sub-advisory contracts and determined that the compensation payable by the Fund to Invesco Advisers and by Invesco Advisers to the Affiliated Sub-Advisers is fair and reasonable.

The Board’s Evaluation Process

The Board’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 detailed information about investment performance and portfolio attributes of these funds. The Board took into account evaluations and reports that it received from the Investments Committee and Sub-Committees, as well as the information provided to such committees and the Board throughout the year, in considering whether to approve each Invesco Fund’s investment advisory agreement and sub-advisory contracts.

As part of the contract renewal process, the Board reviews and considers information provided in response to detailed requests for information submitted to management by the independent Trustees with assistance from legal counsel to the independent Trustees. The Board receives comparative investment performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and Broadridge Financial Solutions, Inc. (Broadridge), an independent mutual fund data provider. 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 throughout the year, 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 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. The Trustees’ review and conclusions are based on the comprehensive consideration of all information presented to them during the course of the year and in prior years and are not the result of any single determinative factor. Moreover, one Trustee may have weighed a particular piece of information or factor differently than another Trustee. This information is current as of June 6, 2018.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A. Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the nature, extent and quality of the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager(s). The Board’s review included consideration of Invesco Advisers’ investment process oversight and structure, 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, third party oversight, internal audit, valuation, portfolio trading and legal and compliance. The Board also reviewed and considered the benefits to shareholders of investing in a fund that is part of the Invesco family of funds under the umbrella of Invesco Ltd., Invesco Advisers’ parent company, and noted Invesco Ltd.’s depth and experience in conducting an investment management business, as well as its commitment of financial and other resources to such business. The Board concluded that the nature, extent and quality of the services provided to the Fund by

Invesco Advisers are appropriate and satisfactory.

The Board reviewed the services that may be provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board noted the Affiliated Sub-Advisers’ expertise with respect to certain asset classes and that the Affiliated Sub-Advisers have offices and personnel that are located in financial centers around the world. As a result, the Board noted that the Affiliated Sub-Advisers can provide research and investment analysis on the markets and economies of various countries 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 investment performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

The Board compared the Fund’s investment performance over multiple time periods ending December 31, 2017 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, the fourth quintile for the three year period and the fifth quintile for the five year period (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that performance of Series I shares of the Fund was above the performance of the Index for the one year period, reasonably comparable to the performance of the Index for the three year period and below the performance of the Index for the five year period. The Board noted that the Fund’s underweight exposure to certain sectors and the market environment for the Fund’s value investing style negatively impacted performance. The Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

Invesco V.I. Value Opportunities Fund

C. Advisory and Sub-Advisory Fees and Fund Expenses

The Board compared the Fund’s contractual management fee rate to the contractual management fee rates of funds in the Fund’s Broadridge expense group. The Board noted that the contractual management fee rate for Series I shares of the Fund was reasonably comparable to 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 non-portfolio management administrative services fees, but that Broadridge does not provide information on a fund by fund basis as to what is included. 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 considered comparative information regarding the Fund’s total expense ratio and its various components. The Board noted that the Fund’s actual and contractual management fees were in the fourth quintile of its expense group and discussed with management reasons for such relative actual and contractual management fees.

The Board noted that Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund.

The Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other similarly managed mutual funds or client accounts.

The Board also considered the services that may be provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the fees payable by Invesco Advisers to the Affiliated Sub-Advisers pursuant to the sub-advisory contracts.

D. Economies of Scale and Breakpoints

The Board considered the extent to which there may be economies of scale in the provision of advisory services to the Fund. The Board also considered that the Fund may benefit from economies of scale through contractual breakpoints in the Fund’s advisory fee schedule, which generally operate to reduce the Fund’s expense ratio as it grows in size. The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds. The Board noted that the Fund may also benefit from economies of scale through initial fee setting, fee waivers and expense reimbursements.

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 considered the methodology used for calculating profitability and noted the periodic review of such methodology by an independent consultant. 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, extent and quality of the services provided. The Board received information from Invesco Advisers demonstrating that Invesco Advisers and the Affiliated Sub-Advisers 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 administrative, 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 Invesco representing 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 an affiliated broker receives commissions for executing certain trades for the Fund. Invesco Advisers and the Affiliated Sub-Advisers use the affiliated broker to, among other things, control order routing and minimize information leakage, and the Board was advised that such trades are executed in compliance with rules under the federal securities laws and consistent with best execution obligations.

Invesco V.I. Value Opportunities Fund

ITEM 2. CODE OF ETHICS.

Not required for a semi-annual 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. The SEC no-action relief was initially set to expire 18 months from issuance but has been extended by the SEC without an expiration date, except the no-action letter will be withdrawn upon the effectiveness of any amendments to the Loan Rule designed to express the concerns expressed in the letter.

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 13, 2018, 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 13, 2018, 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. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 13. EXHIBITS.

13(a) (1)	Not applicable.
13(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.
13(a) (3)	Not applicable.
13(a) (4)	Not applicable
13(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 23, 2018

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 23, 2018

By:	/s/ Kelli Gallegos
	Kelli Gallegos
	Principal Financial Officer
Date:	August 23, 2018

EXHIBIT INDEX

13(a) (1)	Not applicable.
13(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.
13(a) (3)	Not applicable.
13(a) (4)	Not applicable.