Aim Tax Exempt Funds N-CSR Certified annual shareholder report (management investment company)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811- 07890

AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds)*

(Exact name of registrant as specified in charter)

   11 Greenway Plaza, Suite 2500 Houston, Texas 77046   
(Address of principal executive offices)     (Zip code)

Philip A. Taylor 11 Greenway Plaza, Suite 2500 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: 2/28

Date of reporting period: 2/28/11

* Funds included are: Invesco High Income Municipal Fund, Invesco Tax-Exempt Cash Fund, Invesco Tax-Free Intermediate Fund, Invesco Van Kampen High Yield Municipal Fund, Invesco Van Kampen Intermediate Term Municipal Income Fund, Invesco Van Kampen Municipal Income Fund and Invesco Van Kampen New York Tax Free Income Fund.

Item 1. Reports to Stockholders.

Annual Report to Shareholders February 28, 2011

Invesco High Income Municipal Fund

Nasdaq:

A: AHMAX n B: AHMBX n C: AHMCX n Y: AHMYX n Institutional: AHMIX

2	Letters to Shareholders
4	Performance Summary
4	Management Discussion
6	Long-Term Fund Performance
8	Supplemental Information
9	Schedule of Investments
29	Financial Statements
31	Notes to Financial Statements
37	Financial Highlights
38	Auditor’s Report
39	Fund Expenses
40	Tax Information
T-1	Trustees and Officers

Letters to Shareholders

Philip Taylor

Dear Shareholders:

Enclosed is important information about your Fund and its performance.

     I’ve always believed that companies have an obligation to communicate regularly with their clients, and I believe that obligation is especially critical in the investment industry.

     Our website – invesco.com/us – offers timely market updates and commentary from many of our portfolio managers and other investment professionals, as well as quarterly messages from me. At invesco.com/us, you also can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer.

Invesco’s commitment to investment excellence

Invesco’s acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, broadened our range of investment products available to you. As a strong organization with a single focus – investment management – Invesco today offers investment capabilities and products to meet the needs of virtually any investor. In addition to traditional mutual funds, we manage a broad range of other solutions, including single-country, regional and global investments spanning major equity, fixed income and alternative asset classes.

     Investment excellence is our goal across our product line. Let me explain what that means. All of our funds are managed by specialized teams of investment professionals. Each team has a discrete investment perspective and philosophy, and all follow disciplined, repeatable processes governed by strong risk oversight. Our investment-centric culture provides an environment that seeks to reduce distractions, allowing our fund managers to concentrate on what they do best – manage your money.

     The importance of a broad product line and investment management expertise is obvious given the markets we’ve experienced over the last two to three years. We’ve seen that investment strategies can outperform or underperform their benchmark indexes for a variety of reasons, including where we are in the market cycle, and whether prevailing economic conditions are favorable or unfavorable for that strategy. That’s why no investment strategy can guarantee top-tier performance at all times. What investors can expect, and what Invesco offers, are funds that are managed according to their stated investment objectives and strategies, with robust risk oversight using consistent, repeatable investment processes that don’t change as short-term external conditions change – investments managed for the long term. This disciplined approach can’t guarantee a profit; no investment can do that, since all involve some measure of risk. But it can ensure that your money is managed the way we said it would be.

     This adherence to stated investment objectives and strategies allows your financial advisor to build a diversified portfolio that meets your individual risk tolerance and financial goals. It also means that when your goals change, your financial advisor will be able to find an appropriate investment option to meet your needs.

Invesco’s commitment to you

Invesco’s commitment to you remains stronger than ever. It’s one of the reasons we’ve grown to become one of the world’s largest asset managers.

     If you have questions about your account, please contact one of our client service representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, I invite you to email me directly at phil@invesco.com.

     I want to thank you for placing your trust in us. All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.

Sincerely,

Philip Taylor
Senior Managing Director, Invesco Ltd.

2 Invesco High Income Municipal Fund

Bruce Crockett

Dear Fellow Shareholders:

With 2010 behind us, now is a good time to review our portfolios and ensure that we are adhering to a long-term, diversified investment strategy, which I’ve mentioned in previous letters. The year was notable for a number of reasons, but I’m sure most of us are grateful for a return to more stable markets and growing signs that the worst of the economic crisis is behind us.

     Your Board continued to oversee the Invesco Funds with a strong sense of responsibility for your savings and a deep appreciation for your continued trust. As always, we worked throughout 2010 to manage costs and ensure Invesco continued to place investor interests first.

     I’m pleased to report that the latest report from Morningstar affirmed the work we’ve done and included a number of positive comments regarding your Board’s oversight of the Invesco Funds.

As background, Morningstar is a leading independent provider of investment research in North America, Europe, Australia and Asia. Morningstar stated, “A fund board’s duty is to represent the interests of fund shareholders, ensuring that the funds that it oversees charge reasonable fees and are run by capable advisors with a sound investment process.”

     Morningstar maintained your Fund Board’s “A” grade for Board Quality, praising the Board for taking “meaningful steps in recent years to act in fund shareholders’ interests.”¹ These steps included becoming much more proactive and vocal in overseeing how Invesco votes the funds’ shareholders’ proxies and requiring each fund trustee to invest more than one year’s board compensation in Invesco funds, further aligning our interests with those of our shareholders. Morningstar also cited the work I’ve done to make myself more available to fund shareholders via email.

     I am also pleased that Morningstar recognized the effort and the Fund Board’s efforts over the past several years to work together with management at Invesco to enhance performance and sharpen the focus on investors.

     Let me close by wishing you a happy and prosperous new year. As always, you’re welcome to contact me at bruce@brucecrockett.com with any questions or concerns you have. We look forward to representing you and serving you in the new year.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

1 Among the criteria Morningstar considers when evaluating a fund board are the degree to which the board is independent of the fund company; board members’ financial interests are aligned with those of fund shareholders; the board acts in fund shareholders’ interests; and the board works constructively with company management and investment personnel. Morningstar first awarded an “A” rating to the Invesco Funds board on September 13, 2007; that rating has been maintained in subsequent reports, the most recent of which was released December 17, 2010. Ratings are subject to change, usually every 12 to 24 months. Morningstar ratings range from “A” to “F.”

3 Invesco High Income Municipal Fund

Management’s Discussion of Fund Performance

Performance summary

For the fiscal year ended February 28, 2011, Class A shares of Invesco High Income Municipal Fund, at net asset value (NAV), underperformed the Fund’s broad market and style-specific indexes. The Fund’s underweight exposure and security selection within industrial development revenue/pollution control revenue (IDR/PCR) bonds compared to the style-specific benchmark was a main detractor from performance for the reporting period. A main contributor to Fund performance was our allocation to life care bonds.

     Your Fund’s long-term performance appears later in this report.

Fund vs. Indexes

Total returns, 2/28/10 to 2/28/11, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

Class A Shares	1.48	%
Class B Shares	0.87
Class C Shares	0.87
Class Y Shares	1.87
Institutional Class Shares	1.74
Barclays Capital Municipal Bond Index▼ (Broad Market Index)	1.72
Barclays Capital High Yield Municipal Bond Indexn (Style-Specific Index)	4.65
Lipper High Yield Municipal Debt Funds Index▼ (Peer Group Index)	0.89

^▼ Lipper Inc.; ⁿInvesco, Barclays Capital

How we invest

We invest mostly in municipal revenue bonds as proceeds from specific projects are used to pay interest and principal on those bonds.

     We believe an opportunity exists among relatively small, less-followed municipal revenue bond issues. These bonds, which are backed by dedicated revenues from specific projects, may be priced incorrectly in the market with yields that do not accurately correspond to the risk factors of the securities.

     We generally take a buy-and-hold approach but may decide to sell a holding for any of the following reasons:

n	Credit quality deterioration or other unfavorable circumstances affecting the financial viability of an issuer/project.
n	To reduce or extend duration of the Fund.

n	To reinvest in other securities with more favorable return characteristics.
n	To change sector exposure.

Market conditions and your Fund

In the U.S. and most of the developed world, a gradual and somewhat lackluster recovery continued, with central banks keeping interest rates at low levels and with few of them withdrawing their quantitative easing measures. This helped private sector companies improve their balance sheets and earnings following the global financial crisis that began to dissipate in early 2009. However, investor skepticism of global governments’ abilities to retire huge amounts of debt without affecting economic growth rates caused sovereign debt distress (especially for eurozone countries) and became a focal point of investor concern.

     In the U.S., economic recovery was present, although the pace was modest as stubbornly high unemployment and export weakness continued to weigh on the economy. Real gross domestic product (GDP), the broadest measure of overall U.S. economic activity, increased at an annual rate of 3.1% in the fourth quarter of 2010, a marked improvement from the 2.6% decrease in 2009.¹ The U.S. Federal Reserve (the Fed) maintained a very accommodative monetary policy throughout the period, with the federal funds target rate unchanged in a range of zero to 0.25%.² The Fed recently described its view of the U.S. economy by stating: “The Committee will maintain the target range for the federal funds rate at 0 to ¹/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period.”²

     During the 12-month period covered by this report, municipal bond mutual funds saw inflows early in the reporting period but experienced extensive net outflows beginning in November and continuing through the end of the fiscal year. During the last two months of 2010, market volatility was heightened across the municipal asset class as U.S. Treasury yields increased and the market was flooded with new issuance in anticipation of the Build America Bond (BAB) program ending. These factors contributed to rising investor concerns regarding the health of municipal finances, leading to redemptions and lower municipal bond prices.

     The Fund’s exposure to the 12- to 20-year portion of the yield curve, particularly security selection, detracted from returns versus the style-specific benchmark during the reporting period.

Portfolio Composition

By credit sector

Revenue Bonds	92.1	%
General Obligation Bonds	3.8
Pre-Refunded Bonds	2.2
Other Assets Less Liabilities	1.9

Total Net Assets	$597.7 million
Total Number of Holdings*		580

Top Five Fixed Income Holdings*

							% of
		Coupon			Maturity		Net Assets
1.	Illinois (State of) Finance Authority		6.88	%		8/15/38		1.0	%
2.	West Virginia (State of) Hospital Finance Authority		6.50			10/1/38		0.8
3.	Hillside (Village of)		7.00			1/1/28		0.7
4.	Platte (County of) Industrial Development Authority		6.85			4/1/29		0.6
5.	Decatur (City of) Hospital Authority		7.00			9/1/25		0.5

The Fund’s holdings are subject to change, and there is no assurance that the Fund will continue to hold any particular security.

*Excluding money market fund holdings.

4 Invesco High Income Municipal Fund

     Quality spreads tightened during the early part of the reporting period, followed by widening in November, December and January due to increased volatility and higher tax-exempt issuance, before tightening again in February. Our allocation to non-rated bonds, particularly security selection, contributed to returns for the period.

     A main contributor to Fund performance was our allocation to life care bonds. Our underweight exposure and security selection within industrial development revenue/pollution control revenue (IDR/PCR) bonds compared to the style-specific benchmark was a main detractor from performance for the reporting period. In addition, our underweight exposure to dedicated tax bonds hindered performance, but this was offset slightly by security selection.

     Thank you for investing in Invesco High Income Municipal Fund and for sharing our long-term investment horizon.

1 Bureau of Economic Analysis
2 U.S. Federal Reserve

The views and opinions expressed in management’s discussion of Fund performance are those of Invesco Advisers, Inc. These views and opinions are subject to change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or recommendations, or as an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but Invesco Advisers, Inc. makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

See important Fund and, if applicable, index disclosures later in this report.

Franklin Ruben
Portfolio manager, is lead manager of Invesco High Income Municipal Fund. Mr. Ruben joined Invesco in 1997 after having served as a senior fixed income research analyst and associate portfolio manager. A native of Johannesburg, South Africa, he earned a B.S. in accounting and an M.S. in finance, both from The University of Texas at Dallas. Mr. Ruben also completed the Cash Management Executive Education Program at Duke University.

Gerard Pollard
Portfolio manager, is manager of Invesco High Income Municipal Fund. Mr. Pollard joined Invesco in 1998 and was named a portfolio manager in 2007. He has worked in the investment industry since 1985. Mr. Pollard earned a B.B.A. from the University of Houston and an M.B.A. in finance from the University of St. Thomas.

5 Invesco High Income Municipal Fund

Your Fund’s Long-Term Performance

Results of a $10,000 Investment – Oldest Share Classes since Inception

Index data from 12/31/97, Fund data from 1/02/98

Past performance cannot guarantee comparable future results.

     The data shown in the chart include reinvested distributions, applicable sales charges and Fund expenses including management fees. Results for Class B shares are calculated as if a hypothetical shareholder had liquidated his entire investment in the Fund at the close of the reporting period and paid the applicable contingent deferred sales charges. Index results include reinvested dividends, but they do not reflect sales charges.

Performance of the peer group, if applicable, reflects fund expenses and management fees; performance of a market index does not. Performance shown in the chart above and before tax table(s) does not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.

     This chart, which is a logarithmic chart, presents the fluctuations in the value of the Fund and its indexes. We believe that a logarithmic chart is more effective than other types of charts in illustrating

changes in value during the early years shown in the chart. The vertical axis, the one that indicates the dollar value of an investment, is constructed with each segment representing a percent change in the value of the investment. In this chart, each segment represents a doubling, or 100% change, in the value of the investment. In other words, the space between $5,000 and $10,000 is the same size as the space between $10,000 and $20,000.

6 Invesco High Income Municipal Fund

Average Annual Total Returns

As of 2/28/11, including maximum applicable sales charges

									After Taxes
						After Taxes			on Distributions
			Before			on			and Sale of
			Taxes			Distributions			Fund Shares
Class A Shares
Inception (1/2/98)				3.05	%		3.04	%		3.38	%
	10 Years			3.73			3.73			4.02
	5	Years		0.45			0.45			1.18
	1	Year		-3.35			-3.35			-0.19
Class B Shares
Inception (1/2/98)				2.94	%		2.94	%		3.24	%
	10 Years			3.61			3.61			3.86
	5	Years		0.36			0.36			1.02
	1	Year		-3.93			-3.93			-0.74
Class C Shares
Inception (1/2/98)				2.65	%		2.65	%		2.96	%
	10 Years			3.46			3.46			3.71
	5	Years		0.70			0.70			1.30
	1	Year		-0.09			-0.09			1.75
Class Y Shares
	10 Years			4.31	%		4.31	%		4.55	%
	5	Years		1.57			1.57			2.17
	1	Year		1.87			1.87			3.40
Institutional Class Shares
	10 Years			4.36	%		4.36	%		4.60	%
	5	Years		1.67			1.67			2.26
	1	Year		1.74			1.74			3.31

Average Annual Total Returns

As of 12/31/10, the most recent calendar quarter-end, including maximum
applicable sales charges

									After Taxes
						After Taxes			on Distributions
			Before			on			and Sale of
			Taxes			Distributions			Fund Shares
Class A Shares
Inception (1/2/98)				3.13	%		3.13	%		3.45	%
	10 Years			3.89			3.89			4.16
	5	Years		0.80			0.80			1.47
	1	Year		-0.68			-0.68			1.57
Class B Shares
Inception (1/2/98)				3.02	%		3.02	%		3.31	%
	10 Years			3.79			3.79			4.00
	5	Years		0.72			0.72			1.31
	1	Year		-1.35			-1.35			0.95
Class C Shares
Inception (1/2/98)				2.73	%		2.73	%		3.02	%
	10 Years			3.61			3.61			3.83
	5	Years		1.01			1.01			1.56
	1	Year		2.45			2.45			3.43
Class Y Shares
	10 Years			4.47	%		4.47	%		4.69	%
	5	Years		1.93			1.93			2.46
	1	Year		4.60			4.60			5.20
Institutional Class Shares
	10 Years			4.52	%		4.52	%		4.74	%
	5	Years		2.02			2.02			2.56
	1	Year		4.46			4.46			5.11

Class Y shares incepted on October 3, 2008. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A share performance reflects any applicable fee waivers or expense reimbursements.

     Institutional Class shares incepted on July 31, 2006. Performance shown prior to that date is that of Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A share performance reflects any applicable fee waivers or expense reimbursements.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

     The net annual Fund operating expense ratio set forth in the most

recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class Y and Institutional Class shares was 0.80%, 1.55%, 1.55%, 0.55% and 0.55%, respectively.¹ The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C, Class Y and Institutional Class shares was 0.98%, 1.73%, 1.73%, 0.73% and 0.78%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

     Class A share performance reflects the maximum 4.75% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. The CDSC on Class B shares declines from 5% beginning at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class Y and Institutional Class shares do not have a front-end sales charge or a CDSC;

therefore, performance is at net asset value.

     The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.

     After-tax returns are calculated using the historical highest individual federal marginal income tax rate. They do not reflect the effect of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their shares in tax-deferred accounts such as 401(k)s or IRAs. The Fund’s past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future.

     Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower.

1 Total annual Fund operating expenses after any voluntary fee waivers and/or expense reimbursements by the adviser and/or distributor. Voluntary arrangements can be discontinued or modified at any time without further notice to investors. See current prospectus for more information.

7 Invesco High Income Municipal Fund

Invesco High Income Municipal Fund’s investment objective is total return, comprised of substantially federal tax-exempt income and taxable capital appreciation.

n Unless otherwise stated, information presented in this report is as of February 28, 2011, and is based on total net assets.

n Unless otherwise noted, all data provided by Invesco.

n To access your Fund’s reports/prospectus, visit invesco.com/fundreports.

About share classes

n	Class B or Class B5 shares may not be purchased or acquired by exchange from share classes other than Class B or Class B5 shares. Please see the prospectus for more information.
n	Class R shares are available only to certain retirement plans. Please see the prospectus for more information.
n	Class Y shares are available to only certain investors. Please see the prospectus for more information.
n	Institutional Class shares are offered exclusively to institutional investors, including defined contribution plans that meet certain criteria. Please see the prospectus for more information.

Principal risks of investing in the Fund

n Credit risk. The issuer of instruments in which the Fund invests may be unable to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the issuer’s credit rating.

n Defaulted securities risk. Defaulted securities involve the substantial risk that principal will not be repaid. Defaulted securities and any securities received in an exchange for such securities may be subject to restrictions on resale.

n High yield bond (junk bond) risk. Junk bonds involve a greater risk of default or price changes due to changes in the credit quality of the issuer. The values of junk bonds fluctuate more than those of high-quality bonds in response to company, political, regulatory or economic developments. Values of junk bonds can decline significantly over short periods of time.

n Interest rate risk. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise; conversely, bond prices generally rise as interest rates fall. Specific bonds differ in their sensitivity to changes

	in interest rates depending on their individual characteristics, including duration.
n	Management risk. The investment techniques and risk analysis used by the Fund’s portfolio managers may not produce the desired results.
n	Market risk. The prices of and the income generated by the Fund’s securities may decline in response to, among other things, investor sentiment; general economic and market conditions; regional or global instability; and currency and interest rate fluctuations.
n	Municipal securities risk. The Fund may invest in municipal securities. Constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives, and the issuer’s regional economic conditions may affect the municipal security’s value, interest payments, repayment of principal and the Fund’s ability to sell it. Failure of a municipal security issuer to comply with applicable tax requirements may make income paid thereon taxable, resulting in a decline in the security’s value.
n	Reinvestment risk. Reinvestment risk is the risk that a bond’s cash flows (coupon income and principal repayment) will be reinvested at an interest rate below that on the original bond.
n	Synthetic securities risk. Fluctuations in the values of synthetic instruments may not correlate perfectly with the instruments they are designed to replicate. Some synthetic instruments are more sensitive to interest rate changes and market price fluctuations than others. These instruments may be subject to counterparty risk and liquidity risk.

About indexes used in this report

n	The Barclays Capital Municipal Bond Index is an unmanaged index considered representative of the tax-exempt bond market.
n	The Barclays Capital High Yield Municipal Bond Index is an unmanaged index consisting of noninvestment-grade, unrated or below Ba1 bonds.
n	The Lipper High Yield Municipal Debt Funds Index is an unmanaged index considered representative of high yield municipal debt funds tracked by Lipper.
n	The Fund is not managed to track the performance of any particular index, including the index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
n	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.

Other information

n The returns shown in management’s discussion of Fund performance are based on net asset values calculated for shareholder transactions. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes, and as such, the net asset values for shareholder transactions and the returns based on those net asset values may differ from the net asset values and returns reported in the Financial Highlights.

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

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Nasdaq Symbols

Class A Shares	AHMAX
Class B Shares	AHMBX
Class C Shares	AHMCX
Class Y Shares	AHMYX
Institutional Class Shares	AHMIX

8 Invesco High Income Municipal Fund

Schedule of Investments

February 28, 2011

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Municipal Obligations–98.13%
Alaska–0.41%
Alaska (State of) Industrial Development & Export Authority (Boys & Girls Home & Family Services, Inc.);
Series 2007, Community Provider RB		5.70	%		12/01/17	$	1,000	$	805,260
Series 2007, Community Provider RB		6.00	%		12/01/36		3,000		1,651,350
									2,456,610
Arizona–3.13%
Centerra Community Facilities District; Series 2005, Unlimited Tax GO		5.50	%		07/15/29		358		276,534
Pima (County of) Industrial Development Authority (Acclaim Charter School); Series 2006, Education Facility RB		5.70	%		12/01/26		2,200		1,747,614
Pima (County of) Industrial Development Authority (Choice Education & Development Corp.);
Series 2006, Education Facility RB		6.25	%		06/01/26		1,000		837,920
Series 2006, Education Facility RB		6.38	%		06/01/36		1,000		781,640
Pima (County of) Industrial Development Authority (Coral Academy Science);
Series 2008 A, Education Facilities RB		7.13	%		12/01/28		2,120		1,985,825
Series 2008 A, Education Facilities RB		7.25	%		12/01/38		1,100		994,323
Pima (County of) Industrial Development Authority (Desert Heights Charter School); Series 2003, Education Facility RB		7.25	%		08/01/19		830		842,267
Pima (County of) Industrial Development Authority (Legacy Traditional School); Series 2009, Education RB		8.50	%		07/01/39		1,750		1,808,642
Pima (County of) Industrial Development Authority (P.L.C. Charter Schools);
Series 2006, Education Facility RB		6.50	%		04/01/26		1,000		870,590
Series 2006, Education Facility RB		6.75	%		04/01/36		1,000		831,530
Pima (County of) Industrial Development Authority (Paradise Education Center);
Series 2006, Ref. Education RB		5.88	%		06/01/22		535		483,940
Series 2006, Ref. Education RB		6.00	%		06/01/36		830		673,819
Series 2010, Education RB		6.10	%		06/01/45		1,400		1,142,078
Pima (County of) Industrial Development Authority (Tucson Electric Power Co.); Series 2010 A, IDR		5.25	%		10/01/40		1,000		897,310
Pinal (County of) Electrical District No. 4; Series 2008, Electrical System RB		6.00	%		12/01/38		1,650		1,548,393
Tucson (City of) Industrial Development Authority (Arizona AgriBusiness & Equine Center, Inc.); Series 2004 A, Education RB		6.13	%		09/01/34		500		416,915
University Medical Center Corp.;
Series 2005, Hospital RB		5.00	%		07/01/35		1,800		1,552,482
Series 2009, Hospital RB		6.25	%		07/01/29		500		512,675
Series 2009, Hospital RB		6.50	%		07/01/39		500		511,235
									18,715,732
California–1.76%
California (State of) Educational Facilities Authority (Fresno Pacific University); Series 2000 A, RB		6.75	%		03/01/19		1,000		1,002,590
California (State of) Health Facilities Financing Authority (Children’s Hospital of Orange County); Series 2009, RB		6.50	%		11/01/38		3,000		3,061,380
California (State of) Municipal Finance Authority (King/Chavez); Series 2009 A, Educational Facilities RB		8.50	%		10/01/29		1,000		1,107,780
California (State of) Municipal Finance Authority (Literacy First) Series 2010 A, Charter School Lease RB		6.00	%		09/01/30		1,085		948,626
California (State of) Statewide Communities Development Authority (Hospice of Napa Valley); Series 2004 A, RB		7.00	%		01/01/34		900		760,806
California (State of) Statewide Communities Development Authority (Huntington Park Charter School); Series 2007 A, Educational Facilities RB		5.25	%		07/01/42		1,500		1,057,965
California (State of) Statewide Communities Development Authority (Notre Dame de Namur University); Series 2003, RB		6.50	%		10/01/23		750		698,153
Eden (Township of) Healthcare District (Eden Hospital Health Services Corp.); Series 2010, COP		6.13	%		06/01/34		1,000		940,420

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

9        Invesco High Income Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
California–(continued)
Orange (City of) Community Facilities District No 06.-1 (Del Rio Public Improvements); Series 2010, Special Tax RB		5.50	%		10/01/28	$	540	$	486,988
Orange (City of) Community Facilities District No. 06-1 (Del Rio Public Improvements); Series 2010, Special Tax RB		6.00	%		10/01/40		500		455,155
									10,519,863
Colorado–9.48%
Antelope Heights Metropolitan District; Series 2003, Limited Tax GO Bonds(a)(b)		8.00	%		12/01/13		500		600,265
Arista Metropolitan District; Series 2005, Special Limited Tax GO Bonds		6.75	%		12/01/35		2,000		1,421,400
Beacon Point Metropolitan District; Series 2005 A, Limited Tax GO Bonds		6.25	%		12/01/35		1,500		1,312,890
Bradburn Metropolitan District No. 3; Series 2010, Ref. Limited Tax GO Bonds		7.50	%		12/01/39		550		519,712
Bromley Park Metropolitan District No. 2;
Series 2002 B, Limited Tax GO Bonds(a)(b)		8.05	%		12/01/12		500		576,885
Series 2003, Limited Tax GO Bonds(a)(b)		8.05	%		12/01/12		534		616,113
Buckhorn Valley Metropolitan District No. 2; Series 2003, Limited Tax GO Bonds		7.00	%		12/01/23		60		57,773
Castle Oaks Metropolitan District;
Series 2005, Limited Tax GO Bonds		6.00	%		12/01/25		500		403,820
Series 2005, Limited Tax GO Bonds		6.13	%		12/01/35		750		557,850
Colorado (State of) Educational & Cultural Facilities Authority (Banning Lewis Ranch Academy); Series 2006, Charter School RB(c)		6.13	%		12/15/35		2,880		2,408,573
Colorado (State of) Educational & Cultural Facilities Authority (Brighton Charter School); Series 2006, Charter School RB		6.00	%		11/01/36		1,675		999,070
Colorado (State of) Educational & Cultural Facilities Authority (Carbon Valley Academy); Series 2006, Charter School RB		5.63	%		12/01/36		1,060		796,092
Colorado (State of) Educational & Cultural Facilities Authority (Community Leadership Academy);
Series 2008, Charter School RB		6.25	%		07/01/28		650		576,979
Series 2008, Charter School RB		6.50	%		07/01/38		1,000		858,750
Colorado (State of) Educational & Cultural Facilities Authority (Denver Academy); Series 2003 A, Ref. RB		7.00	%		11/01/23		500		504,040
Colorado (State of) Educational & Cultural Facilities Authority (Denver School of Science & Technology); Series 2004, RB		5.00	%		12/01/13		425		428,086
Colorado (State of) Educational & Cultural Facilities Authority (Flagstaff Academy); Series 2008 A, Charter School RB		7.00	%		08/01/38		1,500		1,416,465
Colorado (State of) Educational & Cultural Facilities Authority (Knowledge Quest Academy); Series 2005, Charter School RB		6.50	%		05/01/36		895		757,107
Colorado (State of) Educational & Cultural Facilities Authority (Monument Academy);
Series 2007, Charter School RB		5.88	%		10/01/27		2,500		2,208,450
Series 2007, Charter School RB		6.00	%		10/01/37		1,635		1,370,343
Series 2008 A, Charter School RB		7.25	%		10/01/39		500		469,455
Colorado (State of) Educational & Cultural Facilities Authority (New Vision Charter School); Series 2008, RB(c)		6.75	%		04/01/40		1,860		1,614,666
Colorado (State of) Educational & Cultural Facilities Authority (North Star Academy); Series 2008 A, Ref. & Improvement RB(c)		8.25	%		11/01/39		2,980		3,033,491
Colorado (State of) Educational & Cultural Facilities Authority (Northeast Academy); Series 2007, Charter School RB(c)		5.75	%		05/15/37		2,515		1,917,763
Colorado (State of) Educational & Cultural Facilities Authority (The Classical Academy); Series 2008 A, Charter School RB		7.40	%		12/01/38		2,000		2,158,540
Colorado (State of) Educational & Cultural Facilities Authority (Union Colony Charter School); Series 2007, RB(c)		5.75	%		12/01/37		1,650		1,233,952
Colorado (State of) Educational & Cultural Facilities Authority (Windsor Academy); Series 2007, Charter School RB		5.70	%		05/01/37		1,575		1,206,576
Colorado (State of) Health Facilities Authority (Christian Living Campus);
Series 2004 A, RB		6.13	%		01/01/25		250		233,970
Series 2004 A, RB		6.25	%		01/01/33		550		493,680

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

10        Invesco High Income Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Colorado–(continued)
Colorado (State of) Health Facilities Authority (Christian Living Communities);
Series 2009 A, RB		8.25	%		01/01/24	$	375	$	390,803
Series 2009 A, RB		9.00	%		01/01/34		750		788,970
Colorado (State of) Health Facilities Authority (Total Longterm Care National Obligated Group),
Series 2010 A, RB		6.00	%		11/15/30		900		844,587
Series 2010 A, RB		6.25	%		11/15/40		800		751,800
Colorado Springs (City of) Urban Renewal Authority (University Village Colorado); Series 2008 A, Tax Increment Allocation RB		7.00	%		12/01/29		3,000		2,529,450
Conservatory Metropolitan District (Arapahoe County); Series 2005, Limited Tax GO(a)(b)		6.75	%		12/01/13		810		935,509
Copperleaf Metropolitan District No. 2;
Series 2006, Limited Tax GO Bonds		5.85	%		12/01/26		1,000		734,570
Series 2006, Limited Tax GO Bonds		5.95	%		12/01/36		1,750		1,167,687
Country Club Village Metropolitan District; Series 2006, Limited Tax GO Bonds		6.00	%		12/01/34		600		409,026
Fitzsimons Village Metropolitan District No. 1; Series 2010 A, Tax Increment Allocation RB		7.50	%		03/01/40		1,500		1,425,540
Fossil Ridge Metropolitan District No. 1; Series 2010, Ref. Limited Tax Supported GO Bonds		7.25	%		12/01/40		1,000		937,640
Grandby Ranch Metropolitan District; Series 2006, Limited Tax GO Bonds		6.75	%		12/01/36		3,000		2,631,030
Jordan Crossing Metropolitan District; Series 2006, Limited Tax GO Bonds		5.75	%		12/01/36		1,400		863,338
Liberty Ranch Metropolitan District; Series 2006, Limited Tax GO Bonds		6.25	%		12/01/36		1,629		1,195,165
Montrose (County of) (The Homestead at Montrose, Inc.);
Series 2003 A, Health Care Facilities RB		5.75	%		02/01/15		210		208,177
Series 2003 A, Health Care Facilities RB		6.75	%		02/01/22		300		298,152
Series 2003 A, Health Care Facilities RB		7.00	%		02/01/25		800		797,128
Northwest Metropolitan District No. 3;
Series 2005, Limited Tax GO Bonds		6.13	%		12/01/25		1,000		818,180
Series 2005, Limited Tax GO Bonds		6.25	%		12/01/35		1,000		756,470
Piney Creek Metropolitan District; Series 2005, Limited Tax GO Bonds		5.50	%		12/01/35		1,179		956,888
Reata South Metropolitan District; Series 2007 A, Limited Tax GO Bonds		7.25	%		06/01/37		1,000		807,400
Regional Transportation District (Denver Transit Partners Eagle P3); Series 2010, Private Activity RB		6.00	%		01/15/34		500		470,395
Riverdale Peaks II Metropolitan District; Series 2005, Limited Tax GO Bonds		6.50	%		12/01/35		1,000		723,040
Silver Peaks Metropolitan District No. 2; Series 2006, Limited Tax GO Bonds		5.75	%		12/01/36		1,000		683,480
Southlands Metropolitan District No. 1; Series 2004, Unlimited Tax GO Bonds(a)(b)		7.13	%		12/01/14		500		607,300
Table Rock Metropolitan District; Series 2003, Limited Tax GO Bonds(a)(b)		7.00	%		12/01/13		700		800,821
University of Northern Colorado (Auxiliary Facilities System); Series 2001, Ref. & Improvement RB (INS–AMBAC)(d)		5.00	%		06/01/23		1,000		1,001,410
Valagua Metropolitan District; Series 2008, Limited Tax GO Bonds		7.75	%		12/01/37		1,000		883,150
Wyndham Hill Metropolitan District No. 2;
Series 2005, Limited Tax GO Bonds		6.25	%		12/01/25		85		68,889
Series 2005, Limited Tax GO Bonds		6.38	%		12/01/35		500		374,485
									56,613,236
Connecticut–0.63%
Hamden (Town of) (Whitney Center); Series 2009 A, RB		7.63	%		01/01/30		700		712,845
Harbor Point Infrastructure Improvement District (Harbor Point); Series 2010 A, Special Obligation Tax Allocation RB		7.88	%		04/01/39		3,000		3,038,040
									3,750,885
Delaware–0.54%
New Castle (County of) (Newark Charter School, Inc.); Series 2006, RB		5.00	%		09/01/30		1,610		1,329,651

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

11        Invesco High Income Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Delaware–(continued)
Sussex (County of) (Cadbury at Lewes);
Series 2006 A, First Mortgage RB		5.45	%		01/01/16	$	865	$	823,912
Series 2006 A, First Mortgage RB		5.90	%		01/01/26		750		620,505
Series 2006 A, First Mortgage RB		6.00	%		01/01/35		600		455,076
									3,229,144
District of Columbia–0.50%
District of Columbia (National Public Radio, Inc.); Series 2010 A, RB		5.00	%		04/01/43		1,000		939,270
District of Columbia (Sibley Memorial Hospital); Series 2009, Hospital RB		6.38	%		10/01/39		2,000		2,069,980
									3,009,250
Florida–4.73%
Alachua (County of) (North Florida Retirement Village, Inc.); Series 2007 A, IDR		5.88	%		11/15/36		3,000		2,256,660
Brevard (County of) Health Facilities Authority (Health First, Inc.); Series 2009, RB		7.00	%		04/01/39		2,100		2,249,562
Capital Trust Agency (Miami Community Charter School) Series 2010 A, RB		7.00	%		10/15/40		1,500		1,306,500
Cory Lakes Community Development District;
Series 2001 A, Special Assessment RB		8.38	%		05/01/17		285		287,736
Series 2001 B, Special Assessment RB		8.38	%		05/01/17		140		141,344
Cypress Lakes Community Development District; Series 2004 A, Special Assessment RB		6.00	%		05/01/34		525		476,858
East Homestead Community Development District; Series 2005, Special Assessment RB		5.45	%		05/01/36		570		463,188
Florida (State of) Development Finance Corp. (Palm Bay Academy, Inc.);
Series 2006 A, RB		6.00	%		05/15/36		2,130		1,545,847
Series 2007 A, RB		6.13	%		05/15/37		1,855		1,378,061
Florida (State of) Development Finance Corp. (Sculptor Charter School); Series 2008 A, RB		7.25	%		10/01/38		2,710		2,626,640
Gramercy Farms Community Development District; Series 2007 B, Special Assessment RB(e)		5.10	%		05/01/14		1,000		438,800
Hillsborough (County of) Industrial Development Authority (Healthcare Facilities); Series 2008 B, IDR(a)(b)		8.00	%		08/15/19		1,000		1,365,000
Lee (County of) Industrial Development Authority (Cypress Cove at HealthPark); Series 2002 A, Health Care Facilities RB		6.75	%		10/01/32		1,250		936,787
Miami Beach (City of) Health Facilities Authority (Mount Sinai Medical Center);
Series 2001 A, Hospital RB		6.70	%		11/15/19		1,000		1,011,220
Series 2004, Ref. Hospital RB(c)		6.75	%		11/15/29		500		484,975
Miami-Dade (County of) Health Facilities Authority (Miami Children’s Hospital);
Series 2010 A, Ref. Hospital RB		6.00	%		08/01/30		500		501,040
Series 2010 A, Ref. Hospital RB		6.13	%		08/01/42		250		249,813
Mount Dora (City of) Health Facilities Authority (Waterman Village); Series 2004 A, Ref. RB		5.75	%		08/15/18		750		716,910
Orange (County of) Health Facilities Authority (Orlando Lutheran Towers, Inc.);
Series 2005, Ref. Health Care Facilities RB		5.38	%		07/01/20		1,100		1,006,610
Series 2007, First Mortgage RB		5.50	%		07/01/32		1,000		805,780
Orlando (City of) Urban Community Development District; Series 2004, Capital Improvement Special Assessment RB		6.25	%		05/01/34		1,000		833,030
Poinciana Community Development District; Series 2000 A, Special Assessment RB		7.13	%		05/01/31		500		486,655
Reunion East Community Development District; Series 2002 A, Special Assessment RB		7.38	%		05/01/33		1,000		681,590
Sarasota (County of) Health Facilities Authority (Village on the Isle);
Series 2007, Ref. Retirement Facilities RB		5.00	%		01/01/17		1,500		1,524,195
Series 2007, Ref. Retirement Facilities RB		5.50	%		01/01/27		1,000		874,120
Series 2007, Ref. Retirement Facilities RB		5.50	%		01/01/32		1,000		843,430
St. Johns (County of) Industrial Development Authority (Glenmoor);
Series 2006 A, Health Care RB		5.25	%		01/01/26		1,000		808,560
Series 2006 A, Health Care RB		5.38	%		01/01/40		1,000		722,760

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

12        Invesco High Income Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Florida–(continued)
St. Petersburg (City of) Health Facilities Authority (All Children’s Hospital, Inc. Obligated Group);
Series 2009 A, Ref. RB		6.25	%		11/15/29	$	150	$	160,368
Series 2009 A, Ref. RB		6.50	%		11/15/39		1,000		1,064,830
									28,248,869
Georgia–1.14%
Atlanta (City of) (Atlantic Station);
Series 2001, Tax Allocation RB(a)(b)		7.75	%		12/01/11		355		375,771
Series 2001, Tax Allocation RB(a)(b)		7.90	%		12/01/11		750		800,333
Atlanta (City of) (Eastside);
Series 2005 B, Tax Allocation RB		5.40	%		01/01/20		1,000		1,010,320
Series 2005 B, Tax Allocation RB		5.60	%		01/01/30		2,000		1,854,960
Atlanta (City of) (Princeton Lakes); Series 2006, Tax Allocation RB(c)		5.50	%		01/01/31		630		530,000
DeKalb (County of) Hospital Authority (DeKalb Medical Center, Inc);
Series 2010, RAC		6.00	%		09/01/30		700		672,056
Series 2010, RAC		6.13	%		09/01/40		1,000		932,500
Fulton (County of) Residential Care Facilities for the Elderly Authority (Canterbury Court);
Series 2004 A, RB		6.13	%		02/15/26		500		444,200
Series 2004 A, RB		6.13	%		02/15/34		200		168,784
									6,788,924
Hawaii–0.47%
Hawaii (State of) Department of Budget & Finance (15 Craigside);
Series 2009 A, Special Purpose RB		8.75	%		11/15/29		850		944,733
Series 2009 A, Special Purpose RB		9.00	%		11/15/44		1,250		1,382,450
Hawaii (State of) Department of Budget & Finance (Hawai’i Pacific Health Obligated Group); Series 2010 B, Special Purpose RB		5.75	%		07/01/40		500		462,120
									2,789,303
Idaho–1.19%
Idaho (State of) Housing & Finance Association (Compass Public Charter School, Inc.) Series 2010 A, Non-profit Facilities RB		6.25	%		07/01/40		1,000		863,960
Idaho (State of) Housing & Finance Association (Liberty Charter School); Series 2008 A, Non-profit Facilities RB		6.00	%		06/01/38		750		665,805
Idaho (State of) Housing & Finance Association (North Star Charter School);
Series 2009 A, Non-profit Facilities RB		9.00	%		07/01/21		150		167,385
Series 2009 A, Non-profit Facilities RB		9.25	%		07/01/29		1,000		1,090,070
Series 2009 A, Non-profit Facilities RB		9.50	%		07/01/39		2,005		2,180,036
Idaho (State of) Housing & Finance Association (Victory Charter School, Inc.); Series 2009 A, Non-profit Facilities RB		8.25	%		07/01/39		745		785,856
Idaho (State of) Housing & Finance Association; Series 2008 A, Non-profit Facilities RB		6.13	%		07/01/38		1,580		1,349,794
									7,102,906
Illinois–9.20%
Belleville (City of) (Frank Scott Parkway Redevelopment); Series 2007 A, Ref. Tax Increment Allocation RB		5.70	%		05/01/36		1,000		771,660
Chicago (City of) (Chatham Ridge Redevelopment);
Series 2002, Tax Increment Allocation RB		5.95	%		12/15/12		275		280,789
Series 2002, Tax Increment Allocation RB		6.05	%		12/15/13		475		488,575
Chicago (City of) (Lakeshore East);
Series 2003, Special Assessment Improvement Bonds		6.63	%		12/01/22		500		477,000
Series 2003, Special Assessment Improvement Bonds		6.75	%		12/01/32		500		454,050
Cook (County of) Finance Authority (Navistar International Corp.); Series 2010, Recovery Zone Facility RB		6.50	%		10/15/40		250		253,545

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

13        Invesco High Income Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Illinois–(continued)
Du Page (County of) Special Service Area No. 31 (Monarch Landing); Series 2006, Special Tax RB		5.40	%		03/01/16	$	155	$	147,808
Hillside (Village of) (Mannheim Redevelopment);
Series 2008, Sr. Lien Tax Increment Allocation RB		6.55	%		01/01/20		1,000		910,970
Series 2008, Sr. Lien Tax Increment Allocation RB		7.00	%		01/01/28		5,000		4,386,500
Illinois (State of) Finance Authority (Beacon Hill);
Series 2005 A, Ref. RB		5.15	%		02/15/13		655		647,186
Series 2005 A, Ref. RB		5.25	%		02/15/14		300		293,805
Series 2005 A, Ref. RB		5.35	%		02/15/15		225		216,457
Illinois (State of) Finance Authority (Bethesda Home & Retirement Center); Series 1999 A, RB		6.25	%		09/01/14		500		500,625
Illinois (State of) Finance Authority (Clare Oaks);
Series 2006 A, RB		6.00	%		11/15/27		1,000		746,950
Series 2006 A, RB		6.00	%		11/15/39		3,500		2,391,515
Illinois (State of) Finance Authority (Fairview Obligated Group);
Series 2008 A, Ref. RB(e)		6.13	%		08/15/28		1,000		816,420
Series 2008 A, Ref. RB(e)		6.25	%		08/15/35		1,000		802,080
Series 2008 A, Ref. RB(e)		6.25	%		08/15/40		1,000		786,700
Illinois (State of) Finance Authority (Luther Oaks);
Series 2006 A, RB		5.70	%		08/15/28		500		387,695
Series 2006 A, RB		6.00	%		08/15/26		850		698,683
Series 2006 A, RB		6.00	%		08/15/39		1,460		1,109,279
Illinois (State of) Finance Authority (Park Place of Elmhurst);
Series 2010 A, RB		8.00	%		05/15/30		1,300		1,249,378
Series 2010 D-2, (TEMPS-65sm) RB		7.00	%		11/15/15		550		538,736
Series 2010 D-3, (TEMPS-50sm) RB		6.25	%		08/15/15		550		538,296
Illinois (State of) Finance Authority (Rush University Medical Center Obligated Group);
Series 2009 A, RB		7.25	%		11/01/30		1,865		2,014,815
Series 2009 A, RB		7.25	%		11/01/38		2,000		2,128,980
Illinois (State of) Finance Authority (Silver Cross Hospital & Medical Centers);
Series 2009, RB		6.88	%		08/15/38		6,000		6,001,680
Series 2009, RB		7.00	%		08/15/44		1,000		998,680
Illinois (State of) Finance Authority (Smith Crossing); Series 2003 A, Health Facilities RB		7.00	%		11/15/32		800		713,576
Illinois (State of) Finance Authority (Smith Village);
Series 2005 A, RB		5.70	%		11/15/20		500		446,820
Series 2005 A, RB		6.13	%		11/15/25		1,000		874,710
Series 2005 A, RB		6.25	%		11/15/35		1,500		1,222,290
Illinois (State of) Finance Authority (The Admiral at the Lake);
Series 2010 A, RB		7.25	%		05/15/20		1,000		977,590
Series 2010 D-1, (TEMPS-75sm) RB		7.00	%		05/15/18		1,000		972,910
Series 2010 D-2, (TEMPS-65sm) RB		6.38	%		05/15/17		1,000		981,440
Illinois (State of) Finance Authority (Three Crowns Park Plaza);
Series 2006 A, RB		5.88	%		02/15/26		1,000		922,760
Series 2006 A, RB		5.88	%		02/15/38		1,500		1,275,855
Illinois (State of) Finance Authority (Villa St. Benedict); Series 2003 A-1, Health Facilities RB(e)		6.90	%		11/15/33		2,000		742,400
Lincolnshire (Village of) Special Service Area No. 1 (Sedgebrook); Series 2004, Special Tax RB		5.00	%		03/01/11		175		174,976
Series 2004, Special Tax RB		6.25	%		03/01/34		750		626,580

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

14        Invesco High Income Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Illinois–(continued)
Lombard (City of) Public Facilities Corp. (Lombard Conference Center & Hotel);
Series 2005 A-1, First Tier RB		6.38	%		01/01/15	$	750	$	617,220
Series 2005 A-1, First Tier RB		7.13	%		01/01/36		2,500		1,675,875
Long Grove (Village of) (Sunset Grove); Series 2010, Limited Obligation Tax Increment Allocation RB		7.50	%		01/01/30		1,500		1,386,405
Malta (Village of) (Prairie Springs); Series 2006, Tax Increment Allocation RB(c)		5.75	%		12/30/25		2,000		1,244,100
Southwestern Illinois Development Authority (City of Collinsville Limited Incremental Sales Tax); Series 2007, Local Government Program RB		5.35	%		03/01/31		1,000		725,140
Southwestern Illinois Development Authority (Eden Retirement Center, Inc.);
Series 2006, Senior Care Facilities RB		5.50	%		12/01/26		800		607,816
Series 2006, Senior Care Facilities RB		5.85	%		12/01/36		3,000		2,160,360
St. Charles (City of) (Zylstra);
Series 2008, Sr. Lien Limited Incremental Sales Tax RB		6.95	%		01/01/21		2,000		1,897,520
Series 2008, Sr. Lien Limited Incremental Sales Tax RB		6.95	%		01/01/25		2,000		1,844,660
Upper Illinois River Valley Development Authority (Pleasant View Luther Home);
Series 2010, RB		7.00	%		11/15/30		1,000		915,290
Series 2010, RB		7.25	%		11/15/40		1,000		897,640
									54,942,790
Indiana–0.66%
Indiana (State of) Finance Authority (Irvington Community School);
Series 2009 A, Educational Facilities RB		7.75	%		07/01/23		290		319,989
Series 2009 A, Educational Facilities RB		8.00	%		07/01/29		1,385		1,512,309
Series 2009 A, Educational Facilities RB		9.00	%		07/01/39		1,000		1,132,030
Petersburg (City of) (Indianapolis Power & Light Co.); Series 1991, Ref. PCR		5.75	%		08/01/21		1,000		984,570
									3,948,898
Iowa–1.05%
Des Moines (City of) (Luther Park Apartments, Inc.); Series 2004, Senior Housing RB		6.00	%		12/01/23		500		432,005
Iowa (State of) Finance Authority (Bethany Life Communities);
Series 2006 A, Ref. Senior Housing RB		5.45	%		11/01/26		345		300,485
Series 2006 A, Ref. Senior Housing RB		5.55	%		11/01/41		795		621,483
Iowa (State of) Finance Authority (Boys & Girls Home & Family Services, Inc.); Series 2007, Community Provider RB		5.80	%		12/01/22		1,000		705,660
Iowa (State of) Finance Authority (Friendship Haven); Series 2004 A, Retirement Community RB		6.13	%		11/15/32		500		439,960
Marion (City of) (Village Place at Marion);
Series 2005 A, MFH RB		5.65	%		09/01/25		155		135,101
Series 2005 A, MFH RB		6.00	%		09/01/35		400		333,548
Polk (County of) (Luther Park Health Center, Inc.);
Series 2004, Health Care Facilities RB		6.00	%		10/01/24		290		246,491
Series 2004, Health Care Facilities RB		6.15	%		10/01/36		600		471,504
Scott (County of) (Ridgecrest Village);
Series 2004, Ref. RB		4.75	%		11/15/12		390		391,279
Series 2006, Ref. RB		5.25	%		11/15/21		1,000		870,880
Washington (City of) (United Presbyterian Home); Series 2006 A, Ref. Senior Housing RB		5.60	%		12/01/36		1,615		1,353,403
									6,301,799
Kansas–2.07%
Kansas (State of) Development Finance Authority (Adventist Health System); Series 2009, Hospital RB		5.75	%		11/15/38		1,900		1,931,046

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

15        Invesco High Income Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Kansas–(continued)
Labette (County of);
Series 2007 A, Ref. & Improvement Hospital RB		5.75	%		09/01/29	$	750	$	693,735
Series 2007 A, Ref. & Improvement Hospital RB		5.75	%		09/01/37		900		794,628
Olathe (City of) (Aberdeen Village, Inc); Series 2005 A, Ref. Senior Living Facilities RB		5.60	%		05/15/28		1,500		1,172,265
Olathe (City of) (Catholic Care Campus, Inc.);
Series 2006 A, Senior Living Facility RB		6.00	%		11/15/26		1,000		898,450
Series 2006 A, Senior Living Facility RB		6.00	%		11/15/38		2,000		1,653,720
Olathe (City of) (West Village Center);
Series 2007, Special Obligation Tax Increment Allocation RB		5.30	%		09/01/17		500		394,665
Series 2007, Special Obligation Tax Increment Allocation RB		5.45	%		09/01/22		1,160		802,964
Series 2007, Special Obligation Tax Increment Allocation RB		5.50	%		09/01/26		1,000		640,800
Overland Park (City of) Transportation Development District (Grass Creek); Series 2006, Special Assessment RB		5.13	%		09/01/28		1,466		1,094,340
Roeland Park (City of) (Roeland Park Redevelopment, LLC); Series 2005, Special Obligation Tax Increment Allocation RB		5.75	%		08/01/24		920		691,941
Roeland Park (City of) Transportation Development District (TDD #1);
Series 2005, Sales Tax RB		5.75	%		12/01/25		445		293,989
Series 2006 A, Sales Tax RB		5.88	%		12/01/25		950		636,547
Roeland Park (City of) Transportation Development District (TDD #2); Series 2006 B, Sales Tax RB		5.88	%		12/01/25		1,000		658,270
									12,357,360
Kentucky–0.30%
Louisville & Jefferson (Counties of) Metropolitan Government (Bellarmie University Inc.); Series 2009, College Improvement RB		6.13	%		05/01/39		1,820		1,768,712
Louisiana–0.98%
Louisiana (State of) Local Government Environmental Facilities & Community Development Authority (Westlake Chemical Corp.);
Series 2007, RB		6.75	%		11/01/32		2,690		2,778,017
Series 2009 A, RB		6.50	%		08/01/29		3,000		3,070,620
									5,848,637
Maine–0.08%
Maine (State of) Turnpike Authority; Series 2003, RB (INS–AMBAC)(d)		5.00	%		07/01/33		500		500,950
Maryland–1.21%
Annapolis (City of) (Park Place); Series 2005 A, Special Obligation Tax Allocation Bonds		5.35	%		07/01/34		1,900		1,562,503
Anne Arundel (County of) (National Business Park-North);
Series 2010, Special Obligation Tax Allocation RB		5.63	%		07/01/25		1,000		948,530
Series 2010, Special Obligation Tax Allocation RB		6.10	%		07/01/40		1,000		923,290
Baltimore (City of) (Strathdale Manor); Series 2003, Special Obligation Tax Allocation RB		7.00	%		07/01/33		965		974,563
Maryland (State of) Economic Development Corp. (CNX Marine Terminals Inc. Port of Baltimore Facility) Series 2010, Ref. Port Facilities RB		5.75	%		09/01/25		1,000		940,320
Maryland (State of) Health & Higher Educational Facilities Authority (Washington County Hospital); Series 2008, RB		5.75	%		01/01/38		500		465,780
Maryland (State of) Industrial Development Financing Authority (Our Lady of Good Counsel High School Facility); Series 2005 A, Economic Development RB		6.00	%		05/01/35		1,500		1,398,675
									7,213,661
Massachusetts–1.97%
Massachusetts (State of) Development Finance Agency (Linden Ponds, Inc. Facility); Series 2007 A, RB		5.00	%		11/15/14		1,000		679,900
Massachusetts (State of) Development Finance Agency (New England Conservatory of Music); Series 2008, RB		5.25	%		07/01/38		2,705		2,394,223

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

16        Invesco High Income Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Massachusetts–(continued)
Massachusetts (State of) Development Finance Agency (Sabis International Charter School);
Series 2009 A, RB		6.85	%		04/15/23	$	745	$	779,300
Series 2009 A, RB		6.90	%		04/15/25		895		928,312
Series 2009 A, RB		8.00	%		04/15/31		1,000		1,087,450
Series 2009 A, RB		8.00	%		04/15/39		1,000		1,076,570
Massachusetts (State of) Development Finance Agency (The Groves in Lincoln);
Series 2009 A, Senior Living Facilities RB		7.50	%		06/01/29		1,430		1,397,982
Series 2009 A, Senior Living Facilities RB		7.75	%		06/01/39		1,000		979,080
Series 2009 B-1, Senior Living Facilities (TEMPS-85sm) RB		7.25	%		06/01/16		2,000		2,003,900
Massachusetts (State of) Health & Educational Facilities Authority (Christopher House, Inc.); Series 1999 A, Ref. RB		6.88	%		01/01/29		500		457,565
									11,784,282
Michigan–1.34%
Advanced Technology Academy; Series 2008, Public School Academy RB		6.00	%		11/01/37		1,000		823,990
Chandler Park Academy; Series 2005, Public School Academy RB		5.13	%		11/01/30		1,050		857,703
Detroit (City of) Community High School;
Series 2005, Public School Academy RB		5.65	%		11/01/25		1,485		1,235,921
Series 2005, Public School Academy RB		5.75	%		11/01/30		1,000		796,220
Gogebic (County of) Hospital Finance Authority (Grand View Health System, Inc.); Series 1999, Ref. RB		5.88	%		10/01/16		920		888,619
Mecosta (County of) General Hospital; Series 1999, Ref. RB		6.00	%		05/15/18		460		434,728
Michigan (State of) Hospital Finance Authority (Presbyterian Villages of Michigan Obligated Group);
Series 2005, Ref. RB		4.88	%		11/15/16		685		648,120
Series 2005, Ref. RB		5.25	%		11/15/25		450		374,701
Michigan (State of) Municipal Bond Authority (YMCA Service Learning Academy);
Series 2001, Public School Academy Facilities RB		7.63	%		10/01/21		700		702,254
Series 2001, Public School Academy Facilities RB		7.75	%		10/01/31		500		500,470
Michigan (State of) Strategic Fund (Detroit Edison Pollution Control); Series 2001 C, Ref. Limited Obligation PCR		5.45	%		09/01/29		725		725,478
									7,988,204
Minnesota–8.92%
Anoka (County of) Housing & Redevelopment Authority (Fridley Medical Center);
Series 2010 A, RB		6.63	%		05/01/30		500		480,310
Series 2010 A, RB		6.88	%		05/01/40		1,000		958,110
Apple Valley (City of) Economic Development Authority (Evercare Senior Living, LLC); Series 2005 A, Health Care RB		6.13	%		06/01/35		1,440		1,272,730
Baytown (Township of) (St. Croix Preparatory Academy);
Series 2008 A, Lease RB		6.75	%		08/01/28		1,000		934,530
Series 2008 A, Lease RB		7.00	%		08/01/38		700		637,679
Becker (City of) (Shepherd of Grace);
Series 2006, Senior Housing RB		5.88	%		05/01/29		1,000		858,070
Series 2006, Senior Housing RB		6.00	%		05/01/41		1,000		852,930
Brooklyn Park (City of) (Prairie Seeds Academy);
Series 2009 A, Lease RB		8.38	%		03/01/23		100		107,743
Series 2009 A, Lease RB		9.00	%		03/01/29		2,620		2,855,564
Series 2009 A, Lease RB		9.25	%		03/01/39		750		813,855
Carlton (City of) (Inter-Faith Care Center); Series 2006, Ref. Health Care & Housing Facilities RB		5.70	%		04/01/36		1,500		1,241,565

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

17        Invesco High Income Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Minnesota–(continued)
Cold Spring (City of) (Assumption Home, Inc.);
Series 2005, Nursing Home & Senior Housing RB		5.50	%		03/01/25	$	425	$	374,540
Series 2005, Nursing Home & Senior Housing RB		5.75	%		03/01/35		600		497,724
Series 2008, Health Care Facilities RB		7.50	%		03/01/38		1,000		1,018,790
Dakota (County of) Community Development Agency (Highview Hills Senior Housing); Series 2008 A, MFH RB		7.00	%		08/01/45		2,000		1,860,900
Eveleth (City of) (Manor House & Woodland Homes); Sr. Series 2006 A-1, MFH RB		5.50	%		10/01/25		510		427,171
Fairmont (City of) (Goldfinch Estates-Governmental & Educational Assistance Corp.); Series 2005 A, Housing Facilities RB		6.25	%		10/01/25		2,500		2,259,250
Fairmont (City of) (Homestead-Governmental & Educational Assistance Corp.); Series 2002 A-1, Housing Facilities RB		7.25	%		04/01/22		915		915,293
Falcon Heights (City of) (Kaleidoscope Charter School);
Series 2007 A, Lease RB		6.00	%		11/01/27		400		344,064
Series 2007 A, Lease RB		6.00	%		11/01/37		550		438,977
Fergus Falls (City of)(Lake Region Healthcare Corp.);
Series 2010, Health Care Facilities RB		5.15	%		08/01/35		1,000		892,890
Series 2010, Health Care Facilities RB		5.40	%		08/01/40		1,000		901,010
Hopkins (City of) Housing & Redevelopment Authority (Excelsior Crossings); Series 2009, Tax Increment Allocation RB		5.63	%		02/01/30		320		304,781
Maplewood (City of) (Ecumen Headquarters and The Seasons at Maplewood); Series 2010, Housing & Health Care RB		6.38	%		03/01/40		1,000		956,200
Maplewood (City of) (Volunteers of America Care Center);
Series 2005 A, Ref. Health Care Facilities RB		5.00	%		10/01/13		775		762,422
Series 2005 A, Ref. Health Care Facilities RB		5.25	%		10/01/19		750		697,845
Minneapolis (City of) (Grant Park); Series 2006, Tax Increment Allocation RB		5.35	%		02/01/30		1,450		1,181,474
Minneapolis (City of) (Village at St. Anthony Falls); Series 2004, Ref. Tax Increment Allocation RB		5.75	%		02/01/27		595		519,072
Minnesota (State of) Higher Education Facilities Authority (University of St. Thomas); Series 2009 6-X, RB		5.25	%		04/01/39		500		494,540
Monticello (City of) (FiberNet Monticello); Series 2008, Telecommunications RB		6.75	%		06/01/31		900		811,998
Northwest Multi-County Housing & Redevelopment Authority (Pooled Housing Program);
Series 2005 A, Ref. Governmental Housing RB		5.35	%		07/01/15		70		69,249
Series 2005 A, Ref. Governmental Housing RB		6.20	%		07/01/30		2,000		1,802,320
Oak Park Heights (City of) (Oakgreen Commons);
Series 2010, Housing RB		6.75	%		08/01/31		1,500		1,369,395
Series 2010, Housing RB		7.00	%		08/01/45		1,000		908,000
Oakdale (City of) (Oak Meadows); Series 2004, Ref. Senior Housing RB		6.00	%		04/01/24		1,000		930,480
Oronoco (City of) (Wedum Shorewood Campus); Series 2006, Ref. MFH RB		5.25	%		06/01/26		1,600		1,380,928
Owatonna (City of) (Senior Living); Series 2006 A, Senior Housing RB		5.80	%		10/01/29		800		720,904
Perham Hospital District (Perham Memorial Hospital and Home); Series 2010, Health Care Facilities RB		6.35	%		03/01/35		2,000		1,944,840
Pine City (City of) (Lakes International Language Academy);
Series 2006 A, Lease RB		5.75	%		05/01/16		100		99,242
Series 2006 A, Lease RB		6.00	%		05/01/26		530		464,264
Series 2006 A, Lease RB		6.25	%		05/01/35		1,550		1,297,520
Ramsey (City of) (Pact Charter School);
Series 2004 A, Lease RB		6.50	%		12/01/22		925		888,934
Series 2004 A, Lease RB		6.75	%		12/01/33		150		135,600
Rochester (City of) (Samaritan Bethany, Inc.);
Series 2009 A, Ref. Health Care & Housing RB		7.38	%		12/01/41		1,000		998,020
Series 2009 B, Ref. Health Care & Housing RB		7.38	%		12/01/36		1,555		1,558,219

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

18        Invesco High Income Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Minnesota–(continued)
Saint Paul (City of) Housing & Redevelopment Authority (Emerald Gardens);
Series 2010, Ref. Tax Increment Allocation RB		5.63	%		03/01/20	$	705	$	680,536
Series 2010, Ref. Tax Increment Allocation RB		6.50	%		03/01/29		1,000		924,290
Saint Paul (City of) Housing & Redevelopment Authority (Hmong Academy);
Series 2006 A, Lease RB		5.75	%		09/01/26		300		255,519
Series 2006 A, Lease RB		6.00	%		09/01/36		390		316,423
Saint Paul (City of) Housing & Redevelopment Authority (New Spirit Charter School); Series 2002 A, Lease RB		7.50	%		12/01/31		890		870,642
Saint Paul (City of) Housing & Redevelopment Authority (Rossy & Richard Shaller Family Sholom East Campus);
Series 2007 A, RB		5.05	%		10/01/27		1,750		1,413,632
Series 2007 A, RB		5.15	%		10/01/42		275		204,526
Sartell (City of) (Country Manor Campus LLC); Series 2010 A, Health Care Facilities RB		6.25	%		09/01/36		925		872,284
Vadnais Heights (City of) (Agriculture & Food Sciences Academy);
Series 2004 A, Lease RB		6.38	%		12/01/24		900		693,198
Series 2004 A, Lease RB		6.60	%		12/01/34		275		198,586
Washington (County of) Housing & Redevelopment Authority (Birchwood & Woodbury);
Series 2007 A, Health Care & Housing RB		5.00	%		12/01/14		1,000		961,190
Series 2007 A, Health Care & Housing RB		5.63	%		06/01/37		1,000		813,270
Winstead (City of) (St. Mary’s Care Center);
Series 2010 A, Health Care RB		6.25	%		09/01/30		500		435,560
Series 2010 A, Health Care RB		6.88	%		09/01/42		2,000		1,752,720
Woodbury (City of) (Math & Science Academy);
Series 2002 A, Ref. Lease RB		7.38	%		12/01/24		250		250,550
Series 2002 A, Ref. Lease RB		7.50	%		12/01/31		750		741,330
Worthington (City of) (Ecumen Corp. Guaranty-Meadows); Series 2009 A, Housing & Health Care RB(b)		6.38	%		05/01/19		650		658,743
									53,282,941
Missouri–4.71%
370/Missouri Bottom Road/Taussig Road Transportation Development District (Hazelwood);
Series 2002, RB		7.00	%		05/01/22		750		721,305
Series 2002, RB		7.20	%		05/01/33		500		455,245
Arnold Retail Corridor Transportation Development District; Series 2010, Transportation Sales Tax RB		6.65	%		05/01/38		2,000		1,869,300
Branson (City of) Industrial Development Authority (Branson Landing-Retail); Series 2005, Tax Increment Allocation RB		5.25	%		06/01/21		1,210		1,044,726
Branson Hills Infrastructure Facilities Community Improvement District;
Series 2007 A, Special Assessment RB		5.00	%		04/01/11		550		549,714
Series 2007 A, Special Assessment RB		5.00	%		04/01/13		300		294,570
Series 2007 A, Special Assessment RB		5.00	%		04/01/15		500		470,835
Cass (County of);
Series 2007, Hospital RB		5.00	%		05/01/16		1,000		1,049,610
Series 2007, Hospital RB		5.63	%		05/01/38		1,300		1,087,983
Chillicothe (City of) (South U.S. 65); Series 2006, Tax Increment Allocation RB		5.50	%		04/01/21		1,000		882,730
Des Peres (City of) (West County Center); Series 2002 A, Ref. Tax Increment Allocation RB		5.75	%		04/15/20		1,000		937,100
Desloge (City of) (U.S. Highway 67/State Street Redevelopment); Series 2005, Ref. Tax Increment Allocation RB		5.20	%		04/15/20		250		222,598
Grandview (City of) Industrial Development Authority (Grandview Crossing); Series 2006, Tax Increment Allocation RB		5.75	%		12/01/28		1,250		311,750
Grundy (County of) Industrial Development Authority (Wright Memorial Hospital);
Series 2009, Health Facilities RB		6.45	%		09/01/29		1,000		977,840
Series 2009, Health Facilities RB		6.75	%		09/01/34		1,250		1,235,487
Kansas City (City of) Tax Increment Financing Commission (Maincor); Series 2007 A, Tax Increment Allocation RB		5.25	%		03/01/18		500		474,415

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

19        Invesco High Income Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Missouri–(continued)
Kirkwood (City of) Industrial Development Authority (Aberdeen Heights);
Series 2010 A, Retirement Community RB		8.00	%		05/15/29	$	2,000	$	2,015,140
Series 2010 A, Retirement Community RB		8.25	%		05/15/39		1,000		1,011,990
Manchester (City of) (Highway 141/Manchester Road);
Series 2010, Ref. Transportation Tax Increment Allocation RB		6.00	%		11/01/25		1,000		956,690
Series 2010, Ref. Transportation Tax Increment Allocation RB		6.88	%		11/01/39		1,500		1,465,860
Maplewood (City of) (Maplewood South Redevelopment Area); Series 2005, Ref. Tax Increment RB		5.75	%		11/01/26		1,350		1,126,534
Platte (County of) Industrial Development Authority (Zona Rosa Phase II Retail); Series 2007, Transportation RB		6.85	%		04/01/29		3,500		3,322,725
Polk (County of) Industrial Development Authority (Citizens Memorial Health Care Foundation); Series 2008, Health Facilities RB		6.50	%		01/01/33		2,000		1,699,580
Richmond Heights (City of) (Francis Place Redevelopment); Series 2005, Ref. & Improvement Tax Increment & Transportation Sales Tax RB		5.63	%		11/01/25		750		634,328
St. Joseph (City of) Industrial Development Authority (The Shoppes at North Village);
Series 2005 A, Tax Increment Allocation RB		5.25	%		11/01/13		500		509,065
Series 2005 A, Tax Increment Allocation RB		5.50	%		11/01/27		750		633,705
Series 2005 B, Tax Increment Allocation RB		5.50	%		11/01/27		1,000		832,120
St. Louis (County of) Industrial Development Authority (St. Andrew’s Resources for Seniors); Series 2007 A, Senior Living Facilities RB		6.38	%		12/01/41		1,000		813,670
Strother Interchange Transportation Development District (Lees Summit); Series 2006, RB		5.00	%		05/01/24		675		533,777
									28,140,392
Montana–0.10%
Montana (State of) Facility Finance Authority (St. John’s Lutheran Ministries); Series 2006 A, Senior Living RB		6.13	%		05/15/36		750		584,595
Nebraska–0.16%
Gage (County of) Hospital Authority No. 1(Beatrice Community Hospital and Health Center); Series 2010 B, Health Care Facilities RB		6.75	%		06/01/35		1,000		948,590
Nevada–0.08%
University and Community College System of Nevada; Series 2002 A, RB (INS–NATL)(d)		5.40	%		07/01/31		500		500,110
New Hampshire–0.57%
New Hampshire (State of) Business Finance Authority (Huggins Hospital); Series 2009, First Mortgage RB		6.88	%		10/01/39		2,000		1,966,680
New Hampshire (State of) Health & Education Facilities Authority (The Huntington at Nashua);
Series 2003 A, RB		6.88	%		05/01/23		750		744,113
Series 2003 A, RB		6.88	%		05/01/33		750		697,320
									3,408,113
New Jersey–0.75%
New Jersey (State of) Economic Development Authority (Continental Airlines, Inc.); Series 2003, Special Facilities RB(f)		9.00	%		06/01/33		500		523,680
New Jersey (State of) Economic Development Authority (Lions Gate);
Series 2005 A, First Mortgage RB		5.75	%		01/01/25		710		633,788
Series 2005 A, First Mortgage RB		5.88	%		01/01/37		1,360		1,133,261
New Jersey (State of) Economic Development Authority (Seashore Gardens Living Center);
Series 2006, First Mortgage RB		5.30	%		11/01/26		1,100		914,430
Series 2006, First Mortgage RB		5.38	%		11/01/36		700		526,757
New Jersey (State of) Transportation Trust Fund Authority; Series 2005 B, RB (INS–AMBAC)(d)		5.25	%		12/15/23		750		774,180
									4,506,096

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

20        Invesco High Income Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
New Mexico–0.31%
New Mexico (State of) Hospital Equipment Loan Council (La Vida Llena); Series 2010 A, First Mortgage RB		6.13	%		07/01/40	$	2,000	$	1,865,040
New York–1.73%
Broome (County of) Industrial Development Agency (Good Shepherd Village);
Series 2008 A, Continuing Care Retirement Community RB		6.15	%		07/01/18		500		499,510
Series 2008 A, Continuing Care Retirement Community RB		6.75	%		07/01/28		600		567,192
Series 2008 A, Continuing Care Retirement Community RB		6.88	%		07/01/40		1,000		925,920
East Rochester (City of) Housing Authority (Senior Living Woodland Village); Series 2006, Ref. RB		5.50	%		08/01/33		1,700		1,336,591
Erie (County of) Industrial Development Agency (Orchard Park CCRC, Inc.); Series 2006 A, RB		6.00	%		11/15/26		1,100		941,787
Nassau (County of) Industrial Development Agency (Amsterdam at Harborside); Series 2007 A, Continuing Care Retirement Community RB		6.50	%		01/01/27		1,000		938,840
Syracuse (City of) Industrial Development Agency (Jewish Home of Central New York, Inc.);
Series 2001 A, First Mortgage RB		7.38	%		03/01/21		350		337,449
Series 2001 A, First Mortgage RB		7.38	%		03/01/31		500		446,770
Ulster (County of) Industrial Development Agency;
Series 2007 A, Civic Facility RB		6.00	%		09/15/27		2,000		1,721,580
Series 2007 A, Civic Facility RB		6.00	%		09/15/37		2,000		1,539,080
Yonkers (City of) Economic Development Corp. (Charter School of Educational Excellence) Series 2010 A, Educational RB		6.25	%		10/15/40		1,200		1,062,336
									10,317,055
North Carolina–0.74%
North Carolina (State of) Medical Care Commission (Pennybyrn at Maryfield); Series 2005 A, Health Care Facilities RB		6.13	%		10/01/35		1,300		964,769
North Carolina (State of) Medical Care Commission (Southminister); Series 2007 A, First Mortgage Retirement Facilities RB		5.75	%		10/01/37		1,500		1,248,150
North Carolina (State of) Medical Care Commission (The Presbyterian Homes Obligated Group);
Series 2006, First Mortgage Health Care Facilities RB		5.60	%		10/01/36		1,000		824,090
Series 2006 B, Ref. First Mortgage Health Care Facilities RB		5.20	%		10/01/21		1,500		1,395,720
									4,432,729
North Dakota–0.70%
Grand Forks (City of) (4000 Valley Square);
Series 2006, Ref. Senior Housing RB		5.13	%		12/01/21		1,315		1,130,650
Series 2006, Ref. Senior Housing RB		5.30	%		12/01/34		855		643,140
Traill (County of) (Hillsboro Medical Center);
Series 2007, Health Care RB		5.25	%		05/01/20		500		441,750
Series 2007, Health Care RB		5.50	%		05/01/26		1,520		1,247,099
Series 2007, Health Care RB		5.50	%		05/01/42		1,000		721,450
									4,184,089
Ohio–2.86%
Centerville (City of) (Bethany Lutheran Village Continuing Care Facility Expansion);
Series 2007 A, Health Care RB		5.75	%		11/01/22		1,000		934,920
Series 2007 A, Health Care RB		6.00	%		11/01/27		2,000		1,763,600
Cleveland-Cuyahoga (County of) Port Authority (St. Clarence-Governmental & Educational Assistance Corp., LLC); Series 2006 A, Senior Housing RB		6.25	%		05/01/38		2,210		1,685,589
Cleveland-Cuyahoga (County of) Port Authority; Series 2001, Special Assessment Tax Increment RB		7.35	%		12/01/31		1,000		954,800
Cuyahoga (County of) (Canton, Inc.); Series 2000, Hospital Facilities RB		7.50	%		01/01/30		740		742,967

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

21        Invesco High Income Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Ohio–(continued)
Cuyahoga (County of) (Eliza Jennings Senior Care Network);
Series 2007 A, Health Care & Independent Living Facilities RB		5.75	%		05/15/27	$	1,000	$	865,460
Series 2007 A, Health Care & Independent Living Facilities RB		6.00	%		05/15/37		1,000		840,850
Hickory Chase Community Authority (Hickory Chase);
Series 2008, Infrastructure Improvement RB		6.75	%		12/01/27		2,000		1,303,700
Series 2008, Infrastructure Improvement RB		7.00	%		12/01/38		1,500		977,925
Lucas (County of) (Sunset Retirement Communities);
Series 2000 A, Ref. & Improvement Health Care Facilities RB		6.50	%		08/15/20		920		924,278
Series 2000 A, Ref. & Improvement Health Care Facilities RB		6.55	%		08/15/24		500		500,980
Montgomery (County of) (St. Leonard); Series 2010, Ref. & Improvement Health Care MFH RB		6.63	%		04/01/40		1,500		1,393,665
Norwood (City of) (Cornerstone at Norwood);
Series 2006, Tax Increment Allocation Financing RB		5.25	%		12/01/15		1,080		1,050,268
Series 2006, Tax Increment Allocation Financing RB		5.75	%		12/01/20		1,300		1,151,774
Toledo-Lucas (County of) Port Authority (St. Mary Woods);
Series 2004 A, RB		6.00	%		05/15/24		1,750		1,058,050
Series 2004 A, RB		6.00	%		05/15/34		1,500		906,900
									17,055,726
Oklahoma–1.45%
Cleveland (County of) Justice Authority (Detention Facility); Series 2009 B, Sales Tax RB		5.75	%		03/01/29		1,400		1,427,860
Oklahoma (County of) Finance Authority (Epworth Villa);
Series 2005 A, Ref. RB		5.00	%		04/01/15		840		796,177
Series 2005 A, Ref. RB		5.70	%		04/01/25		2,500		2,201,000
Oklahoma (State of) Development Finance Authority (Comanche County Hospital); Series 2002 B, RB		6.60	%		07/01/31		825		826,856
Tulsa (County of) Industrial Authority (Montereau, Inc);
Series 2010 A, Senior Living Community RB		7.13	%		11/01/30		1,250		1,223,725
Series 2010 A, Senior Living Community RB		7.25	%		11/01/40		2,250		2,165,040
									8,640,658
Oregon–0.48%
Clackamas (County of) Hospital Facilities Authority (Odd Fellows Home-Friendship Health Center); Series 1998 A, Ref. RB		5.88	%		09/15/21		230		202,970
Clackamas (County of) Hospital Facilities Authority (Willamette Falls Hospital); Series 2005, Ref. Gross RB		5.13	%		04/01/26		1,000		866,190
Yamhill (County of) Hospital Authority (Friendsview Retirement Community); Series 2003, RB(a)(b)		7.00	%		12/01/13		1,555		1,817,142
									2,886,302
Pennsylvania–5.07%
Allegheny (County of) Industrial Development Authority (Propel Charter Homestead); Series 2004 A, Charter School RB		7.00	%		12/15/15		520		536,827
Allegheny (County of) Industrial Development Authority (Propel Charter-McKeesport); Series 2010 B, Charter School RB		6.38	%		08/15/35		1,220		1,050,810
Allegheny (County of) Industrial Development Authority (Propel Charter-Montour); Series 2010 A, Charter School RB		6.75	%		08/15/35		1,250		1,105,713
Blair (County of) Industrial Development Authority (Village of Pennsylvania State);
Series 2002 A, First Mortgage RB(e)		6.90	%		01/01/22		500		312,400
Series 2002 A, First Mortgage RB(e)		7.00	%		01/01/34		500		312,400
Butler (County of) Hospital Authority (Butler Health System);
Series 2009, RB		7.13	%		07/01/29		2,145		2,343,970
Series 2009, RB		7.25	%		07/01/39		1,590		1,735,104

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

22        Invesco High Income Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Pennsylvania–(continued)
Chartiers Valley Industrial & Commercial Development Authority (Asbury Health Center);
Series 1999, Ref. First Mortgage RB		6.38	%		12/01/19	$	1,000	$	1,000,620
Series 2006, Ref. First Mortgage RB		5.13	%		12/01/12		500		492,550
Series 2006, Ref. First Mortgage RB		5.25	%		12/01/13		500		490,175
Series 2006, Ref. First Mortgage RB		5.25	%		12/01/15		260		249,207
Series 2006, Ref. First Mortgage RB		5.38	%		12/01/16		500		484,335
Series 2006, Ref. First Mortgage RB		5.75	%		12/01/22		935		884,099
Chester (County of) Industrial Development Authority (Avon Grove Charter School);
Series 2007 A, RB		6.25	%		12/15/27		1,000		896,500
Series 2007 A, RB		6.38	%		12/15/37		1,500		1,276,485
Cumberland (County of) Municipal Authority (Messiah Village); Series 2008 A, RB		6.00	%		07/01/35		1,000		866,080
Cumberland (County of) Municipal Authority (Presbyterian Homes Obligated Group);
Series 2008 A, RB		5.00	%		01/01/17		2,000		2,020,040
Series 2008 A, RB		5.35	%		01/01/20		515		515,494
Series 2008 A, RB		5.45	%		01/01/21		885		883,593
Cumberland (County of) Municipal Authority (Wesley Affiliated Services, Inc.); Series 2002 A, Retirement Community RB(a)(b)		7.13	%		01/01/13		700		787,528
Erie (County of) Hospital Authority (St. Vincent Health Center); Series 2010 A, RB		7.00	%		07/01/27		1,000		981,300
Fulton (County of) Industrial Development Authority (The Fulton County Medical Center); Series 2006, Hospital RB		5.88	%		07/01/31		1,500		1,262,595
Lancaster (County of) Hospital Authority (St. Anne’s Home for the Aged, Inc.); Series 1999, Health Center RB		6.63	%		04/01/28		500		442,210
Lawrence (County of) Industrial Development Authority (Shenango Presbyterian Senior Care Obligated Group); Series 2001 B, Senior Health & Housing Facilities RB(a)(b)		7.50	%		11/15/11		1,000		1,068,260
Lehigh (County of) General Purpose Authority (Bible Fellowship Church Home Inc.);
Series 2001, First Mortgage RB		7.63	%		11/01/21		250		254,475
Series 2001, First Mortgage RB		7.75	%		11/01/33		750		750,585
Pennsylvania (State of) Economic Development Financing Authority (Northwestern Human Services, Inc.); Series 1998 A, RB		5.25	%		06/01/14		1,000		960,320
Pennsylvania (State of) Higher Educational Facilities Authority (Student Association, Inc. at California University of Pennsylvania);
Series 2000 A, Student Housing RB		6.75	%		09/01/20		500		509,540
Series 2000 A, Student Housing RB		6.75	%		09/01/32		320		322,154
Philadelphia (City of) Industrial Development Authority (Cathedral Village); Series 2003 A, RB		6.88	%		04/01/34		500		449,220
Philadelphia (City of) Industrial Development Authority (Global Leadership Academy Charter School) Series 2010, RB		6.38	%		11/15/40		1,000		880,030
Philadelphia (City of) Industrial Development Authority (MaST Charter School); Series 2010, RB		6.00	%		08/01/35		500		491,795
Philadelphia (City of) Industrial Development Authority (Russell Byers Charter School);
Series 2007 A, RB		5.15	%		05/01/27		1,000		815,430
Series 2007 A, RB		5.25	%		05/01/37		1,000		752,720
Philadelphia (City of) Industrial Development Authority (Independence Charter School); Series 2007 A, RB		5.50	%		09/15/37		2,700		2,107,350
									30,291,914
Rhode Island–0.80%
Rhode Island (State of) Health & Educational Building Corp. (Lifespan Obligated Group);
Series 2009 A, Hospital Financing RB		7.00	%		05/15/39		2,500		2,680,050
Series 2009 A, Hospital Financing RB (INS–AGC)(d)		6.25	%		05/15/30		2,000		2,127,060
									4,807,110

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

23        Invesco High Income Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
South Carolina–1.52%
South Carolina (State of) Jobs-Economic Development Authority (Lutheran Homes);
Series 2007, Ref. First Mortgage Health Care Facilities RB		5.00	%		05/01/14	$	1,035	$	1,010,636
Series 2007, Ref. First Mortgage Health Care Facilities RB		5.38	%		05/01/21		1,500		1,360,065
Series 2007, Ref. First Mortgage Health Care Facilities RB		5.50	%		05/01/28		1,100		896,676
South Carolina (State of) Jobs-Economic Development Authority (Palmetto Health Alliance);
Series 2003 A, Ref. Hospital Facilities RB		6.13	%		08/01/23		1,500		1,516,530
Series 2003 A, Ref. Hospital Facilities RB		6.25	%		08/01/31		1,570		1,570,251
South Carolina (State of) Jobs-Economic Development Authority (South Carolina Episcopal Home at Still Hopes);
Series 2004 A, Residential Care Facilities RB		6.25	%		05/15/25		750		679,110
Series 2004 A, Residential Care Facilities RB		6.38	%		05/15/32		1,250		1,063,300
South Carolina (State of) Jobs-Economic Development Authority (The Woodlands at Furman); Series 2007 A, RB		6.00	%		11/15/37		2,000		1,014,800
									9,111,368
South Dakota–0.26%
Sioux Falls (City of); Series 2008 A, Tax Increment Allocation RB		5.75	%		01/15/28		1,300		1,062,607
South Dakota (State of) Health & Educational Facilities Authority (Westhills Village Retirement Community); Series 2003, RB		5.65	%		09/01/23		500		504,755
									1,567,362
Tennessee–0.57%
Blount (County of) Health & Educational Facilities Board (Asbury, Inc.); Series 2007 A, Ref. RB		5.13	%		04/01/23		1,690		1,416,541
Davidson and Williamson (Counties of) Harpeth Valley Utilities District; Series 2004, Utilities Improvement RB (INS–NATL)(d)		5.00	%		09/01/34		1,000		994,520
Johnson City (City of) Health & Educational Facilities Board (Appalachian Christian Village);
Series 2004 A, Retirement Facilities RB		6.00	%		02/15/24		500		453,480
Series 2004 A, Retirement Facilities RB		6.25	%		02/15/32		600		517,668
									3,382,209
Texas–12.41%
Abilene (City of) Health Facilities Development Corp. (Sears Methodist Retirement System Obligated Group Report); Series 2003 A, Retirement Facilities RB		7.00	%		11/15/33		2,400		2,002,464
Arlington Higher Education Finance Corp. (Arlington Classics Academy); Series 2010 B, Ref. Education RB		7.65	%		08/15/40		2,500		2,446,975
Atlanta (City of) Hospital Authority; Series 1999, Hospital Facilities RB		6.70	%		08/01/19		435		434,952
Clifton Higher Education Finance Corp. (Tejano Center for Community Concerns, Inc.–Raul Yzaguirre School for Success); Series 2009 A, Ref. Education RB		9.00	%		02/15/38		2,000		2,220,920
Clifton Higher Education Finance Corp. (Uplift Education); Series 2010 A, Education RB		6.13	%		12/01/40		2,970		2,522,985
Corpus Christi (Port of) Industrial Development Corp. (Valero); Series 1997 C, Ref. RB		5.40	%		04/01/18		550		524,447
Dallas-Fort Worth (Cities of) International Airport Facilities Improvement Corp.; Series 2000 A-3, Ref. RB(f)		9.13	%		05/01/29		500		511,445
Decatur (City of) Hospital Authority (Wise Regional Health System);
Series 2004 A, Hospital RB		5.63	%		09/01/13		1,335		1,358,589
Series 2004 A, Hospital RB		7.00	%		09/01/25		3,260		3,190,399
Series 2004 A, Hospital RB		7.13	%		09/01/34		905		855,678
Harris (County of) Health Facilities Development Corp. (Memorial Hermann Healthcare System); Series 2008 B, Ref. Hospital RB		7.20	%		12/01/28		1,000		1,053,780
Harrison (County of) Health Facilities Development Corp. (Good Shepherd Health System) Series 2010, Hospital RB		5.25	%		07/01/28		1,500		1,358,625
HFDC of Central Texas, Inc. (Legacy at Willow Bend);
Series 2006 A, Retirement Facilities RB		5.50	%		11/01/31		500		390,040
Series 2006 A, Retirement Facilities RB		5.63	%		11/01/26		750		628,643
Series 2006 A, Retirement Facilities RB		5.75	%		11/01/36		1,000		775,720

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

24        Invesco High Income Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Texas–(continued)
Hidalgo (County of) Health Services Corp. (Mission Hospital, Inc.);
Series 2005, Hospital RB		5.00	%		08/15/15	$	500	$	513,385
Series 2005, Hospital RB		5.00	%		08/15/19		700		694,274
Hopkins (County of) Hospital District;
Series 2008, RB		6.00	%		02/15/33		1,000		864,610
Series 2008, RB		6.00	%		02/15/38		1,000		847,650
Houston (City of) Health Facilities Development Corp. (Buckingham Senior Living Community);
Series 2004 A, Retirement Facilities RB(a)(b)		7.00	%		02/15/14		300		353,025
Series 2004 A, Retirement Facilities RB(a)(b)		7.00	%		02/15/14		750		880,875
Series 2004 A, Retirement Facilities RB(a)(b)		7.13	%		02/15/14		450		530,010
La Vernia Higher Education Finance Corp. (Amigos Por Vida/Friends for Life); Series 2008, Education RB		6.38	%		02/15/37		1,635		1,363,868
La Vernia Higher Education Finance Corp. (Cosmos Foundation);
Series 2008 A, Education RB		6.25	%		02/15/17		1,245		1,312,566
Series 2008 A, Education RB		7.13	%		02/15/38		2,000		2,055,260
Lufkin (City of) Health Facilities Development Corp. (Memorial Health System of East Texas);
Series 2007, Health System RB		5.50	%		02/15/37		1,000		829,850
Series 2009, Ref. Health System RB		6.25	%		02/15/37		2,000		1,871,280
Matagorda (County of) Navigation District No. 1 (Central Power & Light Co.); Series 2001 A, Ref. PCR		6.30	%		11/01/29		1,000		1,033,670
Meadow Parc Development, Inc. (Meadow Parc Apartments); Series 1998, MFH RB		6.50	%		12/01/30		1,060		901,413
Mesquite (City of) Health Facilities Development Corp. (Christian Care Centers, Inc.); Series 2005, Retirement Facilities RB		5.63	%		02/15/35		945		804,715
Midlothian (City of) Development Authority; Series 2004, Tax Increment Contract Allocation RB(c)		6.20	%		11/15/29		1,000		934,880
North Central Texas Health Facilities Development Corp. (Children’s Medical Center of Dallas); Series 2009, Hospital RB		5.75	%		08/15/39		1,500		1,506,945
Pearland (City of) Development Authority; Series 2009, Tax Increment Contract Allocation RB		5.88	%		09/01/29		805		811,794
Pharr (City of) Higher Education Finance Authority (Idea Public Schools);
Series 2009 A, Education RB		6.25	%		08/15/29		570		564,448
Series 2009 A, Education RB		6.50	%		08/15/39		2,320		2,278,611
San Juan Higher Education Finance Authority (Idea Public Schools); Series 2010 A, Education RB		6.70	%		08/15/40		1,000		1,004,130
Tarrant (County of) Cultural Education Facilities Finance Corp. (Buckingham Senior Living Community, Inc.);
Series 2007, Retirement Facility RB		5.63	%		11/15/27		1,500		1,307,820
Series 2007, Retirement Facility RB		5.75	%		11/15/37		3,500		2,908,045
Tarrant (County of) Cultural Education Facilities Finance Corp. (C.C. Young Memorial Home);
Series 2007, Retirement Facility RB		5.25	%		02/15/17		1,150		1,017,233
Series 2007, Retirement Facility RB		5.75	%		02/15/25		1,500		1,227,885
Series 2007, Retirement Facility RB		5.75	%		02/15/29		1,600		1,251,008
Series 2009 A, Retirement Facility RB		8.00	%		02/15/38		1,350		1,317,911
Tarrant (County of) Cultural Education Facilities Finance Corp. (Mirador);
Series 2010 A, Retirement Facility RB		8.00	%		11/15/29		1,500		1,450,980
Series 2010 A, Retirement Facility RB		8.13	%		11/15/39		1,000		961,060
Tarrant (County of) Cultural Education Facilities Finance Corp. (Northwest Senior Housing Corp.-Edgemere);
Series 2006 A, Retirement Facilities RB		6.00	%		11/15/26		1,200		1,163,124
Series 2006 A, Retirement Facilities RB		6.00	%		11/15/36		2,000		1,777,900
Tarrant (County of) Cultural Education Facilities Finance Corp. (Strayton at Museum Way);
Series 2009 A, Retirement Facility RB		8.25	%		11/15/29		2,135		2,079,148
Series 2009 A, Retirement Facility RB		8.25	%		11/15/39		1,000		961,690
Texas (State of) Public Finance Authority Charter School Finance Corp. (New Frontiers Charter School) Series 2010 A, Education RB		5.80	%		08/15/40		1,000		875,690

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

25        Invesco High Income Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Texas–(continued)
Texas (State of) Public Finance Authority Charter School Finance Corp. (Odyssey Academy, Inc.);
Series 2010 A, Educational RB		6.88	%		02/15/30	$	1,455	$	1,405,996
Series 2010 A, Educational RB		7.13	%		02/15/40		1,810		1,749,401
Travis (County of) Health Facilities Development Corp. (Querencia Barton Creek);
Series 2005, Retirement Facility RB		5.50	%		11/15/25		1,650		1,411,179
Series 2005, Retirement Facility RB		5.65	%		11/15/35		1,250		962,850
Travis (County of) Health Facilities Development Corp. (Westminster Manor); Series 2010, RB		7.00	%		11/01/30		2,500		2,460,375
University of Houston (Consolidated System); Series 2009 A, Ref. RB		5.00	%		02/15/34		2,000		2,012,360
Uptown Development Authority (Infrastructure Improvement Facilities);
Series 2009, Tax Increment Allocation Contract RB		5.38	%		09/01/25		465		446,228
Series 2009, Tax Increment Allocation Contract RB		5.50	%		09/01/29		2,250		2,149,447
Woodhill Public Facilities Corp. (Woodhill Apartments); Series 1999, MFH RB		7.50	%		12/01/29		1,000		985,010
									74,115,261
Utah–3.08%
Provo (City of) (Freedom Academy Foundation); Series 2007, Charter School RB		5.50	%		06/15/37		1,450		1,034,836
Utah (County of) (Lakeview Academy); Series 2007 A, Charter School RB		5.63	%		07/15/37		2,200		1,599,180
Utah (County of) (Renaissance Academy);
Series 2007 A, Charter School RB		5.35	%		07/15/17		900		842,112
Series 2007 A, Charter School RB		5.63	%		07/15/37		1,350		981,315
Utah (County of) (Ronald Wilson Reagan Academy); Series 2007 A, Charter School RB		5.75	%		02/15/22		315		271,735
Utah (State of) Charter School Finance Authority (Channing Hall);
Series 2007 A, Charter School RB(c)		5.88	%		07/15/27		780		640,513
Series 2007 A, Charter School RB(c)		6.00	%		07/15/37		2,100		1,611,288
Utah (State of) Charter School Finance Authority (George Washington Academy);
Series 2008 A, Charter School RB		6.75	%		07/15/28		1,340		1,227,963
Series 2008 A, Charter School RB		7.00	%		07/15/40		1,690		1,515,271
Utah (State of) Charter School Finance Authority (Navigator Pointe Academy), Series 2010 A, Charter School RB		5.38	%		07/15/30		1,650		1,422,547
Series 2010 A, Charter School RB		5.63	%		07/15/40		710		597,401
Utah (State of) Charter School Finance Authority (North Davis Preparatory Academy); Series 2010, Charter School RB		6.38	%		07/15/40		1,500		1,312,635
Utah (State of) Charter School Finance Authority (Rockwell Charter High School); Series 2008 A, Charter School RB		7.00	%		08/15/38		2,000		1,488,940
Utah (State of) Charter School Finance Authority (Summit Academy); Series 2007 A, Charter School RB		5.80	%		06/15/38		2,800		2,244,592
West Valley City (City of) (Monticello Academy); Series 2007, Ref. Charter School RB(c)		6.38	%		06/01/37		1,975		1,589,302
									18,379,630
Virginia–1.75%
Chesterfield (County of) Health Center Commission (Lucy Corr Village);
Series 2008 A, Residential Care Facilities RB		6.13	%		12/01/30		2,000		1,794,280
Series 2008 A, Residential Care Facilities RB		6.25	%		12/01/38		2,000		1,736,540
Henrico (County of) Economic Development Authority (Virginia United Methodist Homes); Series 2002 A, Ref. Residential Care Facilities RB		6.50	%		06/01/22		750		750,795
Lexington (City of) Industrial Development Authority (Kendall at Lexington);
Series 2007 A, Residential Care Facilities Mortgage RB		5.25	%		01/01/21		395		362,440
Series 2007 A, Residential Care Facilities Mortgage RB		5.38	%		01/01/22		780		710,533
Series 2007 A, Residential Care Facilities Mortgage RB		5.38	%		01/01/23		425		376,716
Series 2007 A, Residential Care Facilities Mortgage RB		5.38	%		01/01/28		500		406,260
Series 2007 A, Residential Care Facilities Mortgage RB		5.50	%		01/01/37		1,300		998,881

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

26        Invesco High Income Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Virginia–(continued)
Lynchburg (City of) Industrial Development Authority (The Summit); Series 2002 A, Residential Care Facilities Mortgage RB		6.25	%		01/01/28	$	500	$	457,195
Norfolk (City of) Redevelopment & Housing Authority (Fort Norfolk Retirement Community, Inc.-Harbor’s Edge); Series 2004 A, First Mortgage RB		6.00	%		01/01/25		500		440,735
Peninsula Ports Authority (Virginia Baptist Homes); Series 2003 A, Residential Care Facilities RB(a)(b)		7.38	%		12/01/13		500		585,180
Peninsula Town Center Community Development Authority;
Series 2007, Special Obligation RB		6.35	%		09/01/28		1,000		932,120
Series 2007, Special Obligation RB		6.45	%		09/01/37		1,000		893,490
									10,445,165
Washington–1.72%
Klickitat (County of) Public Hospital District No. 2 (Skyline Hospital); Series 2007, Hospital RB		6.50	%		12/01/38		2,000		1,659,560
Skagit (County of) Public Hospital District No. 1 (Skagit Valley Hospital);
Series 2007, RB		5.75	%		12/01/28		1,250		1,201,512
Series 2010, RB		5.75	%		12/01/35		2,000		1,841,660
Washington (State of) Health Care Facilities Authority (Multi-Care Health System); Series 2007 B, RB (INS–AGM)(d)		5.00	%		08/15/41		1,000		892,080
Washington (State of) Health Care Facilities Authority (Seattle Cancer Care Alliance); Series 2009, RB		7.38	%		03/01/38		500		536,970
Washington (State of) Health Care Facilities Authority (Swedish Health Services); Series 2009 A, RB		6.50	%		11/15/33		1,500		1,565,460
Washington (State of) Health Care Facilities Authority; Series 2007 C, RB (INS–Radian Asset Assurance, Inc.)(d)		5.50	%		08/15/42		3,000		2,592,930
									10,290,172
West Virginia–1.34%
Harrison (County of) Commission (Charles Pointe No. 2);
Series 2008 A, Ref. Tax Increment Allocation RB		7.00	%		06/01/35		1,500		1,255,530
Series 2008 B, Ref. Tax Increment Allocation RB		7.00	%		06/01/28		1,000		816,480
West Virginia (State of) Hospital Finance Authority (Thomas Health System);
Series 2008, Hospital RB		6.50	%		10/01/38		5,000		4,425,550
Series 2008, Hospital RB		6.75	%		10/01/43		1,650		1,493,382
									7,990,942
Wisconsin–3.13%
Milwaukee (City of) Redevelopment Authority (Academy of Learning & Leadership, Inc.); Series 2007 A, Education RB		5.50	%		08/01/22		300		254,067
Wisconsin (State of) Health & Educational Facilities Authority (AE Nursing Centers);
Series 2008, RB		7.15	%		06/01/28		1,075		959,760
Series 2008, RB		7.25	%		06/01/38		1,000		854,050
Wisconsin (State of) Health & Educational Facilities Authority (Beaver Dam Community Hospitals, Inc.);
Series 2004 A, RB		6.50	%		08/15/26		250		239,888
Series 2004 A, RB		6.75	%		08/15/34		1,480		1,410,647
Wisconsin (State of) Health & Educational Facilities Authority (Community Memorial Hospital, Inc.); Series 2003, RB		7.13	%		01/15/22		890		846,995
Wisconsin (State of) Health & Educational Facilities Authority (Community Rehabilitation Providers Facilities Acquisition Program); Series 1998, RB		6.88	%		12/01/23		200		180,336
Wisconsin (State of) Health & Educational Facilities Authority (Eastcastle Place, Inc.);
Series 2004, RB		6.00	%		12/01/24		500		409,110
Series 2004, RB		6.13	%		12/01/34		1,000		725,140
Wisconsin (State of) Health & Educational Facilities Authority (New Castle Place); Series 2001 A, RB		7.00	%		12/01/31		250		199,795
Wisconsin (State of) Health & Educational Facilities Authority (Reedsburg Area Medical Center, Inc.), Series 2010 A, Ref. RB		6.00	%		06/01/27		1,000		921,890
Series 2010 A, Ref. RB		6.10	%		06/01/28		800		735,912

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

27        Invesco High Income Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Wisconsin–(continued)
Wisconsin (State of) Health & Educational Facilities Authority (Southwest Health Center);
Series 2004 A, RB		6.13	%		04/01/24	$	260	$	250,632
Series 2004 A, RB		6.25	%		04/01/34		1,025		930,475
Wisconsin (State of) Health & Educational Facilities Authority (St. John’s Community, Inc.);
Series 2009 A, RB		7.25	%		09/15/29		2,000		1,978,820
Series 2009 A, RB		7.63	%		09/15/39		1,000		1,004,730
Wisconsin (State of) Health & Educational Facilities Authority (Tomah Memorial Hospital, Inc.);
Series 2003, RB		6.00	%		07/01/15		100		98,978
Series 2003, RB		6.13	%		07/01/16		150		150,105
Series 2003, RB		6.63	%		07/01/28		750		699,510
Wisconsin (State of) Health & Educational Facilities Authority (Wisconsin Illinois Senior Housing, Inc.);
Series 2006, Ref. RB		5.50	%		08/01/16		2,020		1,960,107
Series 2006, Ref. RB		5.80	%		08/01/29		2,400		2,054,064
Series 2010, RB		7.00	%		08/01/33		2,000		1,810,140
									18,675,151
Wyoming–0.08%
Teton (County of) Hospital District (St. John’s Medical Center); Series 2002, RB		6.75	%		12/01/22		500		499,530
TOTAL INVESTMENTS(g)–98.13% (Cost $649,636,666)									586,188,265
OTHER ASSETS LESS LIABILITIES–1.87%									11,148,390
NET ASSETS–100.00%								$	597,336,655

Investment Abbreviations:

AGC	– Assured Guaranty Corp.
AGM	– Assured Guaranty Municipal Corp.
AMBAC	– American Municipal Bond Assurance Corp.
COP	– Certificates of Participation
GO	– General Obligation
IDR	– Industrial Development Revenue Bonds
INS	– Insurer
MFH	– Multi-Family Housing
NATL	– National Public Finance Guarantee Corp.
PCR	– Pollution Control Revenue Bonds
RAC	– Revenue Anticipation Certificates
Radian	– Radian Asset Assurance, Inc.
RB	– Revenue Bonds
Ref.	– Refunding
Sr.	– Senior
TEMPS	– Tax-Exempt Mandatory Paydown Securities

Notes to Schedule of Investments:

(a)	Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral.
(b)	Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put.
(c)	Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. 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 February 28, 2011 was $17,243,503, which represented 2.89% of the Fund’s Net Assets.
(d)	Principal and/or interest payments are secured by the bond insurance company listed.
(e)	Defaulted security. Currently, the issuer is partially or fully in default with respect to interest payments. The aggregate value of these securities at February 28, 2011 was $4,211,200, which represented 0.70% of the Fund’s Net Assets
(f)	Security subject to the alternative minimum tax.
(g)	Entities may either issue, guarantee, back or otherwise enhance the credit quality of a security. The entities are not primarily responsible for the issuer’s obligation but may be called upon to satisfy issuers obligations. No concentration of any single entity was greater than 5%.
*	AMBAC filed for bankruptcy on November 8, 2010.

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

28        Invesco High Income Municipal Fund

Statement of Assets and Liabilities

February 28, 2011

Assets:
Investments, at value (Cost $649,636,666)	$	586,188,265
Cash		1,309,259
Receivable for:
Investments sold		461,974
Fund shares sold		2,050,163
Interest		10,989,480
Fund expenses absorbed		14,153
Investment for trustee deferred compensation and retirement plans		37,400
Other assets		24,097
Total assets		601,074,791
Liabilities:
Payable for:
Fund shares reacquired		2,124,168
Dividends		1,198,650
Accrued fees to affiliates		259,334
Accrued other operating expenses		72,879
Trustee deferred compensation and retirement plans		83,105
Total liabilities		3,738,136
Net assets applicable to shares outstanding	$	597,336,655
Net assets consist of:
Shares of beneficial interest	$	733,496,470
Undistributed net investment income		315,947
Undistributed net realized gain (loss)		(73,027,361	)
Unrealized appreciation (depreciation)		(63,448,401	)
	$	597,336,655
Net Assets:
Class A	$	303,900,782
Class B	$	16,015,130
Class C	$	126,337,351
Class Y	$	89,212,164
Institutional Class	$	61,871,228
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Class A		41,687,348
Class B		2,194,191
Class C		17,323,000
Class Y		12,221,559
Institutional Class		8,485,990
Class A:
Net asset value per share	$	7.29
Maximum offering price per share
(Net asset value of $7.29 divided by 95.25%)	$	7.65
Class B:
Net asset value and offering price per share	$	7.30
Class C:
Net asset value and offering price per share	$	7.29
Class Y:
Net asset value and offering price per share	$	7.30
Institutional Class:
Net asset value and offering price per share	$	7.29

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

29        Invesco High Income Municipal Fund

Statement of Operations

For the year ended February 28, 2011

	Year ended
	February 28,
	2011
Investment income:
Interest	$	43,937,961
Total investment income		43,937,961
Expenses:
Advisory fees		3,991,001
Administrative services fees		196,547
Custodian fees		36,642
Distribution fees:
Class A		940,713
Class B		189,716
Class C		1,511,474
Transfer agent fees		257,455
Transfer agent fees — Institutional		44,740
Trustees’ and officers’ fees and benefits		33,604
Other		245,607
Total expenses		7,447,499
Less: Fees waived, expenses reimbursed and expense offset arrangement(s)		(926,513	)
Net expenses		6,520,986
Net investment income		37,416,975
Realized and unrealized gain (loss) from:
Net realized gain (loss) from investment securities		(18,885,686	)
Change in net unrealized appreciation (depreciation) of investment securities		(10,362,507	)
Net realized and unrealized gain (loss)		(29,248,193	)
Net increase in net assets resulting from operations	$	8,168,782

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

30        Invesco High Income Municipal Fund

Statement of Changes in Net Assets

For the year ended February 28, 2011, the period April 1, 2009 to February 28, 2010
and the year ended March 31, 2009

	Year ended			Eleven months			Year ended
	February 28,			February 28,			March 31,
	2011			2010			2009
Operations:
Net investment income	$	37,416,975		$	32,247,861		$	34,271,334
Net realized gain (loss)		(18,885,686	)		(9,898,657	)		(26,973,935	)
Change in net unrealized appreciation (depreciation)		(10,362,507	)		101,796,800			(119,029,870	)
Net increase (decrease) in net assets resulting from operations		8,168,782			124,146,004			(111,732,471	)
Distributions to shareholders from net investment income:
Class A		(21,643,707	)		(20,281,892	)		(21,958,475	)
Class B		(951,659	)		(982,546	)		(1,195,315	)
Class C		(7,577,680	)		(6,093,451	)		(5,260,406	)
Class Y		(4,599,438	)		(2,169,403	)		(470,291	)
Institutional Class		(3,458,522	)		(2,985,252	)		(4,890,134	)
Total distributions from net investment income		(38,231,006	)		(32,512,544	)		(33,774,621	)
Share transactions–net:
Class A		(66,476,926	)		16,393,034			17,990,381
Class B		(3,433,878	)		(832,204	)		(4,140,540	)
Class C		(13,844,062	)		36,379,832			19,165,107
Class Y		44,338,656			30,377,248			16,445,547
Institutional Class		11,378,640			(5,514,332	)		(17,187,361	)
Net increase (decrease) in net assets resulting from share transactions		(28,037,570	)		76,803,578			32,273,134
Net increase (decrease) in net assets		(58,099,794	)		168,437,038			(113,233,958	)
Net assets:
Beginning of year		655,436,449			486,999,411			600,233,369
End of year (includes undistributed net investment income of $315,947, $1,129,978 and $1,394,612, respectively)	$	597,336,655		$	655,436,449		$	486,999,411

Notes to Financial Statements

February 28, 2011

NOTE 1—Significant Accounting Policies

Invesco High Income Municipal Fund (the “Fund”) is a series portfolio of AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of eleven separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class.

  The Fund’s investment objective is total return, comprised of substantially federal tax-exempt income and taxable capital appreciation.

  The Fund currently consists of five different classes of shares: Class A, Class B, Class C, Class Y and Institutional Class. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class Y and Institutional Class shares are sold at net asset value. Effective November 30, 2010, new or additional investments in Class B shares are no longer permitted. Existing shareholders of Class B shares may continue to reinvest dividends and capital gains distributions in Class B shares until they convert. Also, shareholders in Class B shares will be able to exchange those shares for Class B shares of other Invesco Funds offering such shares until they convert. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase. Redemption of Class B shares prior to conversion date will be subject to a CDSC.

31        Invesco High Income Municipal Fund

  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.
	Securities are fair valued using an evaluated quote provided by an independent pricing service approved by the Board of Trustees. 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, yield, quality, coupon rate, maturity, type of issue, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Securities with a demand feature exercisable within one to seven days are valued at par. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and principal payments.
	Securities for which market quotations either are not readily available or are 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. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on transferability or disposition; trading in similar securities by the same issuer or comparable companies; relevant political, economic or issuer specific news; and other relevant factors under the circumstances.
	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 is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and 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 income are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable and tax-exempt 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.
	In addition, the Fund intends to invest in such municipal securities to allow it to qualify to pay shareholders “exempt-interest dividends”, as defined in the Internal Revenue Code.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to the Institutional Class are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

32        Invesco High Income Municipal Fund

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 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.	Other Risks — 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.
	The value of, payment of interest on, repayment of principal for and the ability of the Fund to sell a municipal security may be affected by constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives and the economics of the regions in which the issuers in which the Fund invests are located.
	Many municipal securities are issued to finance similar projects, especially those relating to education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal securities market and the Fund.
	There is some risk that a portion or all of the interest received from certain tax-free municipal securities could become taxable as a result of determinations by the Internal Revenue Service.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $500 million		0	.60%
Over $500 million up to and including $1 billion		0	.55%
Over $1 billion up to and including $1.5 billion		0	.50%
Over $1.5 billion		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 Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  The Adviser has voluntarily agreed to waive advisory fees and/or reimburse expenses to the extent necessary to limit total annual fund operating expenses after fee waiver and/or reimbursement (excluding certain items discussed below) of Class A, Class B, Class C, Class Y and Institutional Class shares to 0.83%, 1.58%, 1.58%, 0.58% and 0.58% of average daily net assets, respectively. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total fund annual fund operating expenses after fee waiver and/or reimbursement to exceed the numbers reflected above: (1) interest; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. The Board of Trustees or Invesco may terminate the fee waiver arrangement at any time.

  For the year ended February 28, 2011, the Adviser waived advisory fees $624,181 and reimbursed class level expenses of $155,378, $7,834, $62,413, $31,559 and $44,740 of Class A, Class B, Class C, Class Y and Institutional Class shares, respectively.

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. These expenses along with the related expense reimbursement are included in the Statement of Operations. For the year ended February 28, 2011, Invesco Ltd. reimbursed expenses of the Fund in the amount of $136.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended February 28, 2011, expenses incurred under the agreement are shown in the Statement of Operations as administrative services fees.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended February 28, 2011, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class B, Class C, Class Y and Institutional Class shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A, Class B and Class C shares (collectively the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation at the annual rate of 0.25% of the Fund’s average daily net assets of Class A shares and 1.00% of the average daily net assets of Class B and Class C shares. Of the Plan payments, up to 0.25% of the average daily net assets of each class of shares may be paid to furnish continuing personal shareholder services to customers who purchase and own shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory

33        Invesco High Income Municipal Fund

Authority (“FINRA”) impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. For the year ended February 28, 2011, expenses incurred under the Plans are shown in the Statement of Operations as distribution fees.

  Front-end sales commissions and CDSC (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended February 28, 2011, IDI advised the Fund that IDI retained $84,397 in front-end sales commissions from the sale of Class A shares and $8,722, $33,682 and $36,004 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.

  Certain officers and trustees of the Trust are officers and directors of Invesco, 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 February 28, 2011. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the year ended February 28, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Municipal Obligations	$	—	$	586,188,265	$	—	$	586,188,265

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 year ended February 28, 2011, the Fund engaged in securities sales of $1,650,261.

NOTE 5—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the year ended February 28, 2011, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $272.

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 are eligible to participate in a retirement plan that provides 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.

  During the year ended February 28, 2011, the Fund paid legal fees of $4,215 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 7—Cash Balances

The Fund may borrow for leveraging in an amount up to 5% of the Fund’s total assets (excluding the amount borrowed) at the time the borrowing is made. In doing so, the Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The Bank of New York Mellon, the custodian bank. To

34        Invesco High Income Municipal Fund

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. A Fund may not purchase additional securities when any borrowings from banks exceeds 5% of the Fund’s total assets.

NOTE 8—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Year Ended February 28, 2011 , the period April 1, 2009 to February 28, 2010 and the year ended March 31, 2009:

	2011		2010		2009
Ordinary income	$	8,839	$	1,131	$	4,489
Ordinary income-tax exempt		38,222,167		32,511,413		33,770,132
Total distributions	$	38,231,006	$	32,512,544	$	33,774,621

Tax Components of Net Assets at Period-End:

	2011
Undistributed ordinary income	$	263,916
Net unrealized appreciation (depreciation) — investments		(63,317,723	)
Temporary book/tax differences		(78,647	)
Post-October deferrals		(11,460,877	)
Capital loss carryforward		(61,566,484	)
Shares of beneficial interest		733,496,470
Total net assets	$	597,336,655

  The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to bonds with market discount.

  The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions

	Capital Loss
Expiration	Carryforward*
February 28, 2012	$	1,072,111
February 28, 2013		2,599,981
February 28, 2014		376,854
February 28, 2015		622,423
February 28, 2016		4,837,280
February 28, 2017		14,375,305
February 28, 2018		28,280,344
February 28, 2019		9,402,186
Total capital loss carryforward	$	61,566,484

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

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NOTE 9—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the year ended February 28, 2011 was $115,893,814 and $126,975,735, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	7,878,697
Aggregate unrealized (depreciation) of investment securities		(71,196,420	)
Net unrealized appreciation (depreciation) of investment securities	$	(63,317,723	)
Cost of investments for tax purposes is $649,505,988.

35        Invesco High Income Municipal Fund

NOTE 10—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of expired capital loss carryforward, on February 28, 2011, undistributed net realized gain (loss) was increased by $972,821 and shares of beneficial interest decreased by $972,821. This reclassification had no effect on the net assets of the Fund.

NOTE 11—Share Information

	Summary of Share Activity
	Year ended						Eleven months ended						Year ended
	February 28, 2011(a)						February 28, 2010						March 31, 2009
	Shares			Amount			Shares			Amount			Shares			Amount
Sold:
Class A		19,723,009		$	151,974,863			15,665,759		$	111,585,560			21,013,893		$	154,988,660
Class B		310,870			2,413,542			528,387			3,795,101			511,324			3,827,007
Class C		4,617,015			35,540,699			7,220,821			51,964,893			6,263,920			47,413,934
Class Y(b)		8,470,818			65,341,422			5,082,023			35,289,246			2,270,249			17,140,130
Institutional Class		2,362,748			18,014,215			2,200,792			15,873,775			2,581,337			19,166,377
Issued as reinvestment of dividends:
Class A		1,727,410			13,165,655			1,723,011			12,440,687			1,842,877			13,353,674
Class B		66,865			512,530			75,850			558,255			75,025			539,333
Class C		613,405			4,707,886			550,311			3,988,501			487,859			3,498,074
Class Y		365,377			2,804,215			176,185			1,292,432			47,741			308,996
Institutional Class		413,871			3,164,950			405,440			2,902,117			478,320			3,444,464
Automatic conversion of Class B shares to Class A shares:
Class A		264,734			2,021,806			334,518			2,386,335			441,071			3,200,774
Class B		(264,388	)		(2,021,806	)		(334,075	)		(2,386,335	)		(440,494	)		(3,200,774	)
Reacquired:
Class A(b)		(30,735,641	)		(233,639,250	)		(15,372,357	)		(110,019,548	)		(21,943,013	)		(153,552,727	)
Class B		(571,091	)		(4,338,144	)		(383,640	)		(2,799,225	)		(712,799	)		(5,306,106	)
Class C		(7,188,336	)		(54,092,647	)		(2,690,568	)		(19,573,562	)		(4,425,111	)		(31,746,901	)
Class Y		(3,154,902	)		(23,806,981	)		(888,140	)		(6,204,430	)		(147,792	)		(1,003,579	)
Institutional Class		(1,271,104	)		(9,800,525	)		(3,488,041	)		(24,290,224	)		(6,179,096	)		(39,798,202	)
Net increase (decrease) in share activity		(4,249,340	)	$	(28,037,570	)		10,806,276		$	76,803,578			2,165,311		$	32,273,134

(a)

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 61% of the outstanding shares of the Fund. 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 Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

(b)

Effective upon the commencement date of Class Y shares, October 3, 2008, the following shares were converted from Class A shares into Class Y shares of the Fund:

Class	Shares			Amount
Class Y		2,038,098		$	15,550,688
Class A		(2,038,098	)		(15,550,688	)

36        Invesco High Income Municipal Fund

NOTE 12—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

																						Ratio of			Ratio of
																						expenses			expenses
						Net gains																to average			to average net			Ratio of net
	Net asset					(losses) on						Dividends										net assets			assets without			investment
	value,		Net			securities (both			Total from			from net			Net asset					Net assets,		with fee waivers			fee waivers			income
	beginning		investment			realized and			investment			investment			value, end		Total			end of period		and/or expenses			and/or expenses			to average			Portfolio
	of period		income			unrealized)			operations			income			of period		return(a)			(000s omitted)		absorbed			absorbed			net assets			turnover(b)
Class A
Year ended 02/28/11	$	7.61	$	0.43	(c)	$	(0.31	)	$	0.12		$	(0.44	)	$	7.29		1.48	%	$	303,901		0.82	%(d)		0.95	%(d)		5.64	%(d)		18	%
Eleven months ended 02/28/10		6.46		0.40	(c)		1.16			1.56			(0.41	)		7.61		24.65			385,638		0.80			0.98			6.14			8
Year ended 03/31/09		8.20		0.45	(c)		(1.74	)		(1.29	)		(0.45	)		6.46		(16.21	)		312,444		0.75			0.99			6.07			22
Year ended 03/31/08		9.15		0.45			(0.96	)		(0.51	)		(0.44	)		8.20		(5.70	)		385,396		0.70			0.98			5.13			23
Year ended 03/31/07		8.97		0.45			0.17			0.62			(0.44	)		9.15		7.11			348,602		0.65			1.01			4.99			10
Year ended 03/31/06		8.76		0.47			0.21			0.68			(0.47	)		8.97		7.92			247,296		0.56			1.03			5.18			16
Class B
Year ended 02/28/11		7.61		0.38	(c)		(0.30	)		0.08			(0.39	)		7.30		0.87			16,015		1.57	(d)		1.70	(d)		4.89	(d)		18
Eleven months ended 02/28/10		6.47		0.36	(c)		1.14			1.50			(0.36	)		7.61		23.64			20,193		1.55			1.73			5.39			8
Year ended 03/31/09		8.21		0.40	(c)		(1.75	)		(1.35	)		(0.39	)		6.47		(16.85	)		17,894		1.50			1.74			5.32			22
Year ended 03/31/08		9.16		0.39			(0.96	)		(0.57	)		(0.38	)		8.21		(6.39	)		27,354		1.45			1.73			4.38			23
Year ended 03/31/07		8.98		0.38			0.18			0.56			(0.38	)		9.16		6.31			39,066		1.40			1.76			4.24			10
Year ended 03/31/06		8.77		0.40			0.21			0.61			(0.40	)		8.98		7.12			45,422		1.31			1.78			4.43			16
Class C
Year ended 02/28/11		7.61		0.38	(c)		(0.31	)		0.07			(0.39	)		7.29		0.73			126,337		1.57	(d)		1.70	(d)		4.89	(d)		18
Eleven months ended 02/28/10		6.47		0.36	(c)		1.14			1.50			(0.36	)		7.61		23.64			146,707		1.55			1.73			5.39			8
Year ended 03/31/09		8.20		0.39	(c)		(1.73	)		(1.34	)		(0.39	)		6.47		(16.75	)		91,821		1.50			1.74			5.32			22
Year ended 03/31/08		9.16		0.38			(0.96	)		(0.58	)		(0.38	)		8.20		(6.51	)		97,388		1.45			1.73			4.38			23
Year ended 03/31/07		8.97		0.38			0.19			0.57			(0.38	)		9.16		6.43			80,702		1.40			1.76			4.24			10
Year ended 03/31/06		8.77		0.40			0.20			0.60			(0.40	)		8.97		7.01			56,763		1.31			1.78			4.43			16
Class Y
Year ended 02/28/11		7.61		0.45	(c)		(0.30	)		0.15			(0.46	)		7.30		1.87			89,212		0.57	(d)		0.70	(d)		5.89	(d)		18
Eleven months ended 02/28/10		6.47		0.43	(c)		1.13			1.56			(0.42	)		7.61		24.72			49,800		0.55			0.73			6.39			8
Year ended 03/31/09(e)		7.63		0.20	(c)		(1.13	)		(0.93	)		(0.23	)		6.47		(12.21	)		14,033		0.51	(f)		0.78	(f)		6.31	(f)		22
Institutional Class
Year ended 02/28/11		7.61		0.45	(c)		(0.31	)		0.14			(0.46	)		7.29		1.74			61,871		0.57	(d)		0.74	(d)		5.89	(d)		18
Eleven months ended 02/28/10		6.46		0.42	(c)		1.15			1.57			(0.42	)		7.61		24.92			53,099		0.55			0.78			6.39			8
Year ended 03/31/09		8.20		0.47	(c)		(1.75	)		(1.28	)		(0.46	)		6.46		(15.99	)		50,807		0.50			0.76			6.32			22
Year ended 03/31/08		9.16		0.47			(0.96	)		(0.49	)		(0.47	)		8.20		(5.56	)		90,096		0.45			0.75			5.38			23
Year ended 03/31/07(e)		8.98		0.32			0.17			0.49			(0.31	)		9.16		5.53			51,501		0.40	(f)		0.77	(f)		5.24	(f)		10

(a)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
(b)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(c)	Calculated using average shares outstanding.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $376,285, $18,972, $151,147, $76,429 and $57,367 for Class A, Class B, Class C, Class Y and Institutional Class shares, respectively.
(e)	Commencement date of October 3, 2008 and July 31, 2006 for Class Y and Institutional Class shares, respectively.
(f)	Annualized.

37        Invesco High Income Municipal Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds)
and Shareholders of Invesco High Income Municipal Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco High Income Municipal Fund (formerly known as AIM High Income Municipal Fund; one of the funds constituting AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds), hereafter referred to as the “Fund”) at February 28, 2011, the results of its operations for the year then ended, the changes in its net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at February 28, 2011 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PRICEWATERHOUSECOOPERS LLP

April 21, 2011

Houston, Texas

38        Invesco High Income Municipal Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2010 through February 28, 2011.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

  Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions, and redemption fees, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(09/01/10)		(02/28/11)1		Period2		(02/28/11)		Period2		Ratio
A	$	1,000.00	$	944.10	$	4.00	$	1,020.68	$	4.16		0.83	%
B		1,000.00		940.70		7.60		1,016.96		7.90		1.58
C		1,000.00		940.60		7.60		1,016.96		7.90		1.58
Y		1,000.00		945.40		2.80		1,021.92		2.91		0.58
Institutional		1,000.00		944.10		2.80		1,021.92		2.91		0.58

1	The actual ending account value is based on the actual total return of the Fund for the period September 1, 2010 through February 28, 2011, 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.

39        Invesco High Income Municipal Fund

Tax Information

Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.

  The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.

  The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended February 28, 2011:

Federal and State Income Tax
Tax-Exempt Interest Dividends*	99.98%

*  The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.

40        Invesco High Income Municipal Fund

Trustees and Officers

The address of each trustee and officer is AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds) (the “Trust”), 11 Greenway Plaza, Suite 2500, Houston, Texas 77046-1173. The trustees serve for the life of the Trust, subject to their earlier death, incapacitation, resignation, retirement or removal as more specifically provided in the Trust’s organizational documents. Each officer serves for a one year term or until their successors are elected and qualified. Column two below includes length of time served with predecessor entities, if any.

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Interested Persons
Martin L. Flanagan1 — 1960 Trustee	2007	Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Trustee, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business Formerly: Chairman, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, IVZ Inc. (holding company), INVESCO Group Services, Inc. (service provider) and Invesco North American Holdings, Inc. (holding company); Director, Chief Executive Officer and President, Invesco Holding Company Limited (parent of Invesco and a global investment management firm); Director, Invesco Ltd.; Chairman, Investment Company Institute and President, Co-Chief Executive Officer, Co-President, Chief Operating Officer and Chief Financial Officer, Franklin Resources, Inc. (global investment management organization)	208	None
Philip A. Taylor2 — 1954 Trustee, President and Principal Executive Officer	2006	Head of North American Retail and Senior Managing Director, Invesco Ltd.; Director, Co-Chairman, Co-President and Co-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly Invesco Aim Management Group, Inc.) (financial services holding company); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent) and AIM GP Canada Inc. (general partner for limited partnerships); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) (registered transfer agent) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company) and Invesco Canada Holdings Inc. (holding company); Chief Executive Officer, Invesco Trimark Corporate Class Inc. (corporate mutual fund company) and Invesco Trimark Canada Fund Inc. (corporate mutual fund company); Director and Chief Executive Officer, Invesco Trimark Ltd./Invesco Trimark Ltèe (registered investment adviser and registered transfer agent) and Invesco Trimark Dealer Inc. (registered broker dealer); Trustee, President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); Trustee and Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only); and Director, Van Kampen Asset Management; Director, Chief Executive Officer and President, Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Director and Chairman, Van Kampen Investor Services Inc. and Director and President, Van Kampen Advisors, Inc. Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.) (registered broker dealer); Manager, Invesco PowerShares Capital Management LLC; Director, Chief Executive Officer and President, Invesco Advisers, Inc.; Director, Chairman, Chief Executive Officer and President, Invesco Aim Capital Management, Inc.; President, Invesco Trimark Dealer Inc. and Invesco Trimark Ltd./Invesco Trimark Ltèe; Director and President, AIM Trimark Corporate Class Inc. and AIM Trimark Canada Fund Inc.; Senior Managing Director, Invesco Holding Company Limited; Trustee and Executive Vice President, Tax-Free Investments Trust; Director and Chairman, Fund Management Company (former registered broker dealer); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc.	208	None
Wayne M. Whalen3 — 1939 Trustee	2010	Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex	226	Director of the Abraham Lincoln Presidential Library Foundation
Independent Trustees
Bruce L. Crockett — 1944 Trustee and Chair	1993	Chairman, Crockett Technology Associates (technology consulting company) Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer COMSAT Corporation; and Chairman, Board of Governors of INTELSAT (international communications company)	208	ACE Limited (insurance company); and Investment Company Institute
David C. Arch — 1945 Trustee	2010	Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.	226	Member of the Heartland Alliance Advisory Board, a nonprofit organization serving human needs based in Chicago. Board member of the Illinois Manufacturers’ Association. Member of the Board of Visitors, Institute for the Humanities, University of Michigan

1	Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.
2	Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.
3	Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Independent Trustees
Bob R. Baker — 1936 Trustee	2003	Retired Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation	208	None
Frank S. Bayley — 1939 Trustee	2001	Retired Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie	208	None
James T. Bunch — 1942 Trustee	2003	Founder, Green, Manning & Bunch Ltd. (investment banking firm) Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation	208	Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society
Rodney Dammeyer — 1940 Trustee	2010	President of CAC, LLC, a private company offering capital investment and management advisory services. Formerly: Prior to January 2004, Director of TeleTech Holdings Inc.; Prior to 2002, Director of Arris Group, Inc.; Prior to 2001, Managing Partner at Equity Group Corporate Investments. Prior to 1995, Vice Chairman of Anixter International. Prior to 1985, experience includes Senior Vice President and Chief Financial Officer of Household International, Inc, Executive Vice President and Chief Financial Officer of Northwest Industries, Inc. and Partner of Arthur Andersen & Co.	226	Director of Quidel Corporation and Stericycle, Inc. Prior to May 2008, Trustee of The Scripps Research Institute. Prior to February 2008, Director of Ventana Medical Systems, Inc. Prior to April 2007, Director of GATX Corporation. Prior to April 2004, Director of TheraSense, Inc.
Albert R. Dowden — 1941 Trustee	2000	Director of a number of public and private business corporations, including the Boss Group, Ltd. (private investment and management); Reich & Tang Funds (5 portfolios) (registered investment company); and Homeowners of America Holding Corporation/ Homeowners of America Insurance Company (property casualty company) Formerly: Director, Continental Energy Services, LLC (oil and gas pipeline service); Director, CompuDyne Corporation (provider of product and services to the public security market) and Director, Annuity and Life Re (Holdings), Ltd. (reinsurance company); Director, President and Chief Executive Officer, Volvo Group North America, Inc.; Senior Vice President, AB Volvo; Director of various public and private corporations; Chairman, DHJ Media, Inc.; Director Magellan Insurance Company; and Director, The Hertz Corporation, Genmar Corporation (boat manufacturer), National Media Corporation; Advisory Board of Rotary Power International (designer, manufacturer, and seller of rotary power engines); and Chairman, Cortland Trust, Inc. (registered investment company)	208	Board of Nature’s Sunshine Products, Inc.
Jack M. Fields — 1952 Trustee	1997	Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Owner and Chief Executive Officer, Dos Angelos Ranch, L.P. (cattle, hunting, corporate entertainment), Discovery Global Education Fund (non-profit) and Cross Timbers Quail Research Ranch (non-profit) Formerly: Chief Executive Officer, Texana Timber LP (sustainable forestry company) and member of the U.S. House of Representatives	208	Administaff
Carl Frischling — 1937 Trustee	1993	Partner, law firm of Kramer Levin Naftalis and Frankel LLP	208	Director, Reich & Tang Funds (16 portfolios)
Prema Mathai-Davis — 1950 Trustee	1998	Retired Formerly: Chief Executive Officer, YWCA of the U.S.A.	208	None
Larry Soll — 1942 Trustee	2003	Retired Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)	208	None
Hugo F. Sonnenschein — 1940 Trustee	2010	President Emeritus and Honorary Trustee of the University of Chicago and the Adam Smith Distinguished Service Professor in the Department of Economics at the University of Chicago. Prior to July 2000, President of the University of Chicago.	226	Trustee of the University of Rochester and a member of its investment committee. Member of the National Academy of Sciences, the American Philosophical Society and a fellow of the American Academy of Arts and Sciences
Raymond Stickel, Jr. — 1944 Trustee	2005	Retired Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche	208	None

T-2

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Other Officers
Russell C. Burk — 1958 Senior Vice President and Senior Officer	2005	Senior Vice President and Senior Officer of Invesco Funds	N/A	N/A
John M. Zerr — 1962 Senior Vice President, Chief Legal Officer and Secretary	2006	Director, Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp., Senior Vice President, Invesco Advisers, Inc. formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Secretary, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Manager, Invesco PowerShares Capital Management LLC; Director, Secretary and General Counsel, Van Kampen Asset Management; Director and Secretary, Van Kampen Advisors Inc.; Secretary and General Counsel, Van Kampen Funds Inc.; and Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; and Chief Legal Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco Advisers, Inc.; Director, Vice President and Secretary, Fund Management Company; Director, Senior Vice President, Secretary, General Counsel and Vice President, Invesco Aim Capital Management, Inc.; Chief Operating Officer and General Counsel, Liberty Ridge Capital, Inc. (an investment adviser); Vice President and Secretary, PBHG Funds (an investment company) and PBHG Insurance Series Fund (an investment company); Chief Operating Officer, General Counsel and Secretary, Old Mutual Investment Partners (a broker-dealer); General Counsel and Secretary, Old Mutual Fund Services (an administrator) and Old Mutual Shareholder Services (a shareholder servicing center); Executive Vice President, General Counsel and Secretary, Old Mutual Capital, Inc. (an investment adviser); and Vice President and Secretary, Old Mutual Advisors Funds (an investment company)	N/A	N/A
Lisa O. Brinkley — 1959 Vice President	2004	Global Compliance Director, Invesco Ltd.; Chief Compliance Officer, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc.(formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc.; and Vice President, The Invesco Funds Formerly: Senior Vice President, Invesco Management Group, Inc.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and The Invesco Funds; Vice President and Chief Compliance Officer, Invesco Aim Capital Management, Inc. and Invesco Distributors, Inc.; Vice President, Invesco Investment Services, Inc. and Fund Management Company	N/A	N/A
Sheri Morris — 1964 Vice President, Treasurer and Principal Financial Officer	1999	Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; and Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) Formerly: Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.	N/A	N/A
Karen Dunn Kelley — 1960 Vice President	1993	Head of Invesco’s World Wide Fixed Income and Cash Management Group; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) and Van Kampen Investments Inc.; Executive Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.); and Director, Invesco Mortgage Capital Inc.; Vice President, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only). Formerly: Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Director of Cash Management and Senior Vice President, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; President and Principal Executive Officer, Tax-Free Investments Trust; Director and President, Fund Management Company; Chief Cash Management Officer, Director of Cash Management, Senior Vice President, and Managing Director, Invesco Aim Capital Management, Inc.; Director of Cash Management, Senior Vice President, and Vice President, Invesco Advisers, Inc. and The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only)	N/A	N/A
Lance A. Rejsek — 1967 Anti-Money Laundering Compliance Officer	2005	Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.), The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange- Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, Van Kampen Asset Management, Van Kampen Investor Services Inc., and Van Kampen Funds Inc. Formerly: Anti-Money Laundering Compliance Officer, Fund Management Company, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.	N/A	N/A

T-3

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Other Officers
Todd L. Spillane — 1958 Chief Compliance Officer	2006	Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser) (formerly known as Invesco Institutional (N.A.), Inc.); Chief Compliance Officer, The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange- Traded Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, INVESCO Private Capital Investments, Inc. (holding company), and Invesco Private Capital, Inc. (registered investment adviser); Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc. Formerly: Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. and Invesco Senior Secured Management, Inc. (registered investment adviser); Vice President, Invesco Aim Capital Management, Inc. and Fund Management Company	N/A	N/A

The Statement of Additional Information of the Trust includes additional information about the Fund’s Trustees and is available upon request, without charge, by calling 1.800.959.4246. Please refer to the Fund’s prospectus for information on the Fund’s sub-advisers.

Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza,	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Suite 2500	1555 Peachtree Street, N.E.	11 Greenway Plaza,	1201 Louisiana Street,
Houston, TX 77046-1173	Atlanta, GA 30309	Suite 2500	Suite 2900
		Houston, TX 77046-1173	Houston, TX 77002-5678
Counsel to the Fund	Counsel to the Independent Trustees	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Kramer, Levin, Naftalis & Frankel LLP	Invesco Investment Services, Inc.	Bank of New York Mellon
2600 One Commerce Square	1177 Avenue of the Americas	11 Greenway Plaza, Suite 2500	2 Hanson Place
Philadelphia, PA 19103	New York, NY 10036-2714	Houston, TX 77046-1173	Brooklyn, NY 11217-1431

T-4

Invesco mailing information

Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.

Invesco privacy policy

You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.

     Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.

     Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.

Important notice regarding delivery of security holder documents

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.

Fund holdings and proxy voting information

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Forms N-Q on the SEC website at sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07890 and 033-66242.

     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 12 months ended June 30, 2010, is available at our website, 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 U.S. 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.

HIM-AR-1 Invesco Distributors, Inc.

Annual Report to Shareholders February 28, 2011

Invesco Tax-Exempt Cash Fund
Nasdaq:
A: ACSXX § Investor: TEIXX

2	Letters to Shareholders
4	Management’s Discussion of Your Fund
5	Supplemental Information
6	Schedule of Investments
11	Financial Statements
13	Notes to Financial Statements
18	Financial Highlights
19	Auditor's Report
20	Fund Expenses
21	Tax Information
T-1	Trustees and Officers

Letters to Shareholders

Philip Taylor

Dear Shareholders:

Enclosed is important information about your Fund and its performance.

     I’ve always believed that companies have an obligation to communicate regularly with their clients, and I believe that obligation is especially critical in the investment industry.

     Our website – invesco.com/us – offers timely market updates and commentary from many of our portfolio managers and other investment professionals, as well as quarterly messages from me. At invesco.com/us, you also can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer.

Invesco’s commitment to investment excellence

Invesco’s acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, broadened our range of investment products available to you. As a strong organization with a single focus – investment management – Invesco today offers investment capabilities and products to meet the needs of virtually any investor. In addition to traditional mutual funds, we manage a broad range of other solutions, including single-country, regional and global investments spanning major equity, fixed income and alternative asset classes.

     Investment excellence is our goal across our product line. Let me explain what that means. All of our funds are managed by specialized teams of investment professionals. Each team has a discrete investment perspective and philosophy, and all follow disciplined, repeatable processes governed by strong risk oversight. Our investment-centric culture provides an environment that seeks to reduce distractions, allowing our fund managers to concentrate on what they do best – manage your money.

     The importance of a broad product line and investment management expertise is obvious given the markets we’ve experienced over the last two to three years. We’ve seen that investment strategies can outperform or underperform their benchmark indexes for a variety of reasons, including where we are in the market cycle, and whether prevailing economic conditions are favorable or unfavorable for that strategy. That’s why no investment strategy can guarantee top-tier performance at all times. What investors can expect, and what Invesco offers, are funds that are managed according to their stated investment objectives and strategies, with robust risk oversight using consistent, repeatable investment processes that don’t change as short-term external conditions change – investments managed for the long term. This disciplined approach can’t guarantee a profit; no investment can do that, since all involve some measure of risk. But it can ensure that your money is managed the way we said it would be.

     This adherence to stated investment objectives and strategies allows your financial advisor to build a diversified portfolio that meets your individual risk tolerance and financial goals. It also means that when your goals change, your financial advisor will be able to find an appropriate investment option to meet your needs.

Invesco’s commitment to you

Invesco’s commitment to you remains stronger than ever. It’s one of the reasons we’ve grown to become one of the world’s largest asset managers.

     If you have questions about your account, please contact one of our client service representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, I invite you to email me directly at phil@invesco.com.

     I want to thank you for placing your trust in us. All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.

Sincerely,

Philip Taylor
Senior Managing Director, Invesco Ltd.

2 Invesco Tax-Exempt Cash Fund

Bruce Crockett

Dear Fellow Shareholders:

With 2010 behind us, now is a good time to review our portfolios and ensure that we are adhering to a long-term, diversified investment strategy, which I’ve mentioned in previous letters. The year was notable for a number of reasons, but I’m sure most of us are grateful for a return to more stable markets and growing signs that the worst of the economic crisis is behind us.

     Your Board continued to oversee the Invesco Funds with a strong sense of responsibility for your savings and a deep appreciation for your continued trust. As always, we worked throughout 2010 to manage costs and ensure Invesco continued to place investor interests first.

     I’m pleased to report that the latest report from Morningstar affirmed the work we’ve done and included a number of positive comments regarding your Board’s oversight of the Invesco Funds.

     As background, Morningstar is a leading independent provider of investment research in North America, Europe, Australia and Asia. Morningstar stated, “A fund board’s duty is to represent the interests of fund shareholders, ensuring that the funds that it oversees charge reasonable fees and are run by capable advisors with a sound investment process.”
     Morningstar maintained your Fund Board’s “A” grade for Board Quality, praising the Board for taking “meaningful steps in recent years to act in fund shareholders’ interests.”¹ These steps included becoming much more proactive and vocal in overseeing how Invesco votes the funds’ shareholders’ proxies and requiring each fund trustee to invest more than one year’s board compensation in Invesco funds, further aligning our interests with those of our shareholders. Morningstar also cited the work I’ve done to make myself more available to fund shareholders via email.

     I am also pleased that Morningstar recognized the effort and the Fund Board’s efforts over the past several years to work together with management at Invesco to enhance performance and sharpen the focus on investors.

     Let me close by wishing you a happy and prosperous new year. As always, you’re welcome to contact me at bruce@brucecrockett.com with any questions or concerns you have. We look forward to representing you and serving you in the new year.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

1 Among the criteria Morningstar considers when evaluating a fund board are the degree to which the board is independent of the fund company; board members’ financial interests are aligned with those of fund shareholders; the board acts in fund shareholders’ interests; and the board works constructively with company management and investment personnel. Morningstar first awarded an “A” rating to the Invesco Funds board on September 13, 2007; that rating has been maintained in subsequent reports, the most recent of which was released December 17, 2010. Ratings are subject to change, usually every 12 to 24 months. Morningstar ratings range from “A” to “F.”

3 Invesco Tax-Exempt Cash Fund

Management’s Discussion of Your Fund

This annual report on Invesco Tax-Exempt Cash Fund covers the 12 months ended February 28, 2011. As of that date, the Fund had 74 holdings, its net assets totaled $58.6 million and its weighted average maturity and weighted average life were 28 days and 28 days, respectively.

How we invest

We seek to provide as high a level of tax-exempt income, consistent with preservation of capital and maintenance of liquidity. We invest in high-quality, short-term municipal obligations, focusing on:

n Safety, or preservation of capital, through rigorous credit analysis.

n Liquidity, through a combination of short-term cash management vehicles and selective use of longer maturity investments.

n Yield that is exempt from federal income tax.

     The overall portfolio’s structure depends on the supply and availability of municipal securities. Liquidity is managed using daily and weekly variable-rate demand notes. We may sell a security when there has been a negative change in an issuer’s credit quality or because we can earn a higher yield elsewhere.

     Because we generally do not purchase securities that generate taxable income or that are subject to the alternative minimum tax, we expect the Fund to generate fully tax-exempt income. While the Fund’s distributions are primarily exempt from federal income tax, a portion of the Fund’s distributions may be subject to the federal alternative minimum tax and state and local taxes.

Market conditions affecting money market funds

The economy tried to regain its footing during the period covered by this report, with market sentiment mostly guarded. An impressive run up in equity markets in the beginning of 2010 reversed quickly and strongly during the second quarter on disappointing employment numbers and concern that the Greek debt crisis would spread to other vulnerable economies in Europe. Investors appeared confident the economy was headed in the right direc-

tion, but uncertainty lingered, particularly with regard to the labor and credit markets.

     In an effort to address these concerns, the U.S. Federal Reserve (the Fed) intervened, just as markets bottomed, with a second round of quantitative easing (also known as QE2). The goal of the Fed’s initiative, announced in August and launched in November, was to reduce long-term borrowing costs by pumping liquidity into the economy through the purchase of $600 billion in U.S. government bonds over an eight-month period.¹ This, the Fed hoped, would boost confi-dence and consumer spending, pushing growth and prices higher.

     Bolstered by the Fed’s efforts, the recovery finally began to gain traction, with the U.S. economy expanding through the fourth quarter of 2010. In the fourth quarter, gross domestic product, the broadest measure of overall economic activity, grew at an annualized rate of 3.1%.² Household spending surged by 4.0% in the fourth quarter,² the largest quarterly increase since the fourth quarter of 2006. Encouraged by positive economic momentum, investors returned to equity markets, resulting in inflows into equity mutual funds during the fourth quarter. Despite signs of economic recovery, unemployment remained stubbornly high at 8.9% in February.³
     Reflecting these broader macroeconomic developments, long-term U.S. government bonds rallied on increased demand for less risky investments, causing yields on 10-year Treasury bonds to decline in October to their lowest level since the first quarter of 2009. Yields subsequently rose on a steady flow of positive economic news and higher inflation expectations. At the same time, yields on short-term government securities were flat, weighed down by the Fed’s monetary policies, which kept the federal funds target rate in a range of between zero and 0.25%¹, and a shrinking supply of creditworthy money market securities. Because money market funds invest in such securities, the yield you earned on your investment in Invesco Tax-Exempt Cash Fund remained low throughout the period covered by this report.

     On a positive note, the yield curve (a line graph that plots the yields of similarly rated fixed income investments according to their maturities) on U.S. Treasuries steepened during the reporting period, (meaning that long-term yields rose more than shorter term yields). While no one can predict the future performance of the economy, steepening yield curves historically have signaled relative economic health and expansion, because they indicate an expectation that interest rates will begin to increase in the future as a means of compensating investors who hold longer term Treasury securities with extended maturities for possible higher inflation typically associated with economic growth.

     Thank you for investing with us.

1 U.S. Federal Reserve
2 Bureau of Economic Analysis
3 Bureau of Labor Statistics

Team managed by Invesco Advisers, Inc.

The views and opinions expressed in management’s discussion of Fund performance are those of Invesco Advisers, Inc. These views and opinions are subject to change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or recommendations, or as an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but Invesco Advisers, Inc. makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

See important Fund and, if applicable, index disclosures later in this report.

Portfolio Composition by Maturity

In days, as of 2/28/11

1–7	85.3	%
8–30	1.4
31–60	1.3
61–90	0.9
91–180	5.9
181+	5.2

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.

An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

4 Invesco Tax-Exempt Cash Fund

Invesco Tax-Exempt Cash Fund’s investment objective is to provide as high a level of tax-exempt income as is consistent with the preservation of capital and maintenance of liquidity.

n Unless otherwise stated, information presented in this report is as of February 28, 2011, and is based on total net assets.

n Unless otherwise noted, all data provided by Invesco.

n To access your Fund’s reports/prospectus, visit invesco.com/fundreports.

About share classes

n All Investor Class shares are closed to new investors. Contact your financial adviser about purchasing our other share classes.

n Class Y shares are available to only certain investors. Please see the prospectus for more information.

Principal risks of investing in the Fund

n Money market risk. The Fund is a money market fund, and an investment in the Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, you may lose money by investing in the Fund. The share price of money market funds can fall below the $1.00 share price. You should not rely on or expect the Fund’s adviser or its affiliates to enter into support agreements or take other actions to maintain the Fund’s $1.00 share price. The credit quality of the Fund’s holdings can change rapidly in certain markets, and the default of a single holding could have an adverse impact on the Fund’s share price. The Fund’s share price can also be negatively affected during periods of high redemption pressures and/or illiquid markets. Further regulation could impact the way the Fund is managed, possibly negatively impacting its return. Additionally, the Fund’s yield will vary as the short-term securities in its portfolio mature or are sold and the proceeds are reinvested in other securities.

n Credit risk. The issuer of instruments in which the Fund invests may be unable to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the issuer’s credit rating.

n Foreign credit exposure risk. U.S. dollar-denominated securities carrying foreign credit exposure may be affected by unfavorable political, economic or governmental developments that could affect payments of principal and interest.

n Interest rate risk. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise; conversely, bond prices generally rise as interest rates fall. Specific bonds differ in their sensitivity to changes in interest rates depending on their individual characteristics, including duration.

n Management risk. The investment techniques and risk analysis used by the Fund’s portfolio managers may not produce the desired results.

n Market risk. The prices of and the income generated by the Fund’s securities may decline in response to, among other things, investor sentiment; general economic and market conditions; regional or global instability; and currency and interest rate fluctuations.

n Municipal securities risk. The value of, payment of interest and repayment of principal with respect to, and the ability of the Fund to sell, a municipal security may be affected by constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives, and the issuer’s regional economic conditions. Failure of the issuer of a municipal

	security to comply with applicable tax requirements may make income paid thereon taxable, resulting in a decline in the value of such security.
n	Synthetic securities risk. Fluctuations in the values of synthetic instruments may not correlate perfectly with the instruments they are designed to replicate. Some synthetic instruments are more sensitive to interest rate changes and market price fluctuations than others. These instruments may be subject to counterparty risk and liquidity risk.

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

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Nasdaq Symbols

Class A Shares	ACSXX
Investor Class Shares	TEIXX

5 Invesco Tax-Exempt Cash Fund

Schedule of Investments

February 28, 2011

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Municipal Obligations–100.51%
Alabama–1.53%
Gardendale (City of) (Woodbrook Apartments); Series 2002 D, Ref. VRD MFH RB (CEP–FHLMC)(a)		0.35	%		10/01/32	$	895	$	895,000
Colorado–8.35%
Boulder (City of); Series 2011, Ref. Water & Sewer RB		2.00	%		12/01/11		240		242,710
Colorado (State of) Educational & Cultural Facilities Authority (National Jewish Federation Bond Fund); Series 2008 F-1, VRD RB (LOC–Northern Trust Co.)(a)(b)		0.21	%		09/01/32		200		200,000
Colorado (State of) Housing & Finance Authority (Winridge Apartments); Series 1998, Ref. VRD MFH RB (CEP–FNMA)(a)		0.27	%		02/15/28		565		565,000
Colorado (State of) Housing & Finance Authority (Woodstream Village); Series 1985, VRD MFH RB (CEP–FNMA)(a)		0.32	%		02/01/31		1,585		1,585,000
Southglenn Metropolitan District; Series 2007, VRD Special RB (LOC–BNP Paribas)(a)(b)(c)		0.28	%		12/01/30		2,305		2,305,000
									4,897,710
Connecticut–0.86%
Newtown (City of); Series 2011, Unlimited Tax GO BAN		1.50	%		02/22/12		500		505,173
District of Columbia–2.61%
District of Columbia (Hogar Hispano, Inc.); Series 2005, VRD RB (LOC–Bank of America, N.A.)(a)(b)		0.52	%		03/01/30		1,530		1,530,000
Florida–4.95%
Broward (County of) Educational Facilities Authority (City College,Inc.); Series 2004, VRD RB (LOC–Citibank, N.A.)(a)(b)		0.24	%		11/01/31		600		600,000
Dade (County of) Industrial Development Authority (Spectrum Programs, Inc.); Series 1996, VRD IDR (LOC–Bank of America, N.A.)(a)(b)		0.55	%		10/01/16		830		830,000
Palm Beach (County of) (Henry Morrison Flagler Museum); Series 2003, VRD RB (LOC–Northern Trust Co.)(a)(b)		0.27	%		11/01/36		675		675,000
Palm Beach (County of) (The Raymond F. Kravis Center for the Performing Arts, Inc.); Series 2002, VRD RB (LOC–Northern Trust Co.)(a)(b)		0.25	%		07/01/32		800		800,000
									2,905,000
Georgia–4.77%
Glynn-Brunswick Memorial Hospital Authority (Southeast Georgia Health System); Series 2008 B, VRD RAN (LOC–Branch Banking & Trust Co.)(a)(b)		0.26	%		08/01/38		1,000		1,000,000
Marietta (City of) Housing Authority (Wood Knoll Apartments); Series 1994, Ref. VRD MFH RB (CEP–FHLMC)(a)		0.26	%		07/01/24		1,200		1,200,000
Private Colleges & Universities Authority (Emory University); Series 2005 B-2, VRD RB(a)		0.20	%		09/01/35		600		600,000
									2,800,000
Illinois–4.80%
Illinois (State of) Finance Authority (Foundation for Safety & Health); Series 1992, VRD Safety Education RB (LOC–Harris, N.A.)(a)(b)(d)		0.30	%		10/01/17		700		700,000
Illinois (State of) Finance Authority (Ingalls Memorial Hospital); Series 1985 B, VRD RB (LOC–Northern Trust Co.)(a)(b)		0.21	%		06/01/11		1,000		1,000,000
Illinois (State of) Finance Authority (Northwestern University);
Series 2008 B, VRD RB(a)		0.32	%		03/01/11		400		400,000
Subseries 2008, VRD RB(a)		0.43	%		03/01/12		300		300,000
Illinois (State of) Finance Authority (United Way/Crusade of Mercy, Inc.); Series 2002, VRD RB (LOC–Bank of America, N.A.)(a)(b)		0.55	%		04/01/27		415		415,000
									2,815,000

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

6        Invesco Tax-Exempt Cash Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Iowa–2.64%
Iowa (State of) Finance Authority (YMCA & Rehabilitation Center); Series 2000, VRD RB (LOC–Bank of America, N.A.)(a)(b)		0.50	%		04/01/25	$	900	$	900,000
Iowa (State of) Higher Education Loan Authority (Graceland College); Series 2003, VRD Private College Facility RB (LOC–Bank of America, N.A.)(a)(b)		0.45	%		02/01/33		650		650,000
									1,550,000
Kansas–0.95%
Johnson (County of) Public Building Commission; Series 2003 A, Lease Purchase RB(e)		4.20	%		09/01/11		350		356,586
Wichita (City of); Series 2010-240, Improvement Unlimited Tax GO Temporary Notes		0.45	%		09/15/11		200		200,051
									556,637
Michigan–4.74%
Grand Rapids (City of) Economic Development Corp. (Amway Hotel Corp.); Series 1991 A, Ref. VRD RB (LOC–Bank of America, N.A.)(a)(b)		0.46	%		08/01/17		130		130,000
Michigan (State of) Hospital Finance Authority (McLaren Health Care Corp.);
Series 2008 B-2, Ref. VRD RB (LOC–JPMorgan Chase Bank, N.A.)(a)(b)		0.25	%		10/15/30		110		110,000
Series 2008 B-3, Ref. VRD RB (LOC–JPMorgan Chase Bank, N.A.)(a)(b)		0.25	%		10/15/38		1,640		1,640,000
Michigan (State of) Housing Development Authority (Parks of Taylor Apartments); Series 2002 A, VRD MFH Limited Obligation RB (CEP–FNMA)(a)		0.27	%		08/15/32		500		500,000
Southfield (City of) Economic Development Corp. (Lawrence Technological University); Series 2001, VRD Limited Obligation RB (LOC–JPMorgan Chase Bank, N.A.)(a)(b)		0.28	%		10/01/31		400		400,000
									2,780,000
Minnesota–0.52%
Minnesota (State of) Tax & Aid Anticipation Borrowing Program; Series 2011 A, COP		2.00	%		09/01/11		300		302,457
Missouri–0.85%
St. Louis (County of) Industrial Development Authority (Friendship Village of South County); Series 2002 B, VRD RB (LOC–Bank of America, N.A.)(a)(b)		0.33	%		09/01/22		500		500,000
New Hampshire–12.83%
New Hampshire (State of) Business Finance Authority (Foundation for Seacoast Health); Series 1998 A, VRD RB (LOC–Bank of America, N.A.)(a)(b)		0.35	%		06/01/28		2,250		2,250,000
New Hampshire (State of) Business Finance Authority (Wheelabrator Concord Co., L.P.); Series 1997 A, Ref. VRD Resource Recovery RB (LOC–Wells Fargo Bank, N.A.)(a)(b)		0.28	%		01/01/18		2,475		2,475,000
New Hampshire (State of) Health & Education Facilities Authority (Moore Center Services, Inc.); Series 2007, VRD RB (LOC–TD Bank, N.A.)(a)(b)		0.26	%		09/01/37		2,800		2,800,000
									7,525,000
New Jersey–1.54%
New Jersey (State of) Economic Development Authority (Job Haines Home for Aged People); Series 1998, VRD RB (LOC–PNC Bank, N.A.)(a)(b)		0.29	%		02/01/28		900		900,000
New Mexico–0.77%
New Mexico (State of); Series 2010, TRAN		2.00	%		06/30/11		450		452,495
New York–0.61%
Fairport Central School District; Series 2010, Unlimited Tax GO Bonds		2.00	%		06/15/11		355		356,435

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

7        Invesco Tax-Exempt Cash Fund

							Principal
	Interest			Maturity			Amount
	Rate			Date			(000)		Value
North Carolina–3.37%
North Carolina (State of) Capital Facilities Finance Agency (Duke University); Series 1991 B, VRD RB(a)		0.27	%		12/01/21		$	900	$	900,000
North Carolina (State of) Capital Facilities Finance Agency (Warren Wilson College); Series 2006, VRD Educational Facilities RB (LOC–Bank of America, N.A.)(a)(b)		0.32	%		06/01/31			1,075		1,075,000
										1,975,000
North Dakota–3.41%
Fargo (City of) (Cass Oil Co.); Series 1984, VRD Commercial Development RB (LOC–U.S. Bank, N.A.)(a)(b)		0.41	%		12/01/14			2,000		2,000,000
Ohio–0.35%
Ohio State University (The); Series 2008 A, General Receipts RB		4.00	%		12/01/11			200		205,427
Oregon–2.68%
Oregon (State of) Health, Housing, Educational & Cultural Facilities Authority (Sacred Heart Medical Center Foundation); Series 1998 A, VRD RB (LOC–U.S. Bank N.A.)(a)(b)		0.26	%		11/01/28			970		970,000
Portland (City of) Housing Authority (New Market West); Series 2004, VRD RB (LOC–Wells Fargo Bank, N.A.)(a)(b)		0.35	%		04/01/34	��		600		600,000
										1,570,000
Pennsylvania–4.56%
Derry (Township of) Industrial & Commercial Development Authority (Hershey Arena); Series 2000 A, VRD Hotel Tax RB (LOC–PNC Bank, N. A.)(a)(b)		0.25	%		11/01/30			675		675,000
Lebanon (County of) Health Facilities Authority (E.C.C. Retirement Village); Series 2000, VRD RB (LOC–PNC Bank, N.A.)(a)(b)		0.26	%		10/15/25			700		700,000
Pennsylvania (State of) Economic Development Financing Authority (Indiana Regional Medical Center); Series 2006 A-2, VRD Hospital RB (LOC–PNC Bank, N.A.)(a)(b)		0.28	%		06/01/11			100		100,000
School District of Haverford Township; Series 2009, VRD Limited Tax GO Bonds (LOC–TD Bank, N.A.)(a)(b)		0.24	%		03/01/30			1,200		1,200,000
										2,675,000
South Carolina–6.09%
Greenwood (County of) School District No. 50; Series 2010, Unlimited Tax GO Bonds		2.00	%		04/01/11			750		751,013
South Carolina (State of) Jobs–Economic Development Authority (John Ancrum SPCA); Series 2007, VRD RB (LOC–Bank of America, N.A.)(a)(b)		0.55	%		08/01/27			2,820		2,820,000
										3,571,013
Tennessee–4.83%
Clarksville (City of) Public Building Authority (Tennessee Municipal Bond Fund); Series 1994, VRD Pooled Financing RB (LOC–Bank of America, N.A.)(a)(b)(d)		0.32	%		06/01/24			1,660		1,660,000
Nashville (City of) & Davidson (County of) Metropolitan Government Health & Educational Facilities Board (Vanderbilt University); Series 2000 A, VRD RB(a)		0.20	%		10/01/30			675		675,000
Shelby (County of) Health, Educational & Housing Facility Board (Providence Place Apartments); Series 2007, Ref. VRD MFH RB (CEP–FNMA)(a)		0.26	%		12/15/42			500		500,000
										2,835,000
Texas–11.08%
Austin (City of); Series 2001, Limited Tax GO Ctfs.		5.00	%		09/01/11			150		153,238
Bexar (County of);
Series 2010, Limited Tax GO Bonds		3.00	%		06/15/11			215		216,651
Series 2010, Ref. Limited Tax GO Bonds		2.00	%		06/15/11			300		301,387
Board of Regents of the Texas A&M University System (Health Science Center); Series 2009 C, Financing System RB		3.00	%		05/15/11			400		402,169
Board of Regents of the Texas A&M University System; Series 2006, Permanent University Fund Bonds		4.50	%		07/01/11			550		557,695

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

8        Invesco Tax-Exempt Cash Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Texas–(continued)
Houston (City of);
Series 2004 B-6, Ref. VRD Combined Utility System First Lien RB (LOC–Bank of Nova Scotia)(a)(b)(c)		0.24	%		05/15/34	$	800	$	800,000
Series 2010 H-2, GO Commercial Paper Notes		0.30	%		03/09/11		500		500,000
Series 2010 H-2, GO Commercial Paper Notes		0.32	%		03/17/11		300		300,000
JPMorgan Chase PUTTERS/DRIVERS Trust (Frisco Independent School District); Series 2009-3373, VRD School Building Unlimited Tax GO Bonds (CEP–Texas Permanent School Fund)(a)(d)(f)		0.29	%		08/15/16		1,750		1,750,000
Pampa Independent School District; Series 2007, School Building Unlimited Tax GO Bonds (CEP–Texas Permanent School Fund)		4.00	%		08/15/11		100		101,577
San Antonio (City of); Series 2009, Ref. Water System RB		3.00	%		05/15/11		150		150,740
Tarrant (County of); Series 2004, Ref. & Improvement Limited Tax GO Bonds		4.00	%		07/15/11		250		253,426
Texas (State of);
Series 2010, TRAN		2.00	%		08/31/11		500		504,171
Series 2010 C, Water Financial Assistance Unlimited Tax GO Bonds		5.00	%		08/01/11		500		509,542
									6,500,596
Utah–0.85%
Utah (County of) (IHC Health Services, Inc.); Series 2002 B, VRD Hospital RB(a)		0.25	%		05/15/35		500		500,000
Vermont–2.13%
Vermont (State of) Economic Development Authority (Wake Robin Corp.); Series 2006 B, VRD Mortgage RB (LOC–Banco Santander S.A.)(a)(b)(c)		0.62	%		05/01/29		1,250		1,250,000
Washington–2.35%
King (County of);
Series 2010, Limited Tax GO BAN		2.00	%		06/15/11		715		718,339
Series 2011 A, Limited Tax GO BAN		2.75	%		03/01/12		300		307,062
Washington (State of) Housing Finance Commission (District Council No. 5 Apprenticeship & Training Trust Fund); Series 2006, VRD Non-Profit RB (LOC–Wells Fargo Bank, N.A.)(a)(b)		0.35	%		11/01/32		350		350,000
									1,375,401
Wisconsin–2.74%
Madison (City of) Community Development Authority (Hamilton Point Apartments); Series 1997 A, Ref. VRD MFH RB (LOC–JPMorgan Chase Bank, N.A.)(a)(b)(d)		0.41	%		10/01/22		705		705,000
Wisconsin (State of) Health & Educational Facilities Authority (Three Pillars Senior Living Communities); Series 2004 B, VRD RB (LOC–JPMorgan Chase Bank, N.A.)(a)(b)		0.35	%		08/15/34		900		900,000
									1,605,000
Wyoming–2.75%
Gillette (City of) (Pacificorp); Series 1988, Ref. VRD PCR (LOC–Barclays Bank PLC)(a)(b)(c)		0.26	%		01/01/18		1,615		1,615,000
TOTAL INVESTMENTS(g)(h)–100.51% (Cost $58,948,344)									58,948,344
OTHER ASSETS LESS LIABILITIES–(0.51)%									(297,015	)
NET ASSETS–100.00%								$	58,651,329

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

9        Invesco Tax-Exempt Cash Fund

Investment Abbreviations:

BAN	– Bond Anticipation Note
CEP	– Credit Enhancement Provider
COP	– Certificates of Participation
Ctfs.	– Certificates
DRIVERS	– Derivative Inverse Tax-Exempt Receipts
FHLMC	– Federal Home Loan Mortgage Corp.
FNMA	– Federal National Mortgage Association
GO	– General Obligation
IDR	– Industrial Development Revenue Bonds
LOC	– Letter of Credit
MFH	– Multi-Family Housing
PCR	– Pollution Control Revenue Bonds
PUTTERS	– Putable Tax-Exempt Receipts
RAN	– Revenue Anticipation Notes
RB	– Revenue Bonds
Ref.	– Refunding
TRAN	– Tax and Revenue Anticipation Notes
VRD	– Variable Rate Demand

Notes to Schedule of Investments:

(a)	Demand security payable upon demand by the Fund at specified time intervals no greater than thirteen months. Interest rate is redetermined periodically. Rate shown is the rate in effect on February 28, 2011.
(b)	Principal and interest payments are fully enhanced by a letter of credit from the bank listed or a predecessor bank, branch or subsidiary.
(c)	The security is credit guaranteed, enhanced or has credit risk by a foreign entity. The foreign credit exposure to countries other than the United States of America (as a percentage of net assets) is summarized as follows: other countries less than 5% each: 10.2%.
(d)	Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. 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 February 28, 2011 was $4,815,000, which represented 8.21% of the Fund’s Net Assets.
(e)	Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put.
(f)	Synthetic municipal instruments; involves the deposit into a trust of one or more long-term tax-exempt bonds or notes (“Underlying Bonds.”), a sale of certificates evidencing interests in the trust to investors such as the Fund. The trustee receives the long-term fixed interest payments on the Underlying Bonds, and pays certificate holders variable rate interest payments based upon a short-term reset periodically.
(g)	This table provides a listing of those entities that have either issued, guaranteed, backed or otherwise enhanced the credit quality of more than 5% of the securities held in the portfolio. In instances where the entity has guaranteed, backed or otherwise enhanced the credit quality of a security, it is not primarily responsible for the issuer’s obligations but may be called upon to satisfy the issuer’s obligations.

Entities	Percentage
Bank of America, N.A.		21.76	%
TD Bank, N.A.		6.82
JP Morgan Chase Bank, N.A.		6.40
Wells Fargo Bank, N.A.		5.84
FNMA		5.37
US Bank, N.A.		5.06

^(h) Also represents cost for federal income tax purposes.

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

10        Invesco Tax-Exempt Cash Fund

Statement of Assets and Liabilities

February 28, 2011

Assets:
Investments, at value (Cost $58,948,344)	$	58,948,344
Cash		26,550
Receivable for:
Investments sold		335,000
Fund shares sold		194,001
Interest		80,698
Investment for trustee deferred compensation and retirement plans		48,908
Other assets		11,731
Total assets		59,645,232
Liabilities:
Payable for:
Investments purchased		607,062
Fund shares reacquired		244,340
Accrued fees to affiliates		6,421
Accrued other operating expenses		82,771
Trustee deferred compensation and retirement plans		53,309
Total liabilities		993,903
Net assets applicable to shares outstanding	$	58,651,329
Net assets consist of:
Shares of beneficial interest	$	58,694,887
Undistributed net investment income		(20,328	)
Undistributed net realized gain (loss)		(23,230	)
	$	58,651,329
Net Assets:
Class A	$	36,424,666
Class Y	$	12,464,367
Investor Class	$	9,762,296
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Class A		36,455,383
Class Y		12,468,341
Investor Class		9,772,828
Net asset value, offering and redemption price per share for each class	$	1.00

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

11        Invesco Tax-Exempt Cash Fund

Statement of Operations

For the year ended February 28, 2011

Investment income:
Interest	$	185,860
Expenses:
Advisory fees		189,126
Administrative services fees		50,000
Custodian fees		2,730
Distribution fees		30,565
Transfer agent fees		47,906
Trustees’ and officers’ fees and benefits		17,558
Registration and filing fees		37,972
Professional services fees		27,058
Other		18,598
Total expenses		421,513
Less: Fees waived, expenses reimbursed and expense offset arrangement(s)		(263,553	)
Net expenses		157,960
Net investment income		27,900
Net realized gain (loss) from investment securities		(4,593	)
Net increase in net assets resulting from operations	$	23,307

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

12        Invesco Tax-Exempt Cash Fund

Statement of Changes in Net Assets

For the year ended February 28, 2011, the period April 1, 2009 through February 28, 2010 and

the year ended March 31, 2009

	Year ended			Eleven months ended			Year ended
	February 28,			February 28,			March 31,
	2011			2010			2009
Operations:
Net investment income	$	27,900		$	31,888		$	489,070
Net realized gain (loss)		(4,593	)		—			—
Net increase in net assets resulting from operations		23,307			31,888			489,070
Distributions to shareholders from net investment income:
Class A		(16,393	)		(14,543	)		(294,652	)
Class Y		(6,010	)		(9,514	)		(39,367	)
Investor Class		(5,497	)		(7,831	)		(155,051	)
Total distributions from net investment income		(27,900	)		(31,888	)		(489,070	)
Share transactions–net:
Class A		17,419,873			160,249			(12,952,536	)
Class Y		(4,316,832	)		5,615,810			11,169,363
Investor Class		(2,196,817	)		(680,782	)		(1,333,818	)
Net increase (decrease) in net assets resulting from share transactions		10,906,224			5,095,277			(3,116,991	)
Net increase (decrease) in net assets		10,901,631			5,095,277			(3,116,991	)
Net assets:
Beginning of year		47,749,698			42,654,421			45,771,412
End of year (includes undistributed net investment income of $(20,328), $(20,328) and $23,329, respectively)	$	58,651,329		$	47,749,698		$	42,654,421

Notes to Financial Statements

February 28, 2011

NOTE 1—Significant Accounting Policies

Invesco Tax-Exempt Cash Fund (the “Fund”) is a series portfolio of AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of eleven separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class.

  The Fund’s investment objective is to provide as high a level of tax-exempt income as is consistent with the preservation of capital and maintenance of liquidity.

  The Fund currently consists of three different classes of shares: Class A, Class Y and Investor Class. Investor Class shares of the Fund are offered only to certain grandfathered investors. Under certain circumstances, Class A shares are subject to contingent deferred sales charges (“CDSC”). Class A, Class Y and Investor Class shares are sold at net asset value.

  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.
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, adjusted for amortization of premiums and accretion of discounts on investments, is recorded on the accrual basis from settlement 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.

13        Invesco Tax-Exempt Cash 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 Statement of Changes in Net Assets, or the net investment income per share and 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 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 income are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable and tax-exempt 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.
	In addition, the Fund intends to invest in such municipal securities to allow it to qualify to pay shareholders “exempt-interest dividends”, as defined in the Internal Revenue Code.
	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 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.	Other Risks — The value of, payment of interest on, repayment of principal for and the ability to sell a municipal security may be affected by constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives and the economics of the regions in which the issuers are located.
	Since, many municipal securities are issued to finance similar projects, especially those relating to education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal securities market and a Fund’s investments in municipal securities.
	There is some risk that a portion or all of the interest received from certain tax-free municipal securities could become taxable as a result of determinations by the Internal Revenue Service.

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 Advisor at the annual rate of 0.35% 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 Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 35% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  Invesco and/or Invesco Distributors, Inc. (“IDI”) voluntarily agreed to waive all fees and/or reimburse all 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 to Trustees without further notice to investors.

  For the year ended February 28, 2011, the Adviser waived advisory fees of $189,126 and reimbursed Fund expenses of $43,711.

14        Invesco Tax-Exempt Cash Fund

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. These expenses along with the related expense reimbursement are included in the Statement of Operations. For the year ended February 28, 2011, Invesco Ltd. reimbursed expenses of the Fund in the amount of $62.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended February 28, 2011, expenses incurred under the agreement are shown in the Statement of Operations as administrative services fees.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended February 28, 2011, expenses incurred under the agreement are shown in the Statement of Operations as transfer agent fees.

  The Trust has entered into master distribution agreements with IDI to serve as the distributor for the Class A, Class Y and Investor Class shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A and Investor Class shares (collectively the “Plans”). The Fund, pursuant to the Plans, pays IDI compensation up to a maximum annual rate of 0.10% of the Fund’s average daily net assets of Class A shares. Of the Rule 12b-1 payments, up to 0.25% of the average daily net assets of Class A shares may be paid to furnish continuing personal shareholder services to customers who purchase and own the shares of such classes. Any amounts not paid as a service fee under the Plans would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) also impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. Pursuant to the Plans, for the year ended February 28, 2011, the Class A shares paid $0 after IDI waived Plan fees of $30,565.

  Certain officers and trustees of the Trust are officers and directors of Invesco, 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 February 28, 2011. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the year ended February 28, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Municipal Obligations	$	—	$	58,948,344	$	—	$	58,948,344

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 year ended February 28, 2011, the Fund engaged in securities purchases of $44,903,864 and securities sales of $45,426,916, which resulted in net realized gains of $0.

NOTE 5—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the year ended February 28, 2011, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $89.

15        Invesco Tax-Exempt Cash 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 are eligible to participate in a retirement plan that provides 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.

  During the year ended February 28, 2011, the Fund paid legal fees of $2,637 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 7—Cash Balances

The Fund is permitted temporarily to overdraft or leave balances in its account with its custodian bank, The Bank of New York Mellon. The parties compensate one another for any overdraft or remaining balance in the account by either earning the interest that accrues on the overdrawn or balance amount in the account or by paying the other party a contractually agreed upon fee.

NOTE 8—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Year Ended February 28, 2011, the Period April 1, 2009 to February 28, 2010 and the Year Ended March 31, 2009:

	2011		2010		2009
Ordinary income — tax exempt	$	27,900	$	31,888	$	489,070

Tax Components of Net Assets at Period-End:

	2011
Undistributed ordinary income — tax exempt	$	26,442
Temporary book/tax differences		(46,770	)
Capital loss carryforward		(23,230	)
Shares of beneficial interest		58,694,887
Total net assets	$	58,651,329

  The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits and capital loss carryforward.

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

  The Trust has a capital loss carryforward as of February 28, 2011 which expires as follows:

	Capital Loss
Expiration	Carryforward*
February 28, 2012	$	4,652
February 28, 2013		101
February 28, 2017		10,203
February 28, 2018		3,681
February 28, 2019		4,593
Total capital loss carryforward	$	23,230

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

NOTE 9—Reclassification of Permanent Differences

Primarily as a result of tax deferrals acquired in the reorganization of Van Kampen Tax Free Money Fund, on February 28, 2011, undistributed net realized gain (loss) was decreased by $18,637 and shares of beneficial interest increased by $18,637. This reclassification had no effect on the net assets of the Trust.

16        Invesco Tax-Exempt Cash Fund

NOTE 10—Share Information

	Summary of Share Activity
	Year ended						Eleven months ended						Year ended
	February 28, 2011(a)						February 28, 2010						March 31, 2009
	Shares			Amount			Shares			Amount			Shares			Amount
Sold:
Class A		49,260,858		$	49,260,858			35,068,354		$	35,068,354			49,518,290		$	49,518,290
Class Y(b)		40,843,360			40,843,360			23,693,810			23,693,810			23,067,011			23,067,011
Investor Class		2,261,635			2,261,635			4,488,403			4,488,403			9,681,443			9,681,443
Issued as reinvestment of dividends:
Class A		14,409			14,409			14,167			14,167			268,124			268,124
Class Y		5,999			5,999			9,500			9,500			39,292			39,292
Investor Class		5,405			5,405			7,560			7,560			148,375			148,375
Issued in connection with acquisitions:(c)
Class A		18,893,024			18,870,018			—			—			—			—
Reacquired:
Class A(b)		(50,725,412	)		(50,725,412	)		(34,922,272	)		(34,922,272	)		(62,738,950	)		(62,738,950	)
Class Y		(45,166,191	)		(45,166,191	)		(18,087,500	)		(18,087,500	)		(11,936,940	)		(11,936,940	)
Investor Class(b)		(4,463,857	)		(4,463,857	)		(5,176,745	)		(5,176,745	)		(11,163,636	)		(11,163,636	)
Net increase (decrease) in share activity		10,929,230		$	10,906,224			5,095,277		$	5,095,277			(3,116,991	)	$	(3,116,991	)

(a)

There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 24% 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 Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.

(b)

Effective upon the commencement date of Class Y shares, October 3, 2008, the following shares were converted from Class A and Investor Class shares into Class Y shares of the Fund:

Class	Shares			Amount
Class Y		14,424,445		$	14,424,445
Class A		(14,273,504	)		(14,273,504	)
Investor Class		(150,941	)		(150,941	)

^(c) As of the open of business on June 1, 2010, the Fund acquired all the net assets of Van Kampen Tax Free Money Fund pursuant to a plan of reorganization approved by the Trustees of the Fund on December 8, 2009 and by the shareholders of Van Kampen Tax Free Money Fund on May 11, 2010. The acquisition as accomplished by a tax-free exchange of 18,893,024 shares of the Fund for 18,893,024 shares outstanding of Van Kampen Tax Free Money Fund as of the close of business on May 28, 2010. The single class of Van Kampen Tax Free Money Fund was exchanged for a like class of shares of the Fund based on the relative net asset value of Van Kampen Tax Free Money Fund to the net asset value of the Fund on the close of business, May 28, 2010. Van Kampen Tax Free Money Fund’s net assets at that date of $18,870,018 were combined with those of the Fund. The net assets of the Fund immediately before the acquisition were $44,076,341.

17        Invesco Tax-Exempt Cash Fund

NOTE 11—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

																Ratio of			Ratio of
																expenses			expenses
																to average			to average net			Ratio of net
	Net asset					Dividends										net assets			assets without			investment
	value,		Net			from net			Net asset					Net assets,		with fee waivers			fee waivers			income to
	beginning		investment			investment			value, end		Total			end of period		and/or expenses			and/or expenses			average
	of period		income			income			of period		return(a)			(000s omitted)		absorbed			absorbed			net assets
Class A
Year ended 02/28/11	$	1.00	$	0.00	(c)	$	(0.00	)	$	1.00		0.05	%	$	36,425		0.29	%(b)		0.82	%(b)		0.05	%(b)
Eleven months ended 02/28/10		1.00		0.00	(c)		(0.00	)		1.00		0.07			19,008		0.36	(d)		1.07	(d)		0.08	(d)
Year ended 03/31/09		1.00		0.01	(c)		(0.01	)		1.00		1.06			18,838		0.98			1.18			1.05
Year ended 03/31/08		1.00		0.03			(0.03	)		1.00		2.62			31,812		0.92			1.07			2.58
Year ended 03/31/07		1.00		0.03			(0.03	)		1.00		2.66			38,106		1.03			1.19			2.62
Year ended 03/31/06		1.00		0.02			(0.02	)		1.00		1.88			37,828		0.94			1.09			1.84
Class Y
Year ended 02/28/11		1.00		0.00	(c)		(0.00	)		1.00		0.05			12,464		0.29	(b)		0.72	(b)		0.05	(b)
Eleven months ended 02/28/10		1.00		0.00	(c)		(0.00	)		1.00		0.07			16,782		0.36	(d)		0.93	(d)		0.08	(d)
Year ended 03/31/09(e)		1.00		0.00	(c)		(0.00	)		1.00		0.27			11,169		0.94	(d)		1.01	(d)		1.09	(d)
Investor Class
Year ended 02/28/11		1.00		0.00	(c)		(0.00	)		1.00		0.05			9,762		0.29	(b)		0.72	(b)		0.05	(b)
Eleven months ended 02/28/10		1.00		0.00	(c)		(0.00	)		1.00		0.07			11,960		0.36	(d)		0.93	(d)		0.08	(d)
Year ended 03/31/09		1.00		0.01	(c)		(0.01	)		1.00		1.14			12,647		0.90			0.93			1.13
Year ended 03/31/08		1.00		0.03			(0.03	)		1.00		2.72			13,959		0.82			0.82			2.68
Year ended 03/31/07		1.00		0.03			(0.03	)		1.00		2.76			13,203		0.93			0.94			2.72
Year ended 03/31/06		1.00		0.02			(0.02	)		1.00		1.98			14,405		0.84			0.84			1.94

(a)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
(b)	Ratios are based on average daily net assets (000’s) of $30,565, $12,590 and $10,881 for Class A, Class Y and Investor Class shares, respectively.
(c)	Calculated using average shares outstanding.
(d)	Annualized.
(e)	Commencement date of October 3, 2008.

18        Invesco Tax-Exempt Cash Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds)
and Shareholders of Invesco Tax-Exempt Cash Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Tax-Exempt Cash Fund (formerly known as AIM Tax-Exempt Cash Fund; one of the funds constituting AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds), hereafter referred to as the “Fund”) at February 28, 2011, the results of its operations for the year then ended, the changes in its net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at February 28, 2011 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PRICEWATERHOUSECOOPERS LLP

April 21, 2011

Houston, Texas

19        Invesco Tax-Exempt Cash Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2010 through February 28, 2011.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

  Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions, and redemption fees, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(09/01/10)		(02/28/11)1		Period2		(02/28/11)		Period2		Ratio
A	$	1,000.00	$	1,000.30	$	1.49	$	1,023.31	$	1.51		0.30	%
Y		1,000.00		1,000.30		1.49		1,023.31		1.51		0.30
Investor		1,000.00		1,000.30		1.49		1,023.31		1.51		0.30

1	The actual ending account value is based on the actual total return of the Fund for the period September 1, 2010 through February 28, 2011, 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.

20        Invesco Tax-Exempt Cash Fund

Tax Information

Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.

  The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.

  The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended February 28, 2011:

Federal and State Income Tax
Tax-Exempt Interest Dividends*	100%

*  The above percentage is based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.

21        Invesco Tax-Exempt Cash Fund

Trustees and Officers

The address of each trustee and officer is AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds) (the “Trust”), 11 Greenway Plaza, Suite 2500, Houston, Texas 77046-1173. The trustees serve for the life of the Trust, subject to their earlier death, incapacitation, resignation, retirement or removal as more specifically provided in the Trust’s organizational documents. Each officer serves for a one year term or until their successors are elected and qualified. Column two below includes length of time served with predecessor entities, if any.

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Interested Persons
Martin L. Flanagan1 — 1960 Trustee	2007	Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Trustee, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business Formerly: Chairman, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, IVZ Inc. (holding company), INVESCO Group Services, Inc. (service provider) and Invesco North American Holdings, Inc. (holding company); Director, Chief Executive Officer and President, Invesco Holding Company Limited (parent of Invesco and a global investment management firm); Director, Invesco Ltd.; Chairman, Investment Company Institute and President, Co-Chief Executive Officer, Co-President, Chief Operating Officer and Chief Financial Officer, Franklin Resources, Inc. (global investment management organization)	208	None
Philip A. Taylor2 — 1954 Trustee, President and Principal Executive Officer	2006	Head of North American Retail and Senior Managing Director, Invesco Ltd.; Director, Co-Chairman, Co-President and Co-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly Invesco Aim Management Group, Inc.) (financial services holding company); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent) and AIM GP Canada Inc. (general partner for limited partnerships); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) (registered transfer agent) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company) and Invesco Canada Holdings Inc. (holding company); Chief Executive Officer, Invesco Trimark Corporate Class Inc. (corporate mutual fund company) and Invesco Trimark Canada Fund Inc. (corporate mutual fund company); Director and Chief Executive Officer, Invesco Trimark Ltd./Invesco Trimark Ltèe (registered investment adviser and registered transfer agent) and Invesco Trimark Dealer Inc. (registered broker dealer); Trustee, President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); Trustee and Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only); and Director, Van Kampen Asset Management; Director, Chief Executive Officer and President, Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Director and Chairman, Van Kampen Investor Services Inc. and Director and President, Van Kampen Advisors, Inc. Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.) (registered broker dealer); Manager, Invesco PowerShares Capital Management LLC; Director, Chief Executive Officer and President, Invesco Advisers, Inc.; Director, Chairman, Chief Executive Officer and President, Invesco Aim Capital Management, Inc.; President, Invesco Trimark Dealer Inc. and Invesco Trimark Ltd./Invesco Trimark Ltèe; Director and President, AIM Trimark Corporate Class Inc. and AIM Trimark Canada Fund Inc.; Senior Managing Director, Invesco Holding Company Limited; Trustee and Executive Vice President, Tax-Free Investments Trust; Director and Chairman, Fund Management Company (former registered broker dealer); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc.	208	None
Wayne M. Whalen3 — 1939 Trustee	2010	Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex	226	Director of the Abraham Lincoln Presidential Library Foundation
Independent Trustees
Bruce L. Crockett — 1944 Trustee and Chair	1993	Chairman, Crockett Technology Associates (technology consulting company) Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer COMSAT Corporation; and Chairman, Board of Governors of INTELSAT (international communications company)	208	ACE Limited (insurance company); and Investment Company Institute
David C. Arch — 1945 Trustee	2010	Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.	226	Member of the Heartland Alliance Advisory Board, a nonprofit organization serving human needs based in Chicago. Board member of the Illinois Manufacturers’ Association. Member of the Board of Visitors, Institute for the Humanities, University of Michigan

1	Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.
2	Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.
3	Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Independent Trustees
Bob R. Baker — 1936 Trustee	2003	Retired Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation	208	None
Frank S. Bayley — 1939 Trustee	2001	Retired Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie	208	None
James T. Bunch — 1942 Trustee	2003	Founder, Green, Manning & Bunch Ltd. (investment banking firm) Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation	208	Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society
Rodney Dammeyer — 1940 Trustee	2010	President of CAC, LLC, a private company offering capital investment and management advisory services. Formerly: Prior to January 2004, Director of TeleTech Holdings Inc.; Prior to 2002, Director of Arris Group, Inc.; Prior to 2001, Managing Partner at Equity Group Corporate Investments. Prior to 1995, Vice Chairman of Anixter International. Prior to 1985, experience includes Senior Vice President and Chief Financial Officer of Household International, Inc, Executive Vice President and Chief Financial Officer of Northwest Industries, Inc. and Partner of Arthur Andersen & Co.	226	Director of Quidel Corporation and Stericycle, Inc. Prior to May 2008, Trustee of The Scripps Research Institute. Prior to February 2008, Director of Ventana Medical Systems, Inc. Prior to April 2007, Director of GATX Corporation. Prior to April 2004, Director of TheraSense, Inc.
Albert R. Dowden — 1941 Trustee	2000	Director of a number of public and private business corporations, including the Boss Group, Ltd. (private investment and management); Reich & Tang Funds (5 portfolios) (registered investment company); and Homeowners of America Holding Corporation/ Homeowners of America Insurance Company (property casualty company) Formerly: Director, Continental Energy Services, LLC (oil and gas pipeline service); Director, CompuDyne Corporation (provider of product and services to the public security market) and Director, Annuity and Life Re (Holdings), Ltd. (reinsurance company); Director, President and Chief Executive Officer, Volvo Group North America, Inc.; Senior Vice President, AB Volvo; Director of various public and private corporations; Chairman, DHJ Media, Inc.; Director Magellan Insurance Company; and Director, The Hertz Corporation, Genmar Corporation (boat manufacturer), National Media Corporation; Advisory Board of Rotary Power International (designer, manufacturer, and seller of rotary power engines); and Chairman, Cortland Trust, Inc. (registered investment company)	208	Board of Nature’s Sunshine Products, Inc.
Jack M. Fields — 1952 Trustee	1997	Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Owner and Chief Executive Officer, Dos Angelos Ranch, L.P. (cattle, hunting, corporate entertainment), Discovery Global Education Fund (non-profit) and Cross Timbers Quail Research Ranch (non-profit) Formerly: Chief Executive Officer, Texana Timber LP (sustainable forestry company) and member of the U.S. House of Representatives	208	Administaff
Carl Frischling — 1937 Trustee	1993	Partner, law firm of Kramer Levin Naftalis and Frankel LLP	208	Director, Reich & Tang Funds (16 portfolios)
Prema Mathai-Davis — 1950 Trustee	1998	Retired Formerly: Chief Executive Officer, YWCA of the U.S.A.	208	None
Larry Soll — 1942 Trustee	2003	Retired Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)	208	None
Hugo F. Sonnenschein — 1940 Trustee	2010	President Emeritus and Honorary Trustee of the University of Chicago and the Adam Smith Distinguished Service Professor in the Department of Economics at the University of Chicago. Prior to July 2000, President of the University of Chicago.	226	Trustee of the University of Rochester and a member of its investment committee. Member of the National Academy of Sciences, the American Philosophical Society and a fellow of the American Academy of Arts and Sciences
Raymond Stickel, Jr. — 1944 Trustee	2005	Retired Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche	208	None

T-2

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Other Officers
Russell C. Burk — 1958 Senior Vice President and Senior Officer	2005	Senior Vice President and Senior Officer of Invesco Funds	N/A	N/A
John M. Zerr — 1962 Senior Vice President, Chief Legal Officer and Secretary	2006	Director, Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp., Senior Vice President, Invesco Advisers, Inc. formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Secretary, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Manager, Invesco PowerShares Capital Management LLC; Director, Secretary and General Counsel, Van Kampen Asset Management; Director and Secretary, Van Kampen Advisors Inc.; Secretary and General Counsel, Van Kampen Funds Inc.; and Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; and Chief Legal Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco Advisers, Inc.; Director, Vice President and Secretary, Fund Management Company; Director, Senior Vice President, Secretary, General Counsel and Vice President, Invesco Aim Capital Management, Inc.; Chief Operating Officer and General Counsel, Liberty Ridge Capital, Inc. (an investment adviser); Vice President and Secretary, PBHG Funds (an investment company) and PBHG Insurance Series Fund (an investment company); Chief Operating Officer, General Counsel and Secretary, Old Mutual Investment Partners (a broker-dealer); General Counsel and Secretary, Old Mutual Fund Services (an administrator) and Old Mutual Shareholder Services (a shareholder servicing center); Executive Vice President, General Counsel and Secretary, Old Mutual Capital, Inc. (an investment adviser); and Vice President and Secretary, Old Mutual Advisors Funds (an investment company)	N/A	N/A
Lisa O. Brinkley — 1959 Vice President	2004	Global Compliance Director, Invesco Ltd.; Chief Compliance Officer, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc.(formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc.; and Vice President, The Invesco Funds Formerly: Senior Vice President, Invesco Management Group, Inc.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and The Invesco Funds; Vice President and Chief Compliance Officer, Invesco Aim Capital Management, Inc. and Invesco Distributors, Inc.; Vice President, Invesco Investment Services, Inc. and Fund Management Company	N/A	N/A
Sheri Morris — 1964 Vice President, Treasurer and Principal Financial Officer	1999	Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; and Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) Formerly: Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.	N/A	N/A
Karen Dunn Kelley — 1960 Vice President	1993	Head of Invesco’s World Wide Fixed Income and Cash Management Group; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) and Van Kampen Investments Inc.; Executive Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.); and Director, Invesco Mortgage Capital Inc.; Vice President, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only). Formerly: Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Director of Cash Management and Senior Vice President, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; President and Principal Executive Officer, Tax-Free Investments Trust; Director and President, Fund Management Company; Chief Cash Management Officer, Director of Cash Management, Senior Vice President, and Managing Director, Invesco Aim Capital Management, Inc.; Director of Cash Management, Senior Vice President, and Vice President, Invesco Advisers, Inc. and The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only)	N/A	N/A
Lance A. Rejsek — 1967 Anti-Money Laundering Compliance Officer	2005	Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.), The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange- Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, Van Kampen Asset Management, Van Kampen Investor Services Inc., and Van Kampen Funds Inc. Formerly: Anti-Money Laundering Compliance Officer, Fund Management Company, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.	N/A	N/A

T-3

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Other Officers
Todd L. Spillane — 1958 Chief Compliance Officer	2006	Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser) (formerly known as Invesco Institutional (N.A.), Inc.); Chief Compliance Officer, The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange- Traded Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, INVESCO Private Capital Investments, Inc. (holding company), and Invesco Private Capital, Inc. (registered investment adviser); Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc. Formerly: Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. and Invesco Senior Secured Management, Inc. (registered investment adviser); Vice President, Invesco Aim Capital Management, Inc. and Fund Management Company	N/A	N/A

The Statement of Additional Information of the Trust includes additional information about the Fund’s Trustees and is available upon request, without charge, by calling 1.800.959.4246. Please refer to the Fund’s prospectus for information on the Fund’s sub-advisers.

Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza,	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Suite 2500	1555 Peachtree Street, N.E.	11 Greenway Plaza,	1201 Louisiana Street,
Houston, TX 77046-1173	Atlanta, GA 30309	Suite 2500	Suite 2900
		Houston, TX 77046-1173	Houston, TX 77002-5678
Counsel to the Fund	Counsel to the Independent Trustees	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Kramer, Levin, Naftalis & Frankel LLP	Invesco Investment Services, Inc.	Bank of New York Mellon
2600 One Commerce Square	1177 Avenue of the Americas	11 Greenway Plaza, Suite 2500	2 Hanson Place
Philadelphia, PA 19103	New York, NY 10036-2714	Houston, TX 77046-1173	Brooklyn, NY 11217-1431

T-4

Invesco mailing information

Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.

Invesco privacy policy

You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.

     Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.

     Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.

Important notice regarding delivery of security holder documents

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.

Fund holdings and proxy voting information

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invesco.com/moneymarketfunds. Shareholders can also look up the Fund’s Forms N-Q on the SEC website at sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07890 and 033-66242.

     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 12 months ended June 30, 2010, is available at our website, 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 U.S. 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.

TEC-AR-1 Invesco Distributors, Inc.

Annual Report to Shareholders February 28, 2011

Invesco Tax-Free Intermediate Fund
Nasdaq:
A: ATFAX n A2: AITFX n Y: ATFYX n Institutional: ATFIX

2	Letters to Shareholders
4	Performance Summary
4	Management Discussion
6	Long-Term Fund Performance
8	Supplemental Information
9	Schedule of Investments
33	Financial Statements
35	Notes to Financial Statements
41	Financial Highlights
42	Auditor’s Report
43	Fund Expenses
44	Tax Information
T-1	Trustees and Officers

Letters to Shareholders

Philip Taylor

Dear Shareholders:

Enclosed is important information about your Fund and its performance.

     I’ve always believed that companies have an obligation to communicate regularly with their clients, and I believe that obligation is especially critical in the investment industry.

     Our website – invesco.com/us – offers timely market updates and commentary from many of our portfolio managers and other investment professionals, as well as quarterly messages from me. At invesco.com/us, you also can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer.

Invesco’s commitment to investment excellence

Invesco’s acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, broadened our range of investment products available to you. As a strong organization with a single focus – investment management – Invesco today offers investment capabilities and products to meet the needs of virtually any investor. In addition to traditional mutual funds, we manage a broad range of other solutions, including single-country, regional and global investments spanning major equity, fixed income and alternative asset classes.

     Investment excellence is our goal across our product line. Let me explain what that means. All of our funds are managed by specialized teams of investment professionals. Each team has a discrete investment perspective and philosophy, and all follow disciplined, repeatable processes governed by strong risk oversight. Our investment-centric culture provides an environment that seeks to reduce distractions, allowing our fund managers to concentrate on what they do best – manage your money.

     The importance of a broad product line and investment management expertise is obvious given the markets we’ve experienced over the last two to three years. We’ve seen that investment strategies can outperform or underperform their benchmark indexes for a variety of reasons, including where we are in the market cycle, and whether prevailing economic conditions are favorable or unfavorable for that strategy. That’s why no investment strategy can guarantee top-tier performance at all times. What investors can expect, and what Invesco offers, are funds that are managed according to their stated investment objectives and strategies, with robust risk oversight using consistent, repeatable investment processes that don’t change as short-term external conditions change – investments managed for the long term. This disciplined approach can’t guarantee a profit; no investment can do that, since all involve some measure of risk. But it can ensure that your money is managed the way we said it would be.

     This adherence to stated investment objectives and strategies allows your financial advisor to build a diversified portfolio that meets your individual risk tolerance and financial goals. It also means that when your goals change, your financial advisor will be able to find an appropriate investment option to meet your needs.

Invesco’s commitment to you

Invesco’s commitment to you remains stronger than ever. It’s one of the reasons we’ve grown to become one of the world’s largest asset managers.

     If you have questions about your account, please contact one of our client service representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, I invite you to email me directly at phil@invesco.com.

     I want to thank you for placing your trust in us. All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.

Sincerely,

Philip Taylor
Senior Managing Director, Invesco Ltd.

2 Invesco Tax-Free Intermediate Fund

Bruce Crockett

Dear Fellow Shareholders:

With 2010 behind us, now is a good time to review our portfolios and ensure that we are adhering to a long-term, diversified investment strategy, which I’ve mentioned in previous letters. The year was notable for a number of reasons, but I’m sure most of us are grateful for a return to more stable markets and growing signs that the worst of the economic crisis is behind us.

     Your Board continued to oversee the Invesco Funds with a strong sense of responsibility for your savings and a deep appreciation for your continued trust. As always, we worked throughout 2010 to manage costs and ensure Invesco continued to place investor interests first.

     I’m pleased to report that the latest report from Morningstar affirmed the work we’ve done and included a number of positive comments regarding your Board’s oversight of the Invesco Funds. As background, Morningstar is a leading independent provider of investment research in North America, Europe, Australia and Asia. Morningstar stated, “A fund board’s duty is to represent the interests of fund shareholders, ensuring that the funds that it oversees charge reasonable fees and are run by capable advisors with a sound investment process.”

     Morningstar maintained your Fund Board’s “A” grade for Board Quality, praising the Board for taking “meaningful steps in recent years to act in fund shareholders’ interests.”¹ These steps included becoming much more proactive and vocal in overseeing how Invesco votes the funds’ shareholders’ proxies and requiring each fund trustee to invest more than one year’s board compensation in Invesco funds, further aligning our interests with those of our shareholders. Morningstar also cited the work I’ve done to make myself more available to fund shareholders via email.

     I am also pleased that Morningstar recognized the effort and the Fund Board’s efforts over the past several years to work together with management at Invesco to enhance performance and sharpen the focus on investors.

     Let me close by wishing you a happy and prosperous new year. As always, you’re welcome to contact me at bruce@brucecrockett.com with any questions or concerns you have. We look forward to representing you and serving you in the new year.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

1 Among the criteria Morningstar considers when evaluating a fund board are the degree to which the board is independent of the fund company; board members’ financial interests are aligned with those of fund shareholders; the board acts in fund shareholders’ interests; and the board works constructively with company management and investment personnel. Morningstar first awarded an “A” rating to the Invesco Funds board on September 13, 2007; that rating has been maintained in subsequent reports, the most recent of which was released December 17, 2010. Ratings are subject to change, usually every 12 to 24 months. Morningstar ratings range from “A” to “F.”

3 Invesco Tax-Free Intermediate Fund

Management’s Discussion of Fund Performance

Performance summary

For the fiscal year ended February 28, 2011, Class A2 shares of Invesco Tax-Free Intermediate Fund, at net asset value (NAV), outperformed the Fund’s broad-market index, the Barclays Capital Municipal Bond Index but slightly underperformed the Fund’s style-specific benchmark, the BofA Merrill Lynch 3-7 Year Municipal Index. Security selection within hospital bonds and special tax bonds contributed to Fund performance, while state general obligation bonds detracted from returns.

     Your Fund’s long-term performance appears later in this report.

Fund vs. Indexes

Total returns, 2/28/10 to 2/28/11, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

Class A Shares	2.10	%
Class A2 Shares	2.26
Class Y Shares	2.26
Institutional Class Shares	2.36
Barclays Capital Municipal Bond Index▼ (Broad Market Index)	1.72
BofA Merrill Lynch 3-7 Year Municipal Index▼ (Style-Specific Index)	2.30
Lipper Intermediate Municipal Debt Funds Index▼ (Peer Group Index)	1.76

^▼ Lipper Inc.

How we invest

We believe that an actively managed portfolio of municipal bonds can provide a steady stream of tax-exempt income while seeking to protect principal. Through active management, we strive to avoid capital gains and ordinary income, which are taxable to shareholders, while providing competitive tax-exempt income in all market environments.

     We invest primarily in municipal bonds, which include revenue and general obligation bonds. The Fund is permitted to purchase bonds of different maturities to better capitalize on interest rate movements and to manage the Fund’s duration for preservation of capital purposes. The Fund is able to invest up to 20% of assets in below-investment grade bonds. Finally, the Fund does not invest in bonds that pay interest subject to the alternative minimum tax (AMT).

     We generally invest in revenue bonds, which are municipal bonds issued to

finance specific public works projects, such as bridges or sewer systems. Proceeds generated by those projects are used to pay interest and principal on the bonds.

     We typically purchase and hold municipal bonds to maturity to avoid selling-related capital gains. However, there are times when we will sell securities based on the following factors:

n	A downgrade in credit quality
n	A decision to shorten or lengthen the Fund’s duration
n	A decision to limit or reduce the Fund’s exposure to a particular sector or issuer

Market conditions and your Fund

In the U.S. and most of the developed world, a gradual and somewhat lackluster recovery continued, with central banks keeping interest rates at low levels and with few of them withdrawing their quantitative easing measures. This helped private sector companies improve

their balance sheets and earnings following the global financial crisis that began to dissipate in early 2009. However, investor skepticism of global governments’ abilities to retire huge amounts of debt without affecting economic growth rates caused sovereign debt distress (especially for eurozone countries) and became a focal point of investor concern.

     In the U.S., economic recovery was present, although the pace was modest as stubbornly high unemployment and export weakness continued to weigh on the economy. Real gross domestic product (GDP), the broadest measure of overall U.S. economic activity, increased at an annual rate of 3.1% in the fourth quarter of 2010, a marked improvement from the 2.6% decrease in 2009.¹ The U.S. Federal Reserve (the Fed) maintained a very accommodative monetary policy throughout the period, with the federal funds target rate unchanged in its range of zero to 0.25%.² The Fed recently described its view of the U.S. economy by stating: “The Committee will maintain the target range for the federal funds rate at 0 to ¹/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period.”²

     During the 12-month period covered by this report, municipal bond mutual funds saw inflows early in the period and experienced extensive net outflows beginning in November and continuing through the end of the reporting period. During the last two months of 2010, market volatility was heightened across the municipal asset class as U.S. Treasury yields increased and the market was flooded with new issuance in anticipation of the Build America Bond (BAB) pro-

Portfolio Composition

By credit sector

Revenue Bonds	78.2	%
General Obligation Bonds	20.5
Pre-Refunded Bonds	0.6
Other	0.1
Cash	0.6

Total Net Assets	$1.3 billion
Total Number of Holdings		763

Top Five Fixed Income Holdings

							% of
		Coupon			Maturity		Net Assets
1.	E-470 Public Highway Authority		5.00	%		9/2/13		1.2	%
2.	Louisville & Jefferson (Counties of)		5.00			5/15/20		0.9
	Metropolitan Sewer District
3.	Ohio (State of) Air Quality Development Authority		5.70			8/1/20		0.7
4.	Cook (County of)		5.00			11/15/20		0.6
5.	Harris County Industrial Development Corp.		4.70			5/1/18		0.6

The Fund’s holdings are subject to change, and there is no assurance that the Fund will continue to hold any particular security.

4 Invesco Tax-Free Intermediate Fund

gram ending. These factors contributed to rising investor concerns regarding the health of municipal finances, leading to redemptions and lower municipal bond prices.

     The Fund’s exposure to the 20-year portion of the yield curve slightly detracted from returns during the reporting period.

     Quality spreads tightened during the early part of the reporting period, followed by widening in November, December and January due to increased volatility and higher tax-exempt issuance, before tightening again in February. Credit quality positioning enhanced Fund returns for the reporting period.

     Our allocation to revenue bonds greatly contributed to returns for the reporting period. Main contributors included our security selection in hospital bonds and special tax bonds.

     Our underweight exposure to state general obligation bonds was a main detractor from Fund performance for the reporting period. In addition, security selection within AAA, A, and BBB-rated bonds contributed to relative returns.

     Thank you for investing in Invesco Tax-Free Intermediate Fund and for sharing our long-term investment horizon.

1 Bureau of Economic Analysis
2 U.S. Federal Reserve

The views and opinions expressed in management’s discussion of Fund performance are those of Invesco Advisers, Inc. These views and opinions are subject to change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or recommendations, or as an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but Invesco Advisers, Inc. makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

See important Fund and, if applicable, index disclosures later in this report.

Richard Berry
Chartered Financial Analyst, portfolio manager, is manager of Invesco Tax-Free Intermediate Fund. Mr. Berry joined Invesco in 1987 and has been in the investment industry since 1968. He has served as president and director of the Dallas Association of Investment Analysts, chairman of the board of regents of the Financial Analysis Seminar and a trustee of the Lancaster Independent School District. He earned a B.B.A. and M.B.A. from Texas Christian University.

Stephen Turman
Chartered Financial Analyst, portfolio manager, is manager of Invesco Tax-Free Intermediate Fund. Mr. Turman began his career in the investment business in 1983 and joined Invesco in 1985. Prior to joining Invesco, he worked in institutional sales. Mr. Turman earned a B.B.A. in finance from The University of Texas at Arlington.

5 Invesco Tax-Free Intermediate Fund

Your Fund’s Long-Term Performance

Results of a $10,000 Investment – Oldest Share Class since Inception

Index data from 4/30/87, Fund data from 5/11/87

Past performance cannot guarantee comparable future results.

     The data shown in the chart include reinvested distributions, applicable sales charges and Fund expenses including management fees. Index results include reinvested dividends, but they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses and management fees; performance of a market index does not.

Performance shown in the chart above and before tax table(s) does not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.

     This chart, which is a logarithmic chart, presents the fluctuations in the value of the Fund and its indexes. We believe that a logarithmic chart is more effective than other types of charts in illustrating changes in value during the early years

shown in the chart. The vertical axis, the one that indicates the dollar value of an investment, is constructed with each segment representing a percent change in the value of the investment. In this chart, each segment represents a doubling, or 100% change, in the value of the investment. In other words, the space between $5,000 and $10,000 is the same size as the space between $10,000 and $20,000, and so on.

6 Invesco Tax-Free Intermediate Fund

Average Annual Total Returns

As of 2/28/11, including maximum applicable sales charges

									After Taxes
						After Taxes			on Distributions
			Before			on			and Sale of
			Taxes			Distributions			Fund Shares
Class A Shares
	10	Years		3.61	%		3.59	%		3.63	%
	5	Years		3.71			3.67			3.69
	1	Year		-0.48			-0.48			0.63
Class A2 Share
Inception (5/11/87)				5.26	%		5.25	%		5.22	%
	10	Years		4.10			4.07			4.09
	5	Years		4.29			4.24			4.22
	1	Year		1.27			1.27			1.87
Class Y Shares
	10	Years		4.19	%		4.17	%		4.17	%
	5	Years		4.47			4.43			4.39
	1	Year		2.26			2.26			2.52
Institutional Class Shares
	10	Years		4.18	%		4.13	%		4.13	%
	5	Years		4.46			4.42			4.38
	1	Year		2.36			2.36			2.59

Average Annual Total Returns

As of 12/31/10, most recent calendar quarter-end, including maximum applicable sales charges

									After Taxes
						After Taxes			on Distributions
			Before			on			and Sale of
			Taxes			Distributions			Fund Shares
Class A Shares
	10	Years		3.70	%		3.68	%		3.71	%
	5	Years		3.61			3.57			3.61
	1	Year		0.33			0.33			1.18
Class A2 Shares
Inception (5/11/87)				5.27	%		5.25	%		5.22	%
	10	Years		4.18			4.15			4.16
	5	Years		4.20			4.16			4.16
	1	Year		2.11			2.11			2.44
Class Y Shares
	10	Years		4.27	%		4.24	%		4.24	%
	5	Years		4.39			4.34			4.32
	1	Year		3.13			3.13			3.11
Institutional Class Shares
	10	Years		4.27	%		4.21	%		4.21	%
	5	Years		4.38			4.34			4.31
	1	Year		3.14			3.14			3.13

Class A shares incepted on October 31, 2002. Performance shown prior to that date is that of Class A2 shares, restated to reflect the higher 12b-1 fees applicable to Class A shares. Class A2 share performance reflects any applicable fee waivers or expense reimbursements.

     Class Y shares incepted on October 3, 2008. Performance shown prior to that date is that of Class A2 shares and includes the 12b-1 fees applicable to Class A2 shares. Class A2 share performance reflects any applicable fee waivers or expense reimbursements.

     Institutional Class shares incepted on July 30, 2004. Performance shown prior to that date is that of Class A2 shares and includes the 12b-1 fees applicable to Class A2 shares. Class A2 share performance reflects any applicable fee waivers or expense reimbursements.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum

applicable sales charge unless otherwise stated. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

     The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class A2, Class Y and Institutional Class shares was 0.63%, 0.38%, 0.38% and 0.37%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

     Class A share performance reflects the maximum 2.50% sales charge. Class A2 share performance reflects the maximum 1.00% sales charge. Class Y and Institutional Class shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

     After-tax returns are calculated using the historical highest individual federal marginal income tax rate. They do not reflect the effect of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown. After-tax returns shown are not

relevant to investors who hold their shares in tax-deferred accounts such as 401(k)s or IRAs. The Fund’s past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future.

     The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.

     Had the adviser not waived fees and/or reimbursed expenses in the past, performance would have been lower.

7 Invesco Tax-Free Intermediate Fund

Invesco Tax-Free Intermediate Fund’s investment objective is federal tax-exempt current income.

n	Unless otherwise stated, information presented in this report is as of February 28, 2011, and is based on total net assets.
n	Unless otherwise noted, all data provided by Invesco.
n	To access your Fund’s reports/prospectus, visit invesco.com/fundreports.

About share classes

n As of close of business October 30, 2002, Class A2 shares were closed to new investors.

n Class Y shares are available to only certain investors. Please see the prospectus for more information.

n Institutional Class shares are offered exclusively to institutional investors, including defined contribution plans that meet certain criteria. Please see the prospectus for more information.

Principal risks of investing in the Fund

n Credit risk. The issuer of instruments in which the Fund invests may be unable to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the issuer’s credit rating.

n Derivatives risk. Derivatives may be more difficult to purchase, sell or value than other investments and may be subject to market, interest rate, credit, leverage, counterparty and management risks. A fund investing in a derivative could lose more than the cash amount invested or incur higher taxes. Over-the-counter derivatives are also subject to counterparty risk, which is the risk that the other party to the contract will not fulfill its contractual obligation to complete the transaction with the Fund.

n High yield bond (junk bond) risk. Junk bonds involve a greater risk of default or price changes due to changes in the credit quality of the issuer. The values of junk bonds fluctuate more than those of high- quality bonds in response to company, political, regulatory or economic developments. Values of junk bonds can decline significantly over short periods of time.

n Interest rate risk. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise; conversely, bond prices generally rise as interest rates fall. Specific bonds differ in their sensitivity to changes in interest rates depending on their individual characteristics, including duration.

n Management risk. The investment techniques and risk analysis used by the Fund’s portfolio managers may not produce the desired results.

n Market risk. The prices of and the income generated by the Fund’s securities may decline in response to, among other things, investor sentiment; general economic and market conditions; regional or global instability; and currency and interest rate fluctuations.

n Municipal securities risk. The Fund may invest in municipal securities. Constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives, and the issuer’s regional economic conditions may affect the municipal security’s value, interest payments, repayment of principal and the Fund’s ability to sell it. Failure of a municipal security issuer to comply with applicable tax requirements may make income paid thereon taxable, resulting in a decline in the security’s value.

n Reinvestment risk. Reinvestment risk is the risk that a bond’s cash flows (coupon income and principal repayment) will be reinvested at an interest rate below that on the original bond.

n Synthetic securities risk. Fluctuations in the values of synthetic instruments may not correlate perfectly with the instruments they are designed to replicate. Some synthetic instruments are more sensitive to interest rate changes and market price fluctuations than others. These instruments may be subject to counterparty risk and liquidity risk.

About indexes used in this report

n The Barclays Capital Municipal Bond Index is an unmanaged index considered representative of the tax-exempt bond market.

n The BofA Merrill Lynch 3-7 Year Municipal Index consists of bonds with an outstanding par greater than or equal to $25 million and a maturity range between three and seven years.

n The Lipper Intermediate Municipal Debt Funds Index is an unmanaged index considered representative of intermediate municipal debt funds tracked by Lipper.

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

n 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.

Other information

n The Chartered Financial Analyst^® (CFA^®) designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis.

n The returns shown in management’s discussion of Fund performance are based on net asset values calculated for shareholder transactions. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes, and as such, the net asset values for shareholder transactions and the returns based on those net asset values may differ from the net asset values and returns reported in the Financial Highlights.

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

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Nasdaq Symbols

Class A Shares	ATFAX
Class A2 Shares	AITFX
Class Y Shares	ATFYX
Institutional Class Shares	ATFIX

8 Invesco Tax-Free Intermediate Fund

Schedule of Investments

February 28, 2011

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Municipal Obligations–98.38%
Alabama–3.03%
Alabama (State of) Public School & College Authority;
Series 2009 A, Ref. Capital Improvement RB		5.00	%		05/01/15	$	1,000	$	1,120,500
Series 2009 A, Ref. Capital Improvement RB		5.00	%		05/01/18		1,000		1,139,700
Alabama (State of) Special Care Facilities Financing Authority of Birmingham (Ascension Health Senior Credit Group); Series 2006 C-1, RB(a)(b)		4.10	%		11/03/16		2,000		2,148,560
Birmingham (City of) Airport Authority;
Series 2003 A, Ref. RB (INS–AGM)(c)		4.00	%		07/01/15		1,930		2,027,716
Series 2003 A, Ref. RB (INS–AGM)(c)		4.00	%		07/01/16		2,335		2,447,617
Series 2003 A, Ref. RB (INS–AGM)(c)		4.00	%		07/01/17		2,465		2,564,364
Series 2003 A, Ref. RB (INS–AGM)(c)		4.00	%		07/01/18		1,985		2,057,294
Series 2003 A, Ref. RB (INS–AGM)(c)		4.00	%		07/01/19		1,410		1,444,644
Series 2003 A, Ref. RB (INS–AGM)(c)		4.50	%		07/01/20		1,375		1,441,192
Birmingham (City of) Special Care Facilities Financing Authority (Children’s Hospital);
Series 2009, Health Care Facility RB (INS–AGC)(c)		4.50	%		06/01/18		990		1,016,562
Series 2009, Health Care Facility RB (INS–AGC)(c)		4.63	%		06/01/19		750		768,038
Series 2009, Health Care Facility RB (INS–AGC)(c)		5.00	%		06/01/21		525		540,923
Series 2009, Health Care Facility RB (INS–AGC)(c)		5.25	%		06/01/24		1,000		1,019,300
Series 2009, Health Care Facility RB (INS–AGC)(c)		5.75	%		06/01/29		2,000		2,040,500
Birmingham (City of) Waterworks Board; Series 2010 A, Ref. Water RB		5.00	%		01/01/24		1,250		1,306,263
Chatom (Town of) Industrial Development Board (PowerSouth Energy Cooperative);
Series 2010 A, Ref. Gulf Opportunity Zone RB (INS–AGC)(c)		4.25	%		08/01/18		3,540		3,814,916
Series 2010 A, Ref. Gulf Opportunity Zone RB (INS–AGC)(c)		4.25	%		08/01/19		3,535		3,775,097
Huntsville (City of) Health Care Authority;
Series 2010 A, RB		4.50	%		06/01/15		1,970		2,082,782
Series 2010 A, RB		5.00	%		06/01/18		2,740		2,909,195
Mobile (City of) Industrial Development Board (Alabama Power Co.–Barry Plant); Series 2007 C, PCR(a)(b)		5.00	%		03/19/15		2,150		2,354,357
Mobile (City of) Infirmary Health System Special Care Facilities Financing Authority (Infirmary Health System, Inc.); Series 2010 A, RB		5.00	%		02/01/12		410		422,374
									38,441,894
Alaska–0.53%
Alaska (State of) (International Airports System); Series 2006 B, Ref. RB (INS–NATL)(c)		5.00	%		10/01/27		1,135		1,128,621
Alaska (State of) Industrial Development & Export Authority (Greater Fairbanks Community Hospital Foundation);
Series 2004 A, RB (INS–AGM)(c)		5.13	%		04/01/19		1,000		1,074,570
Series 2009 C, Ref. RB		4.00	%		04/01/13		545		561,890
Series 2009 C, Ref. RB		4.25	%		04/01/15		1,025		1,066,943
Alaska (State of) Industrial Development & Export Authority; Series 2010 A, Ref. Revolving Fund RB		5.25	%		04/01/21		755		832,969
Alaska (State of) Municipal Bond Bank; Series 2009 One, RB		5.63	%		09/01/29		250		261,430
North Slope (Borough of); Series 2008 A, Unlimited Tax GO Bonds		5.50	%		06/30/19		1,000		1,183,680
Southeast Alaska Power Agency; Series 2009, Ref. Electric RB (INS–AGC)(c)		5.13	%		06/01/24		650		668,902
									6,779,005

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

9        Invesco Tax-Free Intermediate Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Arizona–2.91%
Amphitheater Unified School District No. 10; Series 2009 B, School Improvement Unlimited Tax GO Bonds (INS–AGC)(c)		4.00	%		07/01/18	$	1,250	$	1,345,963
Arizona (State of);
Series 2010 A, COP (INS–AGM)(c)		5.00	%		10/01/13		1,660		1,785,363
Series 2010 A, COP (INS–AGM)(c)		5.00	%		10/01/14		3,000		3,260,880
Series 2010 A, COP (INS–AGM)(c)		5.00	%		10/01/15		2,000		2,186,940
Series 2010 A, COP (INS–AGM)(c)		5.00	%		10/01/16		3,000		3,288,060
Series 2010 A, COP (INS–AGM)(c)		5.00	%		10/01/18		2,000		2,169,680
Series 2010 A, COP (INS–AGM)(c)		5.00	%		10/01/19		1,000		1,077,570
Series 2010 B, COP (INS–AGM)(c)		5.00	%		10/01/21		2,000		2,105,900
Series 2010 B, COP (INS–AGM)(c)		5.00	%		10/01/22		2,000		2,076,120
Series 2010 B, COP (INS–AGM)(c)		5.00	%		10/01/23		2,000		2,052,080
Kingman Unified School District No. 20; Series 2009 C, School Improvement Unlimited Tax GO Bonds (INS–AGC)(c)		5.00	%		07/01/23		1,500		1,586,340
Maricopa County Pollution Control Corp. (Arizona Public Service Co.–Palo Verde); Series 2009 B, Ref. PCR(a)(b)		5.50	%		05/01/12		2,500		2,577,300
Mesa (City of); Series 2009, Highway Project Advancement RN		3.50	%		07/01/15		5,000		5,146,300
Phoenix Civic Improvement Corp.; Series 2001, Ref. Jr. Lien Wastewater System RB (INS–NATL)(c)		5.25	%		07/01/11		1,000		1,016,520
Pima (County of) Metropolitan Domestic Water Improvement District; Series 2009, Ref. Sr. Lien Water RB (INS–AGM)(c)		3.00	%		01/01/14		1,000		1,037,450
Pima (County of);
Series 2010, COP		3.50	%		06/01/14		2,130		2,195,923
Series 2010, COP		3.50	%		06/01/15		1,200		1,228,368
Yuma Municipal Property Corp.; Series 2007 D, Municipal Facilities RB (INS–SGI)(c)		5.00	%		07/01/24		750		775,463
									36,912,220
Arkansas–0.22%
Conway (City of) Health Facilities Board (Conway Regional Medical Center); Series 2009, Ref. Hospital RB		5.25	%		08/01/24		1,855		1,873,346
University of Arkansas (UALR Campus); Series 2009, Capital Improvement RB		4.00	%		10/01/29		1,000		906,890
									2,780,236
California–8.60%
ABAG Finance Authority for Non-Profit Corps. (Casa de las Campanas, Inc.);
Series 2010, RB (INS–Cal-Mortgage)(c)		3.00	%		09/01/12		390		393,514
Series 2010, RB (INS–Cal-Mortgage)(c)		4.00	%		09/01/15		1,000		1,021,100
Albany Unified School District (Election of 2008); Series 2009 A, Unlimited Tax GO Bonds (INS–AGC)(c)		5.00	%		08/01/25		1,520		1,569,522
Alhambra Unified School District (Election of 2004); Series 2009 B, Unlimited Tax GO Bonds (INS–AGC)(c)		5.25	%		08/01/28		1,350		1,391,634
California (State of) Health Facilities Financing Authority (Cedars-Sinai Medical Center);
Series 2009, RB		5.00	%		08/15/12		1,500		1,568,325
Series 2009, RB		5.00	%		08/15/13		2,500		2,657,975
California (State of) Health Facilities Financing Authority (St. Joseph Health System);
Series 2009 C, Ref. RB(a)(b)		5.00	%		10/16/14		3,000		3,259,620
Series 2009 D, Ref. RB(a)(b)		5.00	%		10/18/16		6,000		6,583,800
California (State of) Health Facilities Financing Authority (The Episcopal Home);
Series 2002 B, RB (INS–Cal-Mortgage)(c)		5.10	%		02/01/19		920		930,120
Series 2002 B, RB (INS–Cal-Mortgage)(c)		5.50	%		02/01/24		1,250		1,230,650
California (State of) Pollution Control Financing Authority (BP West Coast Products LLC); Series 2009, Ref. Environmental Improvement RB(a)(b)		2.60	%		09/02/14		4,650		4,644,559
California (State of) Statewide Communities Development Authority (Enloe Medical Center);
Series 2008 A, RB (INS–Cal-Mortgage)(c)		5.00	%		08/15/17		385		403,827
Series 2008 A, RB (INS–Cal-Mortgage)(c)		5.25	%		08/15/19		325		338,150

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

10        Invesco Tax-Free Intermediate Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
California–(continued)
California (State of) Statewide Communities Development Authority (Henry Mayo Newhall Memorial Hospital); Series 2007 B, RB (INS–AMBAC)(c)		5.05	%		10/01/28	$	1,500	$	1,401,990
California (State of) Statewide Communities Development Authority (Southern California Edison Co.);
Series 2006 A, Ref. PCR (INS–SGI)(a)(b)(c)		4.10	%		04/01/13		1,575		1,633,684
California (State of) Statewide Communities Development Authority (State of California Proposition 1A Receivables Program); Series 2009, RB		5.00	%		06/15/13		3,000		3,172,380
California (State of);
Series 2009, Various Purpose Unlimited Tax GO Bonds		5.00	%		10/01/20		1,900		2,061,386
Series 2009 A, Ref. Economic Recovery Unlimited Tax GO Bonds		5.00	%		07/01/22		1,200		1,260,084
Series 2009 B, Ref. Economic Recovery Unlimited Tax GO Bonds(a)(b)		5.00	%		07/01/14		1,000		1,086,510
Corona-Norca Unified School District (Election of 2006); Series 2009 C, Unlimited Tax CAB GO Bonds (INS–AGM)(c)(d)		0.00	%		08/01/21		1,500		853,905
Evergreen Elementary School District (Election of 2006);
Series 2009 B, Unlimited Tax CAB GO Bonds (INS–AGC)(c)(d)		0.00	%		08/01/25		3,000		1,244,790
Series 2009 B, Unlimited Tax CAB GO Bonds (INS–AGC)(c)(d)		0.00	%		08/01/28		1,000		323,650
Fresno (City of); Series 2008 A, Sewer System RB (INS–AGC)(c)		5.00	%		09/01/25		2,040		2,093,652
Hayward Unified School District (Election of 2008);
Series 2010 A, Unlimited Tax CAB GO Bonds (INS–AGM)(c)(d)		0.00	%		08/01/17		1,000		759,820
Series 2010 A, Unlimited Tax CAB GO Bonds (INS–AGM)(c)(d)		0.00	%		08/01/20		1,000		603,640
Kern Community College District; Series 2010, Ref. COP		4.00	%		04/01/14		2,000		2,055,020
Lake Tahoe Unified School District (Election of 2008); Series 2009, Unlimited Tax GO Bonds (INS–AGM)(c)		5.00	%		08/01/24		1,000		1,021,820
Los Angeles (City of) Department of Airports (Los Angeles International Airport);
Series 2008 C, Sub. RB		5.00	%		05/15/28		1,000		1,001,730
Series 2009 A, Sr. RB		5.25	%		05/15/29		1,000		1,023,360
Los Angeles (City of) Harbor Department; Series 2009 C, Ref. RB		5.00	%		08/01/21		2,000		2,199,700
Los Angeles Unified School District (Election of 2004); Measure R, Series 2009 I, Unlimited Tax GO Bonds		5.00	%		07/01/26		670		674,730
Lynwood (City of) Utility Authority; Series 2009 A, Ref. Enterprise RB (INS–AGC)(c)		5.00	%		06/01/29		500		500,630
Madera (City of) Irrigation District; Series 2008, Ref. Water RB		5.00	%		01/01/23		2,250		2,271,262
Monrovia (City of) Financing Authority (Library); Series 2007, Lease RB (INS–AMBAC)(c)		4.63	%		12/01/32		1,000		826,460
Monterey (County of) (2009 Refinancing);
Series 2009, COP (INS–AGM)(c)		5.00	%		08/01/16		1,000		1,105,060
Series 2009, COP (INS–AGM)(c)		5.00	%		08/01/19		2,360		2,580,448
New Haven Unified School District; Series 2009, Ref. Unlimited Tax GO Bonds (INS–AGC)(c)		5.00	%		08/01/20		2,530		2,744,595
Newport Beach (City of) (Hoag Memorial Hospital Presbyterian); Series 2009 D, RB(a)(b)		5.00	%		02/07/13		1,000		1,069,170
Northern California Power Agency;
Series 2010 A, Ref. Capital Facilities RB		4.00	%		08/01/14		1,000		1,064,540
Series 2010 A, Ref. Capital Facilities RB		4.00	%		08/01/16		1,000		1,057,670
Series 2010 A, Ref. Capital Facilities RB		5.00	%		08/01/20		1,000		1,077,680
Series 2010 A, Ref. Capital Facilities RB		5.00	%		08/01/21		1,000		1,064,590
Rancho Mirage (City of) Joint Powers Financing Authority (Eisenhower Medical Center); Series 2007 A, RB		5.00	%		07/01/21		1,000		969,320
Rowland Unified School District (Election of 2006); Series 2009 B, Unlimited Tax CAB GO Bonds(d)		0.00	%		08/01/23		1,300		624,780
Sacramento (County of);
Series 2009 B, Sr. Airport System RB		5.00	%		07/01/18		1,000		1,076,600
Series 2009 D, Sub. & PFC/Grant Airport System RB (INS–AGC)(c)		5.13	%		07/01/25		1,500		1,546,140
Series 2010, Ref. COP		5.00	%		02/01/14		6,000		6,319,020
Series 2010, Ref. COP		5.00	%		02/01/16		4,665		4,939,955
Series 2010, Ref. COP		5.00	%		02/01/17		4,000		4,229,120
Series 2010, Ref. COP		5.25	%		02/01/18		3,000		3,194,160
Series 2010, Ref. COP		5.25	%		02/01/19		1,500		1,585,710
Series 2010, Sr. Airport System RB		5.00	%		07/01/23		500		515,785

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

11        Invesco Tax-Free Intermediate Fund

							Principal
	Interest			Maturity			Amount
	Rate			Date			(000)		Value
California–(continued)
San Diego (City of) Public Facilities Financing Authority;
Series 2009 B, Ref. Sr. Sewer RB		5.00	%		05/15/13		$	1,000	$	1,080,100
Series 2009 B, Ref. Sr. Sewer RB		5.00	%		05/15/14	��		500		550,440
San Francisco (City & County of) Airport Commission (San Francisco International Airport); Series 2009 E, Second Series RB		5.50	%		05/01/26			2,000		2,071,700
Santa Ana (City of) (Local Street Improvement); Series 2007, Gas Tax Revenue COP (INS–NATL)(c)		4.38	%		01/01/24			1,000		902,430
Santa Monica Community College District (Election of 2002); Series 2010 E, Unlimited Tax CAB GO Bonds(d)		0.00	%		08/01/26			1,000		401,760
Torrance Unified School District (Election of 2008);
Measure Y, Series 2009 B-1, Unlimited Tax CAB GO Bonds(d)		0.00	%		08/01/22			1,900		986,385
Measure Y, Series 2009 B-1, Unlimited Tax CAB GO Bonds(d)		0.00	%		08/01/23			2,000		961,200
Twin Rivers Unified School District (School Facility Bridge Program); Series 2007, COP (INS–AGM)(a)(b)(c)		3.50	%		05/31/13			500		500,000
Val Verde Unified School District; Series 2009 A, Ref. COP (INS–AGC)(c)		5.00	%		03/01/29			2,040		1,953,565
Vernon (City of);
Series 2009 A, Electric System RB		5.50	%		08/01/15			525		570,350
Series 2009 A, Electric System RB		5.13	%		08/01/21			4,600		4,733,262
West Contra Costa Unified School District (Election of 2005); Series 2008 B, Unlimited Tax GO Bonds		6.00	%		08/01/27			1,000		1,043,090
West Sacramento Area Flood Control Agency; Series 2008, Special Assessment RB		5.13	%		09/01/23			1,075		1,076,784
Yosemite Community College District (Election of 2004); Series 2008 C, Unlimited Tax GO Bonds (INS–AGM)(c)		5.00	%		08/01/28			1,500		1,515,225
										109,173,633
Colorado–3.18%
Adams State College;
Series 2009 A, Auxiliary Facilities Improvement RB (CEP–Colorado Higher Education Intercept Program)		5.20	%		05/15/27			340		354,178
Series 2009 A, Auxiliary Facilities Improvement RB (CEP–Colorado Higher Education Intercept Program)		5.00	%		05/15/29			450		459,081
Aurora (City of) (The Children’s Hospital Association); Series 2004 D, Hospital RB (INS–AGM)(c)		5.00	%		12/01/20			1,000		1,069,290
Colorado (State of) Educational & Cultural Facilities Authority (The Classical Academy); Series 2008 A, Charter School RB		6.75	%		12/01/23			930		1,019,103
Colorado (State of) Health Facilities Authority (NCMC, Inc.);
Series 2003 A, Hospital RB (INS–AGM)(c)		5.00	%		05/15/15			1,000		1,082,530
Series 2003 A, Hospital RB (INS–AGM)(c)		5.25	%		05/15/26			1,000		1,010,890
Colorado (State of) Health Facilities Authority (Sisters of Charity of Leavenworth Health System); Series 2010 B, RB		5.00	%		01/01/19			2,795		3,008,678
Colorado (State of) School of Mines; Series 2009 A, Ref. & Improvement Enterprise RB (CEP–Colorado Higher Education Intercept Program)		5.00	%		12/01/29			500		506,540
Denver City & County School District No. 1; Series 2009 A, Unlimited Tax GO Bonds		5.00	%		12/01/28			1,000		1,046,390
E-470 Public Highway Authority;
Subseries 2007 C-2, Sr. RB (INS–NATL)(a)(b)(c)		5.00	%		09/02/13			3,300		3,485,229
Subseries 2007 D-2, Sr. RB (INS–NATL)(a)(b)(c)		5.00	%		09/02/13			14,755		15,528,015
Glenwood Springs (City of);
Series 2010, Ref. Sales & Use Tax RB		3.00	%		10/01/12			1,040		1,071,252
Series 2010, Ref. Sales & Use Tax RB		3.00	%		10/01/13			100		103,759
Series 2010, Ref. Sales & Use Tax RB		3.00	%		10/01/14			1,005		1,040,788
Series 2010, Ref. Sales & Use Tax RB		3.00	%		10/01/15			1,000		1,028,340
Northern Colorado Water Conservancy District; Series 2007 J, Ref. RB (INS–AMBAC)(c)		5.00	%		12/01/14			1,300		1,442,675
Northwest Parkway Public Highway Authority (Current Interest); Series 2001 A, Sr. RB(e)		5.00	%		06/15/11			1,000		1,012,330
Public Authority for Colorado Energy;
Series 2008, Natural Gas Purchase RB		6.13	%		11/15/23			1,525		1,608,494
Series 2008, Natural Gas Purchase RB		6.25	%		11/15/28			3,015		3,106,535
University of Colorado Hospital Authority; Series 1997 A, Ref. RB (INS–AMBAC)(c)		5.25	%		11/15/22			1,470		1,470,382
										40,454,479
Connecticut–0.26%
Connecticut (State of) (Transportation Infrastructure Purposes); Series 2009 A, Special Tax Obligation RB		5.00	%		12/01/16			2,000		2,299,040

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

12        Invesco Tax-Free Intermediate Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Connecticut–(continued)
New Haven (City of) Solid Waste & Recycling Authority; Series 2008, RB		5.13	%		06/01/23	$	1,000	$	1,053,130
									3,352,170
Delaware–0.28%
Delaware (State of) Health Facilities Authority (Bayhealth Medical Center);
Series 2009 A, RB		5.00	%		07/01/18		1,540		1,638,067
Series 2009 A, RB		4.05	%		07/01/22		1,000		944,990
Series 2009 A, RB		4.15	%		07/01/23		1,000		936,390
									3,519,447
District of Columbia–0.47%
District of Columbia (Georgetown University);
Series 2001 C, University RB(a)(b)		5.25	%		04/01/23		3,730		3,822,467
Series 2009 A, Ref. University RB		5.00	%		04/01/15		2,000		2,172,560
									5,995,027
Florida–6.01%
Broward (County of); Series 2009 O, Ref. Airport System RB		5.00	%		10/01/14		1,490		1,620,539
Citizens Property Insurance Corp.;
Series 2008 A-1, Sr. Sec. High Risk Account RB		5.00	%		06/01/11		2,240		2,265,245
Series 2009 A-1, Sr. Sec. High Risk Account RB (INS–AGC)(c)		4.00	%		06/01/12		2,000		2,059,860
Series 2009 A-1, Sr. Sec. High Risk Account RB (INS–AGC)(c)		5.00	%		06/01/16		2,000		2,111,360
Series 2009 A-1, Sr. Sec. High Risk Account RB (INS–AGC)(c)		5.50	%		06/01/16		3,050		3,291,834
Series 2010 A-1, Sr. Sec. High Risk Account RB (INS–AGM)(c)		5.00	%		06/01/14		2,500		2,637,600
Series 2010 A-1, Sr. Sec. High Risk Account RB (INS–AGM)(c)		5.00	%		06/01/17		2,000		2,098,920
Florida (State of) Board of Education;
Series 2009 A, Lottery RB		5.00	%		07/01/23		2,000		2,107,180
Series 2009 A, Lottery RB		5.25	%		07/01/24		1,640		1,742,238
Florida (State of) Department of Education; Series 2006 A, Community College Capital Improvement RB (INS–NATL)(c)		5.00	%		07/01/18		1,335		1,438,489
Florida (State of) Department of Environmental Protection;
Series 2002 B, Florida Forever RB (INS–NATL)(c)		5.25	%		07/01/22		3,000		3,128,730
Series 2003 C, Florida Forever RB (INS–AMBAC)(c)		5.00	%		07/01/19		3,525		3,678,796
Florida Hurricane Catastrophe Fund Finance Corp.;
Series 2008 A, RB		5.00	%		07/01/13		1,730		1,824,717
Series 2010 A, RB		5.00	%		07/01/15		5,000		5,346,200
Gulf Breeze (City of) (2010 A Loan Program–Loans to City of Pensacola);
Series 2010 A, Capital Funding RB (INS–AGM)(c)		5.00	%		10/01/15		1,590		1,740,414
Series 2010 A, Capital Funding RB (INS–AGM)(c)		5.00	%		10/01/16		1,495		1,637,907
Gulf Breeze (City of) (Local Government Loan Program); Series 1985 J, RB		4.50	%		12/01/20		3,000		3,126,210
Highlands (County of) Health Facilities Authority (Adventist Health System/Sunbelt Obligated Group);
Series 2005 I, Hospital RB		4.50	%		11/15/15		2,000		2,165,920
Series 2005 I, Hospital RB		5.00	%		11/15/16		2,000		2,211,840
Hillsborough (County of) Industrial Development Authority (Tampa Electric Co.); Series 2007 B, Ref. PCR(a)(b)		5.15	%		09/01/13		550		588,797
Jacksonville (City of) (Better Jacksonville); Series 2003, Sales Tax RB (INS–NATL)(c)		5.25	%		10/01/16		3,000		3,228,990
JEA; Series 2009 Three A, Electric System RB		5.00	%		10/01/26		1,125		1,135,530
Kissimmee (City of) Utility Authority;
Series 2003, Ref. Electric System RB (INS–AGM)(c)		5.25	%		10/01/15		1,500		1,673,370
Series 2003, Ref. Electric System RB (INS–AGM)(c)		5.25	%		10/01/16		1,500		1,687,710
Series 2003, Ref. Electric System RB (INS–AGM)(c)		5.00	%		10/01/17		1,900		2,108,886
Miami (City of) (Homeland Defense); Series 2007, Ref. Limited Tax GO Bonds (INS–AGM)(c)		5.00	%		01/01/16		1,000		1,085,010
Miami (City of); Series 2009, Ref. Parking System RB (INS–AGC)(c)		5.00	%		10/01/28		750		738,758

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

13        Invesco Tax-Free Intermediate Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Florida–(continued)
Miami-Dade (County of) (Double-Barreled Aviation); Series 2010, Unlimited Tax GO Bonds		5.00	%		07/01/17	$	500	$	561,050
Miami-Dade (County of) (Jackson Health System);
Series 2009, Public Facilities RB (INS–AGC)(c)		5.00	%		06/01/18		1,000		1,084,150
Series 2009, Public Facilities RB (INS–AGC)(c)		5.50	%		06/01/29		2,325		2,373,499
Miami-Dade (County of) (Miami International Airport);
Series 2009 A, Aviation RB (INS–AGC)(c)		5.00	%		10/01/27		120		121,500
Series 2009 B, Aviation RB (INS–AGC)(c)		5.00	%		10/01/26		1,000		1,017,420
Series 2009 B, Aviation RB (INS–AGC)(c)		5.00	%		10/01/29		1,000		1,002,030
Miami-Dade (County of) Health Facilities Authority (Miami Children’s Hospital); Series 2008 A-2, Hospital RB (INS–NATL)(a)(b)(c)		4.55	%		08/01/13		500		521,560
Miami-Dade (County of);
Series 2008 C, Ref. Water & Sewer System RB (INS–BHAC)(c)		5.50	%		10/01/20		1,500		1,700,790
Series 2008 C, Ref. Water & Sewer System RB (INS–BHAC)(c)		5.00	%		10/01/24		1,500		1,568,520
Series 2008 C, Ref. Water & Sewer System RB (INS–BHAC)(c)		5.13	%		10/01/25		1,500		1,570,170
Orange (County of) Health Facilities Authority (Orlando Health, Inc.); Series 2009, Hospital RB		5.00	%		10/01/14		2,085		2,231,430
Orange (County of); Series 2005, Ref. Tourist Development Tax RB (INS–AMBAC)(c)		5.00	%		10/01/12		1,095		1,160,251
Pasco (County of); Series 2009 A, Water & Sewer RB		5.00	%		10/01/16		750		858,000
Port St. Lucie (City of) Master Lease Project (Municipal Complex); Series 2008, Ref. COP (INS–AGC)(c)		6.25	%		09/01/27		500		520,320
Tampa (City of) (BayCare Health System); Series 2010, Health System RB		5.00	%		11/15/19		1,500		1,605,930
									76,377,670
Georgia–3.42%
Atlanta (City of);
Series 2009 B, Water & Wastewater RB (INS–AGM)(c)		5.00	%		11/01/17		1,500		1,646,865
Series 2009 B, Water & Wastewater RB (INS–AGM)(c)		4.13	%		11/01/19		970		992,203
Series 2009 B, Water & Wastewater RB (INS–AGM)(c)		5.00	%		11/01/20		1,500		1,607,250
Series 2009 B, Water & Wastewater RB (INS–AGM)(c)		5.00	%		11/01/21		1,500		1,590,105
Series 2009 B, Water & Wastewater RB (INS–AGM)(c)		5.25	%		11/01/27		2,000		2,065,140
Burke (County of) Development Authority (Georgia Power Co.–Plant Vogtle); Fourth Series 1995, PCR(a)(b)		3.75	%		01/12/12		3,000		3,069,990
DeKalb (County of) Hospital Authority (DeKalb Medical Center, Inc.); Series 2010, RAC		5.25	%		09/01/20		1,500		1,487,820
Fayette (County of) Hospital Authority (Fayette Community Hospital);
Series 2009 A, RAC		4.38	%		06/15/20		2,500		2,554,875
Series 2009 A, RAC		4.50	%		06/15/21		2,500		2,522,275
Fulton (County of) Development Authority (Catholic Health East); Series 2010, Health System RB		4.00	%		11/15/16		2,460		2,552,816
Fulton (County of) Development Authority (Piedmont Healthcare, Inc.); Series 2009 A, RB		5.00	%		06/15/29		2,605		2,508,068
Gainesville (City of) & Hall (County of) Hospital Authority (Northeast Georgia Health System, Inc.); Series 2010 A, RAC		5.00	%		02/15/16		1,245		1,326,660
Glynn-Brunswick Memorial Hospital Authority (Southeast Georgia Health System);
Series 2008 A, RAC		5.00	%		08/01/20		1,000		1,017,960
Series 2008 A, RAC		5.25	%		08/01/23		1,000		1,006,680
Gwinnett (County of) Hospital Authority (Gwinnett Hospital System, Inc.); Series 2007 D, RAC (INS–AGM)(c)		5.25	%		07/01/29		2,000		1,932,460
Macon-Bibb (County of) Hospital Authority (Medical Center of Central Georgia, Inc.);
Series 2009, RAC		4.00	%		08/01/19		635		645,903
Series 2009, RAC		4.00	%		08/01/20		710		703,383
Series 2009, RAC		5.00	%		08/01/24		1,260		1,282,491
Medical Center Hospital Authority (Columbus Regional Healthcare System, Inc.);
Series 2010, RAC (INS–AGM)(c)		3.50	%		08/01/20		2,000		1,935,360
Series 2010, RAC (INS–AGM)(c)		5.00	%		08/01/21		1,500		1,575,510
Richmond (County of) Hospital Authority (University Health Services, Inc.);
Series 2009, RAC		5.50	%		01/01/24		2,490		2,537,410
Series 2009, RAC		5.25	%		01/01/29		2,500		2,412,800

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

14        Invesco Tax-Free Intermediate Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Georgia–(continued)
South Regional Joint Development Authority (Valdosta State University Parking & Health Center);
Series 2007, RB (INS–SGI)(c)		5.00	%		08/01/20	$	1,385	$	1,493,362
Series 2007, RB (INS–SGI)(c)		5.00	%		08/01/21		1,490		1,590,724
Series 2007, RB (INS–SGI)(c)		5.00	%		08/01/22		605		636,587
Thomasville (City of) Hospital Authority (John D. Archbold Memorial Hospital, Inc.); Series 2010, RAC		4.75	%		11/01/25		750		712,867
									43,407,564
Guam–0.12%
Guam (Government of) (Section 30);
Series 2009 A, Limited Obligation RB		5.00	%		12/01/12		480		500,880
Series 2009 A, Limited Obligation RB		5.00	%		12/01/15		1,000		1,056,320
									1,557,200
Idaho–0.76%
Idaho (State of) Health Facilities Authority (Trinity Health Credit Group); Series 2008 B, Ref. RB		5.63	%		12/01/19		1,000		1,129,450
Idaho (State of) Housing & Finance Association (Federal Highway Trust Fund); Series 2009 A, Grant & RAB		5.25	%		07/15/25		500		530,215
Idaho (State of) Housing & Finance Association;
Series 2008 D, Class III, Single Family Mortgage RB		5.35	%		01/01/29		520		522,756
Series 2009 B, Class III, Single Family Mortgage RB		5.65	%		07/01/26		1,330		1,335,147
University of Idaho;
Series 2007 B, General RB (INS–AGM)(a)(b)(c)		4.50	%		04/01/18		1,760		1,839,024
Series 2011, Ref. General RB(a)(b)		5.25	%		04/01/21		4,000		4,335,600
									9,692,192
Illinois–5.71%
Bolingbrook (Village of); Series 2010 A, Ref. Unlimited Tax GO Bonds (INS–AGM)(c)		5.00	%		01/01/23		1,260		1,293,440
Chicago (City of) (Chicago O’Hare International Airport);
Series 2008 A, Ref. Passenger Facility Charge RB (INS–AGM)(c)		5.00	%		01/01/16		1,400		1,514,758
Series 2010 C, General Airport Third Lien RB (INS–AGC)(c)		5.25	%		01/01/21		1,025		1,099,835
Chicago (City of) Transit Authority (Federal Transit Administration Section 5309 Fixed Guideway Modernization Formula Funds); Series 2008 A, Capital Grant Receipts RB (INS–AGC)(c)		5.25	%		06/01/23		2,500		2,533,175
Cook County School District No. 144 (Prairie-Hills);
Series 2010 A, Limited Tax GO Bonds (INS–AGM)(c)		4.00	%		12/01/16		960		985,248
Series 2010 A, Limited Tax GO Bonds (INS–AGM)(c)		4.25	%		12/01/20		630		621,791
Series 2010 A, Limited Tax GO Bonds (INS–AGM)(c)		5.00	%		12/01/23		2,520		2,521,739
Cook (County of);
Series 2004 A, Ref. Unlimited Tax GO Bonds (INS–AMBAC)(c)		5.00	%		11/15/17		5,000		5,254,950
Series 2009 A, Ref. Unlimited Tax GO Bonds		5.00	%		11/15/19		2,000		2,118,780
Series 2009 C, Ref. Unlimited Tax GO Bonds		5.00	%		11/15/20		7,500		7,849,425
DeKalb Community Unit School District No. 428;
Series 2010, School Building Unlimited Tax CAB GO Bonds(d)		0.00	%		01/01/19		1,000		671,630
Series 2010, School Building Unlimited Tax CAB GO Bonds(d)		0.00	%		01/01/20		1,000		625,650
Dolton (Village of);
Series 2009 A, Unlimited Tax GO Bonds (INS–AGC)(c)		4.25	%		12/01/21		1,000		1,025,930
Series 2009 A, Unlimited Tax GO Bonds (INS–AGC)(c)		4.25	%		12/01/22		1,000		1,012,580
Illinois (State of) (Illinois FIRST);
Series 2001, Ref. Unlimited Tax GO Bonds (INS–AGM)(c)		5.25	%		10/01/11		1,790		1,827,841
Series 2002, Unlimited Tax GO Bonds (INS–NATL)(c)		5.25	%		10/01/21		1,500		1,501,965
Illinois (State of) Finance Authority (Advocate Health Care Network);
Series 2003 A, RB(a)(b)		4.38	%		07/01/14		830		867,209
Series 2010 D, Ref. RB		5.00	%		04/01/20		1,025		1,088,673
Illinois (State of) Finance Authority (Children’s Memorial Hospital); Series 2008 A, RB (INS–AGC)(c)		5.25	%		08/15/33		650		627,140
Illinois (State of) Finance Authority (NorthShore University HealthSystem); Series 2010, Ref. RB		5.00	%		05/01/21		1,250		1,293,063

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

15        Invesco Tax-Free Intermediate Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Illinois–(continued)
Illinois (State of) Finance Authority (Resurrection Health Care); Series 1999 A, RB (INS–AGM)(c)		5.00	%		05/15/17	$	2,000	$	2,095,060
Illinois (State of) Finance Authority (Southern Illinois Healthcare Enterprises, Inc.);
Series 2005, RB (INS–AGM)(c)		5.25	%		03/01/22		1,250		1,312,562
Series 2005, RB (INS–AGM)(c)		5.25	%		03/01/23		1,500		1,556,340
Illinois (State of) Finance Authority (University of Chicago Medical Center);
Series 2009 B, Ref. RB		5.00	%		08/15/22		1,000		1,024,450
Series 2009 C, RB		5.25	%		08/15/29		2,000		1,999,960
Illinois (State of) Finance Authority (University of Chicago); Series 1998 B, RB(a)(b)		3.38	%		02/03/14		1,000		1,038,070
Illinois (State of) Student Assistance Commission; Series 2009, Student Loan RB (INS–AGC)(c)		3.15	%		05/01/14		2,000		2,001,600
Illinois (State of);
Series 2010, Ref. Unlimited Tax GO Bonds		5.00	%		01/01/12		2,000		2,051,640
Series 2010, Ref. Unlimited Tax GO Bonds (INS–AGM)(c)		5.00	%		01/01/16		1,000		1,051,210
Series 2010, Ref. Unlimited Tax GO Bonds (INS–AGM)(c)		5.00	%		01/01/21		2,000		1,999,860
Kane & DeKalb Counties Community Unit School District No. 302 (Kaneland); Series 2008, School Building Unlimited Tax GO Bonds (INS–AGM)(c)		5.50	%		02/01/28		1,500		1,569,450
Kendall (County of) Forest Preserve District; Series 2007, Unlimited Tax GO Bonds (INS–NATL)(c)		5.25	%		01/01/23		4,000		4,226,560
Kendall, Kane & Will Counties Community Unit School District No. 308;
Series 2007, Unlimited Tax GO Bonds (INS–AGC)(c)		5.00	%		02/01/23		5,795		6,028,365
Series 2007 A, Ref. Unlimited Tax GO Bonds (INS–NATL)(c)		4.38	%		10/01/21		1,000		1,014,560
Northern Illinois Municipal Power Agency (Prairie State); Series 2007 A, RB (INS–NATL)(c)		5.00	%		01/01/19		1,000		1,057,450
Railsplitter Tobacco Settlement Authority; Series 2010, RB		5.50	%		06/01/23		2,000		1,917,220
St. Clair (County of) (Alternative Revenue Source);
Series 2009, Ref. Unlimited Tax GO Bonds		5.00	%		10/01/19		1,000		1,108,250
Series 2009, Ref. Unlimited Tax GO Bonds		5.00	%		10/01/21		1,480		1,600,072
Will, Grundy, Etc. Counties Community College District No. 525 (Joliet Junior College); Series 2008, Alternative Revenue Source Unlimited Tax GO Bonds		5.75	%		06/01/27		1,435		1,542,151
									72,529,652
Indiana–1.16%
Clark-Pleasant Middle School Building Corp.; Series 2009, First Mortgage RB		5.00	%		07/15/22		1,000		1,073,370
Indiana (State of) Health Facility Financing Authority (Ascension Health Subordinate Credit Group); Series 2005 A-6, RB(a)(b)		5.00	%		06/01/14		3,500		3,839,745
Indiana (State of) Health Facility Financing Authority (Community Foundation of Northwest Indiana Obligated Group); Series 2004 A, Hospital RB		5.38	%		03/01/19		1,000		1,027,710
Indianapolis (City of) Local Public Improvement Bond Bank (Waterworks); Series 2009 A, RB (INS–AGC)(c)		5.25	%		01/01/29		1,040		1,088,547
Monroe County Community 1996 School Corp.; Series 2009, First Mortgage RB (INS–AGM)(c)		5.13	%		01/15/24		2,285		2,437,295
Portage (City of) Redevelopment District; Series 2008, Ref. Tax Increment Allocation RB (INS–CIFG)(c)		5.00	%		01/15/22		2,470		2,458,194
Rockport (City of) (Indiana Michigan Power Co.);
Series 2009 A, Ref. PCR(a)(b)		6.25	%		06/02/14		1,000		1,100,950
Series 2009 B, Ref. PCR(a)(b)		6.25	%		06/02/14		500		550,475
University of Southern Indiana; Series 2009 J, Student Fee RB (INS–AGC)(c)		5.00	%		10/01/23		400		414,684
Zionsville Community Schools Building Corp.; Series 2002, First Mortgage RB(e)		5.00	%		07/15/11		720		732,499
									14,723,469
Iowa–1.70%
Iowa (State of) Finance Authority (Iowa Health System);
Series 2005 A, Health Facilities RB (INS–AGC)(c)		5.00	%		02/15/18		1,000		1,088,110
Series 2005 A, Health Facilities RB (INS–AGC)(c)		5.00	%		02/15/19		500		541,425
Series 2009 F, Health Facilities RB(a)(b)		5.00	%		08/15/12		1,000		1,050,750
Iowa Student Loan Liquidity Corp.;
Series 2009-1, Student Loan RB		4.00	%		12/01/13		1,500		1,551,090
Series 2009-1, Student Loan RB		5.00	%		12/01/15		2,500		2,682,775
Series 2009-1, Student Loan RB		5.00	%		12/01/16		2,525		2,701,801

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

16        Invesco Tax-Free Intermediate Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Iowa–(continued)
Series 2009-1, Student Loan RB		5.25	%		12/01/17	$	2,500	$	2,690,350
Series 2009-1, Student Loan RB		5.25	%		12/01/18		2,500		2,674,325
Series 2009-2, Student Loan RB		5.40	%		12/01/23		2,500		2,531,100
Series 2009-3, Student Loan RB		5.00	%		12/01/19		2,500		2,616,950
Washington Community School District; Series 2009, School Infrastructure Sales, Services & Use Tax RB		5.00	%		07/01/28		1,500		1,513,140
									21,641,816
Kansas–0.59%
Dodge City (City of); Series 2009, Sales Tax RB (INS–AGC)(c)		5.00	%		06/01/21		1,000		1,107,330
Johnson (County of) Water District No. 1; Series 2001, Ref. RB		5.00	%		06/01/11		1,770		1,791,523
Kansas (State of) Development Finance Authority (Adventist Health System/Sunbelt Obligated Group);
Series 2009 C, Hospital RB		5.00	%		11/15/16		1,000		1,130,030
Series 2009 D, Hospital RB		5.00	%		11/15/24		1,585		1,652,759
Wyandotte County Unified School District No. 500 (Kansas City); Series 2001, Unlimited Tax GO Bonds (INS–AGM)(c)		5.50	%		09/01/11		1,750		1,796,112
									7,477,754
Kentucky–3.07%
Christian (County of) (Jennie Stuart Medical Center, Inc.); Series 2006, Ref. Hospital RB (INS–AGC)(c)		5.25	%		02/01/28		1,030		1,010,152
Kentucky (State of) Economic Development Finance Authority (Louisville Arena Authority, Inc.); Sub. Series 2008 A-1, RB (INS–AGC)(c)		5.75	%		12/01/28		550		575,999
Kentucky (State of) Economic Development Finance Authority (Owensboro Medical Health System, Inc.); Series 2010 A, Hospital RB		5.00	%		06/01/17		5,455		5,456,309
Kentucky (State of) Municipal Power Agency (Prairie State);
Series 2010 A, Power System RB (INS–AGM)(c)		4.00	%		09/01/16		800		852,896
Series 2010 A, Power System RB (INS–AGM)(c)		5.00	%		09/01/21		5,860		6,376,266
Series 2010 A, Power System RB (INS–AGM)(c)		5.00	%		09/01/22		4,560		4,869,350
Series 2010 A, Power System RB (INS–AGM)(c)		5.00	%		09/01/23		1,000		1,051,760
Louisville & Jefferson (Counties of) Metropolitan Government (Jewish Hospital & St. Mary’s HealthCare, Inc.); Series 2008, Health Facilities RB		6.00	%		02/01/22		1,000		1,011,650
Louisville & Jefferson (Counties of) Metropolitan Sewer District (Commonwealth of Kentucky);
Series 2009 B, Sewer & Drainage System RB		5.00	%		05/15/14		1,500		1,649,340
Series 2009 B, Sewer & Drainage System RB		5.00	%		05/15/15		2,500		2,790,200
Series 2009 B, Sewer & Drainage System RB		5.00	%		05/15/20		10,000		11,201,400
Paducah (City of) Electric Plant Board; Series 2009 A, RB (INS–AGC)(c)		5.00	%		10/01/24		2,000		2,098,240
									38,943,562
Louisiana–3.60%
Greater New Orleans Expressway Commission; Series 2009, Ref. RB (INS–AGC)(c)		2.75	%		11/01/14		600		610,044
Jefferson (Parish of) Hospital Service District No. 1 (West Jefferson Medical Center); Series 1998 B, RB (INS–AGM)(c)		5.25	%		01/01/28		1,000		1,006,920
Lafayette (City of); Series 2010, Utilities RB		5.00	%		11/01/26		2,500		2,545,925
Louisiana (State of) Local Government Environmental Facilities & Community Development Authority (Caddo/Bossier Parishes Port Commission); Series 2010, Ref. RB (INS–AGM)(c)		4.00	%		04/01/18		1,600		1,684,336
Louisiana (State of) Local Government Environmental Facilities & Community Development Authority (City of Lake Charles Public Improvement); Series 2010, RB (INS–AGC)(c)		3.00	%		05/01/14		1,000		1,034,470
Louisiana (State of) Local Government Environmental Facilities & Community Development Authority (Jefferson Parish); Series 2009 A, Ref. RB		5.00	%		04/01/18		1,000		1,098,590
Louisiana (State of) Local Government Environmental Facilities & Community Development Authority (Lake Charles);
Series 2009, Ref. RB (INS–AGC)(c)		4.00	%		04/01/16		1,435		1,547,475
Series 2009, Ref. RB (INS–AGC)(c)		4.00	%		04/01/18		1,555		1,668,126
Louisiana (State of) Local Government Environmental Facilities & Community Development Authority (Louisiana Community & Technical College System Facilities Corp.); Series 2009 B, RB (INS–AGC)(c)		5.00	%		10/01/26		1,500		1,520,850

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

17        Invesco Tax-Free Intermediate Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Louisiana–(continued)
Louisiana (State of) Local Government Environmental Facilities & Community Development Authority (Monroe Regional Airport Terminal); Series 2009, Airport RB (INS–AGC)(c)		5.00	%		02/01/29	$	1,000	$	1,006,400
Louisiana (State of) Public Facilities Authority (Baton Rouge General Medical Center); Series 2004, FHA Insured Mortgage RB (INS–NATL)(c)		5.00	%		07/01/14		1,000		1,073,520
Louisiana (State of) Public Facilities Authority (Black & Gold Facilities); Series 2007 A, RB (INS–CIFG)(c)		5.00	%		07/01/22		500		500,640
Louisiana (State of) Public Facilities Authority (CHRISTUS Health);
Series 2008 B, Ref. RB (INS–AGC)(c)		5.75	%		07/01/18		900		949,239
Series 2009 A, Ref. RB		5.00	%		07/01/13		1,500		1,590,360
Series 2009 A, Ref. RB		5.00	%		07/01/15		1,000		1,073,220
Series 2009 A, Ref. RB		5.00	%		07/01/16		1,000		1,060,450
Series 2009 A, Ref. RB		5.25	%		07/01/20		1,000		1,048,070
Louisiana (State of) Public Facilities Authority (Hurricane Recovery Program); Series 2007, RB (INS–AMBAC)(c)		5.00	%		06/01/18		1,000		1,061,990
Louisiana (State of) Public Facilities Authority (Nineteenth Judicial District Court Building); Series 2007, RB (INS–NATL)(c)		4.50	%		06/01/21		1,000		1,028,330
Louisiana Citizens Property Insurance Corp.;
Series 2006 B, Assessment RB (INS–AMBAC)(c)		5.25	%		06/01/14		1,280		1,365,990
Series 2006 B, Assessment RB (INS–AMBAC)(c)		5.00	%		06/01/16		1,000		1,053,240
Series 2009 C-3, Assessment RB (INS–AGC)(c)		6.13	%		06/01/25		1,500		1,645,395
Monroe (City of) (Economic Development–Garret Rd.);
Series 2008, Ref. & Sales Tax Increment RB (INS–AGC)(c)		5.25	%		03/01/22		1,300		1,328,405
Series 2008, Ref. & Sales Tax Increment RB (INS–AGC)(c)		5.38	%		03/01/24		1,000		1,016,140
New Orleans (City of) Aviation Board (Consolidated Rental Car);
Series 2009 A, Gulf Opportunity Zone CFC RB		5.00	%		01/01/16		1,250		1,315,988
Series 2009 A, Gulf Opportunity Zone CFC RB		5.13	%		01/01/17		1,730		1,827,174
Series 2009 A, Gulf Opportunity Zone CFC RB		5.25	%		01/01/18		1,575		1,659,436
Series 2009 A, Gulf Opportunity Zone CFC RB		5.50	%		01/01/19		1,100		1,165,593
Series 2009 A, Gulf Opportunity Zone CFC RB		5.75	%		01/01/20		1,890		2,011,773
Series 2009 A, Gulf Opportunity Zone CFC RB		6.00	%		01/01/25		1,000		1,024,700
New Orleans (City of) Aviation Board;
Series 2009 A-1, Ref. & Restructuring General Airport RB (INS–AGC)(c)		5.00	%		01/01/19		500		529,720
Series 2009 A-1, Ref. & Restructuring General Airport RB (INS–AGC)(c)		6.00	%		01/01/23		1,025		1,134,491
New Orleans (City of); Series 2009, Ref. Sewage Service RB (INS–AGC)(c)		6.25	%		06/01/29		1,000		1,030,080
Plaquemines (Parish of) Law Enforcement District;
Series 2009, Limited Tax GO Bonds		4.00	%		09/01/14		1,200		1,250,772
Series 2009, Limited Tax GO Bonds		4.50	%		09/01/17		1,350		1,419,133
St. John the Baptist (Parish of) (Marathon Oil Corp.); Series 2007 A, RB		5.13	%		06/01/37		1,000		924,650
Terrebonne (Parish of) Hospital Service District No. 1 (Terrebonne General Medical Center); Series 2010, Ref. RB		4.00	%		04/01/20		1,000		961,550
									45,773,185
Maine–0.41%
Lewiston (City of) (UBS Financial Services, Inc.);
Series 2008 B, Unlimited Tax GO School Bonds (INS–AGM)(c)		5.00	%		12/15/19		750		817,770
Series 2008 B, Unlimited Tax GO School Bonds (INS–AGM)(c)		5.00	%		12/15/20		870		940,313
Series 2008 B, Unlimited Tax GO School Bonds (INS–AGM)(c)		5.50	%		12/15/23		950		1,019,417
Maine (State of) Housing Authority; Series 2009 B, Mortgage Purchase RB		5.00	%		11/15/29		2,500		2,481,800
									5,259,300
Maryland–0.53%
Baltimore (City of) (Water); Series 2009 A, Sub. Project RB		5.13	%		07/01/29		250		258,205
Maryland (State of) Health & Higher Educational Facilities Authority (LifeBridge Health);
Series 2008, RB		5.00	%		07/01/18		1,000		1,075,760
Series 2008, RB (INS–AGC)(c)		5.00	%		07/01/20		1,000		1,078,700

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

18        Invesco Tax-Free Intermediate Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Maryland–(continued)
Maryland (State of) Health & Higher Educational Facilities Authority (The Johns Hopkins Health System Obligated Group);
Series 2008 B, RB(a)(b)		5.00	%		05/15/13	$	1,000	$	1,077,750
Series 2008 B, RB(a)(b)		5.00	%		05/15/15		715		792,721
Maryland (State of) Health & Higher Educational Facilities Authority (University of Maryland Medical System);
Series 2008 F, RB		5.00	%		07/01/17		500		536,855
Series 2010, RB		5.00	%		07/01/19		400		427,820
Maryland (State of) Health & Higher Educational Facilities Authority (Washington County Hospital);
Series 2008, RB		5.00	%		01/01/20		500		500,830
Montgomery (County of) Housing Opportunities Commission; Series 2009 A, Single Family Mortgage RB		3.38	%		07/01/16		1,000		1,029,070
									6,777,711
Massachusetts–0.76%
Massachusetts (State of) Health & Educational Facilities Authority (Baystate Medical Center); Series 2009 K-1, RB(a)(b)		5.00	%		07/01/13		2,500		2,652,075
Massachusetts (State of) Health & Educational Facilities Authority (Cape Cod Healthcare Obligated Group); Series 2004 D, RB (INS–AGC)(c)		4.00	%		11/15/17		730		751,155
Massachusetts (State of) Health & Educational Facilities Authority (Lesley University); Series 2009 A, RB (INS–AGC)(c)		5.00	%		07/01/23		1,095		1,158,817
Massachusetts (State of) Health & Educational Facilities Authority (Northeastern University); Series 2009 T-2, RB(a)(b)		4.10	%		04/19/12		1,485		1,532,268
Massachusetts (State of) Health & Educational Facilities Authority (Suffolk University); Series 2009 A, Ref. RB		6.00	%		07/01/24		1,500		1,569,420
Worcester (City of); Series 2009, Limited Tax GO Bonds (INS–AGC)(c)		4.00	%		11/01/16		1,860		2,006,196
									9,669,931
Michigan–5.69%
Adrian City School District; Series 2007, Ref. Unlimited Tax GO Bonds (INS–AGM)(c)		5.50	%		05/01/15		755		844,619
Battle Creek (City of); Series 2008, Ref. Downtown Development Limited Tax GO Bonds (INS–AMBAC)(c)		5.00	%		05/01/15		1,110		1,202,408
Central Michigan University Board of Trustees;
Series 2009, Ref. General RB		5.00	%		10/01/13		1,430		1,544,314
Series 2009, Ref. General RB		5.00	%		10/01/14		1,510		1,652,091
Detroit (City of);
Series 2010, Distributable State Aid Limited Tax GO Bonds		5.00	%		11/01/14		1,445		1,559,849
Series 2010, Distributable State Aid Limited Tax GO Bonds		5.00	%		11/01/16		1,000		1,086,740
Series 2010, Distributable State Aid Limited Tax GO Bonds		5.00	%		11/01/19		1,000		1,066,290
Series 2010, Distributable State Aid Limited Tax GO Bonds		5.00	%		11/01/20		1,000		1,058,770
Hastings Area School System; Series 2009, Ref. Unlimited Tax GO Bonds (INS–AGC)(c)		3.25	%		05/01/15		1,475		1,513,306
Michigan (State of) Hospital Finance Authority (Ascension Health Senior Credit Group); Series 2010 F-3, Ref. & Project RB(a)(b)		2.63	%		06/30/14		2,250		2,305,800
Michigan (State of) Hospital Finance Authority (Henry Ford Health System);
Series 2009, Ref. RB		4.00	%		11/15/13		540		554,170
Series 2009, Ref. RB		4.00	%		11/15/14		655		671,526
Series 2009, Ref. RB		5.50	%		11/15/18		1,000		1,068,530
Series 2009, Ref. RB		5.00	%		11/15/19		1,500		1,532,850
Michigan (State of) Hospital Finance Authority (McLaren Health Care); Series 2008 A, Ref. RB		5.25	%		05/15/18		1,100		1,183,215
Michigan (State of) Municipal Bond Authority (Downtown Development);
Series 2009 A, Local Government Loan Program RB		5.00	%		05/01/21		1,515		1,576,130
Series 2009 A, Local Government Loan Program RB		5.13	%		05/01/23		300		307,938
Series 2009 A, Local Government Loan Program RB		5.25	%		05/01/24		500		514,250
Michigan (State of) Municipal Bond Authority;
Series 2009 C, Local Government Loan Program RB (CEP–Michigan School Bond Loan Fund)		5.00	%		05/01/15		1,850		2,011,598
Series 2009 C, Local Government Loan Program RB (CEP–Michigan School Bond Loan Fund)		5.00	%		05/01/16		1,860		2,022,490
Michigan (State of) Municipal Bond Authority; Series 2010 B, State Aid RN		5.00	%		03/21/11		2,000		2,003,080

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

19        Invesco Tax-Free Intermediate Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Michigan–(continued)
Michigan (State of) State Building Authority (Facilities Program);
Series 2003 I, Ref. RB (INS–AGM)(c)		5.25	%		10/15/16	$	4,315	$	4,655,108
Series 2009 I, Ref. RB (INS–AGC)(c)		5.00	%		10/15/23		7,150		7,359,638
Series 2009 I, Ref. RB (INS–AGC)(c)		5.25	%		10/15/24		1,040		1,077,523
Series 2009 II, RB		4.00	%		10/15/15		1,000		1,045,020
Series 2009 II, RB		4.00	%		10/15/16		1,950		2,029,540
Series 2009 II, RB (INS–AGM)(c)		5.00	%		10/15/21		1,180		1,249,089
Series 2009 II, RB (INS–AGM)(c)		5.00	%		10/15/22		520		544,003
Michigan (State of) Strategic Fund (Detroit Edison Co. Pollution Control Bonds); Series 1995 CC, Ref. Limited Obligation RB (INS–AMBAC)(a)(b)(c)		4.85	%		09/01/11		2,025		2,047,963
Michigan (State of);
Series 2009, Ref. & State Trunk Line Fund RB		5.00	%		11/01/19		3,000		3,333,570
Series 2009, Ref. & State Trunk Line Fund RB		5.00	%		11/01/23		2,000		2,109,260
Royal Oak (City of) Hospital Finance Authority (William Beaumont Hospital Obligated Group);
Series 2009 W, Ref. RB		5.00	%		08/01/15		1,000		1,043,660
Series 2009 W, Ref. RB		5.25	%		08/01/16		3,000		3,130,020
Series 2009 W, Ref. RB		5.25	%		08/01/17		2,000		2,068,600
Series 2009 W, Ref. RB		5.50	%		08/01/19		1,775		1,831,640
Southgate Community School District; Series 2005, Ref. Unlimited Tax GO Bonds (INS–NATL)(c)		5.00	%		05/01/18		1,710		1,846,817
Wayne State University;
Series 2007 A, General RB (INS–NATL)(c)		5.00	%		11/15/12		1,190		1,262,340
Series 2009 A, Ref. General RB		5.00	%		11/15/17		2,000		2,237,640
Wyandotte (City of); Series 2009 A, Ref. & Electric System RB (INS–AGC)(c)		5.25	%		10/01/28		250		253,193
Ypsilanti School District;
Series 2009, Ref. Unlimited Tax GO Bonds (INS–AGC)(c)		4.00	%		05/01/12		2,270		2,346,930
Series 2009, Ref. Unlimited Tax GO Bonds (INS–AGC)(c)		4.00	%		05/01/14		1,985		2,079,982
Series 2009, Ref. Unlimited Tax GO Bonds (INS–AGC)(c)		5.00	%		05/01/18		1,270		1,377,810
									72,209,310
Minnesota–2.46%
Duluth Independent School District No. 709;
Series 2009 B, COP		4.00	%		03/01/13		1,325		1,389,435
Series 2009 B, COP		4.00	%		03/01/14		1,360		1,441,600
Series 2009 B, COP		4.00	%		03/01/15		1,400		1,487,374
Minneapolis & St. Paul (Cities of) Housing & Redevelopment Authority (Children’s Health Care);
Series 1995 B, Health Care RB (INS–AGM)(c)		5.00	%		08/15/19		1,400		1,550,080
Series 1995 B, Health Care RB (INS–AGM)(c)		5.00	%		08/15/21		1,350		1,472,472
Series 2010 A, Health Care Facilities RB		5.00	%		08/15/20		730		782,275
Series 2010 A, Health Care Facilities RB		5.00	%		08/15/21		1,635		1,725,792
Minneapolis & St. Paul (Cities of) Metropolitan Airports Commission;
Series 2007 B, Sub. Ref. RB (INS–NATL)(c)		5.00	%		01/01/19		2,930		3,117,227
Series 2009 A, Sr. Ref. RB		4.00	%		01/01/16		730		779,625
Series 2009 A, Sr. Ref. RB		5.00	%		01/01/20		1,000		1,100,600
Minnesota (State of) Agricultural & Economic Development Board (Essentia Health Obligated Group);
Series 2008 C-1, Health Care Facilities RB (INS–AGC)(c)		4.00	%		02/15/14		1,000		1,055,350
Series 2008 C-1, Health Care Facilities RB (INS–AGC)(c)		5.00	%		02/15/16		570		626,071
Series 2008 C-1, Health Care Facilities RB (INS–AGC)(c)		4.00	%		02/15/20		1,500		1,527,045
Series 2008 C-1, Health Care Facilities RB (INS–AGC)(c)		5.00	%		02/15/21		1,500		1,619,430

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

20        Invesco Tax-Free Intermediate Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Minnesota–(continued)
Minnesota (State of) Higher Education Facilities Authority (University of St. Thomas);
Series 2009 Seven-A, RB		4.00	%		10/01/15	$	1,000	$	1,066,460
Series 2009 Seven-A, RB		4.00	%		10/01/16		1,000		1,066,500
Series 2009 Seven-A, RB		4.50	%		10/01/22		1,000		1,039,120
Series 2009 Six-X, RB		5.00	%		04/01/24		500		518,290
Minnesota (State of) Housing Finance Agency;
Series 2009 A, Residential Housing Finance RB		5.20	%		01/01/23		905		936,738
Series 2009 B, Residential Housing Finance RB		5.45	%		07/01/24		830		857,290
St. Paul (City of) Housing & Redevelopment Authority (Gillette Children’s Specialty Healthcare);
Series 2009, Health Care RB		5.00	%		02/01/16		1,470		1,560,449
Series 2009, Health Care RB		5.25	%		02/01/21		2,175		2,243,143
St. Cloud (City of) (CentraCare Health System);
Series 2010 A, Health Care RB		5.00	%		05/01/15		500		545,180
Series 2010 B, Health Care RB		5.00	%		05/01/13		595		633,199
Series 2010 B, Health Care RB		5.00	%		05/01/16		1,000		1,095,670
									31,236,415
Mississippi–0.69%
Alcorn State University Educational Building Corp. (Student Housing); Series 2009 A, RB		4.63	%		09/01/26		1,695		1,703,289
Mississippi (State of) Development Bank (Jackson County Limited Tax Note); Series 2009, Special Obligation RB (INS–AGC)(c)		5.00	%		07/01/24		1,000		1,042,170
Mississippi (State of) Development Bank (Lowndes County Industrial Development); Series 2007, Special Obligation RB (INS–AGM)(c)		5.00	%		07/01/19		1,160		1,250,956
Mississippi (State of) Development Bank (Mississippi Power Co.); Series 2007 A, Special Obligation RB (INS–AMBAC)(c)		5.00	%		07/01/16		1,000		1,081,570
Mississippi (State of) Hospital Equipment & Facilities Authority (Baptist Memorial Health Care); Series 2004 B-2, RB		5.00	%		09/01/23		1,975		2,052,657
Rankin County School District; Series 2001, Unlimited Tax GO Bonds (INS–AGM)(c)		5.00	%		10/01/11		1,625		1,668,777
									8,799,419
Missouri–1.24%
Cass (County of); Series 2007, Hospital RB		5.00	%		05/01/17		500		516,160
Kansas City (City of);
Series 2008 A, Ref. General Improvement Airport RB		4.00	%		09/01/14		1,000		1,069,400
Series 2010 B, Ref. Special Obligation Tax Allocation RB		4.13	%		01/01/21		2,000		1,987,920
Ladue School District; Series 2007, Ref. & Improvement Unlimited Tax GO Bonds		5.00	%		03/01/25		1,250		1,324,525
Missouri (State of) Health & Educational Facilities Authority (St. Luke’s Health System, Inc.); Series 2010 A, Health Facilities RB		5.00	%		11/15/20		1,000		1,055,860
Missouri (State of) Health & Educational Facilities Authority (SSM Health Care);
Series 2010 B, Health Facilities RB		5.00	%		06/01/19		1,000		1,091,730
Series 2010 B, Health Facilities RB		5.00	%		06/01/21		4,645		4,916,361
Missouri (State of) Health & Educational Facilities Authority (Webster University); Series 2001, Educational Facilities RB (INS–NATL)(c)		5.00	%		04/01/11		1,075		1,078,644
St. Louis (City of) (Lambert-St. Louis International Airport); Series 2007 A, Ref. Airport RB (INS–AGM)(c)		5.00	%		07/01/20		1,125		1,160,674
St. Louis Municipal Finance Corp. (Convention Center Capital Improvement); Series 2008, Leasehold RB (INS–AGC)(c)		5.00	%		07/15/21		1,500		1,586,790
									15,788,064
Montana–0.64%
Gallatin (County of) Airport Authority (PFC Supported); Series 2009, RB		4.38	%		06/01/29		1,500		1,391,895
Helena (City of); Series 2009, COP		5.00	%		01/01/29		400		411,204
Montana (State of) Facility Finance Authority (Kalispell Regional Medical Center Obligated Group); Series 2010, Health Care Facilities RB		5.00	%		07/01/30		500		484,895

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

21        Invesco Tax-Free Intermediate Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Montana–(continued)
Montana (State of) Facility Finance Authority (Master Loan Program–Glendive Medical Center, Inc.);
Series 2008 A, Health Care Facilities RB		4.63	%		07/01/18	$	1,010	$	1,102,092
Series 2008 A, Health Care Facilities RB		4.75	%		07/01/28		1,000		941,300
Montana (State of) Facility Finance Authority (Sisters of Charity of Leavenworth Health System);
Series 2010 B, Ref. RB		5.00	%		01/01/19		2,500		2,771,375
Series 2010 B, Ref. RB		4.00	%		01/01/20		1,000		1,023,930
									8,126,691
Nebraska–0.04%
Douglas County School District No. 10 (Elkhorn Public Schools); Series 2009, Unlimited Tax GO Bonds		5.45	%		06/15/22		500		522,335
Nevada–2.37%
Clark (County of) (Bond Bank); Series 2006, Limited Tax GO Bonds (INS–AMBAC)(c)		5.00	%		11/01/21		5,235		5,548,053
Clark (County of);
Series 2009 C, Airport System Sub. Lien RB (INS–AGM)(c)		5.00	%		07/01/22		1,000		1,043,940
Series 2009 C, Airport System Sub. Lien RB (INS–AGM)(c)		5.00	%		07/01/23		4,000		4,105,400
Series 2009 C, Airport System Sub. Lien RB (INS–AGM)(c)		5.00	%		07/01/24		2,040		2,069,743
Series 2009 C, Airport System Sub. Lien RB (INS–AGM)(c)		5.00	%		07/01/25		1,500		1,500,915
Sr. Series 2010 D, Airport System RB		4.00	%		07/01/17		2,000		2,032,540
Clark County School District; Series 2004 A, Ref. Limited Tax GO Bonds (INS–AGM)(c)		5.00	%		06/15/16		5,000		5,439,100
Humboldt (County of) (Idaho Power Co.); Series 2003, Ref. PCR		5.15	%		12/01/24		4,100		4,181,754
Las Vegas (City of) Valley Water District; Series 2009 D, Ref. Limited Tax GO Bonds		5.00	%		06/01/16		500		558,995
Reno (City of) (Washoe Medical Center);
Series 2004 C, Hospital RB (INS–AGM)(c)		5.00	%		06/01/15		750		797,925
Series 2004 C, Hospital RB (INS–AGM)(c)		5.00	%		06/01/17		1,365		1,445,726
Series 2005 A, Hospital RB (INS–AGM)(c)		5.25	%		06/01/17		1,300		1,393,262
									30,117,353
New Hampshire–0.34%
Manchester (City of);
Series 2009 A, Ref. General Airport RB		5.00	%		01/01/15		1,750		1,852,883
Series 2009 A, Ref. General Airport RB		5.00	%		01/01/17		500		536,695
New Hampshire (State of) Housing Finance Authority;
Series 2008 E, Single Family Mortgage Acquisition RB		5.05	%		07/01/23		450		462,807
Series 2008 E, Single Family Mortgage Acquisition RB		5.30	%		07/01/28		225		227,815
Series 2009 A, Single Family Mortgage Acquisition RB		5.13	%		07/01/29		1,185		1,182,120
									4,262,320
New Jersey–2.23%
New Jersey (State of) Economic Development Authority (Montclair State University Student Housing); Series 2010 A, RB		5.25	%		06/01/20		1,295		1,298,652
Series 2010 A, RB		5.00	%		06/01/21		1,500		1,448,505
New Jersey (State of) Economic Development Authority;
Series 2004, Cigarette Tax RB		5.50	%		06/15/16		1,805		1,867,615
Series 2010 DD-1, Ref. School Facilities Construction RB		5.00	%		12/15/16		630		682,536
Series 2010 DD-1, Ref. School Facilities Construction RB		5.00	%		12/15/17		1,550		1,666,281
New Jersey (State of) Health Care Facilities Financing Authority (Bayonne Hospital Obligated Group);
Series 1994, RB (INS–AGM)(c)		6.25	%		07/01/12		1,030		1,023,418
New Jersey (State of) Turnpike Authority;
Series 2009 H, RB		5.00	%		01/01/20		2,000		2,172,640
Series 2009 H, RB		5.00	%		01/01/21		3,500		3,750,460

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

22        Invesco Tax-Free Intermediate Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
New Jersey–(continued)
Newark (City of) Housing Authority (South Ward Police Facility);
Series 2009 A, City-Secured Police Facility RB (INS–AGC)(c)		5.00	%		12/01/21	$	1,130	$	1,188,579
Series 2009 A, City-Secured Police Facility RB (INS–AGC)(c)		5.38	%		12/01/26		500		516,530
Newark (City of); Series 2010 A, Ref. Qualified General Improvement Unlimited Tax GO Bonds		4.00	%		10/01/16		3,710		3,814,214
Paterson (City of);
Series 2009, General Improvement Unlimited Tax GO Bonds (INS–AGM)(c)		4.25	%		06/15/12		1,600		1,648,800
Series 2009, General Improvement Unlimited Tax GO Bonds (INS–AGM)(c)		5.00	%		06/15/16		200		216,624
Perth Amboy (City of) Board of Education;
Series 2010, Ref. COP (INS–AGC)(c)		4.00	%		06/15/12		1,135		1,168,687
Series 2010, Ref. COP (INS–AGC)(c)		4.00	%		12/15/12		1,285		1,334,126
Series 2010, Ref. COP (INS–AGC)(c)		4.00	%		06/15/15		1,345		1,411,994
Series 2010, Ref. COP (INS–AGC)(c)		4.00	%		12/15/15		1,395		1,463,341
South Jersey Port Corp.; Series 2009 P-2, Marine Terminal RB		4.00	%		01/01/16		1,505		1,592,501
									28,265,503
New York–2.51%
Amherst Development Corp. (UBF Faculty-Student Housing Corp.–Greiner & Hadley Projects at SUNY Buffalo); Series 2010 A, Student Housing Facility RB (INS–AGM)(c)		4.00	%		10/01/16		1,000		1,040,900
Babylon (Town of) Industrial Development Agency (Covanta Babylon, Inc.);
Series 2009 A, Resource Recovery RB		5.00	%		01/01/14		560		601,826
Series 2009 A, Resource Recovery RB		5.00	%		01/01/18		445		479,385
Series 2009 A, Resource Recovery RB		5.00	%		01/01/19		365		390,357
Nassau (County of) Industrial Development Agency (New York Institute of Technology);
Series 2000 A, Ref. Civic Facility RB		5.25	%		03/01/17		930		1,010,306
Series 2000 A, Ref. Civic Facility RB		5.25	%		03/01/19		1,585		1,700,642
New York City Housing Development Corp.;
Series 2009 C-2, MFH RB		3.50	%		05/01/13		1,085		1,087,072
Series 2009 L-2, MFH RB(a)(b)		2.00	%		09/16/13		3,220		3,219,903
New York (City of) Transitional Finance Authority;
Series 2009 S-5, Building Aid RB		5.00	%		01/15/16		2,000		2,234,860
Series 2009 S-5, Building Aid RB		5.00	%		01/15/17		1,875		2,094,694
New York (City of); Subseries 2008 J-1, Unlimited Tax GO Bonds		5.00	%		08/01/17		750		850,590
New York (State of) Dormitory Authority (Mount Sinai Hospital Obligated Group);
Series 2010 A, RB		5.00	%		07/01/19		500		527,155
Series 2010 A, RB		5.00	%		07/01/26		1,160		1,158,074
New York (State of) Dormitory Authority (Mount Sinai School of Medicine of New York University);
Series 2009, RB		5.50	%		07/01/22		2,925		3,124,280
New York (State of) Dormitory Authority (School District Revenue Bond Financing Program); Series 2008 D, RB (INS–AGC)(c)		5.75	%		10/01/24		1,000		1,095,060
New York (State of) Dormitory Authority (St. Lawrence University); Series 2009, RB		5.00	%		07/01/14		2,000		2,153,020
New York (State of) Dormitory Authority (Yeshiva University); Series 2009, RB		5.00	%		09/01/22		2,635		2,855,470
New York (State of) Energy Research & Development Authority (New York State Electric & Gas Corp.);
Series 1994 C, Ref. PCR(a)(b)		3.00	%		06/03/13		4,000		4,026,080
Niagara Falls Bridge Commission; Series 1993 A, Toll Bridge System RB (INS–AGC)(c)		4.00	%		10/01/19		1,000		1,036,200
Yonkers (City of);
Series 2010 A, Unlimited Tax GO Bonds (INS–AGM)(c)		5.00	%		11/15/20		655		708,514
Series 2010 A, Unlimited Tax GO Bonds (INS–AGM)(c)		5.00	%		11/15/22		500		523,595
									31,917,983
North Carolina–0.60%
Charlotte-Mecklenburg Hospital Authority (Carolinas HealthCare System);
Series 2007 A, Ref. Health Care RB		5.00	%		01/15/19		1,000		1,074,110
Series 2009 A, Ref. Health Care RB		5.00	%		01/15/20		3,500		3,766,280

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

23        Invesco Tax-Free Intermediate Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
North Carolina–(continued)
North Carolina (State of) Eastern Municipal Power Agency; Series 2008 C, Power System RB (INS–AGC)(c)		6.00	%		01/01/19	$	330	$	364,742
Oak Island (Town of) (Waste Water);
Series 2008 A, Enterprise System RB (INS–NATL)(c)		5.00	%		06/01/20		1,065		1,122,393
Series 2008 A, Enterprise System RB (INS–NATL)(c)		5.00	%		06/01/23		1,210		1,233,886
									7,561,411
North Dakota–0.16%
Fargo (City of) (MeritCare Obligated Group); Series 2000 A, Health System RB (INS–AGM)(c)		5.60	%		06/01/21		2,000		2,023,760
Ohio–4.95%
Akron (City of);
Series 2009, Ref. & Improvement Waterworks System Mortgage RB (INS–AGC)(c)		5.00	%		03/01/16		2,675		2,998,942
Series 2009, Ref. & Improvement Waterworks System Mortgage RB (INS–AGC)(c)		5.00	%		03/01/18		2,010		2,264,546
Allen (County of) (Catholic Healthcare Partners);
Series 2010 B, Hospital Facilities RB		5.00	%		09/01/16		1,000		1,104,050
Series 2010 B, Hospital Facilities RB		5.00	%		09/01/18		2,000		2,187,880
Series 2010 B, Hospital Facilities RB		5.00	%		09/01/20		2,920		3,120,458
American Municipal Power, Inc. (Hydroelectric); Series 2009 C, RB		5.00	%		02/15/23		2,850		2,920,908
Buckeye Tobacco Settlement Financing Authority;
Series 2007 A-1, Sr. Asset-Backed RB		5.00	%		06/01/12		930		950,302
Series 2007 A-1, Sr. Asset-Backed RB		5.00	%		06/01/16		1,430		1,431,859
Series 2007 A-1, Sr. Asset-Backed RB		5.00	%		06/01/17		1,985		1,955,543
Series 2007 A-2, Sr. Asset-Backed Turbo Term RB		5.38	%		06/01/24		1,595		1,228,182
Cleveland (City of);
Series 2006 A, Airport System RB (INS–AMBAC)(c)		5.25	%		01/01/21		3,980		4,245,983
Series 2009 C, Airport System RB (INS–AGC)(c)		5.00	%		01/01/18		2,000		2,226,700
Series 2009 C, Airport System RB (INS–AGC)(c)		5.00	%		01/01/19		2,000		2,220,740
Series 2009 C, Airport System RB (INS–AGC)(c)		5.00	%		01/01/20		4,000		4,383,760
Series 2009 C, Airport System RB (INS–AGC)(c)		5.00	%		01/01/23		3,000		3,149,580
Series 2009 C, Airport System RB (INS–AGC)(c)		5.00	%		01/01/27		2,000		1,998,780
Franklin (County of) (Nationwide Children’s Hospital); Series 2009, Hospital Improvement RB		5.00	%		11/01/18		1,000		1,083,550
Ohio (State of) (Cleveland Clinic Health System Obligated Group);
Series 2009 B-1, Hospital RB		4.75	%		01/01/20		3,000		3,189,480
Series 2009 B-1, Hospital RB		4.75	%		01/01/21		1,000		1,050,010
Series 2009 B-1, Hospital RB		5.00	%		01/01/22		1,000		1,053,610
Ohio (State of) Air Quality Development Authority (FirstEnergy Generation Corp.);
Series 2009 A, RB		5.70	%		08/01/20		8,120		8,400,790
Series 2009 C, Ref. PCR		5.63	%		06/01/18		3,200		3,417,312
Ohio (State of) Higher Educational Facility Commission (University Hospitals Health System, Inc.); Series 2009 C, Hospital RB(a)(b)		4.88	%		07/15/15		2,525		2,726,318
Ohio (State of); Series 2009 A II, Parks & Recreation Capital Facilities RB		5.00	%		12/01/19		1,825		2,042,139
Toledo (City of) (Special Obligations); Series 2009, City Services Special Assessment RN		4.00	%		06/01/11		1,500		1,507,200
									62,858,622
Oklahoma–1.55%
Cleveland (County of) Justice Authority (Detention Facility); Series 2009 A, Sales Tax RB		5.00	%		03/01/22		1,000		1,036,900
Oklahoma (County of) Finance Authority (Western Heights Public Schools); Series 2009, Educational Facilities Lease RB		4.50	%		09/01/19		2,000		2,112,880
Oklahoma (State of) Development Finance Authority (Oklahoma State System of Higher Education); Series 2009 A, Master Real Property Lease RB		4.00	%		06/01/20		1,000		1,042,620
Oklahoma (State of) Industries Authority (Oklahoma Medical Research Foundation); Series 2008, RB		5.50	%		07/01/29		1,280		1,295,309

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

24        Invesco Tax-Free Intermediate Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Oklahoma–(continued)
Oklahoma (State of) Municipal Power Authority;
Series 2008 A, Power Supply System RB		5.25	%		01/01/18	$	300	$	342,054
Series 2008 A, Power Supply System RB		5.38	%		01/01/19		250		282,262
Series 2008 A, Power Supply System RB		5.88	%		01/01/28		250		267,000
Okmulgee (City of) Municipal Authority; Series 2009 A, Utility System & Sales Tax RB		4.00	%		12/01/19		2,165		2,277,905
Tulsa (City of) Airports Improvement Trust;
Series 2009 A, General Airport RB		4.00	%		06/01/15		670		693,423
Series 2009 A, General Airport RB		5.38	%		06/01/24		1,750		1,764,595
Tulsa (County of) Industrial Authority (Jenks Public Schools); Series 2009, Educational Facilities Lease RB		4.00	%		09/01/14		2,000		2,160,560
Tulsa (County of) Industrial Authority;
Series 2003 A, Capital Improvements RB		4.00	%		05/15/16		5,000		5,375,250
Series 2005 A, Capital Improvements RB		4.00	%		05/15/17		1,000		1,060,470
									19,711,228
Oregon–0.75%
Clackamas (County of) Hospital Facility Authority (Legacy Health System); Series 2009 B, RB(a)(b)		5.00	%		07/15/12		1,000		1,047,970
Lane (County of); Series 2009 A, Full Faith & Credit Limited Tax GO Bonds		4.00	%		11/01/16		1,000		1,087,320
Oregon (State of) Department of Administrative Services; Series 2009 A, State Lottery RB		5.00	%		04/01/28		500		524,210
Oregon (State of) Facilities Authority (Legacy Health System); Series 2010 A, Ref. RB		5.00	%		03/15/16		1,490		1,596,267
Oregon (State of) Facilities Authority (PeaceHealth);
Series 2009 A, Ref. RB		5.00	%		11/01/15		660		740,718
Series 2009 A, Ref. RB		5.00	%		11/01/16		1,880		2,110,243
Oregon (State of) Facilities Authority (Samaritan Health Services); Series 2010 A, Ref. RB		4.00	%		10/01/16		1,000		1,021,600
Salem-Keizer School District No. 24J; Series 2009 B, Unlimited Tax CAB GO Bonds (CEP–Oregon School Bond Guaranty)(d)		0.00	%		06/15/23		2,500		1,387,300
									9,515,628
Pennsylvania–4.61%
Adams (County of) Industrial Development Authority (Gettysburg College); Series 2010, RB		5.00	%		08/15/22		500		524,710
Allegheny (County of) Hospital Development Authority (University of Pittsburgh Medical Center); Series 2010 A, RB		5.00	%		05/15/19		580		634,248
Bethel Park School District; Series 2009, Limited Tax GO Bonds		4.00	%		08/01/17		800		856,808
Delaware (County of) Authority (Villanova University); Series 2010, RB		4.00	%		12/01/16		500		537,060
Erie (County of) Hospital Authority (St. Vincent Health Center); Series 2010 A, RB		4.50	%		07/01/12		600		609,666
Lancaster (County of) Solid Waste Management Authority; Series 2009 B, Resource Recovery System RB		4.00	%		12/15/12		2,000		2,072,560
Pennsylvania (State of) Economic Development Financing Authority (Exelon Generation Co., LLC); Series 2009 A, Ref. Exempt Facilities RB(a)(b)		5.00	%		06/01/12		1,000		1,038,220
Pennsylvania (State of) Economic Development Financing Authority (PPL Electric Utilities Corp.); Series 2008, Ref. PCR		4.00	%		10/01/23		1,000		910,850
Pennsylvania (State of) Higher Educational Facilities Authority (Carnegie Mellon University);
Series 2009, RB		5.00	%		08/01/17		1,000		1,146,240
Series 2009, RB		4.25	%		08/01/19		3,000		3,262,920
Series 2009, RB		5.00	%		08/01/21		775		861,800
Pennsylvania (State of) Higher Educational Facilities Authority (University of Pennsylvania Health System); Series 2008 B, RB		5.00	%		08/15/13		1,100		1,189,936
Pennsylvania (State of) Higher Educational Facilities Authority (University of Pittsburgh Medical Center); Series 2010 E, RB		5.00	%		05/15/21		5,000		5,358,000
Pennsylvania (State of) Turnpike Commission;
Subseries 2008 C-1, Sub. RB (INS–AGC)(c)		6.00	%		06/01/23		500		555,935
Subseries 2009 B, Sub. RB		5.00	%		06/01/21		3,500		3,645,600
Subseries 2009 B, Sub. RB		5.25	%		06/01/24		2,500		2,566,000
Philadelphia (City of);
Series 2008 B, Limited Tax GO Bonds (INS–AGC)(c)		5.75	%		07/15/17		1,000		1,123,560
Series 2008 B, Limited Tax GO Bonds (INS–AGC)(c)		6.00	%		07/15/18		1,000		1,120,920

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

25        Invesco Tax-Free Intermediate Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Pennsylvania–(continued)
Series 2008 B, Limited Tax GO Bonds (INS–AGC)(c)		6.25	%		07/15/23	$	2,000	$	2,197,840
Series 2009 A, Ref. Unlimited Tax GO Bonds (INS–AGC)(c)		4.50	%		08/01/20		2,000		2,088,620
Series 2009 A, Ref. Unlimited Tax GO Bonds (INS–AGC)(c)		5.25	%		08/01/21		2,500		2,763,725
Series 2009 A, Ref. Unlimited Tax GO Bonds (INS–AGC)(c)		5.25	%		08/01/22		5,000		5,420,800
Series 2010 A, Ref. Water & Wastewater RB (INS–AGM)(c)		5.00	%		06/15/19		1,000		1,116,540
Philadelphia School District; Series 2010 C, Ref. Unlimited Tax GO Bonds		5.00	%		09/01/14		1,000		1,081,230
Pittsburgh (City of) Water & Sewer Authority; Series 2008 C-1D, Ref. Sub. Water & Sewer System RB (INS–AGC)(a)(b)(c)		2.63	%		09/01/12		1,000		1,010,940
Pittsburgh School District; Series 2009 A, Limited Tax GO Bonds (INS–AGC)(c)		4.00	%		09/01/19		3,105		3,229,293
Reading (City of); Series 2008, Unlimited Tax GO Bonds (INS–AGM)(c)		5.63	%		11/01/23		1,500		1,603,470
South Fork (Borough of) Municipal Authority (Conemaugh Valley Memorial Hospital); Series 2005 A, Ref. Hospital RB (INS–AGC)(c)		6.00	%		07/01/26		500		527,180
St. Mary Hospital Authority (Catholic Health East);
Series 2010 A, Health System RB		4.00	%		11/15/15		1,445		1,488,321
Series 2010 A, Health System RB		5.00	%		11/15/18		2,645		2,793,728
University of Pittsburgh–Of the Commonwealth System of Higher Education (University Capital);
Series 2002 B, Ref. RB(a)(b)		5.50	%		09/15/13		1,000		1,094,830
Series 2005 A, RB(a)(b)		5.50	%		09/15/13		1,000		1,094,830
West Mifflin Area School District; Series 2009, Limited Tax GO Bonds (INS–AGM)(c)		5.50	%		04/01/24		500		541,015
York (City of) Sewer Authority;
Series 2010, Gtd. Sewer RB (INS–AGC)(c)		5.00	%		12/01/22		750		791,580
Series 2010, Gtd. Sewer RB (INS–AGC)(c)		5.00	%		12/01/23		1,620		1,689,644
									58,548,619
Puerto Rico–0.73%
Puerto Rico (Commonwealth of) Public Buildings Authority; Series 2004 K, Ref. Government Facilities RB (INS–AGM)(c)		5.25	%		07/01/27		2,450		2,407,640
Puerto Rico Sales Tax Financing Corp.;
First Sub. Series 2009 A, RB(a)(e)		5.00	%		08/01/11		3,000		3,059,460
First Sub. Series 2009 A, RB		5.00	%		08/01/19		3,000		3,253,110
First Sub. Series 2010 A, RB		3.38	%		08/01/16		500		510,445
									9,230,655
Rhode Island–1.02%
North Providence (Town of); Series 2010, Deficit Unlimited Tax GO Bonds (INS–AGM)(c)		3.00	%		07/15/12		1,835		1,852,304
Rhode Island Health & Educational Building Corp. (Lifespan Obligated Group);
Series 2006 A, Ref. Hospital Financing RB (INS–AGM)(c)		5.00	%		05/15/15		1,000		1,087,500
Series 2009 A, Hospital Financing RB (INS–AGC)(c)		6.13	%		05/15/27		500		535,210
Rhode Island Health & Educational Building Corp. (Public Schools Financing Program — City of Woonsocket);
Series 2009 E, RB (INS–AGC)(c)		5.00	%		05/15/19		2,145		2,290,216
Series 2009 E, RB (INS–AGC)(c)		5.00	%		05/15/20		1,000		1,054,670
Series 2009 E, RB (INS–AGC)(c)		5.00	%		05/15/22		2,535		2,657,973
Rhode Island Health & Educational Building Corp. (Public Schools Financing Program–Pooled); Series 2007 B, RB (INS–AMBAC)(c)		5.00	%		05/15/21		1,000		917,550
Rhode Island Health & Educational Building Corp. (University of Rhode Island — Auxiliary Enterprise); Series 2009 B, Higher Education Facility RB (INS–AGC)(c)		5.25	%		09/15/29		1,250		1,279,337
Rhode Island (State of) Student Loan Authority; Sr. Series 2009 A, Student Loan Program RB		4.75	%		12/01/15		1,150		1,224,486
									12,899,246
South Carolina–1.85%
Oconee (County of) (Duke Energy Carolinas, LLC); Series 1993, Ref. Pollution Control Facilities RB		3.60	%		02/01/17		1,000		1,020,330

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

26        Invesco Tax-Free Intermediate Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
South Carolina–(continued)
Piedmont (City of) Municipal Power Agency;
Series 2009 A-3, Ref. Electric RB		5.00	%		01/01/16	$	2,150	$	2,351,476
Series 2009 A-4, Ref. Electric RB		5.00	%		01/01/20		2,000		2,156,880
Rock Hill (City of);
Series 2009 C, Ref. Combined Utility System RB (INS–AGC)(c)		4.00	%		01/01/13		2,210		2,323,793
Series 2009 C, Ref. Combined Utility System RB (INS–AGC)(c)		4.00	%		01/01/15		2,405		2,575,057
South Carolina (State of) Education Assistance Authority; Series 2009 I, Student Loan RB		4.40	%		10/01/18		890		930,584
South Carolina (State of) Jobs-Economic Development Authority (AnMed Health);
Series 2010, Ref. Hospital RB		5.00	%		02/01/13		790		835,915
Series 2010, Ref. Hospital RB		5.00	%		02/01/15		1,000		1,084,740
Series 2010, Ref. Hospital RB		5.00	%		02/01/16		1,140		1,240,970
Series 2010, Ref. Hospital RB		5.00	%		02/01/18		1,000		1,072,310
South Carolina (State of) Jobs-Economic Development Authority (Palmetto Health);
Series 2005 A, Ref. Hospital RB (INS–AGM)(c)		4.00	%		08/01/17		1,500		1,510,455
Series 2009, Ref. & Improvement Hospital RB		5.00	%		08/01/15		500		522,245
Series 2009, Ref. & Improvement Hospital RB		5.00	%		08/01/18		500		505,855
South Carolina (State of) Transportation Infrastructure Bank; Series 2004 A, RB (INS–AMBAC)(c)		5.25	%		10/01/22		1,390		1,443,960
Spartanburg (County of) Sanitary Sewer District; Series 2009 B, Ref. Sewer System Conv. RB (INS–AGC)(c)		4.00	%		03/01/16		1,110		1,201,353
Spartanburg Regional Health Services District, Inc.;
Series 2008 A, Ref. Hospital RB (INS–AGC)(c)		4.50	%		04/15/27		1,735		1,613,255
Series 2008 D, Ref. Hospital RB (INS–AGC)(c)		5.25	%		04/15/20		1,000		1,087,700
									23,476,878
South Dakota–0.68%
Rapid City (City of);
Series 2009, Water RB		5.00	%		11/01/21		1,170		1,302,409
Series 2009, Water RB		5.00	%		11/01/24		1,620		1,734,842
Series 2009, Water RB		5.00	%		11/01/25		1,650		1,747,498
South Dakota (State of) Health & Educational Facilities Authority (Regional Health); Series 2010, RB		5.00	%		09/01/21		1,000		1,048,580
South Dakota (State of) Health & Educational Facilities Authority (Sanford Health);
Series 2009, RB		5.00	%		11/01/16		500		544,610
Series 2009, RB		5.00	%		11/01/17		430		465,204
Series 2009, RB		5.00	%		11/01/24		1,000		1,014,700
Series 2009, RB		5.25	%		11/01/29		500		501,690
South Dakota (State of) Housing Development Authority (Homeownership Mortgage); Series 2008 G, RB		5.10	%		05/01/18		250		260,870
									8,620,403
Tennessee–0.67%
Chattanooga (City of) & Hamilton (County of) Hospital Authority (Erlanger Health System); Series 2004, Ref. Hospital RB (INS–AGM)(c)		4.50	%		10/01/16		2,500		2,667,775
Jackson (City of) (Jackson-Madison County General Hospital); Series 2008, Ref. & Improvement Hospital RB		5.25	%		04/01/23		1,000		1,026,130
Sevierville (City of) Public Building Authority; Series 2009, Local Government Public Improvement RB		4.00	%		06/01/14		2,500		2,685,575
Shelby (County of) Health, Educational & Housing Facilities Board (Baptist Memorial Health Care);
Series 2004, RB		5.00	%		09/01/18		500		550,080
Series 2004, RB		5.00	%		09/01/19		500		547,075
Shelby (County of) Health, Educational & Housing Facilities Board (Methodist Healthcare); Series 2004 B, RB (INS–AGM)(c)		5.00	%		09/01/17		1,000		1,099,940
									8,576,575
Texas–9.21%
Austin (City of); Series 2001, Limited Tax GO Ctfs.		5.00	%		09/01/11		1,900		1,945,410
Beaumont Independent School District; Series 2009, School Building Unlimited Tax GO Bonds (INS–AGC)(c)		5.00	%		02/15/24		1,500		1,598,610

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

27        Invesco Tax-Free Intermediate Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Texas–(continued)
Bexar (County of) Metropolitan Water District;
Series 2009, Ref. Waterworks System RB		5.00	%		05/01/16	$	1,295	$	1,449,856
Series 2009, Ref. Waterworks System RB		5.00	%		05/01/19		2,500		2,795,400
Series 2009, Ref. Waterworks System RB		5.00	%		05/01/20		2,500		2,755,150
Series 2009, Ref. Waterworks System RB		5.00	%		05/01/21		2,500		2,720,725
Series 2009, Ref. Waterworks System RB		5.00	%		05/01/22		2,500		2,676,325
Corpus Christi Independent School District; Series 2009, School Building Unlimited Tax GO Bonds		5.00	%		08/15/22		1,100		1,224,894
Dallas & Fort Worth (Cities of) (Dallas/Fort Worth International Airport); Series 2009 A, Ref. Joint RB		4.00	%		11/01/14		1,500		1,585,965
Dallas (County of) Utility & Reclamation District;
Series 2005 A, Ref. Unlimited Tax GO Bonds (INS–AMBAC)(c)		5.00	%		02/15/19		1,200		1,254,408
Series 2005 A, Ref. Unlimited Tax GO Bonds (INS–AMBAC)(c)		5.15	%		02/15/21		3,000		3,107,310
Harris County Cultural Education Facilities Finance Corp. (Baylor College of Medicine); Series 2008 D, Ref. Medical Facilities RB		5.13	%		11/15/23		750		720,480
Harris County Cultural Education Facilities Finance Corp. (St. Luke’s Episcopal Health System);
Series 2009, Ref. RB		5.00	%		02/15/14		2,000		2,172,720
Series 2009, Ref. RB		5.00	%		02/15/17		1,700		1,851,436
Series 2009, Ref. RB		5.00	%		02/15/18		2,000		2,177,260
Series 2009, Ref. RB		5.00	%		02/15/19		1,000		1,084,640
Series 2009, Ref. RB		5.63	%		02/15/25		2,500		2,614,925
Harris County Cultural Education Facilities Finance Corp. (TECO); Series 2009 A, Thermal Utility RB		5.00	%		11/15/19		485		555,034
Harris County Cultural Education Facilities Finance Corp. (Texas Children’s Hospital);
Series 2009, Hospital RB		3.50	%		10/01/13		750		788,767
Series 2009, Hospital RB		5.00	%		10/01/24		1,750		1,786,680
Harris County Cultural Education Facilities Finance Corp. (Texas Medical Center); Series 2009 A, Ref. Special Facilities RB (INS–AGC)(c)		5.00	%		05/15/23		1,500		1,562,115
Harris County Cultural Education Facilities Finance Corp. (The Methodist Hospital System); Series 2009 B-1, Ref. RB(a)(b)		5.00	%		06/01/12		1,630		1,714,483
Harris County Industrial Development Corp. (Deer Park Refining Limited Partnership);
Series 2006, Solid Waste Disposal RB		5.00	%		02/01/23		4,000		4,022,240
Series 2008, Solid Waste Disposal RB		4.70	%		05/01/18		7,220		7,505,623
Harrison County Health Facilities Development Corp. (Good Shepherd Health System); Series 2010, Hospital RB		3.00	%		07/01/12		750		749,197
Houston (City of) (Convention & Entertainment Facilities Department);
Series 2001 A, Ref. Hotel Occupancy Tax & Special RB (INS–AMBAC)(c)		5.50	%		09/01/11		2,500		2,538,325
Series 2001 B, Hotel Occupancy Tax & Special RB (INS–AMBAC)(c)		5.25	%		09/01/11		2,360		2,393,205
Series 2001 B, Hotel Occupancy Tax & Special RB (INS–AMBAC)(c)		5.50	%		09/01/11		1,600		1,624,528
Houston (City of);
Series 2009 A, Ref. Airport System Sr. Lien RB		5.00	%		07/01/15		325		360,484
Series 2009 A, Ref. Airport System Sr. Lien RB		5.00	%		07/01/16		250		279,603
Series 2009 A, Ref. Airport System Sr. Lien RB		5.00	%		07/01/17		340		380,470
Series 2009 A, Ref. Airport System Sr. Lien RB		5.00	%		07/01/18		500		559,005
Series 2009 A, Ref. Airport System Sr. Lien RB		5.00	%		07/01/19		250		275,358
La Vernia Higher Education Finance Corp. (KIPP, Inc.); Series 2009 A, Education RB		5.75	%		08/15/24		365		365,475
Lake Worth (City of); Series 2008, Combination Tax & Revenue Limited Tax GO Ctfs. (INS–AGC)(c)		5.00	%		10/01/27		1,230		1,261,574
Live Oak (City of); Series 2004, Unlimited Tax GO Bonds (INS–NATL)(c)		5.00	%		08/01/16		390		419,348
Love Field Airport Modernization Corp. (Southwest Airlines Co.–Love Field Modernization Program);
Series 2010, Special Facilities RB		5.25	%		11/01/40		500		447,635
Lower Colorado River Authority;
Series 1999 A, Ref. RB (INS–AGM)(c)		5.88	%		05/15/14		415		416,776
Series 2009, Ref. RB		5.25	%		05/15/29		500		512,700
Lubbock Health Facilities Development Corp. (St. Joseph Health System); Series 2008 A, Ref. RB(a)(b)		3.05	%		10/16/12		1,000		1,018,020

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

28        Invesco Tax-Free Intermediate Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Texas–(continued)
Lufkin Health Facilities Development Corp. (Memorial Health System of East Texas);
Series 2009, Ref. & Improvement RB		5.00	%		02/15/13	$	1,675	$	1,710,275
Series 2009, Ref. & Improvement RB		5.00	%		02/15/14		1,270		1,303,109
Series 2009, Ref. & Improvement RB		5.50	%		02/15/15		1,875		1,956,019
Series 2009, Ref. & Improvement RB		5.50	%		02/15/16		1,505		1,551,685
Series 2009, Ref. & Improvement RB		5.50	%		02/15/17		2,100		2,139,333
Mansfield (City of); Series 2008, Limited Tax GO Ctfs.		6.13	%		02/15/26		500		545,795
North Fort Bend Water Authority; Series 2009, Water System RB (INS–AGC)(c)		5.00	%		12/15/24		2,000		2,085,880
North Texas Municipal Water District; Series 2001, Water System RB (INS–NATL)(c)		5.00	%		09/01/11		1,040		1,064,336
North Texas Tollway Authority;
Series 2005 C, Dallas North Tollway System RB		5.38	%		01/01/21		2,000		2,140,340
Series 2008 E-3, Ref. First Tier System RB(a)(b)		5.75	%		01/01/16		2,410		2,672,666
Series 2008 H-2, Ref. First Tier System RB(a)(b)		5.00	%		01/01/13		3,380		3,560,796
Series 2008 L-2, Ref. First Tier System RB(a)(b)		6.00	%		01/01/13		1,000		1,076,380
Series 2009 A, First Tier System RB		5.00	%		01/01/13		2,445		2,586,517
Parker (County of); Series 2009, Road Unlimited Tax GO Bonds (INS–AGC)(c)		5.25	%		02/15/26		1,000		1,053,480
Sachse (City of); Series 2009, Ref. & Improvement Limited Tax GO Bonds (INS–AGC)(c)		5.00	%		02/15/24		500		525,965
San Antonio (City of);
Series 1994 A, Ref. Electric & Gas Systems RB(e)		5.00	%		02/01/12		35		36,484
Series 1994 A, Ref. Electric & Gas Systems RB		5.00	%		02/01/12		2,340		2,439,005
Tarrant County Cultural Education Facilities Finance Corp. (Hendrick Medical Center);
Series 2009 A, Hospital RB (INS–AGC)(c)		3.75	%		09/01/14		1,000		1,039,140
Series 2009 A, Hospital RB (INS–AGC)(c)		5.00	%		09/01/13		500		535,060
Series 2009 A, Hospital RB (INS–AGC)(c)		5.00	%		09/01/22		595		605,228
Series 2009 A, Hospital RB (INS–AGC)(c)		5.00	%		09/01/24		1,280		1,283,686
Tarrant County Cultural Education Facilities Finance Corp. (Texas Health Resources System); Series 2007 A, Ref. RB		5.00	%		02/15/19		4,405		4,687,052
Tarrant County Health Facilities Development Corp. (Cook Children’s Medical Center);
Series 2010 A, Hospital RB		5.00	%		12/01/13		1,000		1,090,570
Series 2010 A, Hospital RB		5.00	%		12/01/15		525		589,281
Series 2010 A, Hospital RB		5.00	%		12/01/17		1,250		1,376,925
Texas Woman’s University; Series 2008, Financing System RB		5.13	%		07/01/26		1,500		1,520,040
Trinity River Authority (Tarrant County Water); Series 2005, Ref. & Improvement RB (INS–NATL)(c)		5.00	%		02/01/24		4,240		4,451,152
Uptown Development Authority (Infrastructure Improvement Facilities);
Series 2009, Tax Increment Allocation Contract RB		5.00	%		09/01/13		1,160		1,218,232
Series 2009, Tax Increment Allocation Contract RB		5.00	%		09/01/22		900		867,195
Series 2009, Tax Increment Allocation Contract RB		5.10	%		09/01/23		1,455		1,396,509
Series 2009, Tax Increment Allocation Contract RB		5.38	%		09/01/25		450		431,834
West Harris (County of) Regional Water Authority;
Series 2005, Water System RB (INS–AGM)(c)		5.00	%		12/15/17		1,000		1,096,760
Series 2009, Water System RB		5.00	%		12/15/16		1,000		1,119,660
									117,028,548
Utah–0.46%
Intermountain Power Agency; Series 2009 B, Ref. Sub. Power Supply RB		4.00	%		07/01/18		1,945		2,009,729
Local Building Authority of Salt Lake Valley Fire Service Area; Series 2008, Lease RB		5.00	%		04/01/22		500		536,175
Riverton (City of) (IHC Health Services, Inc.);
Series 2009, Hospital RB		5.00	%		08/15/15		625		700,425
Series 2009, Hospital RB		5.00	%		08/15/18		1,310		1,457,899

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

29        Invesco Tax-Free Intermediate Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Utah–(continued)
Tooele County School District; Series 2001, Unlimited Tax GO School Building Bonds (CEP–Utah School Bond Guaranty Program)		4.50	%		06/01/11	$	1,075	$	1,086,664
									5,790,892
Vermont–0.08%
Vermont (State of) Educational & Health Buildings Financing Agency (Fletcher Allen Heath Care); Series 2004 B, Hospital RB (INS–AGM)(c)		5.00	%		12/01/22		1,000		1,026,300
Virgin Islands–0.97%
Virgin Islands (Government of) Public Finance Authority (Virgin Islands Matching Fund Loan Notes–Diageo USVI, Inc.); Series 2009 A, Sub. Special Limited Obligation RB		6.75	%		10/01/19		1,500		1,614,270
Virgin Islands (Government of) Public Finance Authority (Virgin Islands Matching Fund Loan Notes);
Series 2009 A-1, Ref. Sr. Lien Capital Projects RB		4.13	%		10/01/18		1,875		1,867,687
Series 2009 B, Ref. Sr. Lien RB		5.00	%		10/01/15		1,000		1,057,950
Series 2009 B, Ref. Sr. Lien RB		5.00	%		10/01/16		1,000		1,061,040
Series 2009 B, Ref. Sr. Lien RB		5.00	%		10/01/17		1,000		1,058,180
Series 2009 B, Ref. Sr. Lien RB		5.00	%		10/01/18		1,000		1,052,500
Series 2009 B, Ref. Sr. Lien RB		5.00	%		10/01/25		500		476,805
Series 2010 A, Sr. Lien Working Capital RB		5.00	%		10/01/15		500		539,685
Series 2010 A, Sr. Lien Working Capital RB		5.00	%		10/01/16		345		374,384
Series 2010 B, Sub. Lien Working Capital RB		5.00	%		10/01/25		750		711,953
Series 2010 B, Sub. Lien Working Capital RB		5.25	%		10/01/29		500		474,930
Virgin Islands (Government of) Water & Power Authority;
Series 2010 A, Ref. Electric System RB		4.00	%		07/01/14		1,000		1,026,120
Series 2010 B, Electric System RB (INS–AGM)(c)		5.00	%		07/01/22		1,000		1,025,450
									12,340,954
Virginia–0.68%
Chesterfield (County of) Economic Development Authority (Virginia Electric & Power Co.); Series 2009 A, Ref. PCR		5.00	%		05/01/23		500		521,430
Smyth (County of) Industrial Development Authority (Mountain States Health Alliance);
Series 2010 B, Ref. Hospital RB		5.00	%		07/01/15		1,095		1,149,761
Series 2010 B, Ref. Hospital RB		5.00	%		07/01/16		2,090		2,169,148
Series 2010 B, Ref. Hospital RB		5.00	%		07/01/18		1,255		1,281,983
Virginia (State of) Resources Authority (Clean Water State Revolving Fund); Sub. Series 2008, RB		5.00	%		10/01/29		1,315		1,386,667
York (County of) Economic Development Authority (Virginia Electric & Power Co.); Series 2009 A, Ref. PCR(a)(b)		4.05	%		05/01/14		2,000		2,094,120
									8,603,109
Washington–1.93%
Clark (County of) Public Utility District No. 1;
Series 2009, Ref. Electric System RB		5.00	%		01/01/26		500		503,840
Series 2009, Ref. Electric System RB		5.00	%		01/01/27		215		215,540
Series 2009, Ref. Electric System RB		5.00	%		01/01/28		300		298,629
Cowlitz (County of) (Cowlitz Sewer Operating Board–Wastewater Treatment); Series 2002, Ref. Special Sewer RB (INS–NATL)(c)		5.50	%		11/01/19		2,500		2,727,075
Energy Northwest (No. 3); Series 2001 A, Ref. Electric RB (INS–AGM)(c)		5.50	%		07/01/11		2,500		2,544,400
King (County of) Housing Authority (YWCA Family Village at Issaquah–Phase II); Series 2009, Housing RB		2.40	%		01/01/13		1,450		1,455,988
Snohomish (County of);
Series 2001, Limited Tax GO Bonds(e)		5.25	%		12/01/11		300		310,764
Series 2001, Limited Tax GO Bonds(e)		5.25	%		12/01/11		2,385		2,473,817
Washington (State of) Health Care Facilities Authority (Highline Medical Center); Series 2008, Mortgage RB (CEP–FHA)		5.25	%		08/01/23		985		1,017,338
Washington (State of) Health Care Facilities Authority (MultiCare Health System); Series 2008 A, RB (INS–AGC)(c)		5.75	%		08/15/29		450		464,432

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

30        Invesco Tax-Free Intermediate Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Washington–(continued)
Washington (State of) Higher Education Facilities Authority (Gonzaga University);
Series 2009, Ref. RB		5.38	%		04/01/20	$	1,050	$	1,130,871
Series 2010 A, Ref. RB		4.50	%		04/01/16		3,095		3,296,051
Series 2010 A, Ref. RB		4.50	%		04/01/17		2,725		2,877,845
Series 2010 A, Ref. RB		5.00	%		04/01/15		2,955		3,201,624
Series 2010 A, Ref. RB		5.00	%		04/01/19		1,810		1,940,465
									24,458,679
West Virginia–0.18%
West Virginia (State of) Hospital Finance Authority (Charleston Area Medical Center, Inc.);
Series 2009 A, Ref. & Improvement RB		5.00	%		09/01/13		1,000		1,050,850
West Virginia (State of) Hospital Finance Authority (West Virginia University Hospitals, Inc.);
Series 2003 D, Improvement RB (INS–AGM)(c)		5.38	%		06/01/28		1,200		1,223,520
									2,274,370
Wisconsin–1.26%
Manitowoc (City of); Series 2009, Ref. Electric Power System RB (INS–AGC)(c)		4.25	%		10/01/15		1,510		1,632,114
Wisconsin (State of) Health & Educational Facilities Authority (Aurora Health Care, Inc.);
Series 2009 B, RB(a)(b)		4.75	%		08/15/14		1,000		1,057,830
Series 2009 B, RB(a)(b)		5.13	%		08/15/16		2,100		2,253,447
Wisconsin (State of) Health & Educational Facilities Authority (Froedtert & Community Health, Inc. Obligated Group);
Series 2009 C, RB		4.00	%		04/01/15		2,060		2,174,907
Series 2009 C, RB		5.00	%		04/01/19		750		817,620
Series 2009 C, RB		5.00	%		04/01/20		750		800,850
Wisconsin (State of) Health & Educational Facilities Authority (Marquette University);
Series 2008 B-1, Ref. RB		3.50	%		10/01/16		1,005		1,040,366
Series 2008 B-1, Ref. RB		3.75	%		10/01/18		880		900,557
Series 2008 B-3, RB		3.75	%		10/01/18		1,125		1,151,280
Series 2008 B-3, RB		4.00	%		10/01/19		1,145		1,177,025
Wisconsin (State of) Health & Educational Facilities Authority (ThedaCare, Inc.); Series 2005, RB (INS–AMBAC)(c)		5.00	%		12/15/16		855		898,562
Wisconsin (State of); Series 1993 2, Ref. Unlimited Tax GO Bonds		5.13	%		11/01/11		2,000		2,064,440
									15,968,998
Wyoming–0.51%
Campbell (County of) Hospital District (Campbell County Memorial Hospital);
Series 2009, Hospital RB		3.00	%		12/01/12		1,000		1,021,500
Series 2009, Hospital RB		4.00	%		12/01/15		1,285		1,341,244
Series 2009, Hospital RB		5.00	%		12/01/17		1,170		1,240,820
Series 2009, Hospital RB		5.00	%		12/01/18		545		570,272
Sweetwater (County of) (Idaho Power Co.); Series 2006, Ref. PCR		5.25	%		07/15/26		1,200		1,240,620
Wyoming (State of) Municipal Power Agency; Series 2008 A, Power Supply System RB		5.38	%		01/01/25		1,000		1,050,070
									6,464,526
TOTAL INVESTMENTS(f)–98.38% (Cost $1,222,437,515)									1,249,463,911
OTHER ASSETS LESS LIABILITIES–1.62%									20,607,936
NET ASSETS–100.00%								$	1,270,071,847

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

31        Invesco Tax-Free Intermediate Fund

Investment Abbreviations:

AGC	– Assured Guaranty Corp.
AGM	– Assured Guaranty Municipal Corp.
AMBAC	– American Municipal Bond Assurance Corp.*
BHAC	– Berkshire Hathaway Assurance Corp.
CAB	– Capital Appreciation Bonds
CEP	– Credit Enhancement Provider
CFC	– Customer Facility Charge
CIFG	– CIFG Assurance North America, Inc.
Conv.	– Convertible
COP	– Certificates of Participation
Ctfs.	– Certificates
FHA	– Federal Housing Administration
FIRST	– Fund for Infrastructure, Roads, Schools & Transit
GO	– General Obligation
INS	– Insurer
Jr.	– Junior
MFH	– Multi-Family Housing
NATL	– National Public Finance Guarantee Corp.
PCR	– Pollution Control Revenue Bonds
RAB	– Revenue Anticipation Bonds
RAC	– Revenue Anticipation Certificates
RB	– Revenue Bonds
Ref	– Refunding
RN	– Revenue Notes
Sec.	– Secured
SGI	– Syncora Guarantee, Inc.
Sr.	– Senior
Sub.	– Subordinated

Notes to Schedule of Investments:

(a)	Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put.
(b)	Interest rate is redetermined periodically. Rate shown is the rate in effect on February 28, 2011.
(c)	Principal and/or interest payments are secured by the bond insurance company listed.
(d)	Zero coupon bond issued at a discount.
(e)	Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral.
(f)	This table provides a listing of those entities that have either issued, guaranteed, backed or otherwise enhanced the credit quality of more than 5% of the securities held in the portfolio. In instances where the entity has guaranteed, backed or otherwise enhanced the credit quality of a security, it is not primarily responsible for the issuer’s obligations but may be called upon to satisfy the issuer’s obligations.

Entities	Percentage
Assured Guaranty Corp.		15	.1%
Assured Guaranty Municipal Corp.		14	.1

^* AMBAC filed for Bankruptcy on November 8, 2010.

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

32        Invesco Tax-Free Intermediate Fund

Statement of Assets and Liabilities

February 28, 2011

Assets:
Investments, at value (Cost $1,222,437,515)	$	1,249,463,911
Cash		1,748,075
Receivable for:
Investments sold		8,599,813
Fund shares sold		1,691,900
Interest		14,811,513
Investment for trustee deferred compensation and retirement plans		53,918
Other assets		28,752
Total assets		1,276,397,882
Liabilities:
Payable for:
Fund shares reacquired		4,595,840
Dividends		1,107,839
Accrued fees to affiliates		441,741
Accrued other operating expenses		67,327
Trustee deferred compensation and retirement plans		113,288
Total liabilities		6,326,035
Net assets applicable to shares outstanding	$	1,270,071,847
Net assets consist of:
Shares of beneficial interest	$	1,236,540,071
Undistributed net investment income		8,173,984
Undistributed net realized gain (loss)		(1,668,604	)
Unrealized appreciation		27,026,396
	$	1,270,071,847
Net Assets:
Class A	$	1,033,794,816
Class A2	$	96,998,016
Class Y	$	131,883,978
Institutional Class	$	7,395,037
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Class A		92,980,191
Class A2		8,721,042
Class Y		11,867,514
Institutional Class		665,636
Class A:
Net asset value and offering price per share	$	11.12
Maximum offering price per share (Net asset value of $11.12 divided by 97.50%)	$	11.41
Class A2:
Net asset value and offering price per share	$	11.12
Maximum offering price per share (Net asset value of $11.12 divided by 99.00%)	$	11.23
Class Y:
Net asset value and offering price per share	$	11.11
Institutional Class:
Net asset value and offering price per share	$	11.11

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

33        Invesco Tax-Free Intermediate Fund

Statement of Operations

For the year ended February 28, 2011

Investment income:
Interest	$	61,696,526
Expenses:
Advisory fees		3,995,759
Administrative services fees		390,974
Custodian fees		86,783
Distribution fees — Class A		3,371,673
Transfer agent fees — A, A2 and Y		708,446
Transfer agent fees — Institutional		2,421
Trustees’ and officers’ fees and benefits		61,076
Other		445,801
Total expenses		9,062,933
Less: Expenses reimbursed and expense offset arrangement(s)		(916	)
Net expenses		9,062,017
Net investment income		52,634,509
Realized and unrealized gain (loss) from:
Net realized gain (loss) from investment securities		(1,202,954	)
Change in net unrealized appreciation (depreciation) of investment securities		(18,923,733	)
Net realized and unrealized gain (loss)		(20,126,687	)
Net increase in net assets resulting from operations	$	32,507,822

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

34        Invesco Tax-Free Intermediate Fund

Statement of Changes in Net Assets

For the year ended February 28, 2011, the eleven months ended February 28, 2010, and the year

ended March 31, 2009

				Eleven months
				ended
	February 28,			February 28,			March 31,
	2011			2010			2009
Operations:
Net investment income	$	52,634,509		$	30,483,497		$	12,875,673
Net realized gain (loss)		(1,202,954	)		30,740			(430,404	)
Change in net unrealized appreciation (depreciation)		(18,923,733	)		40,355,636			52,804
Net increase in net assets resulting from operations		32,507,822			70,869,873			12,498,073
Distributions to shareholders from net investment income:
Class A		(36,428,800	)		(26,106,489	)		(4,711,061	)
Class A2		(3,078,278	)		(3,831,138	)		(6,057,714	)
Class Y		(4,820,679	)		(1,864,363	)		(713,178	)
Institutional Class		(180,861	)		(111,331	)		(49,518	)
Total distributions from net investment income		(44,508,618	)		(31,913,321	)		(11,531,471	)
Distributions to shareholders from net realized gains:
Class A		—			—			(75,207	)
Class A2		—			—			(64,720	)
Class Y		—			—			(19,457	)
Institutional Class		—			—			(572	)
Total distributions from net realized gains		—			—			(159,956	)
Share transactions–net:
Class A		(509,805,901	)		1,296,582,949			185,907,926
Class A2		(11,559,102	)		(11,967,935	)		(49,919,830	)
Class Y		26,196,482			75,525,830			28,736,255
Institutional Class		(467,981	)		5,503,854			1,450,963
Net increase (decrease) in net assets resulting from share transactions		(495,636,502	)		1,365,644,698			166,175,314
Net increase (decrease) in net assets		(507,637,298	)		1,404,601,250			166,981,960
Net assets:
Beginning of year		1,777,709,145			373,107,895			206,125,935
End of year (includes undistributed net investment income of $8,173,984, $48,093 and $1,446,176, respectively)	$	1,270,071,847		$	1,777,709,145		$	373,107,895

Notes to Financial Statements

February 28, 2011

NOTE 1—Significant Accounting Policies

Invesco Tax-Free Intermediate Fund (the “Fund”) is a series portfolio of AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of eleven separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class.

  The Fund’s investment objective is federal tax-exempt current income.

  The Fund currently consists of four different classes of shares: Class A (formerly Class A3), Class A2 (formerly Class A), Class Y and Institutional Class. As of the close of business on October 30, 2002, Class A2 shares are closed to new investors. Class A and Class A2 shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class Y and Institutional Class shares are sold at net asset value.

35        Invesco Tax-Free Intermediate Fund

  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.
	Securities are fair valued using an evaluated quote provided by an independent pricing service approved by the Board of Trustees. 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, yield, quality, coupon rate, maturity, type of issue, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Securities with a demand feature exercisable within one to seven days are valued at par. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and principal payments.
	Securities for which market quotations either are not readily available or are 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. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on transferability or disposition; trading in similar securities by the same issuer or comparable companies; relevant political, economic or issuer specific news; and other relevant factors under the circumstances.
	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 is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized 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 Statement of Changes in Net Assets, or the net investment income per share and 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 income are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable and tax-exempt 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.
	In addition, the Fund intends to invest in such municipal securities to allow it to qualify to pay shareholders “exempt-interest dividends”, as defined in the Internal Revenue Code.
	The Fund files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally the Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Expenses — Fees provided for under the Rule 12b-1 plan of a particular class of the Fund are charged to the operations of such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses attributable to the Institutional Class are charged to such class. Transfer agency fees and expenses and other shareholder recordkeeping fees and expenses relating to all other classes are allocated among those classes based on relative net assets. All other expenses are allocated among the classes based on relative net assets.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

36        Invesco Tax-Free Intermediate Fund

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 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.	Other Risks — The value of, payment of interest on, repayment of principal for and the ability to sell a municipal security may be affected by constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives and the economics of the regions in which the issuers are located.
	Since, many municipal securities are issued to finance similar projects, especially those relating to education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal securities market and a Fund’s investments in municipal securities.
	There is some risk that a portion or all of the interest received from certain tax-free municipal securities could become taxable as a result of determinations by the Internal Revenue Service.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $500 million		0	.30%
Over $500 million up to and including $1 billion		0	.25%
Over $1 billion		0	.20%

  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 Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  At the request of the Trustees of the Trust, Invesco Ltd. agreed to reimburse expenses incurred by the Fund in connection with market timing matters in the Invesco Funds, which may include legal, audit, shareholder reporting, communications and trustee expenses. These expenses along with the related expense reimbursement are included in the Statement of Operations. For the year ended February 28, 2011, Invesco Ltd. reimbursed expenses of the Fund in the amount of $283.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. For the year ended February 28, 2011, expenses incurred under the agreement are shown in the Statement of Operations as administrative services fees.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. For the year ended February 28, 2011, expenses incurred under the agreement are shown in the Statement of Operations as transfer agency fees.

  The Trust has entered into master distribution agreements with Invesco Distributors, Inc. (“IDI”) to serve as the distributor for the Class A, Class A2, Class Y and Institutional Class shares of the Fund. The Trust has adopted plans pursuant to Rule 12b-1 under the 1940 Act with respect to the Fund’s Class A shares (collectively the “Plans”). 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 Class A shares. Of the Rule 12b-1 payment, up to 0.25% of the average daily net assets of the Class A shares may be paid to furnish continuing personal shareholder services to customers who purchase and own Class A shares of the Fund. Any amounts not paid as a service fee under the Plan would constitute an asset-based sales charge. Rules of the Financial Industry Regulatory Authority (“FINRA”) also impose a cap on the total sales charges, including asset-based sales charges that may be paid by any class of shares of the Fund. Pursuant to the Plans, for the year ended February 28, 2011, the expenses incurred under the Plan are shown on the Statement of Operations as distribution fees.

  Front-end sales commissions and CDSC (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A and Class A2 shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the year ended February 28, 2011, IDI advised the Fund that IDI retained $179,769 and $1,414 in front-end sales commissions from the sale of Class A and Class A2 shares, respectively. Also, IADI retained $28,534 and $0 from Class A and Class A2 shares, respectively for CDSC imposed upon redemptions by shareholders.

  Certain officers and trustees of the Trust are officers and directors of Invesco, 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

37        Invesco Tax-Free Intermediate Fund

(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 February 28, 2011. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the year ended February 28, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Municipal Obligations	$	—	$	1,249,463,911	$	—	$	1,249,463,911

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 year ended February 28, 2011, the Fund engaged in securities sales of $539,515, which did not result in any net realized gains (losses).

NOTE 5—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the year ended February 28, 2011, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $633.

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 are eligible to participate in a retirement plan that provides 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.

  During the year ended February 28, 2011, the Fund paid legal fees of $6,721 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust.

NOTE 7—Cash Balances

The Fund may borrow for leveraging in an amount up to 5% of the Fund’s total assets (excluding the amount borrowed) at the time the borrowing is made. In doing so, the Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The Bank of New York Mellon, the custodian bank. 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. A Fund may not purchase additional securities when any borrowings from banks exceeds 5% of the Fund’s total assets.

38        Invesco Tax-Free Intermediate Fund

NOTE 8—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Year Ended February 28, 2011, Eleven months ended February 28, 2010 and Year ended March 31, 2009:

	2011		2010		2009
Ordinary income	$	83,302	$	24,033	$	—
Ordinary income- Tax exempt		44,425,316		31,889,288		11,535,396
Long-term capital gain		—		—		156,031
Total distributions	$	44,508,618	$	31,913,321	$	11,691,427

Tax Components of Net Assets at Period-End:

	2011
Undistributed ordinary income- Tax exempt	$	8,280,846
Net unrealized appreciation — investments		27,026,396
Temporary book/tax differences		(106,862	)
Post-October deferrals		(1,296,591	)
Capital loss carryforward		(372,013	)
Shares of beneficial interest		1,236,540,071
Total net assets	$	1,270,071,847

  The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

  The Fund utilized $93,638 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Fund has a capital loss carryforward as of February 28, 2011 which expires as follows:

	Capital Loss
Expiration	Carryforward*
February 28, 2017	$	176,146
February 28, 2018		195,867
Total capital loss carryforward	$	372,013

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

NOTE 9—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the year ended February 28, 2011 was $287,217,829 and $495,290,885, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	31,798,025
Aggregate unrealized (depreciation) of investment securities		(4,771,629	)
Net unrealized appreciation of investment securities	$	27,026,396
Cost of investments is the same for tax and financial statement purposes.

39        Invesco Tax-Free Intermediate Fund

NOTE 10—Share Information

	Summary of Share Activity
	Year ended						Eleven months ended						Year ended
	February 28, 2011(a)						February 28, 2010(b)						March 31, 2009(b)
	Shares			Amount			Shares			Amount			Shares			Amount
Sold:
Class A		29,111,924		$	327,753,888			153,718,083		$	1,693,613,564			24,041,565		$	255,830,915
Class A2		933,334			10,515,835			1,288,021			14,124,433			1,958,933			20,915,557
Class Y(c)		16,259,700			182,567,330			9,771,916			107,429,180			3,779,870			39,435,685
Institutional Class		906,922			10,145,242			720,191			7,959,473			200,126			2,117,885
Issued as reinvestment of dividends:
Class A		2,550,373			28,730,987			1,905,176			21,064,987			363,056			3,838,583
Class A2		153,113			1,724,713			174,958			1,919,802			232,541			2,460,308
Class Y		252,987			2,860,122			59,251			643,144			11,451			121,044
Institutional Class		12,689			142,757			8,799			96,856			4,324			45,765
Reacquired:
Class A(c)		(77,420,993	)		(866,290,776	)		(37,835,905	)		(418,095,602	)		(6,990,938	)		(73,761,572	)
Class A2(c)		(2,130,556	)		(23,799,650	)		(2,559,222	)		(28,012,170	)		(6,966,468	)		(73,295,695	)
Class Y		(14,249,554	)		(159,230,970	)		(3,010,923	)		(32,546,494	)		(1,007,184	)		(10,820,474	)
Institutional Class		(968,656	)		(10,755,980	)		(233,317	)		(2,552,475	)		(67,711	)		(712,687	)
Net increase (decrease) in share activity		(44,588,717	)	$	(495,636,502	)		124,007,028		$	1,365,644,698			15,559,565		$	166,175,314

(a)	There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 65% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which is considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, distribution, third party record keeping and account servicing. The Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.
(b)	Effective February 1, 2010, the Fund’s former Class A and Class A3 shares were renamed Class A2 and Class A shares, respectively.
(c)	Effective upon the commencement date of Class Y shares, October 3, 2008, the following shares were converted from Class A and Class A2 shares into Class Y shares of the Fund:

Class	Shares			Amount
Class Y		3,420,676		$	35,643,445
Class A		(188,179	)		(1,960,829	)
Class A2		(3,232,497	)		(33,682,616	)

40        Invesco Tax-Free Intermediate Fund

NOTE 11—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

																											Ratio of			Ratio of
						Net gains																					expenses			expenses
						(losses) on																					to average			to average net			Ratio of net
	Net asset					securities					Dividends			Distributions													net assets			assets without			investment
	value,		Net			(both			Total from		from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income to
	beginning		investment			realized and			investment		investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			average			Portfolio
	of period		income			unrealized)			operations		income			gains			Distributions			of period		Return(a)			(000s omitted)		absorbed			absorbed			net assets			turnover(b)
Class A
Year ended 02/28/11	$	11.19	$	0.36	(c)	$	(0.13	)	$	0.23	$	(0.30	)	$	—		$	(0.30	)	$	11.12		2.10	%	$	1,033,795		0.60	%(d)		0.60	%(d)		3.20	%(d)		18	%
Eleven months ended 02/28/10		10.72		0.33	(c)		0.49			0.82		(0.35	)		—			(0.35	)		11.19		7.80			1,552,931		0.63	(e)		0.63	(e)		3.23	(e)		8
Year ended 03/31/09		10.70		0.46	(c)		(0.02	)		0.44		(0.41	)		(0.01	)		(0.42	)		10.72		4.18			224,508		0.69			0.69			4.32			22
Year ended 03/31/08		10.76		0.43	(c)		0.02			0.45		(0.43	)		(0.08	)		(0.51	)		10.70		4.24			37,865		0.73			0.73			3.93			19
Year ended 03/31/07		10.92		0.46			(0.12	)		0.34		(0.45	)		(0.05	)		(0.50	)		10.76		3.23			38,156		0.75			0.75			3.99			11
Year ended 03/31/06		11.21		0.42			(0.24	)		0.18		(0.47	)		—			(0.47	)		10.92		1.57			128,946		0.73			0.73			3.89			9
Class A2
Year ended 02/28/11		11.20		0.39	(c)		(0.14	)		0.25		(0.33	)		—			(0.33	)		11.12		2.26			96,998		0.35	(d)		0.35	(d)		3.45	(d)		18
Eleven months ended 02/28/10		10.72		0.35	(c)		0.51			0.86		(0.38	)		—			(0.38	)		11.20		8.14			109,342		0.38	(e)		0.38	(e)		3.48	(e)		8
Year ended 03/31/09		10.70		0.48	(c)		(0.02	)		0.46		(0.43	)		(0.01	)		(0.44	)		10.72		4.44			116,422		0.44			0.44			4.57			22
Year ended 03/31/08		10.76		0.45	(c)		0.02			0.47		(0.45	)		(0.08	)		(0.53	)		10.70		4.50			167,381		0.48			0.48			4.18			19
Year ended 03/31/07		10.92		0.46			(0.09	)		0.37		(0.48	)		(0.05	)		(0.53	)		10.76		3.49			145,563		0.50			0.50			4.24			11
Year ended 03/31/06		11.21		0.47			(0.26	)		0.21		(0.50	)		—			(0.50	)		10.92		1.87			194,526		0.46			0.46			4.16			9
Class Y
Year ended 02/28/11		11.19		0.39	(c)		(0.14	)		0.25		(0.33	)		—			(0.33	)		11.11		2.26			131,884		0.35	(d)		0.35	(d)		3.45	(d)		18
Eleven months ended 02/28/10		10.72		0.35	(c)		0.50			0.85		(0.38	)		—			(0.38	)		11.19		8.05			107,447		0.38	(e)		0.38	(e)		3.48	(e)		8
Year ended 03/31/09(f)		10.42		0.24	(c)		0.28			0.52		(0.21	)		(0.01	)		(0.22	)		10.72		5.01			29,834		0.45	(e)		0.45	(e)		4.56	(e)		22
Institutional Class
Year ended 02/28/11		11.18		0.39	(c)		(0.13	)		0.26		(0.33	)		—			(0.33	)		11.11		2.36			7,395		0.35	(d)		0.35	(d)		3.45	(d)		18
Eleven months ended 02/28/10		10.70		0.35	(c)		0.51			0.86		(0.38	)		—			(0.38	)		11.18		8.14			7,990		0.37	(e)		0.37	(e)		3.49	(e)		8
Year ended 03/31/09		10.69		0.48	(c)		(0.03	)		0.45		(0.43	)		(0.01	)		(0.44	)		10.70		4.28			2,344		0.50			0.50			4.51			22
Year ended 03/31/08		10.75		0.45	(c)		0.02			0.47		(0.45	)		(0.08	)		(0.53	)		10.69		4.46			879		0.53			0.53			4.13			19
Year ended 03/31/07		10.92		0.46			(0.10	)		0.36		(0.48	)		(0.05	)		(0.53	)		10.75		3.43			3,215		0.52			0.52			4.22			11
Year ended 03/31/06		11.21		0.45			(0.24	)		0.21		(0.50	)		—			(0.50	)		10.92		1.91			46,992		0.41			0.41			4.21			9

(a)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
(b)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(c)	Calculated using average shares outstanding.
(d)	Ratios are based on average daily net assets (000’s omitted) of $1,348,669, $104,081, $163,998 and $6,131 for Class A, Class A2, Class Y and Institutional Class shares, respectively.
(e)	Annualized.
(f)	Commencement date of October 3, 2008 for Class Y shares.

41        Invesco Tax-Free Intermediate Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds) and Shareholders of

Invesco Tax-Free Intermediate Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Tax-Free Intermediate Fund (formerly known as AIM Tax-Free Intermediate Fund; one of the funds constituting AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds), hereafter referred to as the “Fund”) at February 28, 2011, the results of its operations for the year then ended, the changes in its net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at February 28, 2011 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PRICEWATERHOUSECOOPERS LLP

April 21, 2011

Houston, Texas

42        Invesco Tax-Free Intermediate Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2010 through February 28, 2011.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

  Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions, and redemption fees, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

							HYPOTHETICAL
			ACTUAL				(5% annual return before expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(09/01/10)		(02/28/11)1		Period2		(02/28/11)		Period2		Ratio
A	$	1,000.00	$	973.40	$	2.89	$	1,021.87	$	2.96		0.59	%
A2		1,000.00		973.80		1.66		1,023.11		1.71		0.34
Y		1,000.00		973.70		1.66		1,023.11		1.71		0.34
Institutional		1,000.00		973.70		1.76		1,023.01		1.81		0.36

1	The actual ending account value is based on the actual total return of the Fund for the period September 1, 2010 through February 28, 2011, 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.

43        Invesco Tax-Free Intermediate Fund

Tax Information

Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.

  The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.

  The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended February 28, 2011:

Federal and State Income Tax
Tax-Exempt Interest Dividends*	99.84%

*  The above percentage is based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.

44        Invesco Tax-Free Intermediate Fund

Trustees and Officers

The address of each trustee and officer is AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds) (the “Trust”), 11 Greenway Plaza, Suite 2500, Houston, Texas 77046-1173. The trustees serve for the life of the Trust, subject to their earlier death, incapacitation, resignation, retirement or removal as more specifically provided in the Trust’s organizational documents. Each officer serves for a one year term or until their successors are elected and qualified. Column two below includes length of time served with predecessor entities, if any.

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Interested Persons
Martin L. Flanagan1 — 1960 Trustee	2007	Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Trustee, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business Formerly: Chairman, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, IVZ Inc. (holding company), INVESCO Group Services, Inc. (service provider) and Invesco North American Holdings, Inc. (holding company); Director, Chief Executive Officer and President, Invesco Holding Company Limited (parent of Invesco and a global investment management firm); Director, Invesco Ltd.; Chairman, Investment Company Institute and President, Co-Chief Executive Officer, Co-President, Chief Operating Officer and Chief Financial Officer, Franklin Resources, Inc. (global investment management organization)	208	None
Philip A. Taylor2 — 1954 Trustee, President and Principal Executive Officer	2006	Head of North American Retail and Senior Managing Director, Invesco Ltd.; Director, Co-Chairman, Co-President and Co-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly Invesco Aim Management Group, Inc.) (financial services holding company); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent) and AIM GP Canada Inc. (general partner for limited partnerships); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) (registered transfer agent) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company) and Invesco Canada Holdings Inc. (holding company); Chief Executive Officer, Invesco Trimark Corporate Class Inc. (corporate mutual fund company) and Invesco Trimark Canada Fund Inc. (corporate mutual fund company); Director and Chief Executive Officer, Invesco Trimark Ltd./Invesco Trimark Ltèe (registered investment adviser and registered transfer agent) and Invesco Trimark Dealer Inc. (registered broker dealer); Trustee, President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); Trustee and Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only); and Director, Van Kampen Asset Management; Director, Chief Executive Officer and President, Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Director and Chairman, Van Kampen Investor Services Inc. and Director and President, Van Kampen Advisors, Inc. Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.) (registered broker dealer); Manager, Invesco PowerShares Capital Management LLC; Director, Chief Executive Officer and President, Invesco Advisers, Inc.; Director, Chairman, Chief Executive Officer and President, Invesco Aim Capital Management, Inc.; President, Invesco Trimark Dealer Inc. and Invesco Trimark Ltd./Invesco Trimark Ltèe; Director and President, AIM Trimark Corporate Class Inc. and AIM Trimark Canada Fund Inc.; Senior Managing Director, Invesco Holding Company Limited; Trustee and Executive Vice President, Tax-Free Investments Trust; Director and Chairman, Fund Management Company (former registered broker dealer); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc.	208	None
Wayne M. Whalen3 — 1939 Trustee	2010	Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex	226	Director of the Abraham Lincoln Presidential Library Foundation
Independent Trustees
Bruce L. Crockett — 1944 Trustee and Chair	1993	Chairman, Crockett Technology Associates (technology consulting company) Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer COMSAT Corporation; and Chairman, Board of Governors of INTELSAT (international communications company)	208	ACE Limited (insurance company); and Investment Company Institute
David C. Arch — 1945 Trustee	2010	Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.	226	Member of the Heartland Alliance Advisory Board, a nonprofit organization serving human needs based in Chicago. Board member of the Illinois Manufacturers’ Association. Member of the Board of Visitors, Institute for the Humanities, University of Michigan

1	Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.
2	Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.
3	Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Independent Trustees
Bob R. Baker — 1936 Trustee	2003	Retired Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation	208	None
Frank S. Bayley — 1939 Trustee	2001	Retired Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie	208	None
James T. Bunch — 1942 Trustee	2003	Founder, Green, Manning & Bunch Ltd. (investment banking firm) Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation	208	Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society
Rodney Dammeyer — 1940 Trustee	2010	President of CAC, LLC, a private company offering capital investment and management advisory services. Formerly: Prior to January 2004, Director of TeleTech Holdings Inc.; Prior to 2002, Director of Arris Group, Inc.; Prior to 2001, Managing Partner at Equity Group Corporate Investments. Prior to 1995, Vice Chairman of Anixter International. Prior to 1985, experience includes Senior Vice President and Chief Financial Officer of Household International, Inc, Executive Vice President and Chief Financial Officer of Northwest Industries, Inc. and Partner of Arthur Andersen & Co.	226	Director of Quidel Corporation and Stericycle, Inc. Prior to May 2008, Trustee of The Scripps Research Institute. Prior to February 2008, Director of Ventana Medical Systems, Inc. Prior to April 2007, Director of GATX Corporation. Prior to April 2004, Director of TheraSense, Inc.
Albert R. Dowden — 1941 Trustee	2000	Director of a number of public and private business corporations, including the Boss Group, Ltd. (private investment and management); Reich & Tang Funds (5 portfolios) (registered investment company); and Homeowners of America Holding Corporation/ Homeowners of America Insurance Company (property casualty company) Formerly: Director, Continental Energy Services, LLC (oil and gas pipeline service); Director, CompuDyne Corporation (provider of product and services to the public security market) and Director, Annuity and Life Re (Holdings), Ltd. (reinsurance company); Director, President and Chief Executive Officer, Volvo Group North America, Inc.; Senior Vice President, AB Volvo; Director of various public and private corporations; Chairman, DHJ Media, Inc.; Director Magellan Insurance Company; and Director, The Hertz Corporation, Genmar Corporation (boat manufacturer), National Media Corporation; Advisory Board of Rotary Power International (designer, manufacturer, and seller of rotary power engines); and Chairman, Cortland Trust, Inc. (registered investment company)	208	Board of Nature’s Sunshine Products, Inc.
Jack M. Fields — 1952 Trustee	1997	Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Owner and Chief Executive Officer, Dos Angelos Ranch, L.P. (cattle, hunting, corporate entertainment), Discovery Global Education Fund (non-profit) and Cross Timbers Quail Research Ranch (non-profit) Formerly: Chief Executive Officer, Texana Timber LP (sustainable forestry company) and member of the U.S. House of Representatives	208	Administaff
Carl Frischling — 1937 Trustee	1993	Partner, law firm of Kramer Levin Naftalis and Frankel LLP	208	Director, Reich & Tang Funds (16 portfolios)
Prema Mathai-Davis — 1950 Trustee	1998	Retired Formerly: Chief Executive Officer, YWCA of the U.S.A.	208	None
Larry Soll — 1942 Trustee	2003	Retired Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)	208	None
Hugo F. Sonnenschein — 1940 Trustee	2010	President Emeritus and Honorary Trustee of the University of Chicago and the Adam Smith Distinguished Service Professor in the Department of Economics at the University of Chicago. Prior to July 2000, President of the University of Chicago.	226	Trustee of the University of Rochester and a member of its investment committee. Member of the National Academy of Sciences, the American Philosophical Society and a fellow of the American Academy of Arts and Sciences
Raymond Stickel, Jr. — 1944 Trustee	2005	Retired Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche	208	None

T-2

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Other Officers
Russell C. Burk — 1958 Senior Vice President and Senior Officer	2005	Senior Vice President and Senior Officer of Invesco Funds	N/A	N/A
John M. Zerr — 1962 Senior Vice President, Chief Legal Officer and Secretary	2006	Director, Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp., Senior Vice President, Invesco Advisers, Inc. formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Secretary, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Manager, Invesco PowerShares Capital Management LLC; Director, Secretary and General Counsel, Van Kampen Asset Management; Director and Secretary, Van Kampen Advisors Inc.; Secretary and General Counsel, Van Kampen Funds Inc.; and Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; and Chief Legal Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco Advisers, Inc.; Director, Vice President and Secretary, Fund Management Company; Director, Senior Vice President, Secretary, General Counsel and Vice President, Invesco Aim Capital Management, Inc.; Chief Operating Officer and General Counsel, Liberty Ridge Capital, Inc. (an investment adviser); Vice President and Secretary, PBHG Funds (an investment company) and PBHG Insurance Series Fund (an investment company); Chief Operating Officer, General Counsel and Secretary, Old Mutual Investment Partners (a broker-dealer); General Counsel and Secretary, Old Mutual Fund Services (an administrator) and Old Mutual Shareholder Services (a shareholder servicing center); Executive Vice President, General Counsel and Secretary, Old Mutual Capital, Inc. (an investment adviser); and Vice President and Secretary, Old Mutual Advisors Funds (an investment company)	N/A	N/A
Lisa O. Brinkley — 1959 Vice President	2004	Global Compliance Director, Invesco Ltd.; Chief Compliance Officer, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc.(formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc.; and Vice President, The Invesco Funds Formerly: Senior Vice President, Invesco Management Group, Inc.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and The Invesco Funds; Vice President and Chief Compliance Officer, Invesco Aim Capital Management, Inc. and Invesco Distributors, Inc.; Vice President, Invesco Investment Services, Inc. and Fund Management Company	N/A	N/A
Sheri Morris — 1964 Vice President, Treasurer and Principal Financial Officer	1999	Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; and Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) Formerly: Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.	N/A	N/A
Karen Dunn Kelley — 1960 Vice President	1993	Head of Invesco’s World Wide Fixed Income and Cash Management Group; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) and Van Kampen Investments Inc.; Executive Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.); and Director, Invesco Mortgage Capital Inc.; Vice President, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only). Formerly: Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Director of Cash Management and Senior Vice President, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; President and Principal Executive Officer, Tax-Free Investments Trust; Director and President, Fund Management Company; Chief Cash Management Officer, Director of Cash Management, Senior Vice President, and Managing Director, Invesco Aim Capital Management, Inc.; Director of Cash Management, Senior Vice President, and Vice President, Invesco Advisers, Inc. and The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only)	N/A	N/A
Lance A. Rejsek — 1967 Anti-Money Laundering Compliance Officer	2005	Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.), The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange- Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, Van Kampen Asset Management, Van Kampen Investor Services Inc., and Van Kampen Funds Inc. Formerly: Anti-Money Laundering Compliance Officer, Fund Management Company, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.	N/A	N/A

T-3

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Other Officers
Todd L. Spillane — 1958 Chief Compliance Officer	2006	Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser) (formerly known as Invesco Institutional (N.A.), Inc.); Chief Compliance Officer, The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange- Traded Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, INVESCO Private Capital Investments, Inc. (holding company), and Invesco Private Capital, Inc. (registered investment adviser); Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc. Formerly: Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. and Invesco Senior Secured Management, Inc. (registered investment adviser); Vice President, Invesco Aim Capital Management, Inc. and Fund Management Company	N/A	N/A

The Statement of Additional Information of the Trust includes additional information about the Fund’s Trustees and is available upon request, without charge, by calling 1.800.959.4246. Please refer to the Fund’s prospectus for information on the Fund’s sub-advisers.

Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza,	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Suite 2500	1555 Peachtree Street, N.E.	11 Greenway Plaza,	1201 Louisiana Street,
Houston, TX 77046-1173	Atlanta, GA 30309	Suite 2500	Suite 2900
		Houston, TX 77046-1173	Houston, TX 77002-5678
Counsel to the Fund	Counsel to the Independent Trustees	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Kramer, Levin, Naftalis & Frankel LLP	Invesco Investment Services, Inc.	Bank of New York Mellon
2600 One Commerce Square	1177 Avenue of the Americas	11 Greenway Plaza, Suite 2500	2 Hanson Place
Philadelphia, PA 19103	New York, NY 10036-2714	Houston, TX 77046-1173	Brooklyn, NY 11217-1431

T-4

Invesco mailing information

Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.

Invesco privacy policy

You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.

     Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.

     Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.

Important notice regarding delivery of security holder documents

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.

Fund holdings and proxy voting information

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Forms N-Q on the SEC website at sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07890 and 033-66242.

     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 12 months ended June 30, 2010, is available at our website, 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 U.S. 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.

TFI-AR-1 Invesco Distributors, Inc.

Annual Report to Shareholders February 28, 2011

Invesco Van Kampen High Yield
Municipal Fund

Nasdaq:
A: ACTHX § B: ACTGX § C: ACTFX § Y: ACTDX

2	Letters to Shareholders
4	Performance Summary
4	Management Discussion
6	Long-Term Fund Performance
8	Supplemental Information
9	Schedule of Investments
49	Financial Statements
51	Notes to Financial Statements
58	Financial Highlights
59	Auditor's Report
60	Fund Expenses
61	Tax Information
T-1	Trustees and Officers

Letters to Shareholders

Philip Taylor

Dear Shareholders:

Enclosed is important information about your Fund and its performance.

     I’ve always believed that companies have an obligation to communicate regularly with their clients, and I believe that obligation is especially critical in the investment industry.

     Our website – invesco.com/us – offers timely market updates and commentary from many of our portfolio managers and other investment professionals, as well as quarterly messages from me. At invesco.com/us, you also can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer.

Invesco’s commitment to investment excellence

Invesco’s acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, broadened our range of investment products available to you. As a strong organization with a single focus – investment management – Invesco today offers investment capabilities and products to meet the needs of virtually any investor. In addition to traditional mutual funds, we manage a broad range of other solutions, including single-country, regional and global investments spanning major equity, fixed income and alternative asset classes.

     Investment excellence is our goal across our product line. Let me explain what that means. All of our funds are managed by specialized teams of investment professionals. Each team has a discrete investment perspective and philosophy, and all follow disciplined, repeatable processes governed by strong risk oversight. Our investment-centric culture provides an environment that seeks to reduce distractions, allowing our fund managers to concentrate on what they do best – manage your money.

     The importance of a broad product line and investment management expertise is obvious given the markets we’ve experienced over the last two to three years. We’ve seen that investment strategies can outperform or underperform their benchmark indexes for a variety of reasons, including where we are in the market cycle, and whether prevailing economic conditions are favorable or unfavorable for that strategy. That’s why no investment strategy can guarantee top-tier performance at all times. What investors can expect, and what Invesco offers, are funds that are managed according to their stated investment objectives and strategies, with robust risk oversight using consistent, repeatable investment processes that don’t change as short-term external conditions change – investments managed for the long term. This disciplined approach can’t guarantee a profit; no investment can do that, since all involve some measure of risk. But it can ensure that your money is managed the way we said it would be.

     This adherence to stated investment objectives and strategies allows your financial advisor to build a diversified portfolio that meets your individual risk tolerance and financial goals. It also means that when your goals change, your financial advisor will be able to find an appropriate investment option to meet your needs.

Invesco’s commitment to you

Invesco’s commitment to you remains stronger than ever. It’s one of the reasons we’ve grown to become one of the world’s largest asset managers.

     If you have questions about your account, please contact one of our client service representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, I invite you to email me directly at phil@invesco.com.

     I want to thank you for placing your trust in us. All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.

Sincerely,

Philip Taylor
Senior Managing Director, Invesco Ltd.

2 Invesco Van Kampen High Yield Municipal Fund

Bruce Crockett

Dear Fellow Shareholders:

With 2010 behind us, now is a good time to review our portfolios and ensure that we are adhering to a long-term, diversified investment strategy, which I’ve mentioned in previous letters. The year was notable for a number of reasons, but I’m sure most of us are grateful for a return to more stable markets and growing signs that the worst of the economic crisis is behind us.

     Your Board continued to oversee the Invesco Funds with a strong sense of responsibility for your savings and a deep appreciation for your continued trust. As always, we worked throughout 2010 to manage costs and ensure Invesco continued to place investor interests first.

     I’m pleased to report that the latest report from Morningstar affirmed the work we’ve done and included a number of positive comments regarding your Board’s oversight of the Invesco Funds.
As background, Morningstar is a leading independent provider of investment research in North America, Europe, Australia and Asia. Morningstar stated, “A fund board’s duty is to represent the interests of fund shareholders, ensuring that the funds that it oversees charge reasonable fees and are run by capable advisors with a sound investment process.”

     Morningstar maintained your Fund Board’s “A” grade for Board Quality, praising the Board for taking “meaningful steps in recent years to act in fund shareholders’ interests.”¹ These steps included becoming much more proactive and vocal in overseeing how Invesco votes the funds’ shareholders’ proxies and requiring each fund trustee to invest more than one year’s board compensation in Invesco funds, further aligning our interests with those of our shareholders. Morningstar also cited the work I’ve done to make myself more available to fund shareholders via email.

     I am also pleased that Morningstar recognized the effort and the Fund Board’s efforts over the past several years to work together with management at Invesco to enhance performance and sharpen the focus on investors.

     Let me close by wishing you a happy and prosperous new year. As always, you’re welcome to contact me at bruce@brucecrockett.com with any questions or concerns you have. We look forward to representing you and serving you in the new year.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

1 Among the criteria Morningstar considers when evaluating a fund board are the degree to which the board is independent of the fund company; board members’ financial interests are aligned with those of fund shareholders; the board acts in fund shareholders’ interests; and the board works constructively with company management and investment personnel. Morningstar first awarded an “A” rating to the Invesco Funds board on September 13, 2007; that rating has been maintained in subsequent reports, the most recent of which was released December 17, 2010. Ratings are subject to change, usually every 12 to 24 months. Morningstar ratings range from “A” to “F.”

3 Invesco Van Kampen High Yield Municipal Fund

Management’s Discussion of Fund Performance

Performance summary

Please note that the fiscal year-end for Invesco Van Kampen High Yield Municipal Fund has changed to February 28. Therefore, the period covered by this report is from November 30, 2010, the date of the last annual report, through February 28, 2011, the Fund’s new fiscal year-end.

     For the reporting period ended February 28, 2011, all share classes of Invesco Van Kampen High Yield Municipal Fund, at net asset value (NAV), posted negative returns and underperformed the Fund’s broad market benchmark, the Barclays Capital High Yield Municipal Bond Index. The Fund’s overweight exposure in health care bonds was the main detractor from relative performance.

     Your Fund’s long-term performance appears later in this report.

Fund vs. Indexes

Cumulative total returns, 11/30/10 to 2/28/11, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

Class A Shares	-2.72	%
Class B Shares	-3.01
Class C Shares	-3.02
Class Y Shares	-2.65
Barclays Capital High Yield Municipal Bond Index▼ (Broad Market Index)	-1.62
Custom Invesco Van Kampen High Yield Municipal Index§ (Style-Specific Index)	-1.41

^▼ Invesco, Barclays Capital; ^§Invesco, Lipper Inc.

How we invest

The Fund’s investment objective is to provide investors with as high a level of interest income exempt from federal income tax as is consistent with the investment policies of the Fund.

     Under normal market conditions, we generally seek to achieve the Fund’s investment objective by investing primarily in a portfolio of medium- and lower grade municipal securities. Although not governed by specific rating categories, the Fund generally invests at least 80% of its net assets in:

n Municipal securities rated at the time of purchase by Standard & Poor’s (S&P) as BBB through CC for bonds or SP-2 or lower for notes.

n Municipal securities rated at the time of purchase by Moody’s as Baa through Ca for bonds or MIG3, VMIG3 or lower for notes.

n Unrated municipal securities determined by the adviser to be of comparable quality at the time of purchase.

     We do not purchase securities that are in default, rated C or D by S&P or rated C by Moody’s. We also do not purchase unrated bonds, notes or other obligations we consider to be of comparable quality. We may, however, retain obligations assigned such ratings after a purchase is made.

     At times, market conditions in the municipal securities markets may be such that the adviser will invest in higher grade issues, particularly when the difference in returns between quality classifications is very narrow or when the adviser expects interest rates to increase. These investments may lessen the decline in NAV but may affect the amount of current income, since yields of higher grade securities are usually lower than yields of medium- or lower grade securities.

	Sell decisions are based on:
n	A deterioration or likely deterioration of an individual issuer’s capacity to meet its debt obligations on a timely basis.
n	A deterioration or likely deterioration of the broader fundamentals of a particular industry or sector.
n	Opportunities in the secondary or primary market to exchange into a security with better relative value.

Market conditions and your Fund

In the U.S. and most of the developed world, a gradual and somewhat lackluster recovery continued, with central banks keeping interest rates at low levels and with few of them withdrawing their quantitative easing measures. This helped private sector companies improve their balance sheets and earnings following the global financial crisis that began to dissipate in early 2009. However, investor skepticism of global governments’ abilities to retire huge amounts of debt without affecting economic growth rates caused sovereign debt distress (especially for eurozone countries) and became a focal point of investor concern.

     In the U.S., economic recovery was present, although the pace of recovery remained modest as stubbornly high unemployment and export weakness continued to weigh on the economy. Real gross domestic product (GDP), the broadest measure of overall U.S. economic activity, increased at an annual rate of 3.1% in the fourth quarter of 2010, a marked improvement from the 2.6% decrease in 2009.¹ The U.S. Federal Reserve (the Fed) maintained a very accommodative monetary policy throughout the period, with the federal funds target rate unchanged in a range of zero to 0.25%.² The Fed recently described its view of the U.S. economy by stating: “The Committee will maintain the target range for the federal funds rate at 0 to ¹/4

Portfolio Composition

By credit sector, based on total investments

Revenue Bonds	89.5	%
General Obligation Bonds	5.6
Pre-Refunded Bonds	4.9

Total Net Assets	$5.0 billion
Total Number of Holdings		1,300

Top Five Fixed Income Holdings

1.	Nassau (County of) Industrial
	Development Agency	0.5	%
2.	New Jersey (State of) Economic
	Development Authority	0.5
3.	Illinois (State of) Finance Authority	0.5
4.	Kirkwood (County of) Industrial
	Development Authority	0.5
5.	Seattle (Port of) Industrial
	Development Corp.	0.5

The Fund’s holdings are subject to change, and there is no assurance that the Fund will continue to hold any particular security.

4 Invesco Van Kampen High Yield Municipal Fund

percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period.”²
     During the three-month period covered by this report, municipal bond mutual funds experienced extensive net outflows. Market volatility was heightened across the municipal asset class as U.S. Treasury yields increased and the market was flooded with new issuance during the last two months of 2010 in anticipation of the Build America Bond (BAB) program ending. These factors contributed to rising investor concerns regarding the health of municipal finances, leading to redemptions and lower municipal bond prices.

     In terms of the yield curve positioning, the Fund’s overweight exposure to the long end of the curve (20 years and more) detracted from returns as yields increased during most of the reporting period. Some of our yield curve and duration positioning was obtained through the use of inverse floating rate securities. Inverse floating rate securities are instruments which have an inverse relationship to a referenced interest rate. Inverse floating rate securities can be a more efficient means to manage duration, yield curve exposure and credit exposure and potentially can enhance yield.

     Sector performance was driven by quality spreads widening for most of the reporting period before tightening in February, largely a result of increased volatility and higher tax-exempt issuance. As a result, BBB-rated and lower credit quality sectors underperformed and detracted from the Fund’s relative performance as we held an overweight position in these market segments.

     At a sector level, our underweight exposure to industrial development revenue/pollution control revenue (IDR/PCR) bonds enhanced returns for the period. Our overweight exposure to health care bonds detracted from returns.

     Thank you for investing in Invesco Van Kampen High Yield Municipal Fund and for sharing our long-term investment horizon.

1 Bureau of Economic Analysis

2 U.S. Federal Reserve

The views and opinions expressed in management’s discussion of Fund performance are those of Invesco Advisers, Inc. These views and opinions are subject to change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or recommendations, or as an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but Invesco Advisers, Inc. makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

See important Fund and, if applicable, index disclosures later in this report.

Bill Black
Chartered Financial Analyst, portfolio manager, is manager of Invesco Van Kampen High Yield Municipal Fund. He joined Invesco in 2010. Mr. Black earned a B.S. in engineering and public policy from Washington University in St. Louis, Missouri. He also earned a master’s degree in management from the Kellogg Graduate School of Management at Northwestern University.

Mark Paris
Portfolio manager, is manager of Invesco Van Kampen High Yield Municipal Fund. He joined Invesco in 2010. Mr. Paris earned a B.B.A. in finance from Baruch College – The City University of New York (CUNY).

James Phillips
Portfolio manager, is manager of Invesco Van Kampen High Yield Municipal Fund. He joined Invesco in 2010. Mr. Phillips earned a B.A. in American literature from Empire State College, the independent study division of the State University of New York. He also earned an M.B.A. in finance from the State University of New York at Albany.

5 Invesco Van Kampen High Yield Municipal Fund

Your Fund’s Long-Term Performance

Results of a $10,000 Investment – Oldest Share Class

Fund and index data from 2/28/01

Past performance cannot guarantee comparable future results.

     The data shown in the chart include reinvested distributions, applicable sales charges and Fund expenses including management fees. Index results include reinvested dividends, but they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses and management fees; performance of a market index does not.

Performance shown in the chart above and before tax table(s) does not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.

     This chart, which is a logarithmic chart, presents the fluctuations in the value of the Fund and its indexes. We believe that a logarithmic chart is more effective than other types of charts in illustrating changes in value during the early years

shown in the chart. The vertical axis, the one that indicates the dollar value of an investment, is constructed with each segment representing a percent change in the value of the investment. In this chart, each segment represents a doubling, or 100% change, in the value of the investment. In other words, the space between $5,000 and $10,000 is the same size as the space between $10,000 and $20,000.

6 Invesco Van Kampen High Yield Municipal Fund

Average Annual Total Returns

As of 2/28/11, including maximum applicable sales charges

									After Taxes
						After Taxes			on Distributions
			Before			on			and Sale of
			Taxes			Distributions			Fund Shares
Class A Shares
Inception (1/2/86)				5.52	%		5.52	%		5.66	%
	10	Years		3.66			3.65			3.97
	5	Years		0.61			0.60			1.35
	1	Year		-3.26			-3.27			-0.08
Class B Shares
Inception (7/20/92)				4.80	%		4.79	%		4.96	%
	10	Years		3.53			3.52			3.79
	5	Years		0.50			0.49			1.17
	1	Year		-4.10			-4.11			-0.80
Class C Shares
Inception (12/10/93)				4.04	%		4.04	%		4.24	%
	10	Years		3.38			3.38			3.65
	5	Years		0.82			0.81			1.44
	1	Year		-0.28			-0.29			1.68
Class Y Shares
Inception (3/1/06)				1.89	%		1.88	%		2.49	%
	1	Year		1.81			1.79			3.41

Average Annual Total Returns

As of 12/31/10, the most recent calendar quarter-end, including maximum applicable sales charges

									After Taxes
						After Taxes			on Distributions
			Before			on			and Sale of
			Taxes			Distributions			Fund Shares
Class A Shares
Inception (1/2/86)				5.57	%		5.57	%		5.70	%
	10	Years		3.81			3.80			4.10
	5	Years		0.96			0.96			1.64
	1	Year		-0.66			-0.67			1.64
Class B Shares
Inception (7/20/92)				4.86	%		4.86	%		5.02	%
	10	Years		3.69			3.69			3.93
	5	Years		0.86			0.85			1.47
	1	Year		-1.46			-1.47			0.94
Class C Shares
Inception (12/10/93)				4.11	%		4.11	%		4.29	%
	10	Years		3.54			3.53			3.78
	5	Years		1.20			1.19			1.76
	1	Year		2.48			2.46			3.50
Class Y Shares
Inception (3/1/06)				2.03	%		2.02	%		2.60	%
	1	Year		4.61			4.59			5.26

Effective June 1, 2010, Class A, Class B, Class C and Class I shares of the predecessor fund advised by Van Kampen Asset Management were reorganized into Class A, Class B, Class C and Class Y shares, respectively, of Invesco Van Kampen High Yield Municipal Fund. Returns shown above for Class A, Class B, Class C and Class Y shares are blended returns of the predecessor fund and Invesco Van Kampen High Yield Municipal 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 visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

     The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C and Class Y shares was 0.90%, 1.65%, 1.65% and 0.65%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

     Class A share performance reflects the maximum 4.75% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. For shares purchased prior to June 1, 2010, the CDSC on Class B shares declines from 4% at the time of purchase to 0% at the beginning of the sixth year. For shares purchased on or after June 1, 2010, the CDSC on Class B shares declines from 5% at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class Y shares do not have a front-end sales

charge or a CDSC; therefore, performance is at net asset value.

     The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.

     After-tax returns are calculated using the historical highest individual federal marginal income tax rate. They do not reflect the effect of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their shares in tax-deferred accounts such as 401(k)s or IRAs. The fund’s past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future.

     A redemption fee of 2% will be imposed on certain redemptions or exchanges out of the Fund within 31 days of purchase. Exceptions to the redemption fee are listed in the Fund’s prospectus.

7 Invesco Van Kampen High Yield Municipal Fund

Invesco Van Kampen High Yield Municipal Fund’s investment objective is to provide investors with as high a level of interest income exempt from federal income tax as is consistent with the investment policies of the Fund.

n	Unless otherwise stated, information presented in this report is as of February 28, 2011, and is based on total net assets.
n	Unless otherwise noted, all data provided by Invesco.
n	To access your Fund’s reports/prospectus, visit invesco.com/fundreports.

About share classes

n	Class B or Class B5 shares may not be purchased or acquired by exchange from share classes other than Class B or Class B5 shares. Please see the prospectus for more information.
n	Class Y shares are available to only certain investors. Please see the prospectus for more information.

Principal risks of investing in the Fund

n	Credit risk. Credit risk refers to an issuer’s ability to make timely payments of interest and principal. The Fund is subject to a higher level of credit risk than a fund that invests solely in investment grade securities. Lower-grade securities (also sometimes known as junk bonds) may have less liquidity and a higher incidence of default than higher-grade securities. The Fund may incur higher expenses to protect its interest in such securities. The credit risks and market prices of lower-grade securities generally are more sensitive to negative issuer developments, such as reduced revenues or increased expenditures, or adverse economic conditions, such as a recession, than are higher-grade securities.
n	Market risk. Market risk is the possibility that the market values of securities owned by the Fund will decline. Investments in debt securities generally are affected by changes in interest rates and the creditworthiness of the issuer. The prices of debt securities tend to fall as interest rates rise, and such declines tend to be greater among debt securities with longer maturities. Lower-grade securities may be more volatile and may decline more in price in response to negative issuer developments or general economic news than higher-grade securities.
n	Income risk. The income you receive from the Fund is based primarily on prevailing interest rates, which can vary

	widely over the short-and long-term. If interest rates drop, your income from the Fund may drop as well.
n	Call risk. If interest rates fall, it is possible that issuers of debt securities with high interest rates will prepay or call their securities before their maturity dates. In this event, the proceeds from these securities would likely be reinvested in securities bearing the new, lower interest rates, resulting in a possible decline in the Fund’s income and distributions to shareholders.
n	Municipal securities risk. The yields of municipal securities may move differently and adversely compared to the yields of the overall debt securities markets. The Fund may invest all or a substantial portion of its total assets in municipal securities subject to the federal alternative minimum tax. Accordingly, investment in the Fund could cause shareholders to be subject to (or result in an increased liability under) the federal alternative minimum tax. In addition, there could be changes in applicable tax laws or tax treatments that reduce or eliminate the current federal income tax exemption on municipal securities or otherwise adversely affect the current federal or state tax status of municipal securities.
n	Risks of using derivative instruments. Risks of derivatives include the possible imperfect correlation between the value of the instruments and the underlying assets; risks of default by the other party to certain transactions; risks that the transactions may result in losses that partially or completely offset gains in portfolio positions; and risks that the transactions may not be liquid.

About indexes used in this report

n The Custom Invesco Van Kampen High Yield Municipal Index, created by Invesco to serve as a benchmark for Invesco Van Kampen High Yield Municipal Fund, is composed of the following

	indexes: Barclays Capital High Yield Municipal Bond Index (60%) and Barclays Capital Municipal Bond Index (40%).
n	The Barclays Capital High Yield Municipal Bond Index is an unmanaged index consisting of noninvestment-grade, unrated or below Ba1 bonds.
n	The Barclays Capital Municipal Bond Index is an unmanaged index considered representative of the tax-exempt bond market.
n	The Fund is not managed to track the performance of any particular index, including the index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
n	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.

Other information

n

The Chartered Financial Analyst® (CFA®) designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis.

n

The returns shown in management’s discussion of Fund performance are based on net asset values calculated for shareholder transactions. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes, and as such, the net asset values for shareholder transactions and the returns based on those net asset values may differ from the net asset values and returns reported in the Financial Highlights.

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

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Nasdaq Symbols

Class A Shares	ACTHX
Class B Shares	ACTGX
Class C Shares	ACTFX
Class Y Shares	ACTDX

8 Invesco Van Kampen High Yield Municipal Fund

Schedule of Investments

February 28, 2011

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Municipal Obligations–108.35%
Alabama–1.08%
Colbert (County of) Northwest Alabama Health Care Authority; Series 2003, Health Care Facilities RB		5.75	%		06/01/27	$	5,500	$	5,037,505
Courtland (Town of) Industrial Development Board (Champion International Corp.); Series 1999, Ref. Solid Waste Disposal RB(a)		6.00	%		08/01/29		1,235		1,235,161
Courtland (Town of) Industrial Development Board (International Paper Company);
Series 2003 A, Ref. Environmental Improvement RB(a)		5.80	%		05/01/22		3,280		3,284,855
Series 2003 B, Ref. Environmental Improvement RB(a)		6.25	%		08/01/25		7,000		7,065,170
Huntsville-Redstone Village (City of) Special Care Facilities Financing Authority (Redstone Village);
Series 2002 A, RB(b)(c)		8.13	%		12/01/12		4,000		4,559,080
Series 2002 A, RB(b)(c)		8.25	%		12/01/12		7,750		8,849,415
Series 2007, RB		5.50	%		01/01/28		1,000		800,630
Series 2007, Retirement Facilities RB		5.50	%		01/01/43		13,170		9,368,611
Series 2008 A, RB		6.88	%		01/01/43		4,470		3,780,234
Mobile Industrial Development Board (Mobile Energy Services Co.); Series 1995, Ref. Solid Waste Disposal RB		6.95	%		01/01/20		3		—
Selma (City of) Industrial Development Board (Gulf Opportunity Zone); Series 2009 A, RB		6.25	%		11/01/33		7,000		7,197,260
Valley (City of) Lanier Memorial Hospital Special Care Facilities Financing Authority (Lanier Memorial Hospital);
Series 1997 A, RB		5.60	%		11/01/16		1,395		1,178,440
Series 1997 A, RB		5.65	%		11/01/22		1,750		1,270,640
									53,627,001
Alaska–0.45%
Alaska Industrial Development & Export Authority (Lake Dorothy Hydroelectric); Series 2006, RB (INS–AMBAC)(a)(d)		5.25	%		12/01/26		3,690		3,229,082
Alaska Industrial Development & Export Authority (Upper Lynn Canal Regional Power Supply System);
Series 1997, Power RB(a)		5.80	%		01/01/18		830		798,236
Series 1997, Power RB(a)		5.88	%		01/01/32		2,945		2,538,413
Alaska Industrial Development & Export Authority (Williams Lynxs Alaska Cargoport);
Series 2001, RB(a)(e)		7.80	%		05/01/14		600		586,668
Series 2001, RB(a)(e)		8.13	%		05/01/31		2,000		1,858,140
Juneau (City & Borough of) (St. Ann’s Care Center); Series 1999, Nonrecourse RB		6.88	%		12/01/25		12,020		11,725,150
Northern Tobacco Securitization Corp.;
Series 2006 A, Sr. Tobacco Settlement Asset-Backed Current Interest RB		5.00	%		06/01/32		2,000		1,382,000
Series 2006 C, Second Subordinate Asset-Backed CAB RB(f)		0.00	%		06/01/46		20,860		347,319
									22,465,008
Arizona–5.19%
Arizona (State of) Health Facilities Authority (The Terraces);
Series 2003 A, RB(b)(c)		7.50	%		11/15/13		5,730		6,579,874
Series 2003 A, RB(b)(c)		7.75	%		11/15/13		10,250		12,004,903
Casa Grande (City of) Industrial Development Authority (Casa Grande Regional Medical Center);
Series 2001 A, Hospital RB		7.25	%		12/01/19		6,850		6,684,778
Series 2001 A, Hospital RB		7.63	%		12/01/29		11,750		10,803,185
Series 2002 A, Hospital RB		7.13	%		12/01/24		3,000		2,801,790
Cochise (County of) Industrial Development Authority (Sierra Vista Community Hospital); Series 1996 A, RB		6.75	%		12/01/26		5,085		4,884,549
Cochise (County of) Industrial Development Authority (Sierra Vista Regional Health Center); Series 2001, Hospital RB		7.75	%		12/01/30		2,555		2,581,751

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

9        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Arizona–(continued)
Flagstaff (City of) Industrial Development Authority (Senior Living Community Northern Arizona);
Series 2003, RB(b)(c)		7.50	%		03/01/13	$	6,560	$	7,557,973
Series 2007, Ref. IDR		5.70	%		07/01/42		16,830		13,307,649
Maricopa (County of) Pollution Control Corp. (Arizona Public Service Co. Palo Verde); Series 2009 A, Ref. PCR(c)(g)		6.00	%		05/01/14		9,775		10,278,022
Maricopa (County of) Pollution Control Corp. (El Paso Electric Co.); Series 2009 A, RB		7.25	%		02/01/40		2,000		2,172,780
Peoria (City of) Industrial Development Authority (Sierra Winds Life Care Community);
Series 1999 A, RB		6.38	%		08/15/29		9,700		8,667,920
Series 1999 A, RB		6.50	%		08/15/31		3,500		3,150,070
Phoenix (City of) Civic Improvement Corp. (Civic Plaza); Series 2005 A, Sub. Excise Tax RB (INS–BHAC)(d)(h)		5.00	%		07/01/41		23,500		22,872,315
Phoenix (City of) Civic Improvement Corp.; Series 2008 A, Sr. Lien Airport RB(h)		5.00	%		07/01/24		5,000		5,138,800
Phoenix (City of) Civic Improvement Corp.; ,
Series 2008 A, Sr. Lien Airport RB(h)		5.00	%		07/01/22		3,500		3,670,625
Series 2008 A, Sr. Lien Airport RB(h)		5.00	%		07/01/26		5,000		5,060,950
Series 2009 A, Jr. Lien Water System RB(h)		5.00	%		07/01/27		8,935		9,314,916
Series 2009 A, Jr. Lien Water System RB(h)		5.00	%		07/02/28		6,785		7,044,662
Series 2009 A, Jr. Lien Water System RB(h)		5.00	%		07/01/29		5,500		5,683,370
Pima (County of) Industrial Development Authority (Acclaim Charter School); Series 2006, Education Facilities RB		5.80	%		12/01/36		4,385		3,190,088
Pima (County of) Industrial Development Authority (Choice Education & Development Corp.);
Series 2006, Education Facility RB		6.25	%		06/01/26		2,525		2,115,748
Series 2006, Education Facility RB		6.38	%		06/01/36		3,840		3,001,498
Pima (County of) Industrial Development Authority (Constellation Schools); Series 2008, Lease RB		7.00	%		01/01/38		12,000		10,692,960
Pima (County of) Industrial Development Authority (Desert Heights Charter School); Series 2003, Education Facility RB		7.50	%		08/01/33		4,345		4,158,947
Pima (County of) Industrial Development Authority (Excalibur Charter School); Series 2003, Education RB		7.75	%		08/01/33		2,905		2,390,466
Pima (County of) Industrial Development Authority (Global Water Resources LLC); Series 2007, Water & Wastewater RB(a)		6.55	%		12/01/37		1,000		865,250
Pima (County of) Industrial Development Authority (Global Water Resources, LLC);
Series 2006, Water & Wastewater RB(a)(e)		5.60	%		12/01/22		2,000		1,734,460
Series 2006, Water & Wastewater RB(a)(e)		5.75	%		12/01/32		7,120		5,664,316
Series 2008, Water & Wastewater RB(a)		7.50	%		12/01/38		10,000		9,608,200
Pima (County of) Industrial Development Authority (Milestones Charter School District);
Series 2003, Education RB		7.50	%		11/01/33		3,030		2,230,413
Series 2005, Educational Facilities RB		6.75	%		11/01/33		2,865		1,925,652
Pima (County of) Industrial Development Authority (P.L.C. Charter Schools);
Series 2006, Education Facility RB		6.50	%		04/01/26		1,590		1,384,238
Series 2006, Education Facility RB		6.75	%		04/01/36		2,805		2,332,442
Pima (County of) Industrial Development Authority (Premier & Air Co.); Series 2005, Educational Facilities RB(i)		7.00	%		09/01/35		5,092		2,545,694
Pima (County of) Industrial Development Authority (Riverbend Prep); Series 2010, Education RB		7.00	%		09/01/37		3,358		3,000,742
Pima (County of) Industrial Development Authority (Skyline Technical High School); Series 2004, Educational Facilities RB		7.50	%		02/01/34		4,300		3,415,834
Quechan Indian Tribe of Fort Yuma (Indian Reservation California and Governmental Projects); Series 2008, RB		7.00	%		12/01/27		5,310		4,926,777
Red Hawk Canyon Community Facilities District No. 2; Series 1998 A, Assessment RB		6.50	%		12/01/12		1,580		1,519,486
Sundance Community Facilities District (Assessment District No. 2); Series 2003, Special Assessment RB(e)		7.13	%		07/01/27		2,650		2,372,015
Sundance Community Facilities District (Assessment District No. 3); Series 2004, Special Assessment RB		6.50	%		07/01/29		517		425,424
Sundance Community Facilities District; Series 2004, Unlimited Tax GO Bonds(b)(c)(e)		6.25	%		07/15/14		1,000		931,790
Tucson (City of) Industrial Development Authority (Catalina Assisted); Series 2000 A, Housing RB(a)		6.50	%		07/01/31		4,710		3,181,040

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

10        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Arizona–(continued)
University Medical Center Corp.;
Series 2005, Hospital RB		5.00	%		07/01/35	$	11,480	$	9,901,385
Series 2009, Hospital RB		6.25	%		07/01/29		1,150		1,179,153
Series 2009, Hospital RB		6.50	%		07/01/39		1,600		1,635,952
Verrado Community Facilities District No. 1;
Series 2003, Unlimited Tax GO Bonds		6.50	%		07/15/27		7,600		6,790,676
Series 2006, Unlimited Tax GO Bonds		5.35	%		07/15/31		5,915		4,427,732
Vistancia Community Facilities District; Series 2002, Unlimited Tax GO Bonds		6.75	%		07/15/22		4,000		4,118,160
Yavapai (County of) Industrial Development Authority (Waste Management Inc.); Series 2003, Solid Waste RB(a)(e)		4.90	%		03/01/28		3,000		2,790,540
Yavapai (County of) Industrial Development Authority (Yavapai Regional Medical Center); Series 2003 A, Hospital Facilities RB		6.00	%		08/01/33		4,000		3,922,520
									258,640,480
California–9.47%
Agua Mansa Industrial Growth Association (Community Facilities District No. 2002-1); Series 2003, Special Tax Bonds (LOC–American Express Co.)(j)		6.50	%		09/01/33		6,975		6,712,252
Alhambra (City of) (Atherton Baptist Homes);
Series 2010 A, RB		7.63	%		01/01/40		2,000		2,027,500
Series 2010 B, RB		6.63	%		01/01/17		2,000		2,000,460
Bakersfield (City of); Series 2007 A, Wastewater RB (INS–AGM)(d)(h)		5.00	%		09/15/32		14,990		14,785,387
Bay Area Toll Authority (San Francisco Bay Area); Series 2009 F-1, California Toll Bridge RB(h)		5.00	%		04/01/34		15,710		15,382,761
Beaumont (City of) Financing Authority;
Series 2003 A, Local Agency RB(b)		7.00	%		09/01/13		4,935		5,772,124
Series 2004 D, Special Tax Local Agency RB		5.80	%		09/01/35		2,875		2,503,579
Series 2005 A, Special Tax Local Agency RB		5.60	%		09/01/25		1,000		921,380
Series 2005 A, Special Tax Local Agency RB		5.65	%		09/01/30		2,000		1,787,580
Series 2005 A, Special Tax Local Agency RB		5.70	%		09/01/35		2,000		1,738,440
Blythe (City of) Redevelopment Agency (Redevelopment Project No. 1); Series 2004, Tax Allocation Bonds		5.75	%		05/01/34		4,000		3,246,800
California (County of) Tobacco Securitization Agency (Stanislaus County Tobacco Funding Corp.);
Series 2006 Sub. Series D, CAB RB(f)		0.00	%		06/01/55		20,000		101,200
Series 2006 Subseries C, CAB RB(f)		0.00	%		06/01/55		20,000		117,000
California (State of) Municipal Finance Authority (American Heritage Education Foundation); Series 2006 A, Education RB		5.25	%		06/01/26		1,000		826,750
California (State of) Municipal Finance Authority (High Tech High-Chula Vista);
Series 2008 B, Educational Facilities RB(e)		6.13	%		07/01/38		2,860		2,473,156
Series 2008 B, Educational Facilities RB(e)		6.13	%		07/01/43		2,000		1,707,340
Series 2008 B, Educational Facilities RB(e)		6.13	%		07/01/48		3,840		3,238,541
California (State of) Municipal Finance Authority (High Tech High-Media Arts);
Series 2008 A, Educational Facilities RB(e)		6.00	%		07/01/38		670		569,493
Series 2008 A, Educational Facilities RB(e)		6.13	%		07/01/48		2,415		2,036,739
California (State of) Pollution Control Financing Authority (Waste Management Inc.); Series 2005 C, Waste Disposal RB(a)(c)(g)		5.13	%		11/01/23		4,000		3,994,160
California (State of) Statewide Communities Development Authority (American Baptist Homes of the West); Series 2010, RB		6.25	%		10/01/39		2,000		1,885,920
California (State of) Statewide Communities Development Authority (Aspire Public Schools); Series 2010, School Facility RB		6.38	%		07/01/45		8,000		7,308,800
California (State of) Statewide Communities Development Authority (California Baptist University); Series 2007 A, RB		5.50	%		11/01/38		6,500		5,334,290
California (State of) Statewide Communities Development Authority (CHF–Irvine-LLC-UCI East Campus); Series 2008, RB		6.00	%		05/15/40		5,000		4,774,600

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

11        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
California–(continued)
California (State of) Statewide Communities Development Authority (Elder Care Alliance); Series 2002 A, RB(b)(c)		8.00	%		11/15/12	$	4,000	$	4,559,880
California (State of) Statewide Communities Development Authority (Front Porch Communities & Services); Series 2007 A, RB(e)		5.13	%		04/01/37		8,000		6,324,320
California (State of) Statewide Communities Development Authority (Hospice of Napa Valley); Series 2004 A, RB		7.00	%		01/01/34		3,220		2,721,995
California (State of) Statewide Communities Development Authority (Lancer Educational Student Housing);
Series 2007, RB		5.40	%		06/01/17		3,500		3,389,645
Series 2007, RB		5.63	%		06/01/33		4,940		4,096,841
California (State of) Statewide Communities Development Authority (Notre Dame de Namur University); Series 2003, RB		6.50	%		10/01/23		1,985		1,847,777
California (State of) Statewide Communities Development Authority (Notre Dame De Namur University); Series 2003, RB		6.63	%		10/01/33		2,500		2,190,500
California (State of) Statewide Communities Development Authority (San Francisco Art Institute); Series 2002, RB (Acquired 07/05/02, Cost $5,250,000)(e)		7.38	%		04/01/32		5,250		4,619,002
California (State of) Statewide Communities Development Authority (Senior Living Southern California);
Series 2009, RB		7.00	%		11/15/29		1,745		1,822,164
Series 2009, RB		7.25	%		11/15/41		3,500		3,664,955
California (State of) Statewide Communities Development Authority (Thomas Jefferson School of Law);
Series 2001, RB(b)(c)		7.75	%		10/01/11		5,035		5,279,248
Series 2008 A, RB		7.25	%		10/01/32		4,500		4,568,940
Series 2008 A, RB		7.25	%		10/01/38		15,000		15,115,800
California (State of) Statewide Communities Development Authority Community Facilities District 2007-1 (Orinda);
Series 2007, Special Tax RB		6.00	%		09/01/37		6,185		4,837,536
Series 2007, Tax Allocation RB		6.00	%		09/01/29		2,735		2,275,602
California (State of) Statewide Communities Development Authority; Series 2008 A, Special Assessment Bonds		6.63	%		09/02/38		7,610		6,497,494
Carlsbad (City of) Community Facilities District 3 (Improvement Area 2);
Series 2008, Special Tax RB		6.10	%		09/01/28		2,615		2,333,652
Series 2008, Special Tax RB		6.20	%		09/01/38		5,960		5,057,120
Contra Costa (County of); Series 1999 C, MFH RB(a)(e)		6.75	%		12/01/30		2,725		2,335,243
Fairfield (City of) Community Facilities District No. 2007-1 (Fairfield Commons);
Series 2008, Special Tax Bonds		6.50	%		09/01/23		1,435		1,346,331
Series 2008, Special Tax Bonds		6.75	%		09/01/28		2,950		2,717,422
Series 2008, Special Tax Bonds		6.88	%		09/01/38		5,140		4,557,381
Fontana (City of) Community Facilities District No. 11; Series 1999 B, Special Tax Bonds		6.50	%		09/01/28		1,770		1,735,591
Fontana (City of) Community Facilities District No. 22 (Sierra Hills South);
Series 2004, Special Tax Bonds		5.85	%		09/01/25		3,695		3,448,544
Series 2004, Special Tax Bonds		6.00	%		09/01/34		5,000		4,469,550
Foothill/Eastern Corridor Agency; Series 1999, Ref. Toll Road RB (INS–NATL)(d)(f)		0.00	%		01/15/18		2,300		1,400,171
Golden State Tobacco Securitization Corp.;
Series 2005 A, Enhanced Asset-Backed RB (INS–BHAC)(d)(h)		5.00	%		06/01/45		40,380		33,525,495
Series 2007 A-1, Sr. Tobacco Settlement Asset-Backed RB		5.00	%		06/01/33		28,505		18,583,550
Series 2007 A-1, Sr. Tobacco Settlement Asset-Backed RB		5.13	%		06/01/47		27,020		16,210,649
Series 2007 A-1, Sr. Tobacco Settlement Asset-Backed RB		5.75	%		06/01/47		16,000		10,684,160
Hawthorne (City of) Community Facilities District No. 2006-1;
Series 2006, Special Tax Bonds		5.00	%		09/01/30		3,000		1,958,160
Series 2006, Special Tax Bonds		5.00	%		09/01/36		2,000		1,210,540
Hesperia Public Financing Authority (Redevelopment & Housing); Series 2007 A, Tax Allocation RB (INS–XLCA)(d)		5.00	%		09/01/31		1,495		1,021,593

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

12        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
California–(continued)
Imperial Beach Public Finance Authority (Palm Avenue/Commercial Redevelopment);
Series 2003 A, Tax Allocation Bonds		5.85	%		06/01/28	$	1,000	$	873,030
Series 2003 A, Tax Allocation RB		6.00	%		06/01/33		3,000		2,562,000
Indio (City of) Redevelopment Agency (Merged Project Area); Series 2004 B, Sub. Tax Allocation Bonds(b)(c)		6.38	%		08/15/14		3,500		4,100,355
Indio (City of) Redevelopment Agency; Series 2004 B, Sub. Tax Allocation Bonds(b)(c)		6.50	%		08/15/14		1,410		1,596,966
Jurupa (City of) Community Services District Community Facilities District No. 4; Series 2004, Special Tax Bonds		5.70	%		09/01/34		4,000		3,390,720
La Verne (City of) (Brethren Hillcrest Home); Series 2003 B, RB COP		6.63	%		02/15/25		4,500		4,349,070
Lee Lake Water District Community Facilities District No. 1 (Sycamore Creek); Series 2003, Special Tax Bonds		6.00	%		09/01/33		1,000		883,390
Los Angeles (City of) Community Facilities District No. 3 (Cascades Business Park); Series 1997, Special Tax Bonds		6.40	%		09/01/22		655		656,611
Morongo Band of Mission Indians (Indians Enterprise Casino); Series 2008, Enterprise RB(e)		6.50	%		03/01/28		5,515		5,162,812
Murrieta (City of) Community Facilities District No. 2 (The Oaks Improvement Area);
Series 2004 B, Special Tax Bonds		6.00	%		09/01/27		1,000		935,440
Series 2004 B, Special Tax Bonds		6.00	%		09/01/34		2,000		1,787,820
North Star (City of) Community Services District; Series 2005, Special Tax Bonds		5.45	%		09/01/28		1,000		794,230
Northern California Tobacco Securitization Authority (Sacramento County Tobacco Securitization Corp.); Series 2005 A-1, Tobacco Settlement Asset-Backed Turbo RB		5.50	%		06/01/45		4,500		2,841,480
Oakley (City of) Public Finance Authority;
Series 2004, RB		6.00	%		09/02/28		935		855,525
Series 2004, RB		6.00	%		09/02/34		935		821,108
Orange (City of) Community Facilities District No. 06-1 (Del Rio Public Improvements); Series 2010, Special Tax RB		6.00	%		10/01/40		3,000		2,730,930
Palmdale (City of) Community Facilities 03-1 (Anaverde);
Series 2005 A, Special Tax Bonds		5.35	%		09/01/30		1,000		803,060
Series 2005 A, Special Tax Bonds		5.40	%		09/01/35		1,100		848,925
Perris (City of) Community Facilities District No. 01-2; Series 2002 A, Special Tax Bonds		6.38	%		09/01/32		5,000		4,827,200
Perris (City of) Public Financing Authority;
Series 1995 D, Special Tax Local Agency RB		7.88	%		09/01/25		1,655		1,656,787
Series 2006, Tax Allocation RB		5.35	%		10/01/36		2,350		1,806,351
Placentia (City of) Public Financing Authority (Working Capital Financing); Series 2009, Lease RB		7.50	%		06/01/19		4,390		4,408,658
Rancho Cordova (City of) Community Facilities District No. 2003-1 (Sunridge Antolia); Series 2003, Special Tax Bonds		6.00	%		09/01/28		1,045		961,181
Rancho Cordova (City of) Community Facilities District No. 2003-1 (Sunridge Antolia); Series 2005, Special Tax Bonds		5.50	%		09/01/37		2,000		1,604,140
Riverside (County of) Redevelopment Agency (Mid County Redevelopment); Series 2010 C, Tax Allocation RB		6.25	%		10/01/40		1,780		1,533,559
Riverside Unified California School District Community Facilities School District No. 15 (Improvement Area No. 1);
Series 2004, Special Tax Bonds		5.55	%		09/01/30		2,000		1,738,680
Series 2004, Special Tax Bonds		5.60	%		09/01/34		1,845		1,567,549
Roseville (City of) Fountains Community Facilities District No. 1; Series 2008, Special Tax Bonds		6.13	%		09/01/38		1,000		911,890
Sacramento (City of) Municipal Utility District;
Series 2008 U, Electric RB (INS–AGM)(d)(h)		5.00	%		08/15/25		10,275		10,505,263
Series 2008 U, Electric RB (INS–AGM)(d)(h)		5.00	%		08/15/26		5,000		5,076,100
Series 2008 U, Electric RB (INS–AGM)(d)(h)		5.00	%		08/15/27		5,000		5,047,950
Sacramento (County of) Community Facilities District No. 05-2 (North Vineyard Station No. 1); Series 2007 A, Special Tax Bonds		6.00	%		09/01/37		11,110		8,444,822
San Francisco (City & County of) Redevelopment Agency (Mission Bay South Redevelopment);
Series 2009 D, Tax Allocation Bonds		6.25	%		08/01/28		1,000		981,240
Series 2009 D, Tax Allocation Bonds		6.50	%		08/01/30		1,000		995,570
Series 2009 D, Tax Allocation Bonds		6.63	%		08/01/39		1,000		992,210

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

13        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
California–(continued)
San Gorgonio (City of) Memorial Health Care District Election 2006; Series 2006, Unlimited Tax GO Bonds		7.20	%		08/01/39	$	13,000	$	13,949,520
San Jose (City of) (Helzer Courts Apartments); Series 1999 A, MFH RB(a)		6.40	%		12/01/41		14,123		10,837,143
San Jose (City of) Community Facilities District (No. 9 Bailey/Hwy 101);
Series 2003, Special Tax Bonds		6.60	%		09/01/27		2,000		1,903,660
Series 2003, Special Tax Bonds		6.65	%		09/01/32		2,630		2,393,090
Santa Cruz (County of) Redevelopment Agency (Live Oak/Soquel Community Improvement); Series 2009 A, Tax Allocation Bonds		7.00	%		09/01/36		3,500		3,700,725
Silicon Valley Tobacco Securitization Authority (Santa Clara);
Series 2007 A, Tobacco Settlement CAB RB(f)		0.00	%		06/01/41		15,395		724,489
Series 2007 A, Tobacco Settlement CAB RB(f)		0.00	%		06/01/47		30,000		744,000
Series 2007 C, Tobacco Settlement Asset Backed CAB Bonds(f)		0.00	%		06/01/56		75,000		538,500
Series 2007 D, Tobacco Settlement CAB RB(f)		0.00	%		06/01/56		25,000		171,750
Southern California Logistics Airport Authority;
Series 2007, Tax Allocation Bonds		6.15	%		12/01/43		4,400		3,406,480
Series 2008 A, Tax Allocation Bonds		6.00	%		12/01/33		1,475		1,169,188
Series 2008 A, Tax Allocation CAB Bonds(f)		0.00	%		12/01/45		18,085		978,579
Series 2008 A, Tax Allocation CAB Bonds(f)		0.00	%		12/01/46		18,085		897,739
Series 2008 A, Tax Allocation CAB Bonds(f)		0.00	%		12/01/47		18,085		823,229
Series 2008 A, Tax Allocation CAB Bonds(f)		0.00	%		12/01/48		18,085		754,687
Series 2008 A, Tax Allocation CAB Bonds(f)		0.00	%		12/01/49		18,085		692,113
Series 2008 A, Tax Allocation CAB Bonds(f)		0.00	%		12/01/50		18,085		635,869
Southern California Tobacco Securitization Authority (San Diego County Tobacco Asset Securitization Corp.);
Series 2006 A-1, Sr. Tobacco Settlement Asset-Backed RB		5.00	%		06/01/37		7,000		4,566,240
Series 2006 A-1, Sr. Tobacco Settlement Asset-Backed RB		5.13	%		06/01/46		18,190		11,136,100
Sweetwater Union High School District (Election 2000); Series 2004 C, Unlimited Tax GO Bonds (INS–AGM)(d)(h)		5.00	%		08/01/29		15,160		14,935,177
Temecula (City of) Public Financing Authority Community Facilities District 03-2 (Roripaugh); Series 2006, Special Tax Bonds		5.50	%		09/01/36		7,000		3,470,740
Tobacco Securitization Authority of Southern California;
Series 2006, Tobacco Settlement First Sub. CAB RB(f)		0.00	%		06/01/46		35,000		747,950
Series 2006, Tobacco Settlement Second Sub. CAB RB(f)		0.00	%		06/01/46		27,200		601,120
Series 2006, Tobacco Settlement Second Sub. CAB RB(f)		0.00	%		06/01/46		47,000		878,900
Turlock (City of) (Emanuel Medical Center, Inc.); Series 2004, Health Facilities COP		5.38	%		10/15/34		1,600		1,317,424
Upland (City of) Community Facilities District 2003-2 (San Antonio Improvement 1);
Series 2004, Special Tax Bonds		6.00	%		09/01/34		3,000		2,700,900
Series 2004 A, Special Tax Bonds		5.90	%		09/01/24		2,000		1,903,520
Val Verde Unified School District Financing Authority;
Series 2003, Ref. Jr Lien Special Tax RB		6.00	%		10/01/21		535		519,881
Series 2003, Ref. Jr. Lien Special Tax RB		6.25	%		10/01/28		7,115		6,586,142
Vallejo (City of) Public Financing Authority (Hiddenbrooke Improvement District); Series 2004 A, Local Agency RB		5.80	%		09/01/31		4,105		3,394,917
Woodland (City of) Community Facilities District 1; Series 2004, Special Tax Bonds		6.25	%		09/01/34		4,900		4,087,384
Yuba (City of) Redevelopment Agency (Housing Set-Aside);
Series 2004 B, Tax Allocation Bonds		6.00	%		09/01/31		1,060		918,638
Series 2004 B, Tax Allocation Bonds		6.00	%		09/01/39		1,880		1,555,756
Yuba (City of) Redevelopment Agency (Redevelopment); Series 2004, Tax Allocation Bonds		6.00	%		09/01/31		1,800		1,559,952
									471,907,227
Colorado–3.93%
Antelope Heights Metropolitan District; Series 2003, Limited Tax GO Bonds(b)(c)		8.00	%		12/01/13		2,156		2,588,343

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

14        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Colorado–(continued)
Arvada (City of) (Arvada Nightingale); Series 1998, Ref. MFH RB (Acquired 04/16/99, Cost $1,025,000)(a)(e)		6.25	%		12/01/18	$	1,025	$	1,024,928
Beacon Point Metropolitan District;
Series 2005, Limited Tax GO Bonds		6.13	%		12/01/25		2,045		1,869,416
Series 2005 A, Limited Tax GO Bonds		6.25	%		12/01/35		2,010		1,759,273
Bradburn Metropolitan District No. 3; Series 2010, Ref. Limited Tax GO Bonds		7.50	%		12/01/39		2,025		1,913,483
Briargate Center Business Improvement District; Series 2002 A, Limited Tax GO Bonds		7.45	%		12/01/32		1,765		1,601,614
Bromley Park Metropolitan District No. 2;
Series 2002 B, Limited Tax GO Bonds(b)(c)		8.05	%		12/01/12		3,000		3,461,310
Series 2003, Limited Tax GO Bonds(b)(c)		8.05	%		12/01/12		3,500		4,038,195
Broomfield (Village of) Metropolitan District No. 2; Series 2003, Ref. Improvement Limited Tax GO Bonds		6.25	%		12/01/32		4,320		3,405,283
Castle Oaks Metropolitan District;
Series 2005, Limited Tax GO Bonds		6.00	%		12/01/25		500		403,820
Series 2005, Limited Tax GO Bonds		6.13	%		12/01/35		536		398,677
Colorado (State of) Educational & Cultural Facilities Authority (Brighton Charter School); Series 2006, Charter School RB		6.00	%		11/01/36		1,670		996,088
Colorado (State of) Educational & Cultural Facilities Authority (Denver Academy);
Series 2003 A, RB		7.13	%		11/01/28		810		811,790
Series 2003 A, Ref. RB		7.00	%		11/01/23		1,005		1,013,120
Colorado (State of) Educational & Cultural Facilities Authority (Montessori School of Denver); Series 2002, RB		7.50	%		06/01/22		1,785		1,819,201
Colorado (State of) Health Facilities Authority (American Baptist Homes);
Series 2007 A, RB		5.90	%		08/01/37		6,000		4,647,420
Series 2009 A, RB		7.75	%		08/01/39		6,375		6,207,019
Colorado (State of) Health Facilities Authority (Total Long-term Care National Obligated Group), Series 2010 A, RB		6.00	%		11/15/30		700		656,901
Series 2010 A, RB		6.25	%		11/15/40		3,600		3,383,100
Colorado (State of) Health Facilities Authority (Valley View Hospital Association); Series 2007, Hospital RB		5.25	%		05/15/42		15,660		13,128,404
Colorado (State of) Health Facilities Authority (Volunteers of America Care);
Series 2007 A, Health & Residential Care Facilities RB		5.20	%		07/01/22		1,000		872,670
Series 2007 A, RB		5.25	%		07/01/27		3,875		3,165,139
Series 2007 A, RB		5.30	%		07/01/37		6,930		5,010,044
Colorado (State of) Housing & Finance Authority; Series 1999, Single Family Program Sr. RB(a)		6.80	%		04/01/30		70		71,777
Confluence Metropolitan District;
Series 2007, Tax Supported RB		5.40	%		12/01/27		2,910		2,121,652
Series 2007, Tax Supported RB		5.45	%		12/01/34		6,000		4,067,400
Copperleaf Metropolitan District No. 2; Series 2006, Limited Tax GO Bonds		5.95	%		12/01/36		7,250		4,837,563
Cross Creek Metropolitan District No. 2; Series 2006, Ref. Limited Tax GO Bonds		6.13	%		12/01/37		2,790		1,951,326
Denver (City of) Convention Center Hotel Authority; Series 2006, Ref. Sr. RB (INS–XLCA)(d)		5.00	%		12/01/35		10,930		8,620,928
Eagle (County of) Airport Terminal Corp.;
Series 2001 A, RB(a)		7.00	%		05/01/21		1,275		1,212,551
Series 2001 A, RB(a)		7.13	%		05/01/31		990		893,237
Elbert (County of) & Highway 86 Commercial Metropolitan District; Series 2008 A, Public Improvement Fee RB		7.50	%		12/01/32		5,000		3,820,250
Elk Valley Public Improvement Corp.;
Series 2001 A, RB(b)(c)		7.30	%		09/01/11		2,500		2,612,700
Series 2001 A, RB(b)(c)		7.35	%		09/01/11		3,000		3,135,990
Fitzsimons Village Metropolitan District No. 1; Series 2010 A, Tax Increment Allocation RB		7.50	%		03/01/40		4,000		3,801,440
Fronterra (Village of) Metropolitan District; Series 2001, Limited Tax GO Bonds(b)(c)		8.05	%		12/01/11		5,245		5,639,476

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

15        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Colorado–(continued)
High Plains Metropolitan District;
Series 2005 A, Limited Tax GO Bonds		6.13	%		12/01/25	$	2,280	$	1,832,322
Series 2005 A, Limited Tax GO Bonds		6.25	%		12/01/35		4,000		2,946,240
Lafayette (City of) Industrial Development (Rocky Mountain Instrument);
Series 1998 A, RB(a)(i)		7.00	%		10/01/18		5,460		3,549,000
Series 1998 B, RB(i)		6.13	%		12/31/49		135		87,750
Series 1999 A, RB(i)		6.75	%		10/01/14		510		331,500
Lake Creek Affordable Housing Corp. (Housing); Series 1998 A, MFH RB		6.25	%		12/01/23		9,470		9,630,138
Lincoln Park Metropolitan District;
Series 2008, Ref. Improvement Unlimited Tax GO Bonds		6.13	%		12/01/30		6,250		5,963,812
Series 2008, Ref. Improvement Unlimited Tax GO Bonds		6.20	%		12/01/37		5,550		5,077,917
Montezuma (County of) Hospital District (Health Facilities Enterprise); Series 2007, Ref. Hospital RB		5.90	%		10/01/37		6,705		5,251,356
Montrose (County of) Health Care Facilities (Homestead at Montrose); Series 2003 A, RB		7.00	%		02/01/38		6,200		5,587,192
Montrose (County of) Memorial Hospital;
Series 2003, RB		6.00	%		12/01/28		4,185		3,886,986
Series 2003, RB		6.00	%		12/01/33		5,500		4,987,620
Neu Towne Metropolitan District; Series 2004, Limited Tax GO Bonds		1.80	%		12/01/34		1,500		449,100
Northwest Metropolitan District No. 3;
Series 2005, Limited Tax GO Bonds		6.13	%		12/01/25		3,500		2,863,630
Series 2005, Limited Tax GO Bonds		6.25	%		12/01/35		6,450		4,879,232
Rampart Range Metropolitan District No. 1; Series 2001, RB(b)(c)		7.75	%		12/01/11		5,975		6,320,773
Regional Transportation District (Denver Transit Partners Eagle P-3); Series 2010, Private Activity RB		6.00	%		01/15/41		10,935		10,096,067
Rendezvous Residential Metropolitan District; Series 2002, Limited Tax GO Bonds(b)(c)		8.00	%		12/01/13		1,630		1,887,915
Serenity Ridge Metropolitan District No. 2; Series 2004, Limited Tax GO Bonds		3.75	%		12/01/34		2,000		958,800
Snowmass Village (Town of); Series 1992 A, MFH RB		8.00	%		09/01/14		430		430,082
Southlands Metropolitan District No. 1;
Series 2004, Unlimited Tax GO Bonds(b)(c)		7.00	%		12/01/14		1,000		1,210,440
Series 2004, Unlimited Tax GO Bonds(b)(c)		7.13	%		12/01/14		2,000		2,429,200
Tallgrass Metropolitan District; Series 2007, Ref. Improvement Limited Tax GO Bonds		5.25	%		12/01/37		5,938		4,554,268
Tallyns Reach Metropolitan District No. 2; Series 2004, Limited Tax GO Bonds		6.38	%		12/01/23		637		643,077
Tallyns Reach Metropolitan District No. 3;
Series 2004, Limited Tax GO Bonds		6.63	%		12/01/23		925		947,394
Series 2004, Limited Tax GO Bonds		6.75	%		12/01/33		1,000		1,010,850
Vista Ridge Metropolitan District; Series 2006 B, Ref. Limited Tax GO Bonds		2.65	%		12/01/40		1,000		723,030
									195,497,219
Connecticut–0.49%
Connecticut (State of) Development Authority (Cargo BDL LLC); Series 2000, IDR(a)		8.00	%		04/01/30		3,000		1,957,650
Connecticut (State of) Development Authority (The Elm Park Baptist Inc.); Series 2003, RB		5.85	%		12/01/33		2,950		2,807,397
Connecticut (State of) Health & Educational Facility Authority (St. Mary’s Hospital Issue); Series 1997 E, RB		5.88	%		07/01/22		3,660		3,331,076
Georgetown (City of) Special Taxing District; Series 2006 A, Unlimited Tax GO Bonds(e)(i)		5.13	%		10/01/36		4,405		2,136,645
Greenwich (Town of) Housing Authority; Series 1997 B, RB		7.50	%		09/01/27		1,395		1,392,377
Hamden (Town of) (Whitney Center);
Series 2009 A, Facility RB		7.75	%		01/01/43		5,250		5,353,268
Series 2009 A, RB		7.63	%		01/01/30		2,180		2,220,003
Series 2009 C, RB(c)(g)		7.25	%		01/01/16		2,000		2,033,060

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

16        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Connecticut–(continued)
Manchester (Town of) Connecticut (Bennet Housing Development); Series 1993, MFH Mortgage RB (Acquired 09/20/99, Cost $755,594)(e)		7.20	%		12/01/18	$	815	$	822,522
New Britain (City of) Housing Authority (Franklin Square Manor); Series 2002, RB(a)		7.00	%		07/01/21		2,369		2,406,999
									24,460,997
Delaware–0.08%
Wilmington (City of) (Electra Arms Sr. Association); Series 1998, MFH Rental RB(a)		6.25	%		06/01/28		4,625		3,908,125
District of Columbia–1.51%
District of Columbia (Cesar Chavez Charter School); Series 2011, RB		7.88	%		11/15/40		7,000		6,925,800
District of Columbia (Methodist Home Issue); Series 1999, RB		6.00	%		01/01/29		2,545		2,128,765
District of Columbia (Sibley Memorial Hospital); Series 2009, Hospital RB		6.50	%		10/01/29		5,000		5,296,250
District of Columbia Tobacco Settlement Financing Corp.;
Series 2001, Asset-Backed RB		6.50	%		05/15/33		4,935		4,787,888
Series 2006 C, Asset-Backed CAB RB(f)		0.00	%		06/15/55		135,320		951,299
District of Columbia; Series 2009 B, Ref. Sec. Income Tax RB(h)		5.00	%		12/01/25		16,165		17,307,866
Metropolitan Washington Airports Authority; Series 2006 B, System RB (INS–AGM)(a)(d)(h)		5.00	%		10/01/36		40,695		37,836,990
									75,234,858
Florida–12.03%
Alachua (County of) (North Florida Retirement Village, Inc.);
Series 2007, IDR		5.88	%		11/15/42		19,000		13,899,640
Series 2007 A, IDR		5.88	%		11/15/36		7,500		5,641,650
Anthem Park Community Development District; Series 2004, Capital Improvement Special Assessment RB		5.80	%		05/01/36		8,540		5,551,342
Baineridge Community Development District; Series 2007, Special Assessment Bonds		5.50	%		05/01/38		1,945		1,157,470
Bartram Park Community Development District; Series 2006, Special Assessment Bonds		5.40	%		05/01/37		9,565		5,022,677
Bay Laurel Center Community Development District (Candler); Series 2006, Special Assessment Bonds		5.45	%		05/01/37		1,280		1,018,854
Beacon Lakes Community Development District; Series 2003 A, Special Assessment Bonds		6.90	%		05/01/35		8,910		8,353,749
Bellalago Educational Facilities Benefit District;
Series 2004, Capital Improvement Special Assessment RB		6.00	%		05/01/33		1,000		838,010
Series 2004 B, Capital Improvement Special Assessment RB		5.80	%		05/01/34		1,845		1,499,044
Bloomingdale (Villages of) Community Development District; Series 2004, Special Assessment RB		5.88	%		05/01/36		4,080		3,397,824
Bluewaters Community Development District; Series 2004, Special Assessment Bonds		6.00	%		05/01/35		2,790		2,582,508
Boca Raton (City of) Housing Authority (Banyan Place Sr. Apartments);
Series 2006, Ref. 1st Lien Mortgage Housing RB(e)		5.80	%		10/01/26		3,215		2,354,859
Series 2006, Ref. 1st Lien Mortgage Housing RB(e)		5.90	%		10/01/36		4,705		3,109,864
Bonnet Creek Resort Community Development District;
Series 2002, Special Assessment Bonds		7.38	%		05/01/34		3,000		2,493,120
Series 2002, Special Assessment Bonds		7.50	%		05/01/34		7,500		6,322,425
Brevard (County of) Health Facilities Authority (Buena Vida Estates, Inc.); Series 2008, Residential Care Facility RB		6.75	%		01/01/37		11,640		10,388,351
Brevard (County of) Health Facilities Authority (Health First, Inc.);
Series 2009, Health Care Facilities RB		7.00	%		04/01/33		1,960		2,106,118
Series 2009, RB		7.00	%		04/01/39		1,865		1,997,825
Broward (County of) (Civic Arena);
Series 2006 A, Professional Sports Facilities Tax RB (INS–AGM)(d)(h)		5.00	%		09/01/25		7,910		8,035,453
Series 2006 A, Ref. Professional Sports Facilities Tax RB (INS–AGM)(d)(h)		5.00	%		09/02/24		7,555		7,723,779
Buckeye Park Community Development District; Series 2008, Capital Improvement Special Assessment RB		7.88	%		05/01/38		5,000		2,193,400
Capital Region Community Development District; Series 2008 A, Capital Improvement Special Assessment RB		7.00	%		05/01/39		3,460		3,131,231

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

17        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Florida–(continued)
Capital Trust Agency (Fort Lauderdale); Series 2003, Sr. RB(a)		5.75	%		01/01/32	$	3,200	$	2,646,880
Capital Trust Agency (Orlando); Series 2003, RB(a)		6.75	%		01/01/32		2,500		2,206,975
Caribe Palm Community Development District; Series 2005 A, Special Assessment Bonds		5.85	%		05/01/35		735		655,010
Championsgate Community Development District; Series 1998, Capital Improvement Special Assessment RB		6.25	%		05/01/20		2,910		2,557,163
Citrus (County of) Hospital Board (Citrust Memorial Hospital);
Series 2002, RB		6.25	%		08/15/23		3,475		3,482,714
Series 2002, RB		6.38	%		08/15/32		5,840		5,795,966
City Center Community Development District;
Series 2005 A, Special Assessment RB(i)		6.13	%		05/01/36		1,990		847,223
Series 2007 A, Special Assessment RB(i)		6.00	%		05/01/38		11,390		4,848,837
Connerton West Community Development District;
Series 2004 A-2, Capital Improvement Special Assessment RB		5.95	%		05/01/36		1,955		1,333,447
Series 2006 A-1, Capital Improvements Special Assessment Bonds(i)		5.38	%		05/01/37		4,950		1,915,155
Series 2007 B, Capital Improvement Special Assessment RB(i)		5.13	%		05/01/16		2,825		1,071,805
Cutler Cay Community Development District; Series 2004, Special Assessment Bonds		6.13	%		05/01/24		3,980		3,893,475
Double Branch Development District; Series 2002 A, Special Assessment Bonds		6.70	%		05/01/34		7,620		7,690,333
Escambia (County of) (International Paper Co.); Series 2006 A, Ref. Environmental Improvement RB(a)		5.00	%		08/01/26		5,690		5,186,492
Escambia (County of) (Pensacola Care Development Centers);
Series 1989, RB		10.25	%		07/01/11		610		614,240
Series 1989 A, Unlimited Tax GO Bonds		10.25	%		07/01/11		265		266,842
Escambia (County of); Series 2003 A, Environmental Improvement RB(a)		5.75	%		11/01/27		9,250		9,122,442
Florida (State of) Development Finance Corp. (Renaissance Charter School, Inc.); Series 2010 A, Educational Facilities RB		6.00	%		09/15/40		10,840		9,152,537
Florida (State of) Housing Finance Corp. (Beacon Hill Apartments); Series 1998 C, Housing RB(a)(c)		6.61	%		07/01/28		7,985		6,392,072
Florida (State of) Housing Finance Corp. (Westbrook Apartments); Series 1998 U-1, Housing RB(a)(c)		6.45	%		01/01/29		11,005		9,652,155
Florida (State of) Housing Finance Corp. (Westchase Apartments); Series 1998 B, Housing RB(a)		6.61	%		07/01/38		10,015		6,925,873
Florida (State of) Housing Finance Corp. (Whistler Cove); Series 2009, MFH RB(c)(f)(g)		0.00	%		07/01/28		6,845		1,848,150
Florida (State of) Housing Finance Corp. (Whistler Cove); Series 2009, MFH RB(c)(g)		6.00	%		07/01/28		7,020		5,733,374
Gramercy Farms Community Development District;
Series 2007 A-1, Special Assessment Bonds(i)		5.25	%		05/01/39		2,450		1,050,560
Series 2007 A-2, Special Assessment Bonds(i)		5.25	%		05/01/39		3,110		1,333,568
Series 2007 B, Special Assessment RB(i)		5.10	%		05/01/14		7,000		3,071,600
Greyhawk Landing Community Development District; Series 2002 A, Special Assessment RB		7.00	%		05/01/33		1,955		1,878,344
Hammock Bay Community Development District; Series 2004 A, Special Assessment RB		6.13	%		05/01/35		2,420		2,240,654
Harbour Isles Community Development District; Series 2004, Special Assessment RB		6.13	%		05/01/35		1,390		1,177,969
Heritage Harbor Community Development District; Series 1997, Recreational RB		7.75	%		05/01/23		450		348,377
Hillsborough (County of) Industrial Development Authority (Tampa General Hospital); Series 2006, RB		5.25	%		10/01/41		5,800		5,019,900
Islands at Doral III Community Development District; Series 2004 A, Special Assessment RB		5.90	%		05/01/35		3,720		3,257,492
Islands at Doral Northwest Community Development District; Series 2004, Special Assessment RB		6.25	%		05/01/34		1,000		917,690
Islands at Doral Southwest Community Development District; Series 2003, Special Assessment RB(b)(c)		6.38	%		05/01/13		1,765		1,957,862
Jacksonville (City of) Economic Development Commission (Proton Therapy Institution); Series 2007 A, Health Care Facilities RB(e)		6.25	%		09/01/27		16,000		14,902,560
Kendall Breeze Community Development District;
Series 2002, Special Assessment Bonds		6.70	%		11/01/23		1,995		2,187,358
Series 2002, Special Assessment Bonds		6.63	%		11/01/33		3,190		3,540,294
Series 2004, Special Assessment Bonds		5.88	%		05/01/34		1,425		1,264,588
Lakeland (City of) (Carpenters Accident Investor); Series 2008, Ref. Retirement Community First Mortgage RB(e)		6.38	%		01/01/43		2,250		1,949,400

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

18        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Florida–(continued)
Lakeside Landings Community Development District;
Series 2007 A, Special Assessment Bonds(i)		5.50	%		05/01/38	$	1,000	$	409,200
Series 2007 B, Special Assessment Bonds(i)		5.25	%		05/01/13		1,940		793,848
Lee (County of) Industrial Development Authority (County Community Charter Schools, LLC); Series 2007 A, RB		5.38	%		06/15/37		5,000		3,759,600
Lee (County of) Industrial Development Authority (Cypress Cove at Health Park); Series 2002 A, Health Care Facilities RB		6.75	%		10/01/32		8,000		5,995,440
Lee (County of) Industrial Development Authority (Cypress Cove Health Park); Series 1997 A, Health Care Facilities RB		6.38	%		10/01/25		8,725		6,777,667
Lee (County of) Industrial Development Authority; Series 2007 A, IDR		5.25	%		06/15/27		3,750		3,029,963
Leon (County of) Educational Facilities Authority (Southgate Residence Hall); Series 1998 A, RB		6.75	%		09/01/28		8,395		6,708,109
Marshall Creek Community Development District; Series 2000 A, Special Assessment Bonds		7.65	%		05/01/32		2,710		2,594,906
Miami Beach (City of) Health Facilities Authority (Mount Sinai Medical Center);
Series 1998, Hospital RB		5.38	%		11/15/18		95		91,878
Series 2001 A, Hospital RB		6.80	%		11/15/31		3,465		3,359,179
Series 2004, Ref. Hospital RB(e)		6.75	%		11/15/29		5,500		5,334,725
Miami-Dade (County of) (Building Better Communities Program); Series 2008, Unlimited Tax GO Bonds (INS–AGM)(d)(h)		5.00	%		07/01/30		15,210		15,283,160
Miami-Dade (County of) (Miami International Airport); Series 2008 A, Aviation RB (INS–AGM)(a)(d)(h)		5.25	%		10/01/33		16,500		15,552,405
Miami-Dade (County Of) School Board; Series 2008 B, COP (INS–AGM)(d)(h)		5.25	%		05/01/26		5,000		5,083,250
Series 2008 B, COP (INS–AGM)(d)(h)		5.25	%		05/01/27		10,000		10,118,400
Mid-Bay Bridge Authority; Series 2011 A, Springing Lien RB		7.25	%		10/01/40		14,000		13,991,880
Midtown Miami Community Development District;
Series 2004 A, Special Assessment RB		6.00	%		05/01/24		1,840		1,726,711
Series 2004 A, Special Assessment RB		6.25	%		05/01/37		8,445		7,531,758
Miromar Lakes Community Development District; Series 2000 B, Capital Improvement Special Assessment RB		7.25	%		05/01/12		4,440		4,371,180
Mount Dora (City of) Health Facilities Authority (Waterman Village);
Series 2002 A, Health Facilities RB		6.75	%		08/15/25		3,000		2,717,520
Series 2004 A, Health Facilities RB		5.25	%		08/15/13		1,575		1,576,150
Series 2004 A, Ref. RB		5.75	%		08/15/18		3,000		2,867,640
Northern Palm Beach (County of) Improvement District Unit of Development No. 16;
Series 1999, Ref. Water Control & Improvement RB		7.50	%		08/01/24		2,765		2,712,189
Series 2002, Water Control & Improvement RB		7.00	%		08/01/32		2,500		2,395,725
Northern Palm Beach (County of) Improvement District Unit of Development No. 2A; Series 2002, Water Control & Improvement RB		6.40	%		08/01/33		4,080		3,853,070
Northern Palm Beach (County of) Improvement District Unit of Development No. 43; Series 2001, Water Control & Improvement RB(b)(c)		6.13	%		08/01/11		1,500		1,550,355
Oak Creek Community Development District; Series 2004, Special Assessment Bonds		5.80	%		05/01/35		1,645		1,273,246
Orange (County of) Health Facilities Authority (Orlando Lutheran Towers, Inc.);
Series 2005, Ref. Health Care Facilities RB		5.38	%		07/01/20		2,200		2,013,220
Series 2005, Ref. Health Care Facility RB		5.70	%		07/01/26		4,000		3,473,880
Series 2007, First Mortgage RB		5.50	%		07/01/32		2,750		2,215,895
Series 2007, First Mortgage RB		5.50	%		07/01/38		7,450		5,892,801
Orange (County of) Health Facilities Authority (Westminster Community Care);
Series 1999, RB		6.50	%		04/01/12		245		245,203
Series 1999, RB		6.60	%		04/01/24		4,000		3,780,240
Series 1999, RB		6.75	%		04/01/34		2,500		2,241,500
Orange (County of) Housing Finance Authority (Alhambra Trace Apartments); Series 1998 C, MFH RB		7.00	%		04/01/28		1,905		1,767,326

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

19        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Florida–(continued)
Orange (County of) Housing Finance Authority (Governors Manor Apartments); Series 2001 F-4, MFH RB		7.25	%		10/01/31	$	3,820	$	3,789,402
Orange (County of) Housing Finance Authority (H.A.N.D.S., Inc.);
Series 1995 A, MFH Mortgage RB(e)		7.00	%		10/01/15		1,095		1,120,054
Series 1995 A, MFH RB(e)		7.00	%		10/01/25		2,535		2,588,767
Orange (County of) Housing Finance Authority (Lake Davis Apartments); Series 2001 F-1, MFH RB		7.25	%		10/01/31		800		793,592
Orange (County of) Housing Finance Authority (Lake Jennie Phase I); Series 2001 F-2, MFH RB		7.25	%		10/01/31		220		218,238
Orange (County of) Housing Finance Authority (Lake Jennie Phase II); Series 2001 F-3, MFH RB		7.25	%		10/01/31		800		793,592
Orange (County of) Housing Finance Authority (Mellonville Trace Apartments); Series 2001 F-5, MFH RB		7.25	%		10/01/31		320		317,437
Overoaks Community Development District;
Series 2004 A, Capital Improvement Special Assessment RB(i)		6.13	%		05/01/35		410		4
Series 2010 A-1, Capital Improvement RB		6.13	%		05/01/35		200		183,184
Series 2010 A-2, Capital Improvement RB(l)		6.13	%		05/01/35		435		253,266
Series 2010 B, Capital Improvement RB(l)		5.13	%		05/01/17		1,000		818,490
Palm Beach (County of) Housing Finance Authority (Lake Delray Apartments); Series 1999 A, MFH RB(a)		6.40	%		01/01/31		8,920		7,579,770
Palm Coast Park Community Development District; Series 2006, Special Assessment RB		5.70	%		05/01/37		4,795		2,785,224
Parklands Lee Community Development District; Series 2004 A, Special Assessment Bonds(i)		5.80	%		05/01/35		2,720		1,345,584
Parklands West Community Development District; Series 2001 A, Special Assessment RB		6.90	%		05/01/32		3,610		3,341,921
Pentathlon Community Development District; Series 2003, Special Assessment RB		6.75	%		11/01/33		1,700		1,636,896
Pier Park Community Development District; Series 2002 1, Capital Improvement RB		7.15	%		05/01/34		14,815		13,639,726
Pine Air Lakes Community Development District; Series 2002, Special Assessment RB		7.25	%		05/01/33		2,805		2,717,596
Pine Island Community Development District; Series 2004, Special Assessment RB		5.75	%		05/01/35		3,205		2,110,396
Pine Ridge Plantation Community Development District; Series 2006 A, Capital Improvement Special Assessment RB		5.40	%		05/01/37		1,645		1,032,731
Pinellas (County of) Health Facilities Authority (Clearwater Christian College); Series 2001 A, RB(e)		7.25	%		09/01/31		7,170		5,958,700
Pinellas (County of) Health Facilities Authority (The Oaks of Clearwater); Series 2004, Health Care Facilities RB		6.25	%		06/01/34		5,580		5,587,700
Poinciana Community Development District; Series 2000 A, Special Assessment RB		7.13	%		05/01/31		7,015		6,827,770
Poinciana West Community Development District; Series 2007, Special Assessment Bonds		6.00	%		05/01/37		1,495		1,218,978
Port St. Lucie (City of) (Glassman); Series 2003 C, Special Assessment RB		6.75	%		07/01/23		5,420		5,269,378
Reunion East Community Development District; Series 2005, Special Assessment RB		5.80	%		05/01/36		4,300		2,099,690
Reunion West Community Development District; Series 2004, Special Assessment Bonds(i)		6.25	%		05/01/36		6,740		3,449,734
Saddlebrook Community Development District; Series 2001 A, Special Assessment Bonds		6.90	%		05/01/33		4,520		4,488,993
Sausalito Bay Community Development District; Series 2003, Special Assessment Bonds		6.20	%		05/01/35		2,715		2,504,615
Seminole Indian Tribe; Series 2007 A, Special Obligation RB(e)		5.50	%		10/01/24		5,350		4,826,877
Seven Oaks Community Development District II (Pasco County); Series 2004 A, Special Assessment RB		5.88	%		05/01/35		2,700		1,921,482
Seven Oaks Community Development District II; Series 2003 A, Special Assessment RB		6.40	%		05/01/34		4,785		4,345,976
Silver Palms Community Development District; Series 2004, Special Assessment RB		5.90	%		05/01/34		1,825		1,628,703
Six Mile Creek Community Development District; Series 2007, Capital Improvement Special Assessment RB		5.88	%		05/01/38		5,000		1,620,500
South Lake (County of) Hospital District (South Lake Hospital, Inc.);
Series 2003, RB		6.38	%		10/01/28		2,115		2,120,076
Series 2003, RB		6.38	%		10/01/34		3,995		3,939,589
South-Dade Venture Community Development District;
Series 2002, Special Assessment RB		6.90	%		05/01/33		4,380		4,277,508
Series 2004, Special Assessment Bonds		6.13	%		05/01/34		1,300		1,189,734
St. Johns (County of) Industrial Development Authority (Glenmoor); Series 2006 A, Health Care RB		5.38	%		01/01/40		7,850		5,673,666
St. Johns (County of) Industrial Development Authority (Presbyterian Retirement Communities);
Series 2004 A, First Mortgage RB		5.63	%		08/01/34		5,390		4,726,814
Series 2010 A, RB		6.00	%		08/01/45		4,000		3,705,520

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

20        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Florida–(continued)
Sterling Hill Community Development (Hernando County); Series 2003 A, Capital Improvement RB		6.20	%		05/01/35	$	1,500	$	1,279,230
Stonebrier Community Development District; Series 2006, Special Assessment Bonds		5.50	%		05/01/37		2,870		2,321,313
Stonegate Community Development District; Series 2008, Special Assessment RB		8.13	%		05/01/39		4,775		4,852,641
Sweetwater Creek Community Development District; Series 2007 A, Capital Improvement Special Assessment RB		5.50	%		05/01/38		3,545		1,593,123
Tallahassee (City of) (Tallahassee Memorial Health Care, Inc.); Series 2000, Health Facilities RB		6.38	%		12/01/30		5,875		5,871,005
Tampa Bay Water; Series 2001 A, Ref. Utility System Improvement RB (INS–NATL)(d)(h)		6.00	%		10/01/29		13,440		15,507,610
Tolomato Community Development District;
Series 2007, Special Assessment RB		6.55	%		05/01/27		2,000		1,395,720
Series 2007, Special Assessment RB		6.65	%		05/01/40		14,200		9,554,470
Series 2007 A, Special Assessment RB		5.25	%		05/01/39		985		619,821
Town Center at Palm Coast Community Development District; Series 2005, Capital Improvement Special Assessment RB		6.00	%		05/01/36		11,830		7,707,836
Trails at Monterey Community Development District;
Series 2003, Special Assessment Bonds		6.50	%		05/01/23		1,055		1,020,491
Series 2003, Special Assessment Bonds		6.75	%		05/01/33		1,715		1,628,101
Treeline Preserve Community Development District; Series 2007 A, Special Assessment Bonds(i)		6.80	%		05/01/39		4,895		2,298,447
Turnbull Creek Community Development District;
Series 2005, Special Assessment Bonds		5.80	%		05/01/35		2,745		2,069,044
Series 2006, Special Assessment Bonds		5.25	%		05/01/37		3,675		2,253,804
University Square Community Development District; Series 2007 A-1, Capital Improvement RB		5.88	%		05/01/38		4,890		4,075,864
Venetian Isles Community Development District; Series 2002 A, Special Assessment Bonds		6.75	%		05/01/33		4,010		3,819,565
Verandah West Community Development District; Series 2003 A, Capital Improvement Special Assessment Bonds		6.63	%		05/01/33		4,445		4,103,491
Vista Lakes Community Development District; Series 2002 A, Capital Improvement Special Assessment RB(b)(c)		6.75	%		05/01/12		1,820		1,948,565
Waterlefe Community Development District; Series 2001, Golf Course RB(i)		8.13	%		10/01/25		2,645		21,954
West Villages Improvement District Unit of Development No. 3; Series 2006, Special Assessment RB		5.50	%		05/01/37		3,820		1,696,233
West Villages Improvement District; Series 2007, Special Assessment RB		5.50	%		05/01/38		9,600		4,457,856
Winter Garden Village at Fowler Groves Community Development District; Series 2006, Special Assessment Bonds		5.65	%		05/01/37		1,915		1,670,282
World Commerce Community Development District; Series 2004 A-2, Special Assessment Bonds		6.13	%		05/01/35		1,560		1,286,204
									599,346,331
Georgia–2.07%
Americus-Sumter (County of) Hospital Authority (Southgate Methodist); Series 1999 A, Ref. RB		6.38	%		05/15/29		5,250		4,446,750
Atlanta (City of) (Atlantic Station); Series 2001, Tax Allocation RB(b)(c)		7.75	%		12/01/11		1,285		1,360,185
Atlanta (City of) (Beltline); Series 2009 B, Tax Allocation Bonds		7.38	%		01/01/31		8,000		7,896,400
Atlanta (City of) (Eastside); Series 2005 B, Tax Allocation RB		5.60	%		01/01/30		1,500		1,391,220
Atlanta (City of) (Princeton Lakes); Series 2006, Tax Allocation RB(e)		5.50	%		01/01/31		3,140		2,641,588
Atlanta (City of) Urban Residential Finance Authority (John Eagan); Series 1998 A, MFH RB(a)		6.75	%		07/01/30		5,470		3,798,860
Clayton (County of) Development Authority (Delta Air Lines, Inc.); Series 2009 B, Special Facilities RB(a)		9.00	%		06/01/35		6,750		7,225,740
Fulton (County of) Residential Care Facilities for the Elderly Authority (RHA Assisted Living);
Series 1999 A, Sr. Lien RB		6.90	%		07/01/19		4,790		3,649,980
Series 1999 A, Sr. Lien RB		7.00	%		07/01/29		8,310		6,332,220
Fulton (County of) Residential Care Facilities for the Elderly Authority (St. Anne’s Terrace); Series 2003, RB		7.63	%		12/01/33		3,345		3,273,785
Medical Center Hospital Authority (Spring Harbor Green Island); Series 2007, RB		5.25	%		07/01/27		2,500		2,061,900
Private Colleges & Universities Authority (Emory University); Series 2009 C, RB(h)		5.25	%		09/01/39		28,830		29,155,202
Private Colleges & Universities Authority (Mercer Housing Corp.); Series 2001 A, Student Housing RB		6.00	%		06/01/21		1,000		1,002,170
Renaissance on Peachtree Unit Investment Trust; Series 2006, Ctfs.		2.50	%		10/01/25		5,860		3,114,707

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

21        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Georgia–(continued)
Richmond (County of) Development Authority (International Paper Co.); Series 2002 A, Environmental Improvement RB(a)		6.00	%		02/01/25	$	1,000	$	998,080
Rockdale (County of) Development Authority (Visy Paper); Series 2007 A, RB(a)		6.13	%		01/01/34		7,500		6,666,150
Savannah (City of) Economic Development Authority (Marshes of Skidaway);
Series 2003, RB		7.40	%		01/01/34		3,650		3,454,105
Series 2003 A, RB		6.25	%		01/01/12		425		424,269
Series 2003 A, RB		6.85	%		01/01/19		2,245		2,227,309
Series 2003 A, RB		7.40	%		01/01/24		920		901,996
Tax-Exempt Grantor Trust Senior Tier 1; Series 2006 A, COP		6.00	%		10/01/25		20,685		10,994,491
									103,017,107
Hawaii–0.97%
Hawaii (State of) Department of Budget & Finance (15 Craigside); Series 2009 A, Special Purpose RB		9.00	%		11/15/44		3,530		3,904,039
Hawaii (State of) Department of Budget & Finance (Hawaiian Electric Company); Series 2009, Special Purpose RB		6.50	%		07/01/39		6,000		5,920,560
Hawaii (State of) Department of Budget & Finance (Kahala Nui);
Series 2003 A, Special Purpose RB		7.40	%		11/15/17		5,300		5,569,346
Series 2003 A, Special Purpose RB		7.88	%		11/15/23		4,450		4,686,651
Series 2003 A, Special Purpose RB		8.00	%		11/15/33		10,000		10,473,200
Honolulu (City & County of); Series 2009 A, Unlimited Tax GO Bonds(h)		5.25	%		04/01/29		12,000		12,792,720
Kuakini Health System; Series 2002 A, Special Purpose RB		6.30	%		07/01/22		5,000		4,963,550
									48,310,066
Idaho–0.14%
Gooding (County of) Industrial Development Corp. (Intrepid Technology & Resources); Series 2006, Solid Waste Disposal RB (Acquired 11/03/06, Cost $7,640,000)(a)(e)(i)		7.50	%		11/01/24		7,640		282,680
Idaho (State of) Health Facilities Authority (Valley Vista Care Corp.); Series 2007, RB		6.13	%		11/15/37		8,355		6,510,216
									6,792,896
Illinois–12.56%
Annawan (Village of) (Patriot Renewable Fuels, LLC); Series 2007, Tax Increment Allocation RB		5.63	%		01/01/18		4,155		3,355,578
Antioch (Village of) Special Service Area No. 1 (Deercrest); Series 2003, Special Tax Bonds		6.63	%		03/01/33		3,697		2,796,744
Aurora (City of) (East River Area TIF No. 6); Series 2008 A, Tax Increment Allocation RB		6.75	%		12/30/27		2,435		2,279,282
Aurora (City of) (River City TIF No. 3); Series 2008 B, Tax Increment Allocation RB		6.50	%		12/30/23		4,070		3,830,114
Bartlett (Village of) (Quarry Redevelopment); Series 2007, Ref. Sr. Lien Tax Allocation RB		5.60	%		01/01/23		5,000		4,088,600
Bolingbrook (Village of); Series 1999 B, Unlimited Tax CAB GO Bonds(f)		0.00	%		01/01/29		910		297,788
Bolingbrook (Village of) (Forest City); Series 2005, Special Services Area No. 1 Special Tax Bonds(k)		5.90	%		03/01/27		2,000		1,583,460
Bolingbrook (Village of);
Series 2005, Sales Tax RB(k)		5.75	%		01/01/15		845		602,139
Series 2005, Sales Tax RB(k)		6.25	%		01/01/24		6,000		3,931,560
Series 2005, Sales Tax RB(k)		6.00	%		01/01/26		4,500		2,950,020
Bradley (Village of) (Bradley Commons); Series 2007, Tax Increment Allocation RB		6.10	%		01/01/27		3,880		3,310,571
Chicago (City of) (Asphalt); Series 2010, Recovery Zone Facility RB		6.13	%		12/01/18		8,000		8,010,000
Chicago (City of) (Diversey/Narragansett); Series 2006, Ref. Tax Increment Allocation COP		7.46	%		02/15/26		2,880		2,761,114
Chicago (City of) (Lakeshore East);
Series 2003, Special Assessment Improvement Bonds		6.63	%		12/01/22		3,999		3,815,046
Series 2003, Special Assessment Improvement Bonds		6.75	%		12/01/32		3,998		3,630,584
Chicago (City of) (O’Hare International Airport); Series 2008 A, Airport RB (INS–AGM)(d)(h)		5.00	%		01/01/33		14,000		13,337,520
Chicago (City of) (Read-Dunning); Series 1996 B, Tax Increment Allocation Bonds		7.25	%		01/01/14		1,000		1,001,510

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

22        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Illinois–(continued)
Chicago (City of) Board of Education; Series 2008 C, Ref. Unlimited Tax GO Bonds (INS–AGM)(d)(h)		5.00	%		12/01/32	$	13,050	$	11,928,614
Chicago (City of) Board of Education; Series 2006 B, Unlimited Tax GO Bonds (INS–AGM)(d)(h)		5.00	%		12/01/25		10,000		9,876,000
Chicago (City of); Series 2008 A, Unlimited Tax GO Bonds(h)		5.25	%		01/01/33		32,500		30,091,100
Cook (County of) Finance Authority (Navistar International Corp.); Series 2010, Recovery Zone Facility RB		6.50	%		10/15/40		8,800		8,924,784
Cook (County of); Series 2004 B, Capital Improvement Unlimited Tax GO Bonds (INS–NATL)(d)(h)		5.00	%		11/15/29		20,000		19,711,600
Cortland (Town of) (Sheaffer System); Series 2006, Special Tax RB(e)		5.50	%		03/01/17		3,439		2,146,142
Cortland (Town of) Special Service Area No. 001 (Neucort Lakes); Series 2002, Special Tax Bonds(b)(c)		6.88	%		03/01/12		4,858		5,251,595
Deerfield (Village of) (Chicagoland Jewish High School);
Series 2006, Educational Facility RB(i)		5.85	%		05/01/26		1,000		523,010
Series 2006, Educational Facility RB(i)		6.00	%		05/01/41		6,625		3,464,941
Gilberts (Village of) Special Service Area No. 19 (The Conservancy Project); Series 2006 1, Special Tax RB(i)		5.38	%		03/01/16		2,500		1,298,250
Gilberts (Village of) Special Service Area No. 9 (Big Timber); Series 2001, Special Tax Bonds(b)		7.38	%		03/01/11		320		320,189
Godfrey (Village of) (UTD Methodist Village); Series 1999, RB		5.88	%		11/15/29		4,000		2,261,800
Hoopeston (City of) (Hoopeston Community Memorial Hospital); Series 1999, Hospital Capital Improvement RB		6.55	%		11/15/29		5,800		4,803,560
Illinois (State of) Finance Authority (Chestnut Square at Glen); Series 2002 A, Health Facilities RB		6.63	%		08/15/24		2,365		2,153,191
Illinois (State of) Finance Authority (Chestnut Square at Glen); Series 2002 A, Health Facilities RB		7.00	%		08/15/29		3,255		2,976,828
Illinois (State of) Finance Authority (Christian Homes, Inc.);
Series 2007 A, Ref. RB		5.75	%		05/15/26		5,575		4,895,129
Series 2007 A, Ref. RB		5.75	%		05/15/31		2,825		2,355,203
Illinois (State of) Finance Authority (Clare Oaks); Series 2006 A, RB		6.00	%		11/15/39		14,950		10,215,185
Illinois (State of) Finance Authority (Clare Water Tower);
Series 2010 A-6, Ref. RB		6.00	%		05/15/28		1,400		783,440
Series 2010 A-7, RB		6.13	%		05/15/41		12,600		7,050,960
Series 2010 B, CAB RB(f)		0.00	%		05/15/50		6,000		72,000
Illinois (State of) Finance Authority (Clinic Altgeld); Series 1996, Community Facilities RB		8.00	%		11/15/16		2,175		2,108,075
Illinois (State of) Finance Authority (Covenant Retirement Communities, Inc.);
Series 2001, Health Facilities RB		5.88	%		12/01/31		1,250		1,154,838
Series 2002 B, Health Facilities RB		6.13	%		12/01/28		5,000		4,859,900
Illinois (State of) Finance Authority (Disposal Waste Management Inc.); Series 2005 A, Solid Waste RB(a)		5.05	%		08/01/29		1,320		1,210,308
Illinois (State of) Finance Authority (Elmhurst Memorial Healthcare); Series 2008 A, RB		5.63	%		01/01/37		11,415		9,828,772
Illinois (State of) Finance Authority (Fairview Obligated Group);
Series 2008 A, Ref. RB(i)		6.25	%		08/15/35		2,500		2,005,200
Series 2008 A, Ref. RB(i)		6.25	%		08/15/40		4,500		3,540,150
Illinois (State of) Finance Authority (Franciscan Communities-St. Joseph); Series 2004 A, RB		6.00	%		05/15/34		2,500		2,036,350
Illinois (State of) Finance Authority (Friendship Village of Schaumburg);
Series 2005 A, RB		5.38	%		02/15/25		1,000		847,940
Series 2010, RB		7.25	%		02/15/45		7,400		6,983,528
Illinois (State of) Finance Authority (Greenfields of Geneva); Series 2010 A, RB		8.25	%		02/15/46		15,000		14,294,100
Illinois (State of) Finance Authority (Greenfields); Series 2010 C-2, TEMPS-65 RB		6.75	%		02/15/16		5,000		5,003,050
Illinois (State of) Finance Authority (Illinois Institute of Technology);
Series 2006 A, RB		5.00	%		04/01/36		7,000		5,058,620
Series 2009, RB		7.13	%		02/01/34		4,000		3,880,400
Illinois (State of) Finance Authority (Kewanee Hospital); Series 2006, RB		5.00	%		08/15/26		4,130		3,390,978
Illinois (State of) Finance Authority (Landing at Plymouth Place); Series 2005 A, RB		6.00	%		05/15/25		4,500		3,965,535
Illinois (State of) Finance Authority (Loyola University Health System); Series 2001 A, Health Facilities RB(b)(c)		6.00	%		07/01/11		650		662,058

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

23        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Illinois–(continued)
Illinois (State of) Finance Authority (Luther Oaks);
Series 2006 A, RB		6.00	%		08/15/26	$	3,000	$	2,465,940
Series 2006 A, RB		6.00	%		08/15/39		9,000		6,838,020
Illinois (State of) Finance Authority (Montgomery Place);
Series 2006 A, RB		5.50	%		05/15/26		1,000		844,260
Series 2006 A, RB		5.75	%		05/15/38		8,850		6,853,351
Illinois (State of) Finance Authority (Navistar International); Series 2010, Recovery Zone Facility RB		6.50	%		10/15/40		6,900		6,997,842
Illinois (State of) Finance Authority (Norwegian American Hospital Inc.);
Series 2008, RB		7.63	%		09/15/28		2,000		1,761,080
Series 2008, RB		7.75	%		09/15/38		3,000		2,633,610
Illinois (State of) Finance Authority (Park Place of Elmhurst);
Series 2010 A, RB		8.13	%		05/15/40		6,250		6,003,687
Series 2010 A, RB		8.25	%		05/15/45		14,000		13,548,780
Series 2010 D-1, TEMPS-75 RB		7.25	%		08/15/16		8,000		7,900,800
Illinois (State of) Finance Authority (Provena Health); Series 2009 A, RB		7.75	%		08/15/34		11,300		12,162,303
Illinois (State of) Finance Authority (Rush University Medical Center Obligated Group); Series 2009 A, RB		7.25	%		11/01/38		22,235		23,668,935
Illinois (State of) Finance Authority (Sherman Health Systems); Series 2007 A, RB		5.50	%		08/01/37		10,250		8,657,560
Illinois (State of) Finance Authority (Silver Cross Hospital & Medical Centers);
Series 2008, Ref. RB		5.50	%		08/15/30		11,000		9,850,390
Series 2009, RB		6.88	%		08/15/38		13,875		13,878,885
Series 2009, RB		7.00	%		08/15/44		3,880		3,874,878
Illinois (State of) Finance Authority (Smith Crossing); Series 2003 A, Health Facilities RB		7.00	%		11/15/32		2,650		2,363,720
Illinois (State of) Finance Authority (The Admiral at the Lake);
Series 2010 A, RB		7.25	%		05/15/20		905		884,719
Series 2010 D-1, (TEMPS-75sm) RB		7.00	%		05/15/18		3,000		2,918,730
Series 2010 D-2, (TEMPS-65sm) RB		6.38	%		05/15/17		9,500		9,323,680
Illinois (State of) Finance Authority (The Landing at Plymouth Place); Series 2005 A, RB		6.00	%		05/15/37		19,325		15,319,700
Illinois (State of) Finance Authority (Villa St. Benedict); Series 2003 A-1, Health Facilities RB(i)		6.90	%		11/15/33		6,750		2,505,600
Illinois (State of) Finance Authority;
Series 2003 A, Ref. Health Facilities RB		6.20	%		08/15/23		1,000		909,410
Series 2003 A, Ref. Health Facilities RB		6.40	%		08/15/33		4,500		3,892,095
Illinois (State of) Metropolitan Pier & Exposition Authority (McCormick Place Expansion);
Series 2010 A, Dedicated State Tax RB(h)		5.50	%		06/15/50		18,000		16,556,760
Series 2010 B, Ref. CAB RB (INS–AGM)(d)(f)		0.00	%		06/15/43		40,000		4,542,800
Series 2010 B, Ref. Dedicated Sales Tax CAB RB (INS–AGM)(d)(f)		0.00	%		06/15/46		55,000		5,068,800
Series 2010 B, Ref. Dedicated Sales Tax CAB RB (INS–AGM)(d)(f)		0.00	%		06/15/47		70,000		6,008,800
Series 2010 B, Ref. Dedicated State Tax CAB RB (INS–AGM)(d)(f)		0.00	%		06/15/45		70,000		6,902,000
Illinois (State of) Real Estate Lease; Series 1998, Ctfs. RB (INS–ACA)(d)(e)		8.80	%		06/15/18		5,286		5,320,136
Illinois (State of) Regional Transportation Authority; Series 1994 B, RB (INS–AMBAC)(d)		8.00	%		06/01/17		2,095		2,566,417
Illinois (State of) Toll Highway Authority; Series 2008 B, RB(h)		5.50	%		01/01/33		29,000		29,145,290
Lake, Cook, Kane & McHenry Counties Community Unit School District 222 (Barrington); Series 2000, Unlimited Tax GO Bonds (INS–NATL)(d)		5.75	%		12/01/19		80		80,280
Long Grove (Village of) (Sunset Grove); Series 2010, Limited Obligation Tax Increment Allocation RB		7.50	%		01/01/30		1,950		1,802,327
Loves Park (City of) (Hoosier Care); Series 1999 A, RB		7.13	%		06/01/34		1,350		1,177,902
Manhattan (Village of) Special Service Area No. 04-1 (Brookstone Springs); Series 2005, Special Tax Bonds		6.10	%		03/01/35		4,308		3,801,379
Minooka (Village of) (Lakewood Trails Unit 2); Series 2004, Special Assessment Improvement Bonds		6.38	%		03/01/34		5,561		5,107,167
Minooka (Village of) (Lakewood Trails); Series 2003, Special Assessment Improvement Bonds		6.63	%		03/01/33		3,774		3,579,865

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

24        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Illinois–(continued)
Minooka (Village of) (Prairie Ridge); Series 2003, Special Assessment Improvement Bonds		6.88	%		03/01/33	$	2,728	$	2,259,602
Pingree Grove (Village of) (Cambridge Lakes Learning Center); Series 2007, RB		6.00	%		06/01/36		5,235		4,027,757
Pingree Grove (Village of) Special Service Area No. 2 (Cambridge Lakes); Series 2005-2, Special Tax Bonds		6.00	%		03/01/35		7,086		6,085,244
Pingree Grove (Village of) Special Service Area No. 7 (Cambridge Lakes); Series 2006-1, Special Tax Bonds		6.00	%		03/01/36		5,396		4,567,822
Plano (City of) Special Service Area No. 1 (Lakewood Springs); Series 2004 A, Special Tax Bonds		6.20	%		03/01/34		4,131		3,840,219
Plano (City of) Special Service Area No. 10 (Lakewood Springs Club); Series 2007, Special Tax RB		5.80	%		03/01/37		5,615		2,750,732
Quad Cities Regional Economic Development Authority (Heritage Woods Moline SLF); Series 2006, MFH RB(a)		6.00	%		12/01/41		1,340		1,005,925
Railsplitter Tobacco Settlement Authority; Series 2010, RB		6.00	%		06/01/28		22,555		22,125,327
Round Lake (Village of) Lakewood Grove Special Service Area No. 1; Series 2003, Special Tax Bonds(b)(c)		6.70	%		03/01/13		3,579		4,000,105
Round Lake (Village of) Lakewood Grove Special Service Area No. 4; Series 2003, Unlimited Tax GO Bonds(b)(c)		6.75	%		03/01/13		4,884		5,463,487
St. Charles (City of) Special Service Area No. 21; Series 1998, RB		6.63	%		03/01/28		2,950		2,704,176
Sterling (City of) (Hoosier Care); Series 1999 A, RB		7.13	%		06/01/34		880		767,818
United (City of) & Yorkville (City of) (Raintree Village); Series 2005, Special Tax RB		6.25	%		03/01/35		5,543		2,956,747
United City of Yorkville (City of) (Cannonball/Beecher Road); Series 2007, Special Tax Bonds		5.75	%		03/01/28		4,385		3,833,104
Upper Illinois River Valley Development Authority (Living Springs McHenry SLF); Series 2007, MFH RB(a)		6.10	%		12/01/41		4,000		3,101,280
Upper Illinois River Valley Development Authority (Pleasant View Luther Home);
Series 2010, RB		7.00	%		11/15/30		1,000		915,290
Series 2010, RB		7.25	%		11/15/40		1,200		1,077,168
Series 2010, RB		7.38	%		11/15/45		1,500		1,351,035
Volo (Village of) Special Service Area Number 3 (Symphony Meadows); Series 2006 1, Special Tax RB		6.00	%		03/01/36		3,836		2,921,804
Western Illinois Economic Development Authority (Carthage Memorial Hospital);
Series 2008 B, Hospital RB		7.00	%		06/01/33		2,295		2,152,549
Series 2008 B, Hospital RB		7.05	%		06/01/37		4,700		4,240,575
Wheeling (Village of) (N. Milwaukee/Lake-Cook TIF); Series 2005, Tax Allocation Bonds		6.00	%		01/01/25		9,005		8,023,545
Will-Kankakee Regional Development Authority (Senior Estates Supportive Living); Series 2007, MFH RB(a)		7.00	%		12/01/42		2,500		2,162,200
Yorkville (United City of) (Storm Water/Water Improvement);
Series 2007, Business District RB		6.00	%		01/01/26		3,380		1,947,117
Series 2007, RB		6.00	%		01/01/27		285		160,743
Yorkville (United City of) Special Service Area No. 2003-100 (Raintree Village); Series 2003, Special Tax Bonds		6.88	%		03/01/33		5,564		5,277,788
Yorkville (United City of) Special Service Area No. 2003-101 (Windett Ridge); Series 2003, Special Tax Bonds (Acquired 09/03/03, Cost $2,656,000)(e)		6.88	%		03/01/33		2,656		2,037,019
Yorkville (United City of) Special Service Area No. 2005-108 (Autumn Creek); Series 2006, Special Tax Bonds		6.00	%		03/01/36		3,323		2,448,652
									625,437,681
Indiana–1.34%
Anderson (City of) (Anderson University); Series 2001, Economic Development RB(b)(c)		6.38	%		10/01/11		1,500		1,550,475
Crown Point (City of) (Wittenberg Village);
Series 2009 A, Economic Development RB		8.00	%		11/15/29		3,100		2,998,692
Series 2009 A, Economic Development RB		8.00	%		11/15/39		9,000		8,554,140
Delaware (County of) Redevelopment District; Series 1997, Tax Increment Allocation Bonds		6.88	%		02/01/18		725		725,906
Indiana (State of) Finance Authority (Hoosier Care); Series 1999 A, RB		7.13	%		06/01/34		3,975		3,468,267
Indiana (State of) Finance Authority (King’s Daughters Hospital & Health Services);
Series 2010, Hospital RB		5.50	%		08/15/45		10,500		8,302,875
Series 2010, RB		5.50	%		08/15/40		4,645		3,751,348
Indiana (State of) Health Facility Financing Authority (Community Foundation of Northwest Indiana);
Series 2004 A, Hospital RB		6.25	%		03/01/25		1,500		1,538,805
Series 2004 A, Hospital RB		6.00	%		03/01/34		13,035		12,874,800

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

25        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Indiana–(continued)
Indiana (State of) Health Facility Financing Authority (Franciscan Communities, Inc.); Series 2003 A, Ref. RB		6.40	%		05/15/24	$	3,435	$	2,738,416
Indianapolis (City of) Airport Authority (Fed Ex Corp.); Series 2004, Ref. RB(a)		5.10	%		01/15/17		2,000		2,113,100
North Manchester (Town of) (Peabody Retirement Communities); Series 2002 A, RB(i)		7.25	%		07/01/33		3,000		1,109,700
Portage (City of) Special Improvement District (Marina Shoes); Series 2005, Special Assessment Bonds(i)		6.38	%		03/01/35		3,643		1,818,586
St. Joseph (County of) Redevelopment District;
Series 1997, Tax Increment Allocation CAB RB(f)		0.00	%		12/30/12		130		113,269
Series 1997 B, Tax Increment Allocation CAB RB(f)		0.00	%		12/30/11		135		126,996
Series 1997 B, Tax Increment Allocation CAB RB(f)		0.00	%		12/30/13		130		104,891
Series 1997 B, Tax Increment Allocation CAB RB(f)		0.00	%		12/30/14		125		93,400
Series 1997 B, Tax Increment Allocation CAB RB(f)		0.00	%		12/30/15		125		86,490
Series 1997 B, Tax Increment Allocation CAB RB(f)		0.00	%		12/30/16		125		80,096
Vigo (County of) Hospital Authority (Union Hospital, Inc.);
Series 2007, Hospital RB(e)		5.70	%		09/01/37		8,000		5,986,080
Series 2007, Hospital RB(e)		5.75	%		09/01/42		6,780		4,997,945
Series 2007, Hospital RB(e)		5.80	%		09/01/47		4,645		3,399,490
									66,533,767
Iowa–1.32%
Altoona (City of);
Series 2008, Annual Appropriation Urban Renewal Tax Increment RB		6.00	%		06/01/28		1,250		1,279,362
Series 2008, Annual Appropriation Urban Renewal Tax Increment RB		6.00	%		06/01/39		5,000		4,959,100
Series 2008, Annual Appropriation Urban Renewal Tax Increment RB		6.00	%		06/01/43		5,500		5,429,820
Cass (County of) (Cass County Memorial Hospital); Series 2010 A, Hospital RB		7.25	%		06/01/35		5,755		5,776,006
Des Moines (City of) (Luther Park Apartments, Inc.);
Series 2004, Sr. Housing RB		6.25	%		12/01/34		2,245		1,838,902
Series 2007 A, Ref. MFH RB(e)		5.30	%		12/01/36		3,625		2,704,395
Evansdale (City of) (Western Home);
Series 2004, Health Care Facilities RB		6.00	%		11/01/39		5,600		4,276,384
Series 2004 A, Health Care Facilities RB		6.00	%		11/01/26		2,990		2,453,743
Series 2005, Health Care Facilities RB		6.00	%		11/01/26		335		274,918
Series 2005, Health Care Facilities RB		6.00	%		11/01/39		615		469,639
Iowa (State of) Finance Authority (Bethany Life Communities);
Series 2006 A, Ref. Senior Housing RB		5.45	%		11/01/26		350		304,839
Series 2006 A, Ref. Senior Housing RB		5.55	%		11/01/41		2,000		1,563,480
Iowa (State of) Finance Authority (Madrid Home);
Series 2007, Health Care Facilities RB		5.80	%		11/15/29		1,930		1,484,035
Series 2007, Ref. Health Care Facility RB		5.90	%		11/15/37		2,750		2,067,450
Iowa (State of) Finance Authority (Western Home);
Series 2009, Health Care Facilities RB		7.50	%		11/01/39		7,600		7,330,656
Series 2009, Health Care Facilities RB		7.50	%		11/01/39		2,000		1,929,120
Jefferson (County of) Hospital; Series 2007 C, RB		5.95	%		08/01/37		7,185		6,061,481
Orange City (City of); Series 2008, Ref. Hospital Capital Loan RN		5.60	%		09/01/32		7,415		6,067,250

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

26        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Iowa–(continued)
Polk (County of) (Luther Park Health Center, Inc.);
Series 2004, Health Care Facilities RB		6.15	%		10/01/36	$	2,500	$	1,964,600
Series 2007 A, Health Care Faculties RB		5.30	%		04/01/37		4,955		3,395,414
Series 2007 C, Health Care Facilities RB		6.00	%		04/01/37		3,480		2,465,302
Pottawattamie (County of) (Christian Homes, Inc.); Series 2007 E, Ref. RB		5.75	%		05/15/31		2,000		1,667,400
									65,763,296
Kansas–0.15%
Lenexa (City of) (Lakeview Village, Inc.);
Series 2009, Health Care Facilities RB		7.13	%		05/15/29		500		449,530
Series 2009, Health Care Facilities RB		7.25	%		05/15/39		1,500		1,327,635
Olathe (City of) (Catholic Care Campus, Inc.);
Series 2006 A, Senior Living Facility RB		6.00	%		11/15/26		1,000		898,450
Series 2006 A, Senior Living Facility RB		6.00	%		11/15/38		5,500		4,547,730
Overland Park (City of) Transportation Development District (Grass Creek); Series 2006, Special Assessment RB		5.13	%		09/01/28		19		14,183
									7,237,528
Kentucky–0.17%
Kentucky (State of) Economic Development Finance Authority (Owensboro Medical Health System, Inc.); Series 2010 A, Hospital Facilities RB		6.50	%		03/01/45		9,000		8,597,970
Louisiana–1.57%
Calcasieu Paish Memorial Hospital Service District (Lake Charles Memorial Hospital); Series 1992 A, Hospital RB (INS–Connie Lee Co.)(d)		6.50	%		12/01/18		4,530		4,554,326
Lakeshore Villages Master Community Development District; Series 2007, Special Assessment RB(i)		5.25	%		07/01/17		14,685		7,727,100
Louisiana (State of) Health Education Authority (Lambeth House); Series 1998 A, Ref. RB		6.20	%		01/01/28		3,000		2,736,810
Louisiana (State of) Local Government Environmental Facilities & Community Development Authority (Westlake Chemical Corp.);
Series 2007, RB		6.75	%		11/01/32		6,000		6,196,320
Series 2009 A, RB		6.50	%		08/01/29		8,000		8,188,320
Louisiana (State of) Public Facilities Authority (Lake Charles Memorial Hospital); Series 2007, Ref. Hospital RB(e)		6.38	%		12/01/34		19,500		17,290,650
Louisiana (State of) Public Facilities Authority (Progressive Health Care); Series 1998, RB		6.38	%		10/01/28		2,000		1,523,340
Lousiana (State of) Local Government Environmental Facilities & Community Development (Eunice Student Housing Foundation); Series 2002, RB		7.38	%		09/01/33		3,035		1,948,986
Lousiana (State of) Local Government Environmental Facilities & Community Development (Westlake Chemical Corp.); Series 2010 A-1, RB		6.50	%		11/01/35		9,245		9,443,490
Lousiana (State of) Public Facilities Authority (Progressive Health Care); Series 1998, RB		6.38	%		10/01/20		2,500		2,190,225
Lousiana State University & Agricultural & Mechanical College (Master Lease M98362); Series 1998, RB (Acquired 11/30/98 Cost $2,135,423.11)(e)		5.75	%		10/30/18		2,135		2,022,374
New Orleans (City of) Aviation Board (Restructuring GARBs); Series 2009 A-2, RB (INS–AGM)(d)		6.00	%		01/01/23		3,000		3,320,460
St. Tammany Public Financing Authority (Christwood); Series 1998, Ref. RB		5.70	%		11/15/28		2,000		1,661,960
Tobacco Settlement Financing Corp.; Series 2001 B, Tobacco Settlement Asset-Backed RB		5.88	%		05/15/39		10,000		9,341,900
									78,146,261
Maryland–1.95%
Anne Arundel (County of) (Farmington Village); Series 1998 A, Special Tax Bonds		6.25	%		06/01/25		1,747		1,689,279
Anne Arundel (County of) (National Business Park-North); Series 2010, Special Obligation Tax Allocation RB		6.10	%		07/01/40		2,250		2,077,403
Baltimore (City of) (East Baltimore Research Park); Series 2008 A, Tax Allocation RB		7.00	%		09/01/38		10,000		9,646,100
Brunswick (City of) (Brunswick Crossing); Series 2006, Special Obligation Tax Bonds		5.50	%		07/01/36		18,300		12,881,187

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

27        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Maryland–(continued)
Frederick (County of) (Uurbana Community Development Authority); Series 2010 B, Sub. Special Obligation Tax Bonds		5.50	%		07/01/40	$	7,520	$	6,774,467
Maryland (State of) Economic Development Corp. (AFCO Corp. BWI II, LLC); Series 1999, Air Cargo RB(a)		6.50	%		07/01/24		6,210		5,244,469
Maryland (State of) Economic Development Corp. (Air Cargo. BWI II, LLC); Series 2003, Ref. Air Cargo RB(a)		7.34	%		07/01/24		1,310		1,193,279
Maryland (State of) Economic Development Corp. (Chesapeake Bay); Series 2006 B, Sr. Lien RB		5.25	%		12/01/31		1,500		979,485
Maryland (State of) Economic Development Corp. (CNX Marine Terminals Inc. Port of Baltimore Facility) Series 2010, Ref. Port Facilities RB		5.75	%		09/01/25		10,000		9,403,200
Maryland (State of) Economic Development Corp. (Golf Course System); Series 2001, RB(b)(c)		8.25	%		06/01/11		3,795		3,870,027
Maryland (State of) Health & Higher Educational Facilities Authority (King Farm Presbyterian Retirement Community);
Series 2007 A, RB		5.25	%		01/01/27		4,475		3,499,719
Series 2007 A, RB		5.30	%		01/01/37		3,050		2,045,208
Maryland (State of) Health & Higher Educational Facilities Authority (Mercy Medical Center); Series 2007 A, RB		5.50	%		07/01/42		4,530		3,905,041
Maryland (State of) Health & Higher Educational Facilities Authority (Washington Christian Academy); Series 2006, RB(i)		5.50	%		07/01/38		1,500		599,940
Maryland (State of) Health & Higher Educational Facilities Authority (Washington County Hospital); Series 2008, RB		6.00	%		01/01/43		17,105		16,266,855
Montgomery (County of) (Editorial); Series 1998 A, Economic Development RB (Acquired 09/28/98-11/12/09, Cost $6,372,589)(e)		6.40	%		09/01/28		6,370		5,275,570
Montgomery (County of) (West Germantown Development District); Series 2004 B, Limited Tax GO Bonds		6.70	%		07/01/27		1,280		1,242,803
Prince George’s (County of) (Woodview Village Phase II-Subdistrict); Series 2002, Special Obligation RB(b)(c)		7.00	%		07/01/12		4,000		4,421,200
Salisbury (City of) (Villages at Aydelotte Farm); Series 2007, Special Obligation Tax Allocation Bonds		5.25	%		01/01/37		4,000		2,301,400
Westminster (City of) (Carroll Lutheran Village);
Series 2004 A, Economic Development RB		6.00	%		05/01/24		2,000		1,757,460
Series 2004 A, Economic Development RB		6.25	%		05/01/34		2,500		2,086,050
									97,160,142
Massachusetts–4.01%
Boston (City of) Industrial Development Financing Authority (Springhouse Inc.); Series 1998, Ref. First Mortgage RB		6.00	%		07/01/28		3,750		3,218,475
Massachusetts (Commonwealth of); Series 2004 A, Ref. GO Bonds (INS–AMBAC)(d)(h)		5.50	%		08/01/30		32,040		35,826,167
Massachusetts (State of) Development Finance Agency (Alliance); Series 1999 A, RB		7.10	%		07/01/32		7,225		6,538,336
Massachusetts (State of) Development Finance Agency (Boston Architectural Center);
Series 1998, RB		6.25	%		09/01/28		1,445		1,250,330
Series 1998, RB (INS–ACA)		6.10	%		09/01/18		600		586,956
Massachusetts (State of) Development Finance Agency (Criterion Child Enrichment); Series 2003, RB		6.75	%		01/01/34		5,710		5,178,285
Massachusetts (State of) Development Finance Agency (Developmental Disabilities Inc.); Series 2003, RB(b)(c)		6.75	%		06/01/13		1,490		1,645,869
Massachusetts (State of) Development Finance Agency (Dimock Community Health Center);
Series 2003, RB		6.25	%		12/01/13		490		472,630
Series 2003, RB		6.75	%		12/01/33		7,565		6,137,484
Massachusetts (State of) Development Finance Agency (Evergreen Center Inc.);
Series 2005, RB		5.00	%		01/01/24		250		217,463
Series 2005, RB		5.50	%		01/01/35		500		416,600
Massachusetts (State of) Development Finance Agency (Groves Lincoln); Series 2009 A, Sr. Living Facility RB		7.88	%		06/01/44		2,000		1,974,800
Massachusetts (State of) Development Finance Agency (Hampshire College); Series 2004, RB		5.70	%		10/01/34		1,500		1,383,210
Massachusetts (State of) Development Finance Agency (Hillcrest Educational Centers Inc.); Series 1999, RB		6.38	%		07/01/29		6,070		5,109,787
Massachusetts (State of) Development Finance Agency (Linden Ponds Inc.); Series 2007 A, RB		5.75	%		11/15/42		1,375		742,362
Massachusetts (State of) Development Finance Agency (Loomis Communities); Series 2002 A, First Mortgage RB		6.90	%		03/01/32		2,000		2,003,840
Massachusetts (State of) Development Finance Agency (MCHSP Human Services Providers); Series 2009 A, RB		6.75	%		07/01/18		595		581,178
Massachusetts (State of) Development Finance Agency (New England Center for Children); Series 1998, RB		6.00	%		11/01/19		7,095		6,483,411

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

28        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Massachusetts–(continued)
Massachusetts (State of) Development Finance Agency (Overlook Communities);
Series 2004 A, First Mortgage RB(b)(c)		6.13	%		07/01/12	$	850	$	924,247
Series 2004 A, First Mortgage RB(b)(c)		6.25	%		07/01/12		4,620		5,031,226
Massachusetts (State of) Development Finance Agency (Reeds Landing-Accredited Investors); Series 2006, Ref. First Mortgage RB(i)		5.75	%		10/01/31		10,351		104
Massachusetts (State of) Development Finance Agency (Regis College); Series 1998, RB		5.50	%		10/01/28		5,865		4,873,698
Massachusetts (State of) Development Finance Agency (Sabis International Charter School); Series 2009 A, RB		8.00	%		04/15/39		3,850		4,144,794
Massachusetts (State of) Development Finance Agency (The Groves in Lincoln);
Series 2009 A, Senior Living Facilities RB		7.75	%		06/01/39		1,000		979,080
Series 2009 B-1, Senior Living Facilities (TEMPS-85sm) RB		7.25	%		06/01/16		14,100		14,127,495
Massachusetts (State of) Development Finance Agency (Whitney Academy Issue); Series 2005, RB		7.50	%		09/01/30		2,755		2,485,093
Massachusetts (State of) Health & Educational Facilities Authority (Baystate Medical Center); Series 2002 F, RB		5.50	%		07/01/22		720		727,546
Massachusetts (State of) Health & Educational Facilities Authority (Christopher House, Inc.); Series 1999 A, Ref. RB		6.88	%		01/01/29		9,210		8,428,347
Massachusetts (State of) Health & Educational Facilities Authority (Civic Investments); Series 2002 B, RB(b)(c)		9.15	%		12/15/12		2,900		3,377,166
Massachusetts (State of) Health & Educational Facilities Authority (Harvard University); Series 2009 A, RB(h)		5.50	%		11/15/36		23,660		25,178,026
Massachusetts (State of) Health & Educational Facilities Authority (Jordan Hospital);
Series 1998 C, RB		5.25	%		10/01/23		3,610		3,059,872
Series 1998 D, RB		5.38	%		10/01/28		1,465		1,186,767
Series 2003 E, RB		6.75	%		10/01/33		4,750		4,342,972
Massachusetts (State of) Health & Educational Facilities Authority (Lasell College); Series 1999 A, RB		5.63	%		07/01/29		7,490		6,318,564
Massachusetts (State of) Health & Educational Facilities Authority (Massachusetts Institute of Technology); Series 2002 K, RB(h)		5.50	%		07/01/32		19,005		21,892,620
Massachusetts (State of) Health & Educational Facilities Authority (Quincy Medical Center); Series 2008 A, RB		5.85	%		01/15/18		5,565		5,163,819
Massachusetts (State of) Health & Educational Facilities Authority (Saint Memorial Medical Center); Series 1993 A, RB		6.00	%		10/01/23		3,660		2,938,797
Massachusetts (State of) Industrial Finance Agency (GF/Pilgrim, Inc.);
Series 1998, First Mortgage RB		6.50	%		10/01/15		685		662,847
Series 1998, First Mortgage RB		6.75	%		10/01/28		4,000		3,385,720
Massachusetts (State of) Industrial Finance Agency (Stone Institution & Newton); Series 1994, First Mortgage RB		7.70	%		01/01/14		645		644,658
									199,640,641
Michigan–1.84%
Advanced Technology Academy;
Series 2008, Public School Academy RB		6.00	%		11/01/28		1,970		1,728,340
Series 2008, Public School Academy RB		6.00	%		11/01/37		1,930		1,590,301
Chelsea (Village of) Economic Development Corp. (UTD Methodist Retirement);
Series 1998, Ref. Limited Obligation RB		5.40	%		11/15/18		1,000		999,290
Series 1998, Ref. Limited Obligation RB		5.40	%		11/15/27		6,215		5,570,318
Conner Creek Academy East;
Series 2007, Ref. Public School Academy RB		5.00	%		11/01/26		2,440		1,871,700
Series 2007, Ref. Public School Academy RB		5.25	%		11/01/31		2,250		1,663,538
Dearborn (City of) Economic Development Corp. (Henry Ford Village, Inc.);
Series 2008, Ref. Limited Obligation RB		7.00	%		11/15/28		5,500		5,115,220
Series 2008, Ref. Limited Obligation RB		7.13	%		11/15/43		7,700		6,880,797
East Lansing (City of) Economic Development Corp. (Burcham Hills); Series 2007 B-1, First Mortgage Limited Obligation RB		5.25	%		07/01/37		1,725		1,236,014
Grand Blanc Academy; Series 2000, COP		7.75	%		02/01/30		1,590		1,448,124

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

29        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Michigan–(continued)
Iron River (County of) Hospital Finance Authority (Iron County Community Hospitals);
Series 2008, Ref. Hospital RB		6.50	%		05/15/33	$	3,000	$	2,560,230
Series 2008, Ref. Hospital RB		6.50	%		05/15/40		3,380		2,777,448
John Tolfree Health System Corp.; Series 1999, Ref. Mortgage RB		6.00	%		09/15/23		2,845		2,342,573
Kalamazoo (City of) Economic Development Corp. (Heritage Community);
Series 2007, Ref. Limited Obligation RB		5.38	%		05/15/27		1,980		1,581,208
Series 2007, Ref. Limited Obligation RB		5.50	%		05/15/36		1,500		1,116,495
Series 2007, Ref. Limited Obligation RB		5.13	%		05/15/37		1,250		862,700
Michigan (State of) Strategic Fund (Detroit Edison Co.);
Series 1999 B, Ref. Limited Obligation PCR(a)		5.65	%		09/01/29		3,000		3,000,660
Series 2002 C, Ref. Limited Obligation RB (INS–SYNCORA)(a)(d)		5.45	%		12/15/32		2,325		2,199,287
Series 2003 A, Ref. Limited Obligation RB (INS–SYNCORA)(a)(d)		5.50	%		06/01/30		4,450		4,353,969
Michigan (State of) Strategic Fund (Dow Chemical); Series 2003, Ref. Limited Obligation RB		6.25	%		06/01/14		10,000		10,824,200
Michigan (State of) Strategic Fund (Genesee Power Station); Series 1994, Ref. Solid Waste Disposal RB(a)		7.50	%		01/01/21		3,070		2,808,927
Michigan State University; Series 2010 C, Ref. General RB(h)		5.13	%		02/15/44		15,000		14,999,700
Pontiac Hospital Finance Authority (NOMC Obligated Group); Series 1993, Hospital RB(i)		6.00	%		08/01/23		4,500		45
Star International Academy; Series 2003, COP		8.00	%		03/01/33		3,000		3,094,830
Wenonah Park Properties, Inc. (Bay City Hotel);
Series 2002, RB		3.94	%		04/01/22		3,485		856,752
Series 2002, RB		3.75	%		04/01/33		11,620		2,853,988
Western Michigan University; Series 2008, General RB (INS–AGM)(d)(h)		5.00	%		11/15/28		7,500		7,546,800
									91,883,454
Minnesota–3.53%
Albertville (City of) (Group for Affordable Housing); Series 2007, Ref. MFH RB		5.55	%		09/01/42		3,445		2,790,932
Annadale (City of) Economic Development Authority (Annadale Care Center); Series 2007 A, Sr. Housing & Healthcare RB		5.90	%		11/01/37		425		364,110
Apple Valley (City of) (Ecumen-Seasons at Apple Valley); Series 2010, Housing & Health Care RB		6.75	%		03/01/40		2,500		2,368,150
Brooklyn Park (City of) (Prairie Seeds Academy); Series 2009 A, Lease RB		9.25	%		03/01/39		7,250		7,867,265
Buffalo (City of) (Central Minnesota Senior Housing);
Series 2006 A, Health Care RB		5.38	%		09/01/26		1,655		1,410,209
Series 2006 A, Ref. Health Care RB		5.50	%		09/01/33		2,000		1,627,660
Cambridge (City of) (Grandview West);
Series 1998, Housing & Health Care Facilities RB		6.00	%		10/01/33		3,000		2,583,060
Series 1998 A, Housing & Health Care Facilities RB		6.00	%		10/01/28		1,410		1,240,053
Carlton (City of) (Inter-Faith Care Center); Series 2006, Ref. Health Care & Housing Facilities RB		5.70	%		04/01/36		5,400		4,469,634
Columbia Heights (City of) (Crest View Corp.); Series 2007 A, Ref. MFH & Health Care Facilities RB		5.70	%		07/01/42		5,000		3,505,150
Coon Rapids (City of) (Epiphany Sr. Citizens); Series 1998, Sr. Housing RB		6.00	%		11/01/28		3,000		2,678,580
Cuyuna (City of) (Crosby Sr. Services); Series 2007 B, Sr. Housing RB		6.10	%		10/01/47		5,000		4,253,900
Dakota (County of) Community Development Agency (Highview Hills Senior Housing); Series 2008 A, MFH RB		7.00	%		08/01/45		16,000		14,887,200
Detroit Lakes (City of) (CDL Homes);
Series 2004, Housing & Health Facilities RB		6.13	%		08/01/34		1,435		1,251,607
Series 2004 B, Housing & Health Facilities RB		6.00	%		08/01/24		840		791,246
Duluth (City of) Economic Development Authority (St. Luke’s Hospital);
Series 2002, Health Care Facilities RB		6.00	%		06/15/12		300		302,757
Series 2002, Health Care Facilities RB		7.25	%		06/15/22		2,500		2,506,925
Series 2002, Health Care Facilities RB		7.25	%		06/15/32		7,130		6,966,652

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

30        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Minnesota–(continued)
Lake Crystal (City of) (Ecumen-Second Century); Series 2006 A, Ref. Housing RB		5.70	%		09/01/36	$	2,500	$	2,131,150
Minneapolis & St. Paul (Cities of) Housing & Redevelopment Authority (Health Partners Obligated Group); Series 2003 RB, RB		5.88	%		12/01/29		800		801,832
Minneapolis (City of) (Ivy Tower); Series 2005, Tax Increment Allocation RB		5.70	%		02/01/29		1,000		632,310
Minneapolis (City of) (Providence);
Series 2007 A, Ref. Health Care Facilities RB		5.63	%		10/01/27		5,475		4,899,085
Series 2007 A, Ref. Housing & Health Care Facilities RB		5.75	%		10/01/37		7,345		6,290,258
Minneapolis (City of) (Riverton Community Housing);
Series 2006 A, Ref. Student Housing RB		5.60	%		08/01/26		1,400		1,258,208
Series 2006 A, Ref. Student Housing RB		5.70	%		08/01/40		3,100		2,537,753
Minnesota (State of) Agricultural & Economic Development Board (Evangelical); Series 2000, RB		6.63	%		08/01/25		1,060		1,076,769
Moorhead (City of) (Sheyenne Crossing); Series 2006, Sr. Housing RB		5.65	%		04/01/41		5,000		3,982,950
New Ulm (City of) Economic Development Authority (HADC Ridgeway); Series 2006, Ref. Housing Facilities RB		6.00	%		06/01/41		2,300		2,089,389
Northwest Multi-County Housing & Redevelopment Authority (Pooled Housing Program);
Series 2005, Ref. Governmental Housing RB		6.25	%		07/01/40		5,000		4,319,800
Series 2006, Ref. Governmental Housing RB		5.45	%		07/01/41		2,340		1,788,860
Series 2006, Ref. Governmental Housing Revenue		5.25	%		07/01/26		850		717,740
Oak Park Heights (City of) (Oakgreen Commons); Series 2010, Housing RB		7.00	%		08/01/45		2,000		1,816,000
Oakdale (City of) (Oak Meadows); Series 2004, Ref. Sr. Housing RB		6.25	%		04/01/34		3,500		3,090,640
Orono (City of) (Orono Woods Apartments); Series 2006 A, Ref. Sr. Housing RB		5.40	%		11/01/41		4,700		3,425,313
Oronoco (City of) (Wedum Shorewood Campus); Series 2006, MFH RB		5.40	%		06/01/41		7,500		5,961,075
Pine City (City of) (Lakes International Language Academy); Series 2006 A, Lease RB		6.25	%		05/01/35		1,100		920,821
Ramsey (City of) (Pact Charter School); Series 2004 A, Lease RB		6.75	%		12/01/33		2,850		2,576,400
Saint Paul (City of) Housing & Redevelopment Authority (Hmong Academy);
Series 2006 A, Lease RB		5.75	%		09/01/26		400		340,692
Series 2006 A, Lease RB		6.00	%		09/01/36		2,000		1,622,680
Saint Paul (City of) Housing & Redevelopment Authority (New Spirit Charter School); Series 2002 A, Lease RB		7.50	%		12/01/31		3,500		3,423,875
Sauk Rapids (City of) (Good Shepherd Lutheran Home); Series 2009, Health Care & Housing Facilities RB		7.50	%		01/01/39		7,000		7,046,760
St. Paul (City of) Housing & Redevelopment Authority (Achieve Language Academy); Series 2003 A, Ref. Lease RB		7.00	%		12/01/32		1,600		1,488,736
St. Paul (City of) Housing & Redevelopment Authority (Community Peace Academy); Series 2006 A, Lease RB		5.00	%		12/01/36		4,825		3,526,448
St. Paul (City of) Housing & Redevelopment Authority (Health Partners Obligated Group); Series 2006, Health Care Facilities RB		5.25	%		05/15/36		2,700		2,334,771
St. Paul (City of) Housing & Redevelopment Authority (HealthEast); Series 2005, Hospital RB		6.00	%		11/15/30		5,360		4,672,258
St. Paul (City of) Housing & Redevelopment Authority (Higher Ground Academy); Series 2004 A, Lease RB		6.88	%		12/01/33		2,720		2,495,818
Series 2004 A, Ref. Lease RB		6.63	%		12/01/23		890		857,088
Series 2009, Lease RB		8.50	%		12/01/38		1,900		1,961,864
St. Paul (City of) Housing & Redevelopment Authority (Hope Community Academy); Series 2005 A, Lease RB		6.25	%		12/01/33		2,185		1,733,492
St. Paul (City of) Housing & Redevelopment Authority (Hope Community Academy); Series 2004 A, Lease RB		6.75	%		12/01/33		2,415		2,046,326
St. Paul (City of) Housing & Redevelopment Authority (Marian Center);
Series 2007, Ref. MFH RB		5.30	%		11/01/30		1,000		787,860
Series 2007 A, MFH RB		5.38	%		05/01/43		7,590		5,565,140
St. Paul (City of) Housing & Redevelopment Authority (Model Cities Health Center); Series 2001 A, Health Care RB		7.25	%		11/01/26		4,035		3,895,550
St. Paul (City of) Housing & Redevelopment Authority (Rossy & Richard Shaller); Series 2007 A, RB		5.25	%		10/01/42		2,000		1,512,200

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

31        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Minnesota–(continued)
St. Paul (Port of) (HealthEast Midway Campus-03);
Series 2005, Lease RB		5.88	%		05/01/30	$	1,250	$	1,101,475
Series 2005 A, Lease RB		5.75	%		05/01/25		1,700		1,547,680
Series 2005 B, Lease RB		6.00	%		05/01/30		1,700		1,520,225
Vadnais Heights (City of) (Agriculture & Food Sciences Academy);
Series 2004 A, Lease RB		6.38	%		12/01/24		1,000		770,220
Series 2004 A, Lease RB		6.60	%		12/01/34		5,000		3,610,650
Vadnais Heights (City of) (Cottages Vadnais Heights); Series 1995, Ref. MFH RB(a)		7.00	%		12/01/31		4,430		4,247,351
Victoria (City of) (Holy Family Catholic High School);
Series 1999 A, Private School Facility RB		5.85	%		09/01/24		1,650		1,543,278
Series 1999 A, School Facilities RB		5.88	%		09/01/29		4,500		4,013,325
									175,847,205
Mississippi–0.42%
Mississippi (State of) Business Finance Corp. (System Energy Resources, Inc.); Series 1998, PCR		5.88	%		04/01/22		5,000		4,926,150
Mississippi (State of) Business Finance Corp.; Series 2004, Air Cargo RB(a)		7.25	%		07/01/34		1,595		1,263,320
Mississippi (State of) Home Corp. (Cleveland Personal Care); Series 2006 6-A, RB(a)		6.25	%		12/01/35		4,600		3,575,396
Mississippi (State of) Home Corp. (Grove Apartments); Series 2007-1, RB(a)		3.13	%		04/01/37		5,745		2,863,767
Mississippi (State of) Home Corp. (Kirkwood Apartments); Series 2003, RB(a)		3.40	%		11/01/37		7,000		3,839,080
Mississippi (State of) Hospital Equipment & Facilities Authority (South Central); Series 2006, Ref. Improvement RB		5.25	%		12/01/31		1,965		1,715,347
Mississippi (State of) Hospital Equipment & Facilities Authority (South West Mississippi Medical Center);
Series 2003, Ref. Improvement RB		5.75	%		04/01/23		1,000		940,980
Series 2003, Ref. Improvement RB		5.75	%		04/01/29		2,000		1,751,140
									20,875,180
Missouri–2.59%
370/Missouri Bottom Road/Taussig Road Transportation Development District (Hazelwood);
Series 2002, RB		7.00	%		05/01/22		1,000		961,740
Series 2002, RB		7.20	%		05/01/33		4,750		4,324,827
Arnold (City of) (Arnold Triangle Redevelopment Project);
Series 2009, Sales Tax Increment Allocation RB		6.50	%		05/01/20		3,945		4,010,448
Series 2009 A, Real Property Tax Increment Allocation Bonds		7.75	%		05/01/28		940		964,102
Ballwin (City of) (Ballwin Town Center); Series 2002 A, Ref. Improvement Tax Increment Allocation RB		6.50	%		10/01/22		3,600		3,295,512
Branson (City of) Regional Airport Transportation Development District; Series 2007 B, Airport RB(a)		6.00	%		07/01/37		28,600		10,623,470
Branson Hills Infrastructure Facilities Community Improvement District;
Series 2007 A, Special Assessment RB		5.50	%		04/01/22		1,455		1,148,868
Series 2007 A, Special Assessment RB		5.50	%		04/01/27		1,500		1,078,065
Bridgeton (City of) Industrial Development Authority (Sarah Community); Series 1998, Sr. Housing RB		5.90	%		05/01/28		3,000		2,443,260
Cape Giradeau (County of) Industrial Development Authority (Southeast Missouri Hospital);
Series 2002, Health Care Facilities RB(b)(c)		5.75	%		06/01/12		30		31,901
Series 2002, Health Care Facilities RB		5.75	%		06/01/32		245		232,324
Carthage (City of);
Series 2005, Hospital RB		5.88	%		04/01/30		3,000		2,415,990
Series 2005, Hospital RB		6.00	%		04/01/38		14,255		10,751,976
Cole (County of) Industrial Development Authority (Lutheran Senior Services-Heisinger); Series 2004, Sr. Living Facilities RB		5.50	%		02/01/35		130		119,327
Dardenne Town Square Transportation Development District; Series 2006 A, Transportation Sales Tax RB		5.00	%		05/01/36		3,190		1,583,707
Ellisville (City of) Industrial Development Authority (Gambrill Gardens Phase I); Series 2003, IDR		6.75	%		04/01/33		2,390		2,072,393

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

32        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Missouri–(continued)
Ellisville (City of) Industrial Development Authority (Gambrill Gardens); Series 1999, Ref. Improvement IDR		6.20	%		06/01/29	$	2,755	$	2,305,577
Fenton (City of) (Gravois Bluffs);
Series 2001, Ref. Improvement Tax Increment Allocation RB(b)(c)		7.00	%		10/01/11		1,925		2,015,225
Series 2002, Ref. Improvement Tax Increment Allocation RB(b)(c)		6.13	%		10/01/12		4,550		4,921,416
Ferguson (City of) (Crossing at Halls Ferry); Series 2005, Ref. Tax Increment Allocation RB		5.00	%		04/01/17		1,770		1,660,933
Good Shepherd Nursing Home District; Series 1998, Ref. Nursing Home Facilities RB		5.90	%		08/15/23		3,275		2,878,430
Joplin (City of) Industrial Development Authority (Christian Homes, Inc. Obligated Group); Series 2007 F, Ref. IDR		5.75	%		05/15/26		1,260		1,106,343
Kansas (City of) Industrial Development Authority (Plaza Library); Series 2004, RB		5.90	%		03/01/24		5,000		4,648,050
Kansas City (City of) Industrial Development Authority (Brentwood Manor Apartments);
Series 2002 A, MFH RB(a)		6.95	%		04/15/15		294		296,267
Series 2002 B, MFH RB(a)		7.25	%		10/15/38		2,360		1,908,131
Kansas City (City of) Industrial Development Authority (Northwoods Apartments); Series 2004 A, MFH RB(a)		6.45	%		05/01/40		2,465		1,983,092
Kansas City (City of) Industrial Development Authority (Walnut Grove Apartments);
Series 2000 B, MFH RB(a)		7.55	%		06/15/12		125		127,763
Series 2000 B, MFH RB(a)		7.55	%		06/15/22		990		992,188
Series 2000 B, MFH RB(a)		7.55	%		06/15/35		3,430		3,252,875
Kirkwood (City of) Industrial Development Authority (Aberdeen Heights);
Series 2010 A, Retirement Community RB		8.00	%		05/15/29		5,000		5,037,850
Series 2010 A, Retirement Community RB		8.25	%		05/15/39		2,500		2,529,975
Series 2010 A, Retirement Community RB		8.25	%		05/15/45		23,000		23,231,150
Missouri (State of) Development Finance Board (Branson Landing);
Series 2004 A, Infrastructure Facilities RB		5.50	%		12/01/24		1,000		1,022,920
Series 2004 A, Infrastructure Facilities RB		5.63	%		12/01/28		1,500		1,515,615
Nevada (City of) (Regional Medical Center); Series 2001, Hospital RB(b)(c)		6.75	%		10/01/11		20		20,929
Osage Beach (City of) (Prewitts Point); Series 2002, Tax Increment Allocation RB		6.75	%		05/01/23		2,580		2,428,864
St. Joseph (City of) Industrial Development Authority (Living Community St. Joseph); Series 2002, Health Care RB		7.00	%		08/15/32		6,750		6,107,197
St. Louis (County of) Industrial Development Authority (Ranken-Jordan); Series 2003 A, Health Care Facilities RB(b)(c)		6.63	%		11/15/13		4,600		5,294,324
St. Louis (County of) Industrial Development Authority (St. Andrew’s Resources for Seniors);
Series 2007 A, Senior Living Facilities IDR		6.38	%		12/01/30		3,270		2,776,851
Series 2007 A, Senior Living Facilities RB		6.38	%		12/01/41		6,030		4,906,430
									129,026,305
Montana–0.05%
Montana (State of) Facility Finance Authority (St. John’s Lutheran Ministries);
Series 2006 A, Senior Living RB		6.13	%		05/15/36		2,000		1,558,920
Series 2006 A, Sr. Living RB		6.00	%		05/15/25		1,000		853,750
									2,412,670
Nebraska–0.19%
Gage (County of) Hospital Authority No. 1 (Beatrice Community Hospital & Health Center);
Series 2010 B, Health Care Facilities RB		6.50	%		06/01/30		5,000		4,777,700
Series 2010 B, Health Care Facilities RB		6.75	%		06/01/35		5,000		4,742,950
									9,520,650
Nevada–0.91%
Boulder City (City of) (Boulder City Hospital Inc. Project); Series 1998, Refunding Hospital RB		5.85	%		01/01/22		3,000		2,638,560
Clark (County of) (Homestead Boulder City); Series 1997, Assisted Facility Living RB		6.50	%		12/01/27		4,950		4,628,795

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

33        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Nevada–(continued)
Clark (County of) Special Improvement District No. 142;
Series 2003, Local Improvement Bonds		6.10	%		08/01/18	$	1,855	$	1,810,666
Series 2003, Local Improvement Bonds		6.38	%		08/01/23		2,560		2,341,222
Director of the State of Nevada Department of Business & Industry (Las Vegas Monorail); Series 2000, Second Tier RB(i)		7.38	%		01/01/40		8,000		16,000
Henderson (City of) Local Improvement District No. T-13;
Series 2002 A, Special Assessment Bonds		6.80	%		03/01/22		910		833,533
Series 2002 B, Special Assessment Bonds		6.90	%		03/01/22		2,905		2,681,925
Henderson (City of) Local Improvement District No. T-18; Series 2006, Special Assessment RB		5.30	%		09/01/35		7,190		3,709,177
Las Vegas (City of) Redevelopment Agency; Series 2009 A, Tax Increment RB		8.00	%		06/15/30		10,800		12,000,312
Las Vegas (City of) Special Improvement District No. 505 (Elkhorn Springs); Series 1993, Special Assessment Bonds		8.00	%		09/15/13		245		252,350
Las Vegas (City of) Special Improvement District No. 607;
Series 2004, Local Improvement Bonds		6.00	%		06/01/19		960		885,715
Series 2004, Local Improvement Bonds		6.25	%		06/01/24		1,345		1,147,715
Mesquite (City of) Special Improvement District No. 07-01 (Anthem at Mesquite); Series 2007, Local Improvement Special Assessment Bonds		6.15	%		08/01/37		2,610		1,925,371
Reno (City of) Redevelopment Agency; Series 2007 C, Sub. Lien Tax Allocation Bonds		5.40	%		06/01/27		5,425		3,919,074
Reno (City of) Special Assessment District No. 4 (Somersett Parkway); Series 2003, Special Assessment Bonds		6.63	%		12/01/22		4,085		3,672,864
Sparks (City of) Local Improvement Districts No. 3 (Legends at Sparks Marina);
Series 2008, Limited Obligation Bonds		6.50	%		09/01/20		935		894,814
Series 2008, Special Assessment Limited Obligation Bonds		6.75	%		09/01/27		2,000		1,806,880
									45,164,973
New Hampshire–0.49%
New Hampshire (State of) Business Finance Authority (Huggins Hospital); Series 2009, First Mortgage RB		6.88	%		10/01/39		4,000		3,933,360
New Hampshire (State of) Business Finance Authority (Plymouth Cogeneration LP); Series 1993, Electric Facilities RB (Acquired 09/20/99, Cost $1,531,522)(a)(e)		7.75	%		06/01/14		1,565		1,530,367
New Hampshire (State of) Business Finance Authority (United Illuminating Co.); Series 2009, PCR(a)(c)(g)		7.13	%		02/01/12		3,000		3,115,500
New Hampshire (State of) Health & Education Facilities Authority (Health Care System- Covenant Health); Series 2004, RB		5.50	%		07/01/34		1,735		1,641,206
New Hampshire (State of) Health & Education Facilities Authority (Speare Memorial Hospital);
Series 2004, Hospital RB		5.50	%		07/01/25		1,055		975,970
Series 2004, Hospital RB		5.88	%		07/01/34		2,650		2,425,518
New Hampshire (State of) Health & Education Facilities Authority (The Huntington at Nashua);
Series 2003 A, RB		6.88	%		05/01/23		1,570		1,557,676
Series 2003 A, RB		6.88	%		05/01/33		6,290		5,848,190
New Hampshire (State of) Health & Educational Facilities Authority (New England College); Series 1999, RB		6.13	%		03/01/19		3,380		3,281,338
New Hampshire (State of) Housing Finance Authority; Series 1997 D, Single Family RB(a)		5.90	%		07/01/28		140		140,043
									24,449,168
New Jersey–2.41%
Camden (County of) Improvement Authority (Health Care Redevelopment-Cooper Health); Series 2004 A, RB		5.75	%		02/15/34		2,000		1,862,780
New Jersey (State of) Economic Development Authority (Arbor); Series 1998 A, Sr. Mortgage RB		6.00	%		05/15/28		6,395		5,225,099
New Jersey (State of) Economic Development Authority (Continental Airlines, Inc.);
Series 1999, Special Facility RB(a)		6.25	%		09/15/19		18,000		17,399,160
Series 1999, Special Facility RB(a)		6.40	%		09/15/23		8,150		7,844,212
Series 1999, Special Facility RB(a)		6.25	%		09/15/29		25,915		24,294,794

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

34        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
New Jersey–(continued)
New Jersey (State of) Economic Development Authority (Cranes Mill);
Series 2008, First Mortgage RB		5.88	%		07/01/28	$	1,500	$	1,378,365
Series 2008, First Mortgage RB		6.00	%		07/01/38		1,500		1,334,805
New Jersey (State of) Economic Development Authority (Franciscan Oaks);
Series 1997, First Mortgage RB		5.70	%		10/01/17		2,000		1,940,120
Series 1997, First Mortgage RB		5.75	%		10/01/23		2,355		2,079,630
New Jersey (State of) Economic Development Authority (Kullman Association, LLC);
Series 1998 A, RB(a)		6.13	%		06/01/18		2,100		1,903,734
Series 1999 A, RB(a)		6.75	%		07/01/19		605		554,942
New Jersey (State of) Economic Development Authority (Lions Gate);
Series 2005 A, First Mortgage RB		5.75	%		01/01/25		710		633,789
Series 2005 A, First Mortgage RB		5.88	%		01/01/37		1,230		1,024,934
New Jersey (State of) Economic Development Authority (Presbyterian Home at Montgomery); Series 2001 A, First Mortgage RB		6.25	%		11/01/20		1,560		1,465,542
New Jersey (State of) Economic Development Authority (Seashore Gardens Living Center);
Series 2006, First Mortgage RB		5.30	%		11/01/26		750		623,475
Series 2006, First Mortgage RB		5.38	%		11/01/36		900		677,259
New Jersey (State of) Economic Development Authority (The Millhouse); Series 2008 A, First Mortgage RB		7.50	%		04/01/15		985		490,926
New Jersey (State of) Economic Development Authority (The Presbyterian Home at Montgomery); Series 2001 A, First Mortgage RB		6.38	%		11/01/31		1,500		1,265,505
New Jersey (State of) Economic Development Authority (United Methodist Homes of New Jersey Obligated Group Issue); Series 1999, Economic Development RB		5.75	%		07/01/29		7,000		5,952,660
New Jersey (State of) Economic Development Authority (United Methodist Homes);
Series 2003 A-1, Economic Development RB		6.13	%		07/01/23		3,450		3,259,940
Series 2003 A-1, Economic Development RB		6.25	%		07/01/33		5,800		5,200,454
New Jersey (State of) Economic Development Authority (Winchester Gardens at Ward Homestead).; Series 2004 A, Ref. First Mortgage RB		5.80	%		11/01/31		2,000		1,909,520
New Jersey (State of) Health Care Facilities Financing Authority (Palisades Medical Center of New York Health Care); Series 2002, RB		6.63	%		07/01/31		1,000		901,900
New Jersey (State of) Health Care Facilities Financing Authority (Pasack Valley Hospital Association);
Series 2003, RB(i)		6.00	%		07/01/13		323		3
Series 2003, RB(i)		6.50	%		07/01/23		428		4
Series 2003, RB(i)		6.63	%		07/01/36		2,496		25
New Jersey (State of) Health Care Facilities Financing Authority (Raritan Bay Medical Center); Series 1994, RB		7.25	%		07/01/14		1,130		1,065,466
New Jersey (State of) Health Care Facilities Financing Authority (St. Joseph’s Health Care System); Series 2008, RB		6.63	%		07/01/38		11,300		11,109,595
New Jersey (State of) Tobacco Settlement Financing Corp.; Series 2007 1-A, Tobacco Settlement Asset-Backed RB		5.00	%		06/01/41		26,575		15,980,079
Tobacco Settlement Financing Corp.; Series 2007 1A, RB		5.00	%		06/01/29		3,800		2,669,614
									120,048,331
New Mexico–0.67%
Bernalillo (County of) (Solar Villas Apartments); Series 1997 F, Sr. MFH RB		7.25	%		10/15/22		1,245		1,259,181
Cabezon Public Improvement District;
Series 2005, Special Levy RB		6.00	%		09/01/24		1,505		1,313,007
Series 2005, Special Levy Tax		6.30	%		09/01/34		1,495		1,235,707
Farmington (City of) (Public Service Co. of New Mexico San Juan); Series 2010 C, Ref. PCR		5.90	%		06/01/40		10,000		9,512,100
New Mexico (State of) Eastern Regional Housing Authority (Wildewood Apartments); Series 2000 A, MFH RB		7.50	%		12/01/30		2,135		2,147,490
New Mexico (State of) Hospital Equipment Loan Council (La Vida Llena); Series 2010 A, First Mortgage RB		6.13	%		07/01/40		6,000		5,595,120
New Mexico (State of) Hospital Equipment Loan Council (Rehoboth); Series 2007 A, Hospital RB		5.25	%		08/15/26		2,000		1,592,880
New Mexico (State of) Income Housing Authority (Brentwood Gardens Apartments); Series 2001 A, MFH RB(a)		6.85	%		12/01/31		4,455		4,046,610

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

35        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
New Mexico–(continued)
RHA Housing Development Corp. (Woodleaf Apartments); Series 1997 A, Ref. MFH Mortgage RB		7.13	%		12/15/27	$	2,440	$	2,397,056
San Juan (County of) (Apple Ridge Apartments); Series 2002 A, MFH RB(a)		7.25	%		12/01/31		3,110		2,988,865
Ventana West Public Improvement District; Series 2004, Special Levy RB		6.88	%		08/01/33		1,500		1,352,520
									33,440,536
New York–5.96%
Amherst (Town of) Industrial Development Agency (Shaary Zedek); Series 2006, Ref. Civic Facility RB		7.00	%		06/15/36		2,240		2,111,088
Brookhaven (Town of) Industrial Development Agency (The Woodcrest Estates Facility);
Series 1998 A, Sr. Residential Housing RB(a)		6.25	%		12/01/23		1,280		1,194,586
Series 1998 A, Sr. Residential Housing RB(a)		6.38	%		12/01/37		8,660		7,327,399
Brooklyn (City of) Arena Local Development Corp. (Barclays Center);
Series 2009, CAB RB(f)		0.00	%		07/15/31		3,890		1,043,843
Series 2009, CAB RB(f)		0.00	%		07/15/32		8,500		2,094,485
Series 2009, CAB RB(f)		0.00	%		07/15/33		3,915		884,164
Series 2009, CAB RB(f)		0.00	%		07/15/34		2,000		417,880
Series 2009, CAB RB(f)		0.00	%		07/15/44		23,805		2,288,851
Series 2009, CAB RB(f)		0.00	%		07/15/45		27,410		2,400,568
Series 2009, CAB RB(f)		0.00	%		07/15/46		9,700		778,037
Dutchess (County of) Industrial Development Agency (St. Francis Hospital); Series 2004 A, Ref. Civic Facility RB		7.50	%		03/01/29		5,905		5,609,573
Monroe (County of) Industrial Development Agency (Cloverwood Senior Living);
Series 2003 A, Civic Facility RB(b)(c)		6.88	%		05/01/13		805		903,250
Series 2003 A, Civic Facility RB		6.75	%		05/01/23		2,000		1,830,660
Series 2003 A, Civic Facility RB		6.88	%		05/01/33		4,195		3,762,957
Mount Vernon (City of) Industrial Development Agency (Wartburg Senior Housing, Inc./Meadowview); Series 2009, Civic Facilities RB		6.20	%		06/01/29		1,000		863,720
Nassau (County of) Industrial Development Agency (Amsterdam at Harborside);
Series 2007 A, Continuing Care Retirement Community IDR		6.70	%		01/01/43		29,500		26,295,415
Series 2007 A, Continuing Care Retirement Community RB		6.50	%		01/01/27		2,750		2,581,810
New York (City of) Industrial Development Agency (7 World Trade Center, LLC); Series 2005 A, Liberty RB		6.50	%		03/01/35		16,960		15,952,576
New York (City of) Liberty Development Corp. (National Sports Museum); Series 2006 A, Liberty RB (Acquired 08/07/06, Cost $2,121,407)(e)(i)		6.13	%		02/15/19		2,500		25
New York (State of) Dormitory Authority (Orange Regional Medical Center);
Series 2008, Non State Supported Debt RB		6.50	%		12/01/21		10,100		10,178,073
Series 2008, Non State Supported Debt RB		6.13	%		12/01/29		2,125		2,014,861
Series 2008, RB		6.25	%		12/01/37		7,275		6,714,388
New York (State of) Dormitory Authority (Winthrop S. Nassau University); Series 2003, RB		5.75	%		07/01/28		4,695		4,705,798
New York (State of) Dormitory Authority (Winthrop University Hospital Association); Series 2003 A, RB		5.50	%		07/01/23		4,000		4,007,520
New York (State of) Energy Research & Development Authority; Series 1993, RB(m)		11.98	%		04/01/20		2,500		2,588,700
New York (State of) Environmental Facilities Corp; Series 2009 A, State Clean Water & Drinking RB(h)		5.00	%		06/15/34		20,000		20,140,400
New York (State of) Environmental Facilities Corp; Series 2009 A, State Clean Water & Drinking(h)		5.00	%		06/15/30		15,000		15,497,850
New York City (City of) Industrial Development Agency (7 World Trade Center); Series 2005 A, Liberty RB		6.25	%		03/01/15		23,000		23,010,810
New York City (City of) Industrial Development Agency (A Very Special Place Inc.); Series 2003 A, Civic Facility RB		7.00	%		01/01/33		2,650		2,370,584
New York City (City of) Industrial Development Agency (Polytechnic University); Series 2007, Civic Facility Ref. RB (INS–ACA)(d)		5.25	%		11/01/37		13,550		12,338,765
New York City (City of) Industrial Development Agency (PSCH Inc.); Series 2003, RB		6.38	%		07/01/33		1,275		1,069,151

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

36        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
New York–(continued)
New York City (City of) Industrial Development Agency (Queens Baseball Stadium);
Series 2006, PILOT Bonds (INS–AMBAC)(d)		5.00	%		01/01/26	$	5,000	$	4,574,900
Series 2006, PILOT IDR (INS–AMBAC)(d)		5.00	%		01/01/46		19,220		15,076,168
Series 2006, PILOT RB (INS–AMBAC)(d)		5.00	%		01/01/39		4,075		3,268,435
New York City (City of) Industrial Development Agency (Visy Paper Inc.); Series 1995, RB(a)		7.95	%		01/01/28		7,500		7,278,675
New York City (City of) Industrial Development Agency; Series 2002 C, Civic Facility RB		6.80	%		06/01/28		5,000		5,163,450
New York City (City of) Liberty Development Corp. (Bank of America Tower at One Bryant Park); Series 2010, Ref. Second Priority Liberty RB		6.38	%		07/15/49		5,000		5,004,600
Newark-Wayne Community Hospital Inc.; Series 1993 A, Ref. Improvement Hospital RB		7.60	%		09/01/15		1,190		1,181,968
Orange (County of) Industrial Development Agency (Arden Hill Life Care Center); Series 2001 A, Civic Facility RB		7.00	%		08/01/31		4,000		3,392,080
Port Authority of New York & New Jersey (JFK International Air Terminal LLC); Series 2010, Special Obligation RB		6.00	%		12/01/42		18,500		18,031,950
Port Authority of New York & New Jersey; Series 2006 144th, Consolidated RB(h)		5.00	%		10/01/35		13,650		13,525,376
Seneca (County of) Industrial Development Agency (Seneca Meadows, Inc.); Series 2005, Solid Waste Disposal RB(a)(c)(e)(g)		6.63	%		10/01/13		9,270		9,231,159
Suffolk (County of) Industrial Development Agency (Eastern Long Island Hospital Association); Series 2007, Civic Facility RB(e)		5.50	%		01/01/37		2,500		1,761,450
Suffolk (County of) Industrial Development Agency (Gerwin Jewish-Phase II); Series 2004, Civic Facility RB		6.70	%		05/01/39		1,945		1,808,694
Suffolk (County of) Industrial Development Agency (Medford Hamlet Assisted Living); Series 2005, Assisted Living Facility RB(a)		6.38	%		01/01/39		7,680		5,650,099
Sullivan (County of) Industrial Development Agency (Hebrew Academy Special Children); Series 2002, Civic Facility RB		7.50	%		06/01/32		4,270		3,836,253
Syracuse (City of) Industrial Development Agency (Jewish Home of Central New York, Inc.);
Series 2001 A, First Mortgage RB		7.38	%		03/01/21		1,350		1,301,589
Series 2001 A, First Mortgage RB		7.38	%		03/01/31		3,325		2,971,021
UTICA (City of) Industrial Development Agency (UTICA College Civic Facility);
Series 2001, Civic Facility RB		6.75	%		12/01/21		2,315		2,336,344
Series 2001, Civic Facility RB		6.85	%		12/01/31		3,750		3,675,113
Westchester (County of) Industrial Development Agency (Kendal on Hudson); Series 2003 A, Continuing Care Retirement Mortgage IDR		6.38	%		01/01/24		5,000		4,768,800
									296,815,911
North Carolina–0.77%
Halifax (County of) Industrial Facilities & Pollution Control Financing Authority (International Paper Co.); Series 2001 A, RB(a)		5.90	%		09/01/25		1,000		1,000,990
Johnston Memorial Hospital Authority (Johnston Memorial Hospital); Series 2008, (INS–AGM)(d)(h)		5.25	%		10/01/28		5,125		5,226,526
Series 2008, RB (INS–AGM)(d)(h)		5.25	%		10/01/36		8,000		7,850,480
North Carolina (State of) Medical Care Commission (Arbor Acres Community); Series 2002, First Mortgage Health Care Facilities RB(b)(c)		6.25	%		03/01/12		1,000		1,064,880
North Carolina (State of) Medical Care Commission (Baptist Retirement); Series 2001, First Mortgage Health Care Facilities RB		6.40	%		10/01/31		7,050		6,202,308
North Carolina (State of) Medical Care Commission (Forest at Duke); Series 2002, First Mortgage Retirement Facilities RB(b)(c)		6.38	%		09/01/32		3,000		3,246,690
North Carolina (State of) Medical Care Commission (Galloway Ridge); Series 2010 A, First Mortgage Retirement Facilities RB		6.00	%		01/01/39		1,520		1,349,851

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

37        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
North Carolina–(continued)
North Carolina (State of) Medical Care Commission (Pennybyrn at Maryfield); Series 2005 A, Health Care Facilities RB		6.13	%		10/01/35	$	7,150	$	5,306,230
North Carolina (State of) Medical Care Commission (Village at Brookwood); Series 2007, Ref. First Mortgage Retirement Facilities RB		5.25	%		01/01/32		9,650		7,238,561
									38,486,516
North Dakota–0.19%
Fargo (City of) (Trollwood Village);
Series 2001 A, Ref. MFH RB(a)		7.25	%		09/01/21		495		390,605
Series 2001 A, Ref. MFH RB(a)		7.40	%		09/01/26		765		568,074
Series 2001 A, Ref. MFH RB(a)		7.60	%		09/01/31		2,120		1,521,821
Grand Forks (City of) (4000 Valley Square);
Series 2006, Ref. Senior Housing RB		5.30	%		12/01/34		2,400		1,805,304
Series 2006, Ref. Sr. Housing RB		5.20	%		12/01/26		1,545		1,253,922
Traill (County of) (Hillsboro Medical Center); Series 2007, Health Care RB		5.50	%		05/01/42		5,570		4,018,476
									9,558,202
Ohio–2.03%
Adams (County of) (Adams County Hospital); Series 2005, Facility Improvement RB		6.50	%		09/01/36		20,455		14,496,049
Akron, Bath & Copley (Joint Township of) Hospital District (Summa Hospital); Series 1998 A, Hospital Facilities RB		5.38	%		11/15/24		1,500		1,440,120
Athens (City of) (O’Bleness Memorial Hospital District);
Series 2003 A, Ref. Improvement Hospital Facilities RB		6.90	%		11/15/23		4,000		3,925,280
Series 2003 A, Ref. Improvement Hospital Facilities RB		7.13	%		11/15/33		12,650		11,864,055
Buckeye (City of) Tobacco Settlement Financing Authority; Series 2007 A-2, Sr. Asset-Backed Turbo RB		5.88	%		06/01/47		24,035		16,010,675
Centerville (City of) (Bethany Lutheran Village Continuing Care Facility Expansion);
Series 2007 A, Health Care RB		5.75	%		11/01/22		1,000		934,920
Series 2007 A, Health Care RB		6.00	%		11/01/38		2,550		2,071,008
Cleveland-Cuyahoga (County of) Port Authority; Series 2001, Special Assessment Tax Increment RB		7.35	%		12/01/31		5,000		4,774,000
Cuyahoga (County of) (Eliza Jennings Senior Care Network);
Series 2007 A, Health Care & Independent Living Facilities RB		5.75	%		05/15/27		1,355		1,172,698
Series 2007 A, Health Care & Independent Living Facilities RB		6.00	%		05/15/37		5,000		4,204,250
Series 2007 A, Health Care & Independent Living Facilities RB		6.00	%		05/15/42		3,645		3,064,643
Cuyahoga (County of) (Franciscan Community Inc.); Series 2004 C, Health Care Facilities RB		6.25	%		05/15/32		3,500		2,905,070
Hamilton (County of) (Garden Hill/Washington Park Apartments); Series 1996, MFH RB(a)(i)		7.75	%		10/01/21		1,955		16,559
Lorain (County of) Port Authority (U.S. Steel Corp. Project); Series 2010, Recovery Zone Facility RB		6.75	%		12/01/40		7,500		7,461,750
Lucas (County of) (Sunset Retirement Communities);
Series 2000 A, Ref. & Improvement Health Care Facilities RB		6.50	%		08/15/20		1,500		1,506,975
Series 2000 A, Ref. & Improvement Health Care Facilities RB		6.55	%		08/15/24		1,000		1,001,960
Lucas (County of) (Sunset Retirement); Series 2000, Ref. Improvement Health Care Facilities RB		6.63	%		08/15/30		500		500,405
Montgomery (County of) (St. Leonard);
Series 2010, Ref. & Improvement Health Care MFH RB		6.63	%		04/01/40		5,000		4,645,550
Series 2010, Ref. Improvement MFH RB		6.38	%		04/01/30		2,000		1,875,260
Norwood (City of) (Cornerstone at Norwood); Series 2006, Tax Increment Allocation RB		6.20	%		12/01/31		7,340		5,843,301
Ohio (State of) Higher Educational Facility Commission (University Hospitals Health System, Inc.); Series 2009 A, RB		6.75	%		01/15/39		6,000		6,169,920
Pinnacle Community Infrastructure Financing Authority;
Series 2004 A, Facilities RB		6.00	%		12/01/22		829		707,411
Series 2004 A, Facilities RB		6.25	%		12/01/36		2,000		1,507,400

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

38        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Ohio–(continued)
Tuscarawas (County of) (Twin City Hospital);
Series 2007, Hospital Facilities RB(i)		6.10	%		11/01/22	$	1,500	$	824,400
Series 2007, Hospital Facilities RB(i)		6.20	%		11/01/27		1,670		917,832
Series 2007, Hospital Facilities RB(i)		6.35	%		11/01/37		2,250		1,236,600
									101,078,091
Oklahoma–0.59%
Atoka (County of) Health Care Authority (Atoka Memorial Hospital); Series 2007, Hospital RB		6.63	%		10/01/37		3,405		2,756,722
Citizen Potawatomi Nation; Series 2004 A, Sr. Obligation Tax RB		6.50	%		09/01/16		2,470		2,347,834
Oklahoma (County of) Finance Authority (Concordia); Series 2005 A, Retirement Facility RB		6.00	%		11/15/38		5,500		4,575,340
Oklahoma (State of) Development Finance Authority (Comanche Community Hospital); Series 2002 B, RB		6.38	%		07/01/21		2,500		2,547,400
Oklahoma (State of) Development Finance Authority (Great Plains Regional Medical Center);
Series 2007, Hospital RB		5.00	%		12/01/27		3,500		3,112,585
Series 2007, Hospital RB		5.13	%		12/01/36		9,430		7,962,975
Tulsa (County of) Industrial Authority (Montereau, Inc.);
Series 2010 A, Senior Living Community RB		7.25	%		11/01/40		3,000		2,886,720
Series 2010 A, Senior Living Community RB		7.25	%		11/01/45		3,500		3,342,220
									29,531,796
Oregon–0.92%
Clastop Care Center Health District;
Series 1998, Sr. Housing RB		6.00	%		08/01/14		690		681,175
Series 1998, Sr. Housing RB		6.88	%		08/01/28		6,145		5,368,088
Douglas (County of) Hospital Facility Authority (Elderly Housing-Forest Glen); Series 1997 A, RB(i)		7.50	%		09/01/27		1,600		1,079,312
Gillam (County of) (Waste Management); Series 2002, Solid Waste Disposal RB(a)		5.25	%		07/01/29		9,220		8,733,922
Multnomah (County of) Hospital Facilities Authority (Terwilliger Plaza); Series 1999, RB(e)		6.50	%		12/01/29		8,500		8,331,275
Oregon (State of) Health, Housing, Educational & Cultural Facilities Authority (St. Anthony Village Housing); Series 1998 A, RB(a)		7.25	%		06/01/28		7,890		7,277,815
Warm Springs Reservation Confederated Tribes of Oregon (Pelton Round Butte); Series 2009 B, Hydroelectric Tribal Economic Development RB(e)		6.38	%		11/01/33		3,000		2,981,880
Yamhill (County of) Hospital Authority (Friendsview Retirement Community); Series 2003, RB(b)(c)		7.00	%		12/01/13		9,925		11,598,156
									46,051,623
Pennsylvania–3.68%
Allegheny (County of) Hospital Development Authority (West Pennsylvania Health System); Series 2007 A, RB		5.38	%		11/15/40		15,075		9,714,631
Allegheny (County of) Industrial Development Authority (AFCO Cargo PIT, LLC);
Series 1999, Cargo Facilities Lease RB(a)		6.63	%		09/01/24		1,665		1,409,922
Series 2003, Lease RB(a)		7.75	%		09/01/31		6,475		5,884,286
Allegheny (County of) Industrial Development Authority; Series 2009, Ref. Environmental Improvement RB		6.88	%		05/01/30		2,400		2,438,808
Allegheny (County of) Redevelopment Authority (Pittsburgh Mills); Series 2004, Tax Allocation RB		5.60	%		07/01/23		1,500		1,352,280
Berks (County of) Industrial Development Authority (One Douglassville); Series 2007 A, Ref. First Mortgage RB(a)		6.13	%		11/01/34		4,830		3,848,351
Blair (County of) Industrial Development Authority (Village of Pennsylvania State); Series 2002 A, First Mortgage RB(i)		7.00	%		01/01/34		4,275		2,671,020
Bucks (County of) Industrial Development Authority (Ann’s Choice, Inc. Facility);
Series 2005 A, Retirement Community RB		6.13	%		01/01/25		1,500		1,431,900
Series 2005 A, Retirement Community RB		6.25	%		01/01/35		5,850		5,233,176

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

39        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Pennsylvania–(continued)
Bucks (County of) Industrial Development Authority (Chandler);
Series 1999, First Mortgage Health Care Facilities RB		6.10	%		05/01/14	$	825	$	810,728
Series 1999, First Mortgage Health Care Facilities RB		6.20	%		05/01/19		1,900		1,762,858
Series 1999, First Mortgage Health Care Facilities RB		6.30	%		05/01/29		3,450		2,825,585
Chartiers Valley Industrial & Commercial Development Authority (Asbury Health Center);
Series 1999, Ref. First Mortgage RB		6.38	%		12/01/19		1,000		1,000,620
Series 1999, Ref. First Mortgage RB		6.38	%		12/01/24		2,500		2,437,675
Chester (County of) Health & Education Facilities Authority (Jenner’s Pond, Inc.);
Series 2002, Sr. Living Facility RB(b)(c)		7.25	%		07/01/12		2,250		2,491,830
Series 2002, Sr. Living Facility RB(b)(c)		7.63	%		07/01/12		2,200		2,447,280
Cumberland (County of) Municipal Authority (Asbury Pennsylvania Obligated Group); Series 2010, RB		6.13	%		01/01/45		8,220		7,151,893
Cumberland (County of) Municipal Authority (Diakon Lutheran Ministries); Series 2007, RB		5.00	%		01/01/36		11,080		9,091,029
Dauphin (County of) General Authority (Riverfront Office); Series 1998, Office & Package RB		6.00	%		01/01/25		8,175		6,371,186
Fulton (County of) Industrial Development Authority (The Fulton County Medical Center);
Series 2006, Hospital RB		5.88	%		07/01/31		2,500		2,104,325
Series 2006, Hospital RB		5.90	%		07/01/40		3,800		3,017,504
Harrisburg (City of) Authority (Harrisburg University of Science); Series 2007 B, University RB		6.00	%		09/01/36		8,500		7,152,240
Hazelton (City of) Health Services Authority (St. Joseph Medical Center); Series 1996, Hospital RB		6.20	%		07/01/26		2,230		2,170,682
Indiana (County of) Industrial Development Authority (PSEG Power LLC); Series 2001, PCR(a)		5.85	%		06/01/27		2,200		2,136,486
Lancaster (County of) Hospital Authority (St. Anne’s Home for the Aged, Inc.); Series 1999, Health Center RB		6.63	%		04/01/28		1,000		884,420
Lehigh (County of) General Purpose Authority (Bible Fellowship Church Home Inc.);
Series 2001, First Mortgage RB		7.63	%		11/01/21		1,200		1,221,480
Series 2001, First Mortgage RB		7.75	%		11/01/33		3,000		3,002,340
Lehigh (County of) General Purpose Authority (KidsPeace Obligated Group); Series 1998, RB		6.00	%		11/01/23		9,085		6,709,272
Lehigh (County of) Industrial Development Authority (Bible Fellowship); Series 1999 A, First Mortgage RB		6.00	%		12/15/23		2,000		1,787,400
Lehigh (County of) Industrial Development Authority (KidsPeace Obligated Group);
Series 1998, RB		6.00	%		11/01/18		3,000		2,570,880
Series 1999, RB		6.20	%		11/01/14		2,950		2,778,900
Lehigh (County of) Industrial Development Authority (Lifepath, Inc.);
Series 1998, Health Facility RB		6.10	%		06/01/18		2,355		2,035,850
Series 1998, Health Facility RB		6.30	%		06/01/28		4,000		2,950,120
Montgomery (County of) (Adv. Geriatric); Series 1993 A, Health Care RB		8.38	%		07/01/23		2,775		2,776,471
Montgomery (County of) Higher Education & Health Authority (AHF/Montgomery Inc.); Series 2006, Ref. Improvement RB		6.88	%		04/01/36		8,275		6,651,528
Montgomery (County of) Industrial Development Authority (Philadelphia Presbytery Homes, Inc.); Series 2010, RB		7.00	%		12/01/35		6,000		6,039,600
Montgomery (County of) Industrial Development Authority (Whitemarsh Continuing Care);
Series 2005, Mortgage RB		6.00	%		02/01/21		1,085		975,925
Series 2005, Mortgage RB		6.13	%		02/01/28		1,500		1,272,225
Series 2005, Mortgage RB		6.25	%		02/01/35		17,755		14,416,350
Montgomery (County of) Industrial Development Authority (Wordsworth Academy); Series 1994, RB		7.75	%		09/01/14		1,535		1,536,520
Mt. Lebanon Hospital Authority (St. Clair Memorial Hospital); Series 2002 A, RB		5.63	%		07/01/32		1,600		1,560,096
Northeastern Pennsylvania Hospital & Education Authority (Oakwood Terrace);
Series 1999, Health Care RB		7.13	%		10/01/29		3,350		3,002,303
Series 2005, Health Care RB (Acquired 12/27/05, Cost $1,575,000)(e)		6.50	%		10/01/32		1,575		1,328,166

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

40        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Pennsylvania–(continued)
Pennsylvania (State of) Economic Development Financing Authority (Amtrak);
Series 2001 A, Exempt Facilities RB(a)		6.50	%		11/01/16	$	2,650	$	2,690,837
Series 2001 A, Exempt Facilities RB(a)		6.13	%		11/01/21		2,900		2,933,553
Series 2001 A, Exempt Facilities RB(a)		6.38	%		11/01/41		1,000		1,001,960
Pennsylvania (State of) Higher Educational Facilities Authority (Student Association, Inc. at California University of Pennsylvania); Series 2000 A, Student Housing RB		6.75	%		09/01/32		1,965		1,978,224
Philadelphia (City of) Authority for Industrial Development (Baptist Home of Philadelphia);
Series 1998 A, Health Care Facility RB		5.50	%		11/15/18		1,950		1,498,166
Series 1998 A, Health Care Facility RB		5.60	%		11/15/28		5,485		2,632,252
Philadelphia (City of) Authority for Industrial Development; Series 1990, Commercial Development Remarketing RB(a)		7.75	%		12/01/17		11,550		11,556,814
Philadelphia (City of) Hospitals & Higher Education Facilities Authority (Centralized Company Human Services, Inc.);
Series 2002 A, RB		6.13	%		01/01/13		930		899,626
Series 2002 A, RB		7.25	%		01/01/21		4,000		3,771,240
Susquehanna Area Regional Airport Authority; Series 2008 A, Airport System RB(a)		6.50	%		01/01/38		4,300		4,027,036
									183,445,849
Puerto Rico–0.27%
Puerto Rico (Commonwealth of) Public Buildings Authority (Government Facilities); Series 2004 I, RB(b)(c)		5.25	%		07/01/14		75		84,617
Puerto Rico (Commonwealth of) Sales Tax Financing Corp.; First Sub.
Series 2010 C, Sales Tax CAB RB(f)		0.00	%		08/01/38		53,500		8,732,270
Series 2010 A, Salex Tax CAB RB(f)		0.00	%		08/01/36		23,650		4,449,274
									13,266,161
Rhode Island–0.16%
Rhode Island (State of) Economic Development Corp. (Providence Place); Series 2000, Sub. Obligation RB		7.25	%		07/01/20		3,825		3,637,422
Tobacco Settlement Corp.; Series 2002 A, Asset-Backed RB		6.25	%		06/01/42		4,800		4,187,568
									7,824,990
South Carolina–1.10%
Lancaster (County of) (Edenmoor Improvement District); Series 2006, Assessment RB(e)(i)		5.75	%		12/01/37		4,860		1,599,912
Lancaster (County of) (Sun City Carolina Lakes); Series 2006, Assessment RB		5.45	%		12/01/37		1,480		1,133,073
Lauren County School District No. 055; Series 2005, Installment Purchase RB		5.25	%		12/01/30		4,080		3,831,446	��
Myrtle Beach (City of) (Myrtle Beach Air Force Base);
Series 2006 A, Tax Increment RB		5.25	%		10/01/26		975		661,109
Series 2006 A, Tax Increment RB		5.30	%		10/01/35		1,250		751,275
Richland (County of) (International Paper); Series 2003 A, Ref. Environmental Improvement RB(a)		6.10	%		04/01/23		7,600		7,630,628
South Carolina (State of) Jobs-Economic Development Authority (Palmetto Health Alliance);
Series 2003 A, Ref. Hospital Facilities RB		6.13	%		08/01/23		5,000		5,055,100
Series 2003 A, Ref. Hospital Facilities RB		6.25	%		08/01/31		19,700		19,703,152
South Carolina (State of) Jobs-Economic Development Authority (Palmetto Health Care);
Series 2003 C, Hospital Facilities RB(b)(c)		6.38	%		08/01/13		4,005		4,512,434
Series 2003 C, Hospital Facilities RB(b)(c)		6.38	%		08/01/13		495		560,142
South Carolina (State of) Jobs-Economic Development Authority (The Woodlands at Furman); Series 2007 A, RB		6.00	%		11/15/37		3,700		1,877,380
South Carolina (State of) Jobs-Economic Development Authority (Wesley Commons); Series 2006, Ref. First Mortgage Health Facilities RB		5.13	%		10/01/26		2,500		1,980,150
South Carolina (State of) Jobs-Economic Development Authority (Westminster); Series 2005, Ref. Economic Development Improvement RB		5.38	%		11/15/30		750		575,445

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

41        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
South Carolina–(continued)
South Carolina (State of) Jobs-Economic Development Authority (Woodlands at Furman);
Series 2007 A, RB		6.00	%		11/15/27	$	2,000	$	1,144,040
Series 2007 A, RB		6.00	%		11/15/42		7,800		3,851,406
									54,866,692
South Dakota–0.23%
Keystone (Town of) (Water Quality Management Corp.); Series 1998 A, Economic Development RB(a)		6.00	%		12/15/18		870		786,263
Minnehaha (County of) (Bethany Lutheran Home);
Series 2002 A, Health Care Facilities RB(b)(c)		7.00	%		12/01/12		3,750		4,142,850
Series 2007, Ref. Health Facilities RB		5.38	%		12/01/27		1,250		1,035,362
Sioux Falls (City of) (Dow Rummel Village);
Series 2002 A, Health Facilities RB(b)(c)		6.63	%		11/15/12		1,750		1,906,450
Series 2002 A, Health Facilities RB(b)(c)		6.75	%		11/15/12		3,250		3,547,407
									11,418,332
Tennessee–1.35%
Johnson City (City of) Health & Educational Facilities Board (Appalachian Christian Village);
Series 2004 A, Retirement Facilities RB		6.00	%		02/15/24		1,000		906,960
Series 2004 A, Retirement Facilities RB		6.25	%		02/15/32		2,950		2,545,201
Series 2004 A, Retirement Facility RB		6.00	%		02/15/19		1,015		980,145
Johnson City (City of) Health & Educational Facilities Board (Mountain States Health Alliance);
Series 2000 A, Ref. First Mortgage Hospital RB(b)(c)		7.50	%		07/01/12		4,000		4,403,360
Series 2000 A, Ref. First Mortgage Hospital RB(b)(c)		7.50	%		07/01/12		5,000		5,504,200
Knox (County of) Health & Educational Facilities Board (Baptist Health System East Tennessee); Series 2002, Hospital Facilities RB		6.50	%		04/15/31		2,500		2,594,975
Memphis (City of) Health Educational & Housing Facility Board (Hilldale Apartments); Series 2007, MFH RB(a)		6.70	%		11/01/37		4,445		3,384,645
Metropolitan Government of Nashville & Davidson (County of) Health & Educational Facilities Board (Blakeford at Green Hills); Series 1998, RB		5.65	%		07/01/24		4,650		3,999,093
Shelby (County of) Health Educational & Housing Facilities Board (Germantown Village);
Series 2003 A, Residential Care RB		6.38	%		12/01/13		1,100		1,069,244
Series 2003 A, Residential Care RB		7.00	%		12/01/23		3,650		3,267,042
Shelby (County of) Health Educational & Housing Facilities Board (Kirby Pines); Series 1997 A, Health Care Facility RB		6.38	%		11/15/25		3,700		3,371,255
Shelby (County of) Health Educational & Housing Facilities Board (The Village at Germantown);
Series 2003 A, Residential Care Facility Mortgage RB		7.25	%		12/01/34		14,800		13,400,808
Series 2006, Residential Care Facility Mortgage RB		6.25	%		12/01/34		750		607,560
Shelby (County of) Health Educational & Housing Facilities Board (Trezevant Manor);
Series 2006 A, RB		5.63	%		09/01/26		1,000		914,570
Series 2006 A, RB		5.75	%		09/01/37		2,000		1,632,820
Sullivan (County of) Health Educational & Housing Facilities Board (Wellmont Health System); Series 2002, Hospital RB(b)(c)		6.25	%		09/01/12		4,500		4,883,670
Trenton (City of) Health, & Educational Facilities Board (RHA/Trenton MR, Inc.); Series 2009, RB		9.25	%		04/01/39		13,585		13,714,873
									67,180,421
Texas–11.35%
ABIA Development Corp. (Austin Belly Port Development, LLC); Series 1998 A, Airport Facilities RB(a)		6.50	%		10/01/23		6,195		5,218,172
Abilene (City of) Health Facilities Development Corp. (Sears Methodist Retirement System Obligated Group);
Series 2003 A, Retirement Facilities RB		6.75	%		11/15/28		2,000		1,664,660
Series 2003 A, Retirement Facilities RB		7.00	%		11/15/33		5,000		4,171,800
Alliance Airport Authority Inc. (American Airlines Inc.); Series 2007, Ref. Special Facilities RB(a)		5.25	%		12/01/29		4,000		2,846,360

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

42        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Texas–(continued)
Angelina & Neches River Authority (Aspen Power LLC); Series 2007 A, Industrial Development Corp. Environmental RB(a)		6.50	%		11/01/29	$	9,480	$	5,729,048
Atlanta (City of) Hospital Authority;
Series 1999, Hospital Facilities RB		6.70	%		08/01/19		865		864,905
Series 1999, Hospital Facility RB		6.75	%		08/01/29		3,735		3,259,534
Austin (City of) Convention Enterprises, Inc.; Series 2006 B, Ref. Convention Center Hotel Second Tier RB(e)		5.75	%		01/01/34		9,060		7,737,965
Austin-Bergstrom Landhost Enterprises Inc.; Series 1999 A, Sr. Airport & Hotel RB		3.38	%		04/01/27		2,920		1,654,998
Bexar (County of) Health Facilities Development Corp. (Army Retirement Residence);
Series 2002, RB(b)(c)		6.13	%		07/01/12		750		808,643
Series 2002, RB(b)(c)		6.30	%		07/01/12		1,000		1,080,520
Bexar (County of) Housing Finance Corp. (Woodland Ridge Apartments); Series 2002 A, MFH RB(a)		7.00	%		01/01/39		4,140		3,602,214
Bexar (County of); Series 2009, Ctfs. of Obligation(h)		5.00	%		06/15/33		20,000		20,691,800
Brazoria (County of) Brazos River Harbor Navigation (The Dow Chemical Co.); Series 2002 A 4, Environmental Facilities RB(a)(c)(g)		5.95	%		05/15/33		6,000		5,915,760
Capital Area Cultural Education Facilities Finance Corp. (The Roman Catholic Diocese of Austin); Series 2005 B, RB		6.13	%		04/01/45		7,465		7,111,831
Clifton Higher Education Finance Corp. (Uplift Education); Series 2010 A, Education RB		6.25	%		12/01/45		5,000		4,257,300
Dallas (County of) Flood Control District No. 1;
Series 1989, Ref. Unlimited Tax CAB GO Bonds(e)(f)		0.00	%		08/01/11		1,825		1,803,611
Series 2002, Ref. Unlimited Tax GO Bonds		7.25	%		04/01/32		9,445		9,582,519
Dallas-Fort Worth (Cities of) International Airport Facilities Improvement Corp. (American Airlines, Inc.);
Series 1995, RB		6.00	%		11/01/14		13,335		12,961,353
Series 2007, Ref. RB(a)		5.50	%		11/01/30		20,100		14,804,856
Decatur (City of) Hospital Authority (Wise Regional Health System);
Series 2004 A, Hospital RB		7.00	%		09/01/25		10,500		10,275,825
Series 2004 A, Hospital RB		7.13	%		09/01/34		7,250		6,854,875
Grand Prairie (City of) Housing Finance Corp. (Independent Senior Living Center);
Series 2003, Priority Lien RB		7.50	%		07/01/17		1,110		1,100,543
Series 2003, Priority Lien RB		7.63	%		01/01/20		655		646,282
Series 2003, Priority Lien RB		7.75	%		01/01/34		6,795		6,467,685
Series 2003, Sub. Lien CAB RB		0.00	%		07/01/17		610		29,585
Series 2003, Sub. Lien CAB RB		0.00	%		01/01/20		345		16,733
Series 2003, Sub. Lien CAB RB		0.00	%		01/01/34		3,595		174,358
Grapevine (City of) Industrial Development Corp. (Air Cargo); Series 2002, Sr. RB(a)		6.50	%		01/01/24		1,850		1,728,640
Gregg (County of) Health Facilities Development Corp. (Good Shepherd);
Series 2002 A, Hospital RB(b)(c)		6.38	%		10/01/12		1,830		1,995,157
Series 2002 A, Hospital RB(b)(c)		6.50	%		10/01/12		1,220		1,332,508
Series 2002 A, Hospital RB		6.38	%		10/01/21		1,170		1,186,743
Series 2002 A, Hospital RB		6.50	%		10/01/26		2,070		2,081,675
Series 2002 A, Hospital RB		6.50	%		10/01/29		780		784,376
HFDC of Central Texas, Inc. (Legacy at Willow Bend);
Series 2006 A, Retirement Facilities RB		5.63	%		11/01/26		8,100		6,789,339
Series 2006 A, Retirement Facilities RB		5.75	%		11/01/36		3,155		2,447,397
HFDC of Central Texas, Inc. (Sears Tyler Methodist);
Series 2009 A, RB		7.75	%		11/15/29		4,910		4,710,359
Series 2009 A, RB		7.75	%		11/15/44		15,345		14,156,837
HFDC of Central Texas, Inc. (Village at Gleannloch Farms);
Series 2006 A, Retirement Facilities RB		5.50	%		02/15/27		4,300		3,376,016
Series 2006 A, Retirement Facilities RB		5.50	%		02/15/37		14,000		9,859,640

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

43        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Texas–(continued)
Hopkins (County of) Hospital District;
Series 2008, RB		6.00	%		02/15/33	$	1,500	$	1,296,915
Series 2008, RB		6.00	%		02/15/38		2,000		1,695,300
Houston (City of) (Continental Airlines, Inc. Terminal E);
Series 1998 C, Airport System Special Facilities RB(a)		5.70	%		07/15/29		4,730		4,121,202
Series 2001, Airport System Special Facilities RB(a)		7.38	%		07/01/22		1,100		1,105,742
Series 2001 E, Airport System Special Facilities RB(a)		6.75	%		07/01/21		4,400		4,338,488
Series 2001 E, Airport System Special Facilities RB(a)		6.75	%		07/01/29		12,000		11,742,120
Houston (City of) Health Facilities Development Corp. (Buckingham Senior Living Community); Series 2004 A, Retirement Facilities RB(b)(c)		7.00	%		02/15/14		500		588,375
Houston (City of) Industrial Development Corp. (Air Cargo); Series 2002, Sr. RB(a)		6.38	%		01/01/23		3,960		3,640,072
Houston (City of);
Series 2009 A, Ref. Sr. Lien Airport System RB(h)		5.00	%		07/01/25		6,800		6,975,984
Series 2009 A, Ref. Sr. Lien Airport System RB(h)		5.00	%		07/01/23		6,580		6,883,864
Series 2009 A, Ref. Sr. Lien Airport System RB(h)		5.00	%		07/01/24		3,670		3,799,661
Series 2009 A, Ref. Sr. Lien Airport System RB		5.00	%		10/01/36		3,000		3,057,030
La Vernia (City of) Higher Education Finance Corp. (Kipp, Inc.); Series 2009 A, RB		6.38	%		08/15/44		7,225		7,160,553
Lone Star College System; Series 2009, Limited Tax GO Bonds(h)		5.00	%		08/15/34		23,200		23,705,296
Love Field Airport Modernization Corp. (Southwest Airlines Co. — Love Field Modernization Program); Series 2010, Special Facilities RB		5.25	%		11/01/40		11,500		10,295,605
Lubbock (City of) Health Facilities Development Corp. (Carillon Senior LifeCare Community);
Series 2005 A, Ref. First Mortgage RB		6.50	%		07/01/26		3,500		3,265,045
Series 2005 A, Ref. First Mortgage RB		6.63	%		07/01/36		10,000		8,771,300
Lufkin (City of) Health Facilities Development Corp. (Memorial Health System of East Texas); Series 2007, Health System RB		5.50	%		02/15/37		3,000		2,489,550
Meadow Parc Development, Inc. (Meadow Parc Apartments); Series 1998, MFH RB		6.50	%		12/01/30		10,485		8,916,339
Midlothian (City of) Development Authority; Series 2004, Tax Increment Contract Allocation RB(e)		6.20	%		11/15/29		3,500		3,272,080
North Texas Tollway Authority; Series 2008 A, First Tier RB (INS–BHAC)(d)(h)		5.75	%		01/01/48		30,545		30,851,672
Orange (City of) Housing Development Corp. (Villages at Pine Hollow); Series 1998, MFH RB		8.00	%		03/01/28		3,335		2,991,528
Pharr (City of) Higher Education Finance Authority (Idea Public Schools); Series 2009 A, Education RB		6.50	%		08/15/39		4,000		3,928,640
San Antonio (City of) Convention Hotel Finance Corp. (Empowerment Zone); Series 2005 A, Contract RB (INS–AMBAC)(a)(d)		5.00	%		07/15/39		17,900		14,469,823
Tarrant (County of) Cultural Education Facilities Finance Corp. (Air Force Village Obligated Group); Series 2009, Retirement Facility RB		6.38	%		11/15/44		8,650		8,186,706
Tarrant (County of) Cultural Education Facilities Finance Corp. (C.C. Young Memorial Home);
Series 2009 A, Retirement Facility RB		8.00	%		02/15/38		11,000		10,738,530
Series 2009 B-1, Retirement Facility RB		7.25	%		02/15/16		5,000		4,918,450
Tarrant (County of) Cultural Education Facilities Finance Corp. (Mirador);
Series 2010 A, Retirement Facility RB		8.13	%		11/15/39		8,500		8,169,010
Series 2010 A, Retirement Facility RB		8.25	%		11/15/44		9,000		8,773,740
Tarrant (County of) Cultural Education Facilities Finance Corp. (Stayton at Museum Way);
Series 2009 C-1, Retirement Facility RB		7.50	%		11/15/16		20,000		19,832,600
Series 2009 C-2, Retirement Facility RB		6.50	%		11/15/14		5,000		4,933,150
Tarrant County Cultural Education Facilities Finance Corp. (Air Force Village Obligated Group); Series 2007, Retirement Facility RB		5.13	%		05/15/37		1,850		1,498,019
Texas (State of) Department Housing & Community Affairs (Linked SAVRS & RIBS); Series 1992 C, Home Mortgage RB (INS–GNMA)(a)(d)		6.90	%		07/02/24		550		581,059
Texas (State of) Public Finance Authority (School Excellence Education); Series 2004 A, Charter School Finance Corp. RB(e)		7.00	%		12/01/34		3,575		3,299,761

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

44        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Texas–(continued)
Texas (State of) Student Housing Corp. (Midwestern State University);
Series 2002, Student Housing RB(b)(c)		6.50	%		09/01/12	$	1,000	$	1,089,220
Series 2002, Student Housing RB(b)(c)		6.50	%		09/01/12		5,875		6,399,167
Texas (State of) Turnpike Authority (Central Texas Turnpike);
Series 2002, CAB RB (INS–AMBAC)(d)(f)		0.00	%		08/15/33		28,165		5,699,751
Series 2002, System CAB RB (INS–AMBAC)(d)(f)		0.00	%		08/15/32		22,115		4,845,396
Series 2002, System CAB RB (INS–AMBAC)(d)(f)		0.00	%		08/15/36		20,000		3,198,400
Series 2002, System CAB RB (INS–AMBAC)(d)(f)		0.00	%		08/15/37		30,000		4,441,500
Texas (State of) Water Development Board; Series 2008 B, Sub. Lien State Revolving Fund RB(h)		5.00	%		07/15/28		11,425		11,915,133
Texas (State of) Water Development Board; Series 2008 B, Sub. Lien State Revolving Fund RB(h)		5.00	%		07/15/29		5,000		5,191,850
Texas (State of) Water Development Board; Series 2008 A, Sub. Lien State Revolving Fund RB(h)		5.00	%		07/15/25		15,000		15,857,550
Texas Private Activity Bond Surface Transportation Corp. (North Transit Express Mobility); Series 2009, Sr. Lien RB		6.88	%		12/31/39		12,000		12,149,640
Tomball (City of) Hospital Authority (Tomball Regional Hospital);
Series 1999, Hospital RB		6.00	%		07/01/25		3,255		3,254,609
Series 1999, Hospital RB		6.00	%		07/01/29		6,645		6,557,153
Travis (County of) Health Facilities Development Corp. (Westminster Manor);
Series 2010, RB		7.00	%		11/01/30		2,000		1,968,300
Series 2010, RB		7.13	%		11/01/40		5,000		4,846,600
Tyler (City of) Health Facilities Development Corp. (Mother Frances Hospital); Series 2007, Ref. Hospital RB		5.00	%		07/01/33		5,000		4,076,550
University of Texas; Series 2004 D, Financing System RB(b)(c)(h)		5.00	%		08/15/14		10,000		11,272,800
Series 2004 D, Financing System RB(b)(c)(h)		5.00	%		08/15/14		15,000		16,909,200
Wichita (County of) Health Facilities Development Corp. (Rolling Meadows Facility); Series 1998 A, Ref. RB		6.25	%		01/01/28		7,790		6,574,526
Woodhill Public Facilities Corp. (Woodhill Apartments); Series 1999, MFH RB		7.50	%		12/01/29		7,000		6,895,070
									565,218,046
Utah–0.44%
Eagle Mountain (City of) (Special Improvement District No. 2000-1); Series 2006, Special Assessment Bonds		8.25	%		02/01/21		1,193		1,196,018
Tooele (County of) (Union Pacific); Series 1992, Hazardous Waste Treatment RB(a)		5.70	%		11/01/26		10,000		10,021,400
Utah (State of) Charter School Finance Authority (George Washington Academy); Series 2008 A, Charter School RB		7.00	%		07/15/40		5,000		4,483,050
Utah (State of) Charter School Finance Authority (North Davis Preparatory Academy);
Series 2010, Charter School RB		6.25	%		07/15/30		1,250		1,120,825
Series 2010, Charter School RB		6.38	%		07/15/40		1,000		875,090
Utah (State of) Housing Finance Agency (RHA Community Services); Series 1997 A, RB		6.88	%		07/01/27		4,405		3,988,375
									21,684,758
Vermont–0.18%
Vermont (State of) Economic Development Authority (Wake Robin Corp.); Series 2006 A, Mortgage RB		5.38	%		05/01/36		4,750		3,680,490
Vermont (State of) Educational & Health Buildings Financing Agency (Developmental & Mental Health);
Series 2002 A, RB		6.38	%		06/15/22		1,290		1,201,893
Series 2002 A, RB		6.50	%		06/15/32		2,170		1,921,817
Vermont (State of) Educational & Health Buildings Financing Agency (Vermont Council Development Mental Health);
Series 1999 A, RB		6.13	%		12/15/14		1,375		1,377,379
Series 1999 A, RB		6.25	%		12/15/19		1,050		992,197
									9,173,776

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

45        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Virgin Islands–0.09%
Virgin Islands (Commonwealth of) (Matching Fund Loan Note-Diago); Series 2009 A, RB		6.75	%		10/01/37	$	4,500	$	4,548,060
Virginia–1.68%
Albemarle (County of) Industrial Development Authority (Covenant School, Inc.); Series 2001 A, Educational Facilities RB		7.75	%		07/15/32		4,000		3,976,760
Albemarle (County of) Industrial Development Authority; Series 2001, Residential Care Facilities Mortgage RB(b)(c)		6.20	%		01/01/12		2,500		2,618,750
Bell Creek Community Development Authority;
Series 2003 A, Special Assessment Bonds		6.75	%		03/01/22		331		302,441
Series 2003 B, Special Assessment Bonds		7.00	%		03/01/32		1,710		1,459,246
Broad Street Community Development Authority; Series 2003, Special Assessment RB(b)(c)		7.50	%		06/01/13		7,483		8,655,137
Celebrate North Community Development Authority (Celebrate Virginia North);
Series 2003 B, Special Assessment RB		6.60	%		03/01/25		1,399		1,051,824
Series 2003 B, Special Assessment RB		6.75	%		03/01/34		7,776		5,379,826
Celebrate South Community Development Authority (Celebrate Virginia South); Series 2006, Special Assessment Bonds		6.25	%		03/01/37		9,700		5,851,913
Chesterfield (County of) Health Center Commission (Lucy Corr Village);
Series 2008 A, Residential Care Facilities RB		6.13	%		12/01/30		3,000		2,691,420
Series 2008 A, Residential Care Facilities RB		6.25	%		12/01/38		3,500		3,038,945
Dulles Town Center Community Development Authority (Dulles Town Center); Series 1998, Special Assessment Bonds		6.25	%		03/01/26		2,355		2,266,405
Fairfax (County of) Economic Development Authority (Lewinsville Retirement Village); Series 2007 A, Sr. Living RB		5.25	%		03/01/32		2,250		1,728,473
Henrico (County of) Economic Development Authority (United Methodist); Series 2002, Health Care Facility RB(b)(c)		6.70	%		06/01/12		795		854,458
Isle Wight (County of) Industrial Development Authority; Series 2003 A, Environment Improvement RB(a)		5.70	%		11/01/27		5,200		5,100,888
New Port Community Development Authority;
Series 2006, Special Assessment Bonds		5.50	%		09/01/26		981		591,229
Series 2006, Special Assessment Bonds		5.60	%		09/01/36		2,500		1,312,875
Peninsula Ports Authority (Virginia Baptist Homes); Series 2006 C, Ref. Residential Care Facilities RB		5.40	%		12/01/33		4,000		2,547,160
Peninsula Town Center Community Development Authority;
Series 2007, Special Obligation RB		6.35	%		09/01/28		1,487		1,386,062
Series 2007, Special Obligation RB		6.45	%		09/01/37		4,219		3,769,634
The Farms of New Kent Community Development Authority;
Series 2006 B, Special Assessment Bonds		5.45	%		03/01/36		7,000		4,828,390
Series 2006 C, Special Assessment Bonds		5.80	%		03/01/36		7,250		5,205,428
Virginia (State of) Gateway Community Development Authority (Prince William City); Series 2003, Special Assessment Bonds		6.38	%		03/01/30		3,859		3,520,913
Virginia (State of) Gateway Community Development Authority; Series 1999, Special Assessment Bonds		6.25	%		03/01/26		1,645		1,524,306
Virginia (State of) Small Business Financing Authority (Hampton Roads Proton Beam Therapy Institute at Hampton University, LLC); Series 2009, RB(e)		9.00	%		07/01/39		8,300		8,573,817
Washington (County of) Industrial Development Authority (Mountain State Health Alliance); Series 2009 C, Hospital Facility RB		7.75	%		07/01/38		5,000		5,504,300
									83,740,600
Washington–2.38%
Kalispel Tribe of Indians; Series 2008, Priority District Washington RB		6.75	%		01/01/38		8,000		6,711,120
Kennewick (City of) Public Hospital District; Series 2001, Ref. Improvement RB		6.30	%		01/01/25		2,000		1,822,480
King (County of) Public Hospital District No. 4 (Snoqualime Valley Hospital); Series 2009, Ref. Improvement Limited Tax GO Bonds		7.25	%		12/01/38		9,625		9,701,807
Seattle (Port of) Industrial Development Corp. (Northwest Airlines, Inc.); Series 2001, Special Facilities RB(a)		7.25	%		04/01/30		24,060		23,169,539

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

46        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Washington–(continued)
Skagit (County of) Public Hospital District No. 1 (Skagit Valley Hospital);
Series 2004, Ref. RB		6.00	%		12/01/23	$	1,000	$	1,015,600
Series 2010, RB		6.00	%		12/01/30		3,160		3,105,869
Series 2010, RB		5.75	%		12/01/35		4,000		3,683,320
Tobacco Settlement Authority of Washington;
Series 2002, Asset-Backed Tobacco Settlement RB		6.50	%		06/01/26		1,990		2,005,363
Series 2002, Asset-Backed Tobacco Settlement RB		6.63	%		06/01/32		8,830		8,774,106
Washington (State of) Health Care Facilities Authority (Central Washington Health Services Association); Series 2009, RB		7.00	%		07/01/39		8,145		8,397,821
Washington (State of) Health Care Facilities Authority (Seattle Cancer Care Alliance); Series 2009, RB		7.38	%		03/01/38		10,800		11,598,552
Washington (State of) Higher Education Facilities Authority (Whitworth University); Series 2009, Ref. RB		5.63	%		10/01/40		3,415		3,184,966
Washington (State of) Housing Finance Commission (Custodial Receipts Wesley Homes); Series 2008 A, Non-Profit RB(e)		6.20	%		01/01/36		19,025		16,349,324
Washington (State of); Series 2009 E, Various Purpose Unlimited Tax GO Bonds(h)		5.00	%		02/01/29		18,450		19,239,660
									118,759,527
West Virginia–0.48%
Harrison (County of) (Allegheny Energy); Series 2007 D, Ref. Solid Waste Disposal RB(a)		5.50	%		10/15/37		5,250		4,655,280
West Virginia (State of) Hospital Finance Authority (Thomas Health System);
Series 2008, Hospital RB		6.00	%		10/01/20		1,500		1,460,520
Series 2008, Hospital RB		6.50	%		10/01/38		8,000		7,080,880
Series 2008, Hospital RB		6.75	%		10/01/43		12,000		10,860,954
									24,057,634
Wisconsin–0.80%
Baldwin (Village of);
Series 1998 A, Hospital Mortgage RB		6.38	%		12/01/28		5,180		4,352,599
Series 1998 A, Hospital Mortgage RB		6.13	%		12/01/18		800		750,888
Hudson (City of) (Christian Community Home, Inc.); Series 2003, Health Care Facility RB		6.50	%		04/01/33		3,620		3,025,089
Milwaukee (City of) (Air Cargo);
Series 2002, Sr. RB(a)		6.50	%		01/01/25		1,440		1,330,488
Series 2002, Sub. RB(a)		7.50	%		01/01/25		2,250		2,106,968
Superior (City of) (Superior Water, Light & Power Company); Series 2007 B, Collateralized Utility RB(a)		5.75	%		11/01/37		4,000		3,771,200
Wisconsin (State of) Health & Educational Facilities Authority (Community Memorial Hospital, Inc.);
Series 2003, RB		7.13	%		01/15/22		935		889,821
Series 2003, RB		7.25	%		01/15/33		2,355		2,053,937
Wisconsin (State of) Health & Educational Facilities Authority (Divine Savior Health Care); Series 2002 C, RB(b)(c)		7.50	%		05/01/12		3,380		3,643,099
Wisconsin (State of) Health & Educational Facilities Authority (Eastcastle Place, Inc.);
Series 2004, RB		6.00	%		12/01/24		1,750		1,431,885
Series 2004, RB		6.13	%		12/01/34		4,400		3,190,616
Wisconsin (State of) Health & Educational Facilities Authority (Froedert & Community); Series 2001, RB		5.38	%		10/01/30		330		330,007
Wisconsin (State of) Health & Educational Facilities Authority (Middleton Glen, Inc.);
Series 1998, RB		5.75	%		10/01/18		1,115		1,030,505
Series 1998, RB		5.75	%		10/01/28		2,485		2,028,232
Series 1998, Special Term RB		5.90	%		10/01/28		335		279,078
Wisconsin (State of) Health & Educational Facilities Authority (New Castle Place); Series 2001 A, RB		7.00	%		12/01/31		2,750		2,197,745
Wisconsin (State of) Health & Educational Facilities Authority (Southwest Health Center);
Series 2004 A, RB		6.13	%		04/01/24		1,500		1,445,955
Series 2004 A, RB		6.25	%		04/01/34		1,750		1,588,615

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

47        Invesco Van Kampen High Yield Municipal Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Wisconsin–(continued)
Wisconsin (State of) Health & Educational Facilities Authority (Tomah Memorial Hospital, Inc.);
Series 2003, RB		6.50	%		07/01/23	$	1,200	$	1,175,988
Series 2003, RB		6.63	%		07/01/28		1,000		932,680
Wisconsin (State of) Health & Educational Facilities Authority (United Lutheran Program for the Aging); Series 1998, RB		5.70	%		03/01/28		2,750		2,330,020
									39,885,415
Wyoming–0.12%
Sweetwater (County of) (FMC Corp.); Series 2005, Ref. Solid Waste Disposal RB(a)		5.60	%		12/01/35		1,000		945,090
Teton (County of) Hospital District (St. John’s Medical Center);
Series 2002, Hospital RB		6.75	%		12/01/27		3,000		2,920,500
Series 2002, RB		6.75	%		12/01/22		2,100		2,098,026
									5,963,616
TOTAL INVESTMENTS(n)–108.35% (Cost $5,993,944,369)									5,396,949,089
FLOATING RATE NOTE OBLIGATIONS–(10.07)%
Notes with interest rates ranging from 0.26% to 0.39% at 02/28/11 and contractual maturities of collateral ranging from 01/01/22 to 08/15/42 (See Note 1K)(o)									(501,645,000	)
OTHER ASSETS LESS LIABILITIES–1.72%									86,127,026
NET ASSETS–100.00%								$	4,981,431,115

Investment Abbreviations:

ACA	– ACA Financial Guaranty Corp.
AGM	– Assured Guaranty Municipal Corp.
AMBAC	– AMBAC Assurance Corp. (AMBAC filed for bankruptcy on November 8, 2010)
BHAC	– Berkshire Hathaway Assurance Corp.
CAB	– Capital Appreciation Bond
COP	– Certificates of Participation
Ctfs.	– Certificates
GNMA	– Government National Mortgage Association
GO	– General Obligation
IDR	– Industrial Development Revenue Bonds
INS	– Insurer
Jr.	– Junior
LOC	– Letter of Credit
MFH	– Multi-Family Housing
NATL	– National Public Finance Guarantee Corp.
PCR	– Pollution Control Revenue Bonds
PILOT	– Payment-in-Lieu-of-Tax
RB	– Revenue Bonds
Ref.	– Refunding
Sr.	– Senior
Sub.	– Subordinated
TEMPS	– Tax-Exempt Mandatory Paydown Securities

Notes to Schedule of Investments:

(a)	Security subject to the alternative minimum tax.
(b)	Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral.
(c)	Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put.
(d)	Principal and/or interest payments are secured by the bond insurance company listed.
(e)	Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. 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 February 28, 2011 was $212,439,337, which represented 4.26% of the Fund’s net assets.
(f)	Zero coupon bond issued at a discount.
(g)	Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 28, 2011.
(h)	Underlying security related to Dealer Trusts entered into by the Trust. See Note 1K.
(i)	Defaulted security. Currently, the issuer is in default with respect to interest payments. The value of this security at February 28, 2011 was $64,345,196, which represented 1.29% of the Fund’s net assets.
(j)	Principal and interest payments are fully enhanced by a letter of credit from the bank listed or a predecessor bank, branch or subsidiary.
(k)	The interest rate shown represents the yield to maturity at time of purchase.
(l)	Step coupon bond. The interest rate represents the coupon rate at which the bond will accrue at a specified future date.
(m)	Current coupon rate for an inverse floating rate municipal obligation. This rate resets periodically as the auction rate on the related security changes. Position in this inverse floating rate municipal obligation has a total value of $2,588,700 which represents less than 1% of net assets.
(n)	Entities may either issue, guarantee, back or otherwise enhance the credit quality of a security. The entities are not primarily responsible for the issuer’s obligation but may be called upon to satisfy issuer’s obligations. No concentration of any single entity was greater than 5% of the securities held in the portfolio.
(o)	Floating rate note obligations related to securities held. The interest rates shown reflect the rates in effect at February 28, 2011. At February 28, 2011, the Fund’s investments with a value of $807,122,932 are held by the Dealer Trusts and serve as collateral for the $501,645,000 in the floating rate note obligations outstanding at that date.

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

48        Invesco Van Kampen High Yield Municipal Fund

Statement of Assets and Liabilities

February 28, 2011

Assets:
Investments, at value (Cost $5,993,944,369)	$	5,396,949,089
Receivable for:
Investments sold		19,180,411
Fund shares sold		5,806,121
Interest		100,051,980
Investment for trustee deferred compensation and retirement plans		18,661
Other assets		16,584
Total assets		5,522,022,846
Liabilities:
Floating rate note obligations		501,645,000
Payable for:
Investments purchased		11,844,898
Fund shares reacquired		11,222,000
Amount due custodian		1,969,811
Dividends		11,553,802
Accrued fees to affiliates		1,926,101
Accrued other operating expenses		395,948
Trustee deferred compensation and retirement plans		34,171
Total liabilities		540,591,731
Net assets applicable to shares outstanding	$	4,981,431,115
Net assets consist of:
Shares of beneficial interest	$	6,182,238,892
Undistributed net investment income		23,591,308
Undistributed net realized gain (loss)		(627,403,805	)
Unrealized appreciation (depreciation)		(596,995,280	)
	$	4,981,431,115
Net assets:
Class A	$	3,399,723,997
Class B	$	250,532,764
Class C	$	813,001,198
Class Y	$	518,173,156
Shares outstanding, $0.001 par value per share, with an unlimited number of shares authorized:
Class A		384,149,504
Class B		28,300,203
Class C		92,044,256
Class Y		58,427,450
Class A:
Net asset value per share	$	8.85
Maximum offering price per share (Net asset value of $8.85 divided by 95.25%)	$	9.29
Class B:
Net asset value and offering price per share	$	8.85
Class C:
Net asset value and offering price per share	$	8.83
Class Y:
Net asset value and offering price per share	$	8.87

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

49        Invesco Van Kampen High Yield Municipal Fund

Statement of Operations

For the period December 1, 2010 to February 28, 2011 and the year ended November 30, 2010

	Three months ended			Year ended
	February 28,			November 30,
	2011			2010
Investment income:
Interest	$	97,467,199		$	407,779,874
Expenses:
Advisory fees		6,487,969			29,540,627
Administrative services fees		156,618			894,028
Custodian fees		70,741			103,851
Distribution fees:
Class A		2,175,611			10,350,663
Class B		533,726			3,466,576
Class C		2,119,429			9,667,338
Interest, facilities and maintenance fees		1,077,599			4,074,420
Transfer agent fees		312,783			2,314,644
Trustees’ and officers’ fees and benefits		53,514			163,687
Other		(638,702	)		1,114,240
Total expenses		12,349,288			61,690,074
Net investment income		85,117,911			346,089,800
Net realized gain (loss) from investment securities		(35,964,962	)		(67,412,654	)
Change in net unrealized appreciation (depreciation) of investment securities		(211,008,193	)		156,171,816
Net realized and unrealized gain (loss)		(246,973,155	)		88,759,162
Net increase (decrease) in net assets resulting from operations	$	(161,855,244	)	$	434,848,962

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

50        Invesco Van Kampen High Yield Municipal Fund

Statement of Changes in Net Assets

For the period December 1, 2010 to February 28, 2011 and the years ended November 30, 2010 and 2009

	Three months ended			Year ended			Year ended
	February 28,			November 30,			November 30,
	2011			2010			2009
Operations:
Net investment income	$	85,117,911		$	346,089,800		$	262,565,539
Net realized gain (loss)		(35,964,962	)		(67,412,654	)		(153,089,523	)
Change in net unrealized appreciation (depreciation)		(211,008,193	)		156,171,816			598,808,447
Net increase (decrease) in net assets resulting from operations		(161,855,244	)		434,848,962			708,284,463
Distributions to shareholders from net investment income:
Class A		(55,109,686	)		(245,151,404	)		(199,030,179	)
Class B		(3,714,961	)		(17,941,996	)		(19,540,444	)
Class C		(11,743,704	)		(50,039,288	)		(39,960,573	)
Class Y		(8,221,257	)		(22,417,855	)		(7,612,488	)
Total distributions from net investment income		(78,789,608	)		(335,550,543	)		(266,143,684	)
Share transactions-net*:
Class A		(310,783,405	)		504,177,682			304,231,745
Class B		(36,255,313	)		(24,383,594	)		(46,267,517	)
Class C		(99,837,695	)		137,515,032			142,874,360
Class Y		17,942,908			242,027,701			216,438,005
Net increase (decrease) in net assets resulting from share transactions		(428,933,505	)		859,336,821			617,276,593
Net increase (decrease) in net assets		(669,578,357	)		958,635,240			1,059,417,372
Net assets:
Beginning of period		5,651,009,472			4,692,374,232			3,632,956,860
End of period (includes undistributed net investment income of $23,591,308, $17,610,939 and $6,938,549, respectively)	$	4,981,431,115		$	5,651,009,472		$	4,692,374,232

*  For the year ended November 30, 2010, proceeds from shares sold include $1,059,255,837 of proceeds from shares acquired through a merger. (See Note 9 in the Notes to Financial Statements for further information.)

Notes to Financial Statements

February 28, 2011

NOTE 1—Significant Accounting Policies

Invesco Van Kampen High Yield Municipal Fund (the “Fund”) is a series portfolio of AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of eleven separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class.

  Prior to June 1, 2010, the Fund operated as Van Kampen High Yield Municipal Fund (the “Acquired Fund”), an investment portfolio of Van Kampen Tax Exempt Trust. The Acquired Fund was reorganized on June 1, 2010 (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

  Upon closing of the Reorganization, holders of the Acquired Fund’s Class A, Class B, Class C and Class I shares received Class A, Class B, Class C and Class Y shares, respectively, of the Fund.

  Information for the Acquired Fund’s Class I shares prior to the Reorganization is included with Class Y shares of the Fund throughout this report.

  On February 28, 2011, the Fund’s fiscal year-end changed from November 30 to February 28.

  The Fund’s investment objective is to provide investors with as high a level of interest income exempt from federal income tax as is consistent with the investment policies of the Fund.

  The Fund currently consists of four different classes of shares: Class A, Class B, Class C and Class Y. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C

51        Invesco Van Kampen High Yield Municipal Fund

shares are sold with a CDSC. Class Y shares are sold at net asset value. Effective November 30, 2010, new or additional investments in Class B shares are no longer permitted. Existing shareholders of Class B shares may continue to reinvest dividends and capital gains distributions in Class B shares until they convert. Also, shareholders in Class B shares will be able to exchange those shares for Class B shares of other Invesco Funds offering such shares until they convert. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase. Redemption of Class B shares prior to conversion date will be subject to a CDSC.

  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.
	Securities are fair valued using an evaluated quote provided by an independent pricing service approved by the Board of Trustees. 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, yield, quality, coupon rate, maturity, type of issue, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Securities with a demand feature exercisable within one to seven days are valued at par. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and principal payments.
	Securities for which market quotations either are not readily available or are 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. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on transferability or disposition; trading in similar securities by the same issuer or comparable companies; relevant political, economic or issuer specific news; and other relevant factors under the circumstances.
	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 is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and 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 income are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code 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.
	In addition, the Fund intends to invest in such municipal securities to allow it to qualify to pay shareholders “exempt-interest dividends”, as defined in the Internal Revenue Code.
	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. Prior to the Reorganization, incremental transfer agency fees which are unique to each class of shares of the Acquired Fund were charged to the operations of such class.

52        Invesco Van Kampen High Yield Municipal Fund

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 performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Securities Purchased on a When-Issued and Delayed Delivery Basis — The Fund may purchase and sell interests in portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date.
J.	Redemption Fees — The Fund has a 2% redemption fee that is to be retained by the Fund to offset transaction costs and other expenses associated with short-term redemptions and exchanges. The fee, subject to certain exceptions, is imposed on certain redemptions or exchanges of shares within 31 days of purchase. The redemption fee is recorded as an increase in shareholder capital and is allocated among the share classes based on the relative net assets of each class.
K.	Floating Rate Note Obligations — The Fund invests in inverse floating rate securities, such as Residual Interest Bonds (“RIBs”) or Tender Option Bonds (“TOBs”) for investment purposes and to enhance the yield of the Fund. Inverse floating rate investments tend to underperform the market for fixed rate bonds in a rising interest rate environment, but tend to outperform the market for fixed rate bonds when interest rates decline or remain relatively stable. Such transactions may be purchased in the secondary market without first owning the underlying bond or by the sale of fixed rate bonds by the Fund to special purpose trusts established by a broker dealer (“Dealer Trusts”) in exchange for cash and residual interests in the Dealer Trusts’ assets and cash flows, which are in the form of inverse floating rate securities. The Dealer Trusts finance the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Fund to retain residual interest in the bonds. The floating rate notes issued by the Dealer Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the Dealer Trusts for redemption at par at each reset date. The residual interests held by the Fund (inverse floating rate investments) include the right of the Fund (1) to cause the holders of the floating rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the municipal bond from the Dealer Trusts to the Fund, thereby collapsing the Dealer Trusts.
	TOBs are presently classified as private placement securities. Private placement securities are subject to restrictions on resale because they have not been registered under the Securities Act of 1933, as amended or are otherwise not readily marketable. As a result of the absence of a public trading market for these securities, they may be less liquid than publicly traded securities. Although these securities may be resold in privately negotiated transactions, the prices realized from these sales could be less than those originally paid by the Fund or less than what may be considered the fair value of such securities.
	The Fund accounts for the transfer of bonds to the Dealer Trusts as secured borrowings, with the securities transferred remaining in the Fund’s investment assets, and the related floating rate notes reflected as Fund liabilities under the caption Floating rate note obligations on the Statement of Assets and Liabilities. The Fund records the interest income from the fixed rate bonds under the caption Interest and records the expenses related to floating rate securities and any administrative expenses of the Dealer Trusts as a component of Interest, facilities and maintenance fees on the Statement of Operations.
	The Fund generally invests in inverse floating rate securities that include embedded leverage, thus exposing the Fund to greater risks and increased costs. The primary risks associated with inverse floating rate securities are varying degrees of liquidity and the changes in the value of such securities in response to changes in market rates of interest to a greater extent than the value of an equal principal amount of a fixed rate security having similar credit quality, redemption provisions and maturity which may cause the Fund’s net asset value to be more volatile than if it had not invested in inverse floating rate securities. In certain instances, the short-term floating rate interests created by the special purpose trust may not be able to be sold to third parties or, in the case of holders tendering (or putting) such interests for repayment of principal, may not be able to be remarketed to third parties. In such cases, the special purpose trust holding the long-term fixed rate bonds may be collapsed. In the case of RIBs or TOBs created by the contribution of long-term fixed income bonds by the Fund, the Fund will then be required to repay the principal amount of the tendered securities. During times of market volatility, illiquidity or uncertainty, the Fund could be required to sell other portfolio holdings at a disadvantageous time to raise cash to meet that obligation.
L.	Other Risks — The value of, payment of interest on, repayment of principal for and the ability to sell a municipal security may be affected by constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives and the economics of the regions in which the issuers are located.
	Since many municipal securities are issued to finance similar projects, especially those relating to education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal securities market and a Fund’s investments in municipal securities.
	There is some risk that a portion or all of the interest received from certain tax-free municipal securities could become taxable as a result of determinations by the Internal Revenue Service.

53        Invesco Van Kampen High Yield Municipal Fund

M. Interest, Facilities and Maintenance Fees — Interest, Facilities and Maintenance Fees include interest and related borrowing costs such as commitment fees and other expenses associated with lines of credit and interest and administrative expenses related to establishing and maintaining floating rate note obligations, if any.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $300 million		0	.60%
Next $300 million		0	.55%
Over $600 million		0	.50%

  Prior to the Reorganization, the Acquired Fund paid an advisory fee of $14,472,358 to Van Kampen Asset Management (“Van Kampen”) based on the annual rates above of the Acquired 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 Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provides discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  Effective on the Reorganization date, the Adviser has contractually agreed through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class B, Class C and Class Y shares to 0.87%, 1.62%, 1.62% and 0.62%, respectively, of average daily net assets. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the total annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest, facilities and maintenance fees; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012. The Adviser did not waive fees and/or reimburse expenses during the period under the expense limitation.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. Prior to the Reorganization, under separate accounting services and chief compliance officer (“CCO”) employment agreements, Van Kampen Investments Inc. (“VKII”) provided accounting services and the CCO provided compliance services to the Acquired Fund. Pursuant to such agreements, the Acquired Fund paid $162,448 to VKII. For the period December 1, 2010 to February 28, 2011 and the year ended November 30, 2010, expenses incurred under these agreements are shown in the Statement of Operations as administrative services fees.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. Pursuant to such agreement, the period December 1, 2010 to February 28, 2011 and the year ended November 30, 2010, IIS was paid $312,783 and $1,337,490, respectively for providing such services. Prior to the Reorganization, the Acquired Fund paid $492,647 during the year ended November 30, 2010 to Van Kampen Investor Services Inc., which served as the Acquired Fund’s transfer agent. For the period December 1, 2010 to February 28, 2011 and the year ended November 30, 2010, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

  Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”). The Fund has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act, and a service plan (collectively, the “Plans”) for Class A shares, Class B shares and Class C shares to compensate IDI for the sale, distribution, shareholder servicing and maintenance of shareholder accounts for these shares. Under the Plans, the Fund will incur annual fees of up to 0.25% of Class A average daily net assets and up to 1.00% each of Class B and Class C average daily net assets.

  With respect to Class B and Class C shares, the Fund is authorized to reimburse in future years any distribution related expenses that exceed the maximum annual reimbursement rate for such class, so long as such reimbursement does not cause the Fund to exceed the Class B and Class C maximum annual reimbursement rate, respectively. With respect to Class A shares, distribution related expenses that exceed the maximum annual reimbursement rate for such class are not carried forward to future years and the Fund will not reimburse IDI for any such expenses.

  Prior to the Reorganization, the Acquired Fund had entered into master distribution agreements with Van Kampen Funds Inc. (“VKFI”) to serve as the distributor for the Class A, Class B and Class C shares. Pursuant to such agreements, the Acquired Fund paid $11,636,992 to VKFI during the year ended November 30, 2010.

  For the period December 1, 2010 to February 28, 2011 and the year ended November 30, 2010, expenses incurred under these agreements are shown in the Statement of Operations as distribution fees.

  Front-end sales commissions and CDSC (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. During the period November 1, 2010 to February 28, 2011, IDI advised the Fund that IDI retained $92,597 in front-end sales commissions from the sale of Class A shares and $318,870, $154,824 and $59,606 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by

54        Invesco Van Kampen High Yield Municipal Fund

shareholders. During the period June 1, 2010 to November 30, 2010, IDI advised the Fund that IDI retained $351,581 in front-end sales commissions from the sale of Class A shares and $48,339, $170,789 and $48,384 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders. Prior to the Reorganization, VKFI retained $731,714 in front-end sales commissions from the sale of Class A shares and $444,158, for CDSC imposed on redemptions by shareholders.

  Certain officers and trustees of the Trust are officers and directors of Invesco, 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 February 28, 2011. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the period ended February 28, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Municipal Obligations	$	—	$	5,396,949,089	$	—	$	5,396,949,089

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 are eligible to participate in a retirement plan that provides 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.

  For the period December 1, 2010 to February 28, 2011 and the period June 1, 2010 to November 30, 2010, the Fund paid legal fees of $2,758 and $4,949, respectively, for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust. Prior to the Reorganization, the Acquired Fund recognized expense of $78,187 representing legal services provided by Skadden, Arps, Slate, Meagher & Flom LLP, of which a director of the Acquired Fund was a partner of such firm and he and his law firm provided legal services as legal counsel to the Acquired Fund.

NOTE 5—Cash Balances and Borrowings

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. 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.

  Inverse floating rate note obligations resulting from the transfer of bonds to Dealer Trusts are accounted for as secured borrowings. The average floating rate notes outstanding and average annual interest and fees related to inverse floating rate note obligations during the period December 1, 2010 to February 28, 2011 were $512,883,750 and 0.85%, respectively.

55        Invesco Van Kampen High Yield Municipal Fund

NOTE 6—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Period December 1, 2010 to February 28, 2011 and the Years Ended November 30, 2010 and 2009:

	2011		2010		2009
Ordinary income	$	1,353,870	$	2,338,501	$	622,188
Ordinary income — tax-exempt		77,435,738		333,212,042		264,833,423
Total distributions	$	78,789,608	$	335,550,543	$	265,455,611

Tax Components of Net Assets at Period-End:

	2011
Undistributed ordinary income	$	23,699,309
Net unrealized appreciation (depreciation) — investments		(594,957,379	)
Temporary book/tax differences		(30,585	)
Capital loss carryforward		(629,519,122	)
Shares of beneficial interest		6,182,238,892
Total net assets	$	4,981,431,115

  The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to book and tax accretion and amortization difference and inverse floater adjustments.

  The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions. Under these limitation rules, the Fund is limited to utilizing $511,954,188 of capital loss carryforward in the fiscal year ending February 29, 2012.

  The Fund utilized $0 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Fund has a capital loss carryforward as of February 28, 2011 which expires as follows:

	Capital Loss
Expiration	Carryforward*
February 29, 2012	$	67,492,832
February 28, 2013		63,838,546
February 28, 2014		6,419,495
February 28, 2015		9,560,072
February 29, 2016		148,296,962
February 28, 2017		222,991,741
February 28, 2018		67,932,498
February 28, 2019		42,986,976
Total capital loss carryforward	$	629,519,122

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the period December 1, 2010 to February 28, 2011 was $143,428,841 and $601,665,837, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	107,145,240
Aggregate unrealized (depreciation) of investment securities		(702,102,619	)
Net unrealized appreciation (depreciation) of investment securities	$	(594,957,379	)
Cost of investments for tax purposes is $5,991,906,468.

56        Invesco Van Kampen High Yield Municipal Fund

NOTE 8—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of defaulted bonds transactions, on February 28, 2011, undistributed net investment income was decreased by $347,934, undistributed net realized gain (loss) was increased by $18,421,484 and shares of beneficial interest decreased by $18,073,550. This reclassification had no effect on the net assets of the Fund.

NOTE 9—Share Information

	Summary of Share Activity
	Three months ended						Year ended						Year ended
	February 28, 2011(a)						November 30, 2010						November 30, 2009
	Shares			Amount			Shares			Amount			Shares			Amount
Sold:
Class A		12,705,004	(b)	$	113,234,883	(b)		163,759,734	(c)	$	1,511,121,193	(c)		111,537,115		$	934,254,989
Class B		50,693			451,927			9,571,549			88,254,998			5,605,152			46,695,438
Class C		1,820,038			16,121,041			34,710,957			320,856,895			29,993,071			251,945,905
Class Y		10,929,727			97,122,929			47,059,756			442,842,976			28,063,119			248,893,657
Issued as reinvestment of dividends:
Class A		3,055,163			27,081,228			21,225,505			198,809,177			18,955,168			158,214,362
Class B		218,318			1,933,741			1,574,692			14,726,724			1,881,748			15,618,293
Class C		723,422			6,393,532			3,989,962			37,310,791			3,436,090			28,700,153
Class Y		791,160			7,024,656			1,232,848			11,672,336			330,896			2,792,311
Reacquired:(d)
Class A		(50,806,520	)		(451,099,516	)		(128,955,125	)		(1,205,752,688	)		(94,019,824	)		(788,237,606	)
Class B		(4,372,509	)(b)		(38,640,981	)(b)		(13,597,510	)(c)		(127,365,316	)(c)		(13,075,962	)		(108,581,248	)
Class C		(13,854,916	)		(122,352,268	)		(23,696,533	)		(220,652,654	)		(16,910,473	)		(137,771,698	)
Class Y		(9,717,872	)		(86,204,677	)		(22,859,317	)		(212,487,611	)		(4,184,245	)		(35,247,963	)
Net increase (decrease) in share activity		(48,458,292	)	$	(428,933,505	)		94,016,518		$	859,336,821			71,611,855		$	617,276,593

(a)	There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 58% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as securities brokerage, distribution, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.
(b)	Includes automatic conversion of 1,638,662 Class B shares into 1,637,526 Class A shares at a value of $14,490,241.
(c)	Includes automatic conversion of 4,276,454 Class B shares into 4,275,266 Class A shares at a value of $40,397,281.
(d)	Net of redemption fees of $505,719 and $82,826 allocated among the classes based on relative net assets of each class for the period ended February 28, 2011 and the year ended November 30, 2010, respectively.

  On December 11, 2009, the Fund acquired all of the assets and liabilities of the Van Kampen Strategic Municipal Income Fund (“Strategic Municipal”) through a tax free reorganization approved by Strategic Municipal shareholders on October 21, 2009. The Fund issued 94,839,192, 6,046,154, 14,375,220 and 661,765 shares of Classes A, B, C and Y valued at $866,830,212, $55,261,850, $131,102,008 and $6,061,767, respectively, in exchange for Strategic Municipal’s net assets. The shares of Strategic Municipal were converted into Fund shares at a ratio 1.120 to 1, 1.120 to 1, 1.133 to 1 and 1.117 to 1 for Classes A, B, C and Y, respectively. Net unrealized depreciation of Strategic Municipal as of December 11, 2009 was $179,662,610. Shares issued in connection with this reorganization are included in proceeds from shares sold for the year ended November 30, 2010. Combined net assets on the day of reorganization were $5,731,523,519. Included in these net assets was a capital loss carryforward of $210,957,574, deferred compensation of $236,859 and deferred pension of $129,814.

57        Invesco Van Kampen High Yield Municipal Fund

NOTE 10—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

																														Supplemental
																														ratio of
																														expenses
					Net gains																									to average net
					(losses) on																						Ratio of net			assets (excluding
	Net asset				securities						Dividends													Ratio of			investment			interest,
	value,		Net		(both			Total from			from net						Net asset					Net assets,		expenses			income to			facilities and
	beginning		investment		realized and			investment			investment			Total			value, end		Total			end of period		to average			average			maintenance			Portfolio
	of period		income(a)		unrealized)			operations			income			Distributions			of period		return			(000’s omitted)		net assets			net assets			fees)(m)			turnover(b)
Class A
Period ended 02/28/11	$	9.24	$	0.15	$	(0.40	)	$	(0.25	)	$	(0.14	)	$	(0.14	)	$	8.85		(2.72	)%(c)	$	3,399,724		0.84	%(d)		6.80	%(d)		0.76	%(d)		3	%
Year ended 11/30/10		9.07		0.57		0.15			0.72			(0.55	)		(0.55	)		9.24		8.07	(c)		3,875,386		0.91			6.10			0.84			20
Year ended 11/30/09		8.15		0.58		0.92			1.50			(0.58	)		(0.58	)		9.07		19.33	(e)		3,294,547		0.97			6.90			0.87			16
Year ended 11/30/08		10.61		0.59		(2.48	)		(1.89	)		(0.57	)		(0.57	)		8.15		(18.57	)(e)		2,662,943		1.21			5.96			0.86			49
Year ended 11/30/07		11.24		0.58		(0.64	)		(0.06	)		(0.57	)		(0.57	)		10.61		(0.57	)(e)		3,185,041		1.55			5.23			0.84			26
Year ended 11/30/06		10.82		0.60		0.41			1.01			(0.59	)		(0.59	)		11.24		9.63	(e)		3,217,606		1.37			5.44			0.85			27
Class B
Period ended 02/28/11		9.24		0.14		(0.41	)		(0.27	)		(0.12	)		(0.12	)		8.85		(2.90	)(c)(l)		250,532		1.39	(d)(l)		6.25	(d)(l)		1.31	(d)(l)		3
Year ended 11/30/10		9.07		0.50		0.15			0.65			(0.48	)		(0.48	)		9.24		7.27	(c)		299,439		1.66			5.35			1.59			20
Year ended 11/30/09		8.15		0.51		0.93			1.44			(0.52	)		(0.52	)		9.07		18.46	(f)		316,094		1.72			6.15			1.62			16
Year ended 11/30/08		10.61		0.52		(2.49	)		(1.97	)		(0.49	)		(0.49	)		8.15		(19.21	)(f)		329,752		1.96			5.19			1.61			49
Year ended 11/30/07		11.24		0.49		(0.63	)		(0.14	)		(0.49	)		(0.49	)		10.61		(1.32	)(f)		505,758		2.30			4.48			1.59			26
Year ended 11/30/06		10.82		0.52		0.41			0.93			(0.51	)		(0.51	)		11.24		8.81	(f)		632,074		2.12			4.69			1.60			27
Class C
Period ended 02/28/11		9.23		0.13		(0.41	)		(0.28	)		(0.12	)		(0.12	)		8.83		(3.02	)(c)		813,001		1.59	(d)		6.05	(d)		1.51	(d)		3
Year ended 11/30/10		9.05		0.50		0.16			0.66			(0.48	)		(0.48	)		9.23		7.40	(c)		953,475		1.66			5.35			1.59			20
Year ended 11/30/09		8.14		0.51		0.92			1.43			(0.52	)		(0.52	)		9.05		18.36	(h)		799,982		1.72			6.09			1.62			16
Year ended 11/30/08		10.60		0.51		(2.48	)		(1.97	)		(0.49	)		(0.49	)		8.14		(19.22	)(h)		584,835		1.96			5.22			1.61			49
Year ended 11/30/07		11.22		0.49		(0.62	)		(0.13	)		(0.49	)		(0.49	)		10.60		(1.22	)(h)(g)		656,854		2.29	(g)		4.50	(g)		1.58	(g)		26
Year ended 11/30/06		10.81		0.52		0.40			0.92			(0.51	)		(0.51	)		11.22		8.73	(h)(g)		654,233		2.11	(g)		4.70	(g)		1.59	(g)		27
Class Y(i)
Period ended 02/28/11		9.26		0.15		(0.40	)		(0.25	)		(0.14	)		(0.14	)		8.87		(2.65	)(c)		518,173		0.59	(d)		7.05	(d)		0.51	(d)		3
Year ended 11/30/10		9.09		0.60		0.15			0.75			(0.58	)		(0.58	)		9.26		8.33	(c)		522,709		0.66			6.35			0.59			20
Year ended 11/30/09		8.17		0.59		0.93			1.52			(0.60	)		(0.60	)		9.09		19.57	(j)		281,752		0.72			6.94			0.62			16
Year ended 11/30/08		10.64		0.62		(2.50	)		(1.88	)		(0.59	)		(0.59	)		8.17		(18.39	)(j)		55,427		0.99			6.70			0.64			49
Year ended 11/30/07		11.25		0.60		(0.61	)		(0.01	)		(0.60	)		(0.60	)		10.64		(0.14	)(j)		1,557		1.30			5.49			0.59			26
Year ended 11/30/06(k)		10.98		0.47		0.26			0.73			(0.46	)		(0.46	)		11.25		6.85	(j)		318		1.12			5.69			0.60			27

(a)	Calculated using average shares outstanding.
(b)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(c)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $3,533,699, $271,896, $859,839 and $507,029 for Class A, Class B, Class C, and Class Y, respectively.
(e)	Assumes reinvestment of all distributions for the period and does not include payment of the maximum sales charge of 4.75% or contingent deferred sales charge (CDSC). On purchases of $1 million or more, a CDSC of 1% may be imposed on certain redemptions made within eighteen months of purchase. If the sales charges were included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 0.25% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
(f)	Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 4%, charged on certain redemptions made within the first and second year of purchase and declining to 0% after the fifth year. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
(g)	The total return, ratio of expense to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of less than 1%.
(h)	Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 1%, charged on certain redemptions made within one year of purchase. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
(i)	On June 1, 2010, Class I Shares of the predecessor fund were reorganized into Class Y Shares of the Fund.
(j)	Assumes reinvestment of all distributions for the period. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption on Fund shares.
(k)	Commencement date of March 1, 2006.
(l)	The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.80% for the period ended February 28, 2011.
(m)	For the years ended November 30, 2010 and prior, ratio does not exclude facilities and maintenance fees.

58        Invesco Van Kampen High Yield Municipal Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds)

and Shareholders of Invesco Van Kampen High Yield Municipal Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Van Kampen High Yield Municipal Fund; (one of the funds constituting AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds), hereafter referred to as the “Fund”) at February 28, 2011, the results of its operations, the changes in its net assets and the financial highlights for the period ended February 28, 2011 and the year ended November 30, 2010, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at February 28, 2011 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The statement of changes in net assets and the financial highlights of the Fund for the periods ended November 30, 2009 and prior were audited by other independent auditors whose report dated January 22, 2010 expressed an unqualified opinion on those financial statements.

PRICEWATERHOUSECOOPERS LLP

April 21, 2011

Houston, Texas

59        Invesco Van Kampen High Yield Municipal Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2010 through February 28, 2011.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

  Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions, and redemption fees, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(09/01/10)		(02/28/11)1		Period2		(02/28/11)		Period2		Ratio
A	$	1,000.00	$	945.10	$	4.20	$	1,020.48	$	4.36		0.87	%
B		1,000.00		940.50		7.36		1,017.21		7.65		1.53
C		1,000.00		941.30		7.80		1,016.76		8.10		1.62
Y		1,000.00		946.50		2.99		1,021.72		3.11		0.62

1	The actual ending account value is based on the actual total return of the Fund for the period September 1, 2010 through February 28, 2011, 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.

60        Invesco Van Kampen High Yield Municipal Fund

Tax Information

Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.

  The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.

  The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal period ended February 28, 2011:

Federal and State Income Tax
Tax-Exempt Interest Dividends*	98.42%

*  The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal period.

61        Invesco Van Kampen High Yield Municipal Fund

Trustees and Officers

The address of each trustee and officer is AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds) (the “Trust”), 11 Greenway Plaza, Suite 2500, Houston, Texas 77046-1173. The trustees serve for the life of the Trust, subject to their earlier death, incapacitation, resignation, retirement or removal as more specifically provided in the Trust’s organizational documents. Each officer serves for a one year term or until their successors are elected and qualified. Column two below includes length of time served with predecessor entities, if any.

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Interested Persons
Martin L. Flanagan1 — 1960 Trustee	2007	Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Trustee, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business Formerly: Chairman, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, IVZ Inc. (holding company), INVESCO Group Services, Inc. (service provider) and Invesco North American Holdings, Inc. (holding company); Director, Chief Executive Officer and President, Invesco Holding Company Limited (parent of Invesco and a global investment management firm); Director, Invesco Ltd.; Chairman, Investment Company Institute and President, Co-Chief Executive Officer, Co-President, Chief Operating Officer and Chief Financial Officer, Franklin Resources, Inc. (global investment management organization)	208	None
Philip A. Taylor2 — 1954 Trustee, President and Principal Executive Officer	2006	Head of North American Retail and Senior Managing Director, Invesco Ltd.; Director, Co-Chairman, Co-President and Co-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly Invesco Aim Management Group, Inc.) (financial services holding company); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent) and AIM GP Canada Inc. (general partner for limited partnerships); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) (registered transfer agent) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company) and Invesco Canada Holdings Inc. (holding company); Chief Executive Officer, Invesco Trimark Corporate Class Inc. (corporate mutual fund company) and Invesco Trimark Canada Fund Inc. (corporate mutual fund company); Director and Chief Executive Officer, Invesco Trimark Ltd./Invesco Trimark Ltèe (registered investment adviser and registered transfer agent) and Invesco Trimark Dealer Inc. (registered broker dealer); Trustee, President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); Trustee and Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only); and Director, Van Kampen Asset Management; Director, Chief Executive Officer and President, Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Director and Chairman, Van Kampen Investor Services Inc. and Director and President, Van Kampen Advisors, Inc. Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.) (registered broker dealer); Manager, Invesco PowerShares Capital Management LLC; Director, Chief Executive Officer and President, Invesco Advisers, Inc.; Director, Chairman, Chief Executive Officer and President, Invesco Aim Capital Management, Inc.; President, Invesco Trimark Dealer Inc. and Invesco Trimark Ltd./Invesco Trimark Ltèe; Director and President, AIM Trimark Corporate Class Inc. and AIM Trimark Canada Fund Inc.; Senior Managing Director, Invesco Holding Company Limited; Trustee and Executive Vice President, Tax-Free Investments Trust; Director and Chairman, Fund Management Company (former registered broker dealer); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc.	208	None
Wayne M. Whalen3 — 1939 Trustee	2010	Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex	226	Director of the Abraham Lincoln Presidential Library Foundation
Independent Trustees
Bruce L. Crockett — 1944 Trustee and Chair	1993	Chairman, Crockett Technology Associates (technology consulting company) Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer COMSAT Corporation; and Chairman, Board of Governors of INTELSAT (international communications company)	208	ACE Limited (insurance company); and Investment Company Institute
David C. Arch — 1945 Trustee	2010	Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.	226	Member of the Heartland Alliance Advisory Board, a nonprofit organization serving human needs based in Chicago. Board member of the Illinois Manufacturers’ Association. Member of the Board of Visitors, Institute for the Humanities, University of Michigan

1	Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.
2	Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.
3	Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Independent Trustees
Bob R. Baker — 1936 Trustee	2003	Retired Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation	208	None
Frank S. Bayley — 1939 Trustee	2001	Retired Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie	208	None
James T. Bunch — 1942 Trustee	2003	Founder, Green, Manning & Bunch Ltd. (investment banking firm) Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation	208	Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society
Rodney Dammeyer — 1940 Trustee	2010	President of CAC, LLC, a private company offering capital investment and management advisory services. Formerly: Prior to January 2004, Director of TeleTech Holdings Inc.; Prior to 2002, Director of Arris Group, Inc.; Prior to 2001, Managing Partner at Equity Group Corporate Investments. Prior to 1995, Vice Chairman of Anixter International. Prior to 1985, experience includes Senior Vice President and Chief Financial Officer of Household International, Inc, Executive Vice President and Chief Financial Officer of Northwest Industries, Inc. and Partner of Arthur Andersen & Co.	226	Director of Quidel Corporation and Stericycle, Inc. Prior to May 2008, Trustee of The Scripps Research Institute. Prior to February 2008, Director of Ventana Medical Systems, Inc. Prior to April 2007, Director of GATX Corporation. Prior to April 2004, Director of TheraSense, Inc.
Albert R. Dowden — 1941 Trustee	2000	Director of a number of public and private business corporations, including the Boss Group, Ltd. (private investment and management); Reich & Tang Funds (5 portfolios) (registered investment company); and Homeowners of America Holding Corporation/ Homeowners of America Insurance Company (property casualty company) Formerly: Director, Continental Energy Services, LLC (oil and gas pipeline service); Director, CompuDyne Corporation (provider of product and services to the public security market) and Director, Annuity and Life Re (Holdings), Ltd. (reinsurance company); Director, President and Chief Executive Officer, Volvo Group North America, Inc.; Senior Vice President, AB Volvo; Director of various public and private corporations; Chairman, DHJ Media, Inc.; Director Magellan Insurance Company; and Director, The Hertz Corporation, Genmar Corporation (boat manufacturer), National Media Corporation; Advisory Board of Rotary Power International (designer, manufacturer, and seller of rotary power engines); and Chairman, Cortland Trust, Inc. (registered investment company)	208	Board of Nature’s Sunshine Products, Inc.
Jack M. Fields — 1952 Trustee	1997	Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Owner and Chief Executive Officer, Dos Angelos Ranch, L.P. (cattle, hunting, corporate entertainment), Discovery Global Education Fund (non-profit) and Cross Timbers Quail Research Ranch (non-profit) Formerly: Chief Executive Officer, Texana Timber LP (sustainable forestry company) and member of the U.S. House of Representatives	208	Administaff
Carl Frischling — 1937 Trustee	1993	Partner, law firm of Kramer Levin Naftalis and Frankel LLP	208	Director, Reich & Tang Funds (16 portfolios)
Prema Mathai-Davis — 1950 Trustee	1998	Retired Formerly: Chief Executive Officer, YWCA of the U.S.A.	208	None
Larry Soll — 1942 Trustee	2003	Retired Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)	208	None
Hugo F. Sonnenschein — 1940 Trustee	2010	President Emeritus and Honorary Trustee of the University of Chicago and the Adam Smith Distinguished Service Professor in the Department of Economics at the University of Chicago. Prior to July 2000, President of the University of Chicago.	226	Trustee of the University of Rochester and a member of its investment committee. Member of the National Academy of Sciences, the American Philosophical Society and a fellow of the American Academy of Arts and Sciences
Raymond Stickel, Jr. — 1944 Trustee	2005	Retired Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche	208	None

T-2

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Other Officers
Russell C. Burk — 1958 Senior Vice President and Senior Officer	2005	Senior Vice President and Senior Officer of Invesco Funds	N/A	N/A
John M. Zerr — 1962 Senior Vice President, Chief Legal Officer and Secretary	2006	Director, Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp., Senior Vice President, Invesco Advisers, Inc. formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Secretary, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Manager, Invesco PowerShares Capital Management LLC; Director, Secretary and General Counsel, Van Kampen Asset Management; Director and Secretary, Van Kampen Advisors Inc.; Secretary and General Counsel, Van Kampen Funds Inc.; and Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; and Chief Legal Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco Advisers, Inc.; Director, Vice President and Secretary, Fund Management Company; Director, Senior Vice President, Secretary, General Counsel and Vice President, Invesco Aim Capital Management, Inc.; Chief Operating Officer and General Counsel, Liberty Ridge Capital, Inc. (an investment adviser); Vice President and Secretary, PBHG Funds (an investment company) and PBHG Insurance Series Fund (an investment company); Chief Operating Officer, General Counsel and Secretary, Old Mutual Investment Partners (a broker-dealer); General Counsel and Secretary, Old Mutual Fund Services (an administrator) and Old Mutual Shareholder Services (a shareholder servicing center); Executive Vice President, General Counsel and Secretary, Old Mutual Capital, Inc. (an investment adviser); and Vice President and Secretary, Old Mutual Advisors Funds (an investment company)	N/A	N/A
Lisa O. Brinkley — 1959 Vice President	2004	Global Compliance Director, Invesco Ltd.; Chief Compliance Officer, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc.(formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc.; and Vice President, The Invesco Funds Formerly: Senior Vice President, Invesco Management Group, Inc.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and The Invesco Funds; Vice President and Chief Compliance Officer, Invesco Aim Capital Management, Inc. and Invesco Distributors, Inc.; Vice President, Invesco Investment Services, Inc. and Fund Management Company	N/A	N/A
Sheri Morris — 1964 Vice President, Treasurer and Principal Financial Officer	1999	Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; and Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) Formerly: Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.	N/A	N/A
Karen Dunn Kelley — 1960 Vice President	1993	Head of Invesco’s World Wide Fixed Income and Cash Management Group; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) and Van Kampen Investments Inc.; Executive Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.); and Director, Invesco Mortgage Capital Inc.; Vice President, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only). Formerly: Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Director of Cash Management and Senior Vice President, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; President and Principal Executive Officer, Tax-Free Investments Trust; Director and President, Fund Management Company; Chief Cash Management Officer, Director of Cash Management, Senior Vice President, and Managing Director, Invesco Aim Capital Management, Inc.; Director of Cash Management, Senior Vice President, and Vice President, Invesco Advisers, Inc. and The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only)	N/A	N/A
Lance A. Rejsek — 1967 Anti-Money Laundering Compliance Officer	2005	Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.), The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, Van Kampen Asset Management, Van Kampen Investor Services Inc., and Van Kampen Funds Inc. Formerly: Anti-Money Laundering Compliance Officer, Fund Management Company, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.	N/A	N/A

T-3

Trustees and Officers — (continued)

			Number of
			Funds in
			Fund Complex
Name, Year of Birth and	Trustee and/	Principal Occupation(s)	Overseen by	Other Directorship(s)
Position(s) Held with the Trust	or Officer Since	During Past 5 Years	Trustee	Held by Trustee
Other Officers
Todd L. Spillane — 1958 Chief Compliance Officer	2006	Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser) (formerly known as Invesco Institutional (N.A.), Inc.); Chief Compliance Officer, The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, INVESCO Private Capital Investments, Inc. (holding company), and Invesco Private Capital, Inc. (registered investment adviser); Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc. Formerly: Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. and Invesco Senior Secured Management, Inc. (registered investment adviser); Vice President, Invesco Aim Capital Management, Inc. and Fund Management Company	N/A	N/A

The Statement of Additional Information of the Trust includes additional information about the Fund’s Trustees and is available upon request, without charge, by calling 1.800.959.4246. Please refer to the Fund’s prospectus for information on the Fund’s sub-advisers.

Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza,	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Suite 2500	1555 Peachtree Street, N.E.	11 Greenway Plaza,	1201 Louisiana Street,
Houston, TX 77046-1173	Atlanta, GA 30309	Suite 2500	Suite 2900
		Houston, TX 77046-1173	Houston, TX 77002-5678
Counsel to the Fund Stradley Ronon Stevens & Young, LLP	Counsel to the Independent Trustees	Transfer Agent Invesco Investment Services, Inc.	Custodian State Street Bank and Trust Company
2600 One Commerce Square	Kramer, Levin, Naftalis & Frankel LLP	11 Greenway Plaza, Suite 2500	225 Franklin
Philadelphia, PA 19103	1177 Avenue of the Americas	Houston, TX 77046-1173	Boston, MA 02110-2801
	New York, NY 10036-2714

T-4

Invesco mailing information

Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.

Invesco privacy policy

You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.

     Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.

     Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.

Important notice regarding delivery of security holder documents

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.

Fund holdings and proxy voting information

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Forms N-Q on the SEC website at sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07890 and 033-66242.

     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 period between June 1, 2010, and June 30, 2010, is available at invesco.com/proxysearch. In addition, this information is available on the SEC website, sec.gov. Proxy voting information for the predecessor fund prior to its reorganization with the Fund on June 1, 2010, is not available on the Invesco website but is or will be available on the SEC website under the predecessor fund.

     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 U.S. 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.

VK-HYM-AR-1 Invesco Distributors, Inc.

Annual Report to Shareholders February 28, 2011

Invesco Van Kampen Intermediate Term Municipal Income Fund
Nasdaq:
A: VKLMX § B: VKLBX § C: VKLCX § Y: VKLIX

2	Letters to Shareholders
4	Performance Summary
4	Management Discussion
6	Long-Term Fund Performance
8	Supplemental Information
9	Schedule of Investments
20	Financial Statements
22	Notes to Financial Statements
29	Financial Highlights
30	Auditor’s Report
31	Fund Expenses
32	Tax Information
T-1	Trustees and Officers

Letters to Shareholders

Philip Taylor

Dear Shareholders:

Enclosed is important information about your Fund and its performance.

     I’ve always believed that companies have an obligation to communicate regularly with their clients, and I believe that obligation is especially critical in the investment industry.

     Our website – invesco.com/us – offers timely market updates and commentary from many of our portfolio managers and other investment professionals, as well as quarterly messages from me. At invesco.com/us, you also can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer.

Invesco’s commitment to investment excellence

Invesco’s acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, broadened our range of investment products available to you. As a strong organization with a single focus – investment management – Invesco today offers investment capabilities and products to meet the needs of virtually any investor. In addition to traditional mutual funds, we manage a broad range of other solutions, including single-country, regional and global investments spanning major equity, fixed income and alternative asset classes.

     Investment excellence is our goal across our product line. Let me explain what that means. All of our funds are managed by specialized teams of investment professionals. Each team has a discrete investment perspective and philosophy, and all follow disciplined, repeatable processes governed by strong risk oversight. Our investment-centric culture provides an environment that seeks to reduce distractions, allowing our fund managers to concentrate on what they do best – manage your money.

     The importance of a broad product line and investment management expertise is obvious given the markets we’ve experienced over the last two to three years. We’ve seen that investment strategies can outperform or underperform their benchmark indexes for a variety of reasons, including where we are in the market cycle, and whether prevailing economic conditions are favorable or unfavorable for that strategy. That’s why no investment strategy can guarantee top-tier performance at all times. What investors can expect, and what Invesco offers, are funds that are managed according to their stated investment objectives and strategies, with robust risk oversight using consistent, repeatable investment processes that don’t change as short-term external conditions change – investments managed for the long term. This disciplined approach can’t guarantee a profit; no investment can do that, since all involve some measure of risk. But it can ensure that your money is managed the way we said it would be.

     This adherence to stated investment objectives and strategies allows your financial advisor to build a diversified portfolio that meets your individual risk tolerance and financial goals. It also means that when your goals change, your financial advisor will be able to find an appropriate investment option to meet your needs.

Invesco’s commitment to you

Invesco’s commitment to you remains stronger than ever. It’s one of the reasons we’ve grown to become one of the world’s largest asset managers.

     If you have questions about your account, please contact one of our client service representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, I invite you to email me directly at phil@invesco.com.

     I want to thank you for placing your trust in us. All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.

Sincerely,

Philip Taylor

Senior Managing Director, Invesco Ltd.

2 Invesco Van Kampen Intermediate Term Municipal Income Fund

Bruce Crockett

Dear Fellow Shareholders:

With 2010 behind us, now is a good time to review our portfolios and ensure that we are adhering to a long-term, diversified investment strategy, which I’ve mentioned in previous letters. The year was notable for a number of reasons, but I’m sure most of us are grateful for a return to more stable markets and growing signs that the worst of the economic crisis is behind us.

     Your Board continued to oversee the Invesco Funds with a strong sense of responsibility for your savings and a deep appreciation for your continued trust. As always, we worked throughout 2010 to manage costs and ensure Invesco continued to place investor interests first.

     I’m pleased to report that the latest report from Morningstar affirmed the work we’ve done and included a number of positive comments regarding your Board’s oversight of the Invesco Funds.

As background, Morningstar is a leading independent provider of investment research in North America, Europe, Australia and Asia. Morningstar stated, “A fund board’s duty is to represent the interests of fund shareholders, ensuring that the funds that it oversees charge reasonable fees and are run by capable advisors with a sound investment process.”

     Morningstar maintained your Fund Board’s “A” grade for Board Quality, praising the Board for taking “meaningful steps in recent years to act in fund shareholders’ interests.”¹ These steps included becoming much more proactive and vocal in overseeing how Invesco votes the funds’ shareholders’ proxies and requiring each fund trustee to invest more than one year’s board compensation in Invesco funds, further aligning our interests with those of our shareholders. Morningstar also cited the work I’ve done to make myself more available to fund shareholders via email.

     I am also pleased that Morningstar recognized the effort and the Fund Board’s efforts over the past several years to work together with management at Invesco to enhance performance and sharpen the focus on investors.

     Let me close by wishing you a happy and prosperous new year. As always, you’re welcome to contact me at bruce@brucecrockett.com with any questions or concerns you have. We look forward to representing you and serving you in the new year.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

1 Among the criteria Morningstar considers when evaluating a fund board are the degree to which the board is independent of the fund company; board members’ financial interests are aligned with those of fund shareholders; the board acts in fund shareholders’ interests; and the board works constructively with company management and investment personnel. Morningstar first awarded an “A” rating to the Invesco Funds board on September 13, 2007; that rating has been maintained in subsequent reports, the most recent of which was released December 17, 2010. Ratings are subject to change, usually every 12 to 24 months. Morningstar ratings range from “A” to “F.”

3 Invesco Van Kampen Intermediate Term Municipal Income Fund

Management’s Discussion of Fund Performance

Performance summary

Please note that the fiscal year-end for Invesco Van Kampen Intermediate Term Municipal Income Fund has changed to February 28. Therefore, the period covered by this report is from September 30, 2010, the date of the last annual report, through February 28, 2011, the Fund’s new fiscal year-end.

     For the fiscal year ended February 28, 2011, all share classes of Invesco Van Kampen Intermediate Term Municipal Income Fund, at net asset value (NAV), outperformed the Fund’s broad market/style-specific index. The Fund’s underweight exposure to state and local general obligation bonds contributed to returns for the reporting period.

     Your Fund’s long-term performance appears later in this report.

Fund vs. Indexes

Cumulative total returns, 9/30/10 to 2/28/11, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

Class A Shares	-2.57	%
Class B Shares	-2.81
Class C Shares	-2.88
Class Y Shares	-2.56
Barclays Capital Municipal Bond Index▼ (Broad Market/Style-Specific Index)	-3.36

^▼Lipper Inc.

How we invest

The Fund’s investment objective is to provide investors with a high level of current income exempt from federal income tax, consistent with preservation of capital.

     Under normal market conditions, we seek to achieve the Fund’s investment objective by investing at least 65% of the Fund’s total assets in investment grade municipal securities. Investment grade securities are rated BBB or higher by S&P, Baa or higher by Moody’s or an equivalent rating by another agency or are unrated securities which we determine to be of comparable quality. However, the Fund may not invest more than 20% of its total assets in unrated investment grade securities.

     Under normal market conditions, the Fund may invest up to 35% of its total assets in municipal securities rated below investment grade and unrated municipal securities which we determine to be of comparable quality at the time of purchase. Lower grade securities are

commonly referred to as junk bonds and involve greater risks than investments in higher grade securities. With respect to such investments, the Fund has not established any limit on the percentage of its portfolio that may be invested in securities in any one rating category.

     The Fund may invest all or a substantial portion of its assets in municipal securities that are subject to the federal alternative minimum tax. Accordingly, the Fund may not be a suitable investment for investors who are already subject to the federal alternative minimum tax or could become subject to the federal alternative minimum tax as a result of an investment in the Fund. From time to time, the Fund temporarily may invest up to 10% of its total assets in tax-exempt money market funds, and such instruments will be treated as investments in municipal securities. We may sell securities based on factors such as degradation in credit quality, a decision to shorten or lengthen the Fund’s duration or reducing exposure to a particular sector or issuer.

Market conditions and your Fund

In the U.S. and most of the developed world, a gradual and somewhat lackluster recovery continued, with central banks keeping interest rates at low levels and with few of them withdrawing their quantitative easing measures. This helped private sector companies improve their balance sheets and earnings following the global financial crisis that began to dissipate in early 2009. However, investor skepticism of global governments’ abilities to retire huge amounts of debt without affecting economic growth rates caused sovereign debt distress (especially for eurozone countries) and became a focal point of investor concern.

     In the U.S., economic recovery was present, although the pace of recovery remained modest as stubbornly high unemployment and export weakness continued to weigh on the economy. Real gross domestic product (GDP), the broadest measure of overall U.S. economic activity, increased at an annual rate of 3.1% in the fourth quarter of 2010, a marked improvement from the 2.6% decrease in 2009.¹ The U.S. Federal Reserve (the Fed) maintained a very accommodative monetary policy throughout the period, with the federal funds target rate unchanged in its range of zero to 0.25%.² The Fed recently described its view of the U.S. economy by stating: “The Committee will maintain the target range for the federal funds rate at 0 to ¹/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period.”²
     During the five-month period covered by this report, municipal bond mutual funds experienced extensive net outflows. Market volatility was heightened across the municipal asset class as U.S. Treasury yields increased and the market

Portfolio Composition

By credit sector, based on total investments

Revenue Bonds	95.2	%
General Obligation Bonds	3.5
Pre-Refunded Bonds	1.3

Top Five Fixed Income Issuers

1.	Highlands (County of) Health Facilities Authority	1.2	%
2.	Maryland (State of) Transportation Authority	1.2
3.	Washington (State of)	1.1
4.	Lakeland (City of)	1.0
5.	Greenville (City of)	0.8

Total Net Assets	$304.5 million
Total Number of Holdings*	289

The Fund’s holdings are subject to change, and there is no assurance that the Fund will continue to hold any particular security.

4Invesco Van Kampen Intermediate Term Municipal Income Fund

was flooded with new issuance during the last two months of 2010 in anticipation of the Build America Bond (BAB) program ending. These factors contributed to rising investor concerns regarding the health of municipal finances, leading to redemptions and lower municipal bond prices.

     The Fund’s underweight exposure to the 15- to 20-year part of the yield curve contributed to returns as yields increased during most of the reporting period. Some of our yield curve and duration positioning was obtained through the use of inverse floating rate securities. Inverse floating rate securities are instruments which have an inverse relationship to a referenced interest rate. Inverse floating rate securities can be a more efficient way to manage duration, yield curve exposure and credit exposure and potentially can enhance yield.

     Sector performance was driven by quality spread widening for most of the reporting period, largely a result of increased volatility and higher tax-exempt issuance, before tightening in February. As a result, BBB-rated and lower credit quality sectors underperformed and detracted from Fund performance as we were overweight in these market segments.

     Our underweight exposure to state and local general obligation bonds and our allocation to transportation bonds contributed to returns for the reporting period.

     Our health care exposure, particularly security selection within hospital bonds, detracted from returns for the reporting period.

     Thank you for investing in Invesco Van Kampen Intermediate Term Municipal Income Fund and for sharing our long-term investment horizon.

1	Bureau of Economic Analysis
2	U.S. Federal Reserve

The views and opinions expressed in management’s discussion of Fund performance are those of Invesco Advisers, Inc. These views and opinions are subject to change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or recommendations, or as an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but Invesco Advisers, Inc. makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

See important Fund and, if applicable, index disclosures later in this report.

Thomas Byron
Portfolio manager, is manager of Invesco Van Kampen Intermediate Term Municipal Income Fund. Mr. Byron joined Invesco in 2010. He earned a B.S. in finance from Marquette University and an M.B.A. in finance from DePaul University.

Robert Stryker
Chartered Financial Analyst, portfolio manager, is manager of Invesco Van Kampen Intermediate Term Municipal Income Fund. Mr. Stryker joined Invesco in 2010. He earned a B.S. in finance from the University of Illinois, Chicago.

Robert Wimmel
Portfolio manager, is manager of Invesco Van Kampen Intermediate Term Municipal Income Fund. Mr. Wimmel joined Invesco in 2010. He earned a B.A. in anthropology from the University of Cincinnati and an M.A. in economics from the University of Illinois, Chicago.

5 Invesco Van Kampen Intermediate Term Municipal Income Fund

Your Fund’s Long-Term Performance

Results of a $10,000 Investment – Oldest Share Classes since Inception

Fund data from 5/28/93, index data from 5/31/93

Past performance cannot guarantee comparable future results.

     The data shown in the chart include reinvested distributions, applicable sales charges and Fund expenses including management fees. Results for Class B shares are calculated as if a hypothetical shareholder had liquidated his entire investment in the Fund at the close of the reporting period and paid the applicable contingent deferred sales charges. Index results include reinvested dividends, but they do not reflect sales charges.

Performance of the peer group, if applicable, reflects fund expenses and management fees; performance of a market index does not. Performance shown in the chart above and before tax table(s) does not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.

     This chart, which is a logarithmic chart, presents the fluctuations in the value of the Fund and its indexes. We believe that a logarithmic chart is more effective than other types of charts in illustrating

changes in value during the early years shown in the chart. The vertical axis, the one that indicates the dollar value of an investment, is constructed with each segment representing a percent change in the value of the investment. In this chart, each segment represents a doubling, or 100% change, in the value of the investment. In other words, the space between $5,000 and $10,000 is the same size as the space between $10,000 and $20,000, and so on.

6 Invesco Van Kampen Intermediate Term Municipal Income Fund

Average Annual Total Returns

As of 2/28/11, including maximum applicable sales charges

							After Taxes
				After Taxes			on Distributions
	Before			on			and Sale of
	Taxes			Distributions			Fund Shares
Class A Shares
Inception (5/28/93)		4.61	%		4.57	%		4.54	%
10 Years		3.85			3.80			3.81
5 Years		2.74			2.74			2.89
1 Year		-2.62			-2.62			-0.36
Class B Shares
Inception (5/28/93)		4.55	%		4.51	%		4.47	%
10 Years		4.14			4.09			4.03
5 Years		3.08			3.08			3.14
1 Year		-3.41			-3.41			-1.09
Class C Shares
Inception (10/19/93)		3.80	%		3.76	%		3.74	%
10 Years		3.60			3.55			3.51
5 Years		2.97			2.97			2.99
1 Year		0.51			0.51			1.46
Class Y Shares
Inception (8/12/05)		3.96	%		3.93	%		3.96	%
5 Years		3.98			3.98			4.00
1 Year		2.41			2.41			3.05

Average Annual Total Returns

As of 12/31/10, the most recent calendar quarter-end, including maximum applicable sales charges

							After Taxes
				After Taxes			on Distributions
	Before			on			and Sale of
	Taxes			Distributions			Fund Shares
Class A Shares
Inception (5/28/93)		4.61	%		4.57	%		4.55	%
10 Years		3.91			3.86			3.87
5 Years		2.78			2.78			2.92
1 Year		-1.41			-1.41			0.44
Class B Shares
Inception (5/28/93)		4.55	%		4.51	%		4.47	%
10 Years		4.21			4.15			4.09
5 Years		3.16			3.16			3.22
1 Year		-2.26			-2.26			-0.34
Class C Shares
Inception (10/19/93)		3.81	%		3.77	%		3.75	%
10 Years		3.67			3.61			3.56
5 Years		3.03			3.03			3.04
1 Year		1.73			1.73			2.27
Class Y Shares
Inception (8/12/05)		3.96	%		3.93	%		3.96	%
5 Years		4.06			4.06			4.07
1 Year		3.74			3.74			3.94

Effective June 1, 2010, Class A, Class B, Class C and Class I shares of the predecessor fund advised by Van Kampen Asset Management were reorganized into Class A, Class B, Class C and Class Y shares, respectively, of Invesco Van Kampen Intermediate Term Municipal Income Fund. Returns shown above for Class A, Class B, Class C and Class Y shares are blended returns of the predecessor fund and Invesco Van Kampen Intermediate Term Municipal 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 visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated. Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

     The net annual Fund operating expense ratio set forth in the most

recent Fund prospectus as of the date of this report for Class A, Class B, Class C and Class Y shares was 0.82%, 1.57%, 1.57% and 0.57%, respectively.¹ The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C and Class Y shares was 0.92%, 1.67%, 1.67% and 0.67%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

     Class A share performance reflects the maximum 4.75% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. For shares purchased prior to June 1, 2005, the CDSC on Class B shares declines from 3% at the time of purchase to 0% at the beginning of the fifth year. For shares purchased after June 1, 2005 and before June 1, 2010, the CDSC on Class B shares declines from 4% at the time of purchase to 0% at the beginning of the sixth year. For shares purchased on or after June 1, 2010,

the CDSC on Class B shares declines from 5% at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class Y shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

     The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.

     After-tax returns are calculated using the historical highest individual federal marginal income tax rate. They do not reflect the effect of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their shares in tax-deferred accounts such as 401(k)s or IRAs. The Fund’s past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future.

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, 2012. See current prospectus for more information.

7 Invesco Van Kampen Intermediate Term Municipal Income Fund

Invesco Van Kampen Intermediate Term Municipal Income Fund’s investment objective is to provide investors with a high level of current income exempt from federal income tax, consistent with preservation of capital.

n	Unless otherwise stated, information presented in this report is as of February 28, 2011, and is based on total net assets.
n	Unless otherwise noted, all data provided by Invesco.
n	To access your Fund’s reports/prospectus, visit invesco.com/fundreports.

About share classes

n	Class B or Class B5 shares may not be purchased or acquired by exchange from share classes other than Class B or Class B5 shares. Please see the prospectus for more information.
n	Class Y shares are available to only certain investors. Please see the prospectus for more information.

Principal risks of investing in the Fund

n

Market risk. Market risk is the possibility that the market values of securities owned by the Fund will decline. Investments in debt securities generally are affected by changes in interest rates and the creditworthiness of the issuer. The prices of debt securities tend to fall as interest rates rise, and such declines tend to be greater among debt securities with longer maturities. As interest rates change, zero coupon bonds often fluctuate more in price than traditional debt securities and may subject the Fund to greater market risk than a fund that does not own these types of securities.

n

Credit risk. Credit risk refers to an issuer’s ability to make timely payments of interest and principal. Medium-grade obligations possess speculative characteristics so that changes in economic conditions or other circumstances are more likely to lead to a weakened capacity of the issuer to make principal and interest payments than in the case of higher-rated securities. The credit quality of noninvestment grade securities is considered speculative by recognized rating agencies with respect to the issuer’s continuing ability to pay interest and principal. Lower-grade securities (also sometimes know as junk bonds) may have less liquidity and a higher incidence of default than higher-grade securities. The Fund may incur higher expenses to protect the

	Fund’s interest in such securities. The credit risks and market prices of lower-grade securities generally are more sensitive to negative issuer developments or adverse economic conditions than are higher-grade securities.
n	Income risk. The income you receive from the Fund is based primarily on prevailing interest rates, which can vary widely over the short and long term. If interest rates drop, your income from the Fund may drop as well.
n	Call risk. If interest rates fall, it is possible that issuers of debt securities with high interest rates will prepay or call their securities before their maturity dates. In this event, the proceeds from the called securities would likely be reinvested by the Fund in securities bearing the new, lower interest rates, resulting in a possible decline in the Fund’s income and distributions to shareholders.
n	Municipal securities risk. The yields of municipal securities may move differently and adversely compared to the yields of the overall debt securities markets. Although the interest received from municipal securities generally is exempt from federal income tax, the Fund may invest all or a substantial portion of its total assets in municipal securities subject to the federal alternative minimum tax. In addition, there could be changes in applicable tax laws or tax treatments that reduce or eliminate the current federal income tax exemption on municipal securities or otherwise adversely affect the current federal or state tax status of municipal securities.
n	Risks of using derivative instruments. Risks of derivatives include imperfect correlation between the value of the instruments and the underlying assets; risks of default by the other party to certain transactions; risks that the transactions may result in losses that

	partially or completely offset gains in portfolio positions; and risks that the transactions may not be liquid.
n	Alternative minimum tax. The Fund may invest up to 20% of its total assets in securities subject to the federal alternative minimum tax.

About indexes used in this report

n	The Barclays Capital Municipal Bond Index is an unmanaged index considered representative of the tax-exempt bond market.
n	The Fund is not managed to track the performance of any particular index, including the index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
n	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.

Other information

n

The Chartered Financial Analyst® (CFA®) designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis.

n

The returns shown in management’s discussion of Fund performance are based on net asset values calculated for shareholder transactions. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes, and as such, the net asset values for shareholder transactions and the returns based on those net asset values may differ from the net asset values and returns reported in the Financial Highlights.

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

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Nasdaq Symbols
Class A Shares	VKLMX
Class B Shares	VKLBX
Class C Shares	VKLCX
Class Y Shares	VKLIX

8 Invesco Van Kampen Intermediate Term Municipal Income Fund

Schedule of Investments

February 28, 2011

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Municipal Obligations–99.63%
Alabama–0.34%
Health Care Authority for Baptist Health (The); Series 2009 A, RB(a)(b)		6.13	%		05/12/12	$	1,000	$	1,038,920
Alaska–0.96%
Alaska (State of) Municipal Bond Bank Authority;
Series 2009 1, RB		5.00	%		09/01/22		250		268,930
Series 2009 1, RB		5.25	%		09/01/24		400		425,296
Matanuska-Susitna (Borough of) (Goose Creek Correctional Center);
Series 2009, Lease RB (INS–AGC)(c)		5.00	%		09/01/19		1,000		1,130,840
Series 2009, Lease RB (INS–AGC)(c)		5.50	%		09/01/23		1,000		1,101,820
									2,926,886
Arizona–3.96%
Glendale (City of) Industrial Development Authority (Midwestern University); Series 2010, RB		5.00	%		05/15/26		2,000		1,970,540
Maricopa (County of) Industrial Development Authority (Catholic Healthcare West);
Series 2009 A, Health Facilities RB		5.00	%		07/01/14		500		530,895
Series 2009 C, Health Facilities RB(a)(b)		5.00	%		07/01/14		1,500		1,607,745
Maricopa (County of) Pollution Control Corp. (Arizona Public Service Co. Palo Verde); Series 2009 A, Ref. PCR(a)(b)		6.00	%		05/01/14		1,000		1,051,460
Navajo (County of) Pollution Control Corp.;
Series 2009 C, RB(a)(b)		5.50	%		06/01/14		1,000		1,074,040
Series 2009 E, RB(a)(b)		5.75	%		06/01/16		1,000		1,091,740
Phoenix (City of) Industrial Development Authority (Career Success Schools Project); Series 2009, Education RB		6.13	%		01/01/20		500		499,105
Phoenix Civic Improvement Corp.; Series 2008 B, Sr. Lien Airport RB(d)		5.00	%		07/01/13		1,000		1,068,650
Pima (County of) Industrial Development Authority (Global Water Resources LLC); Series 2008, Water & Wastewater RB(d)		6.38	%		12/01/18		500		479,450
Pinal (County of) Electric District No. 4; Series 2008, Electric System RB		5.25	%		12/01/18		500		517,670
Salt River Project Agricultural Improvement & Power District; Series 2009 A, Electric System RB		5.00	%		01/01/22		1,000		1,103,130
University Medical Center Corp.; Series 2009, Hospital RB		5.25	%		07/01/17		1,000		1,053,030
									12,047,455
California–11.26%
Adelanto (City of) Public Utility Authority (Utility System Project); Series 2009 A, Ref. RB		5.38	%		07/01/19		1,000		1,005,600
Alhambra (City of) (Atherton Baptist Homes); Series 2010 B, RB		6.63	%		01/01/17		1,450		1,450,333
California (State of) Department of Water Resources; Series 2002 A, Power Supply RB (INS–AMBAC)(c)(e)		5.38	%		05/01/12		1,500		1,602,405
California (State of) Health Facilities Financing Authority (Adventist Health System West); Series 2009 C, RB		5.00	%		03/01/14		500		533,760
California (State of) Health Facilities Financing Authority (Catholic Healthcare West); Series 2009 F, RB(a)(b)		5.00	%		07/01/14		500		536,740
California (State of) Municipal Finance Authority (Community Hospitals Central California); Series 2007, COP		5.00	%		02/01/21		2,000		1,912,420
California (State of) Municipal Finance Authority (Eisenhower Medical Center);
Series 2010 A, RB		5.00	%		07/01/19		250		251,677
Series 2010 A, RB		5.00	%		07/01/20		725		721,745
California (State of) Municipal Finance Authority (High Technology High Chula Vista); Series 2008 B, Educational Facility RB(f)		5.50	%		07/01/18		875		863,520
California (State of) Statewide Communities Development Authority (Methodist Hospital); Series 2009, RB (INS–FHA)(c)		6.25	%		08/01/24		2,000		2,259,540

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

9        Invesco Van Kampen Intermediate Term Municipal Income Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
California–(continued)
California (State of) Statewide Communities Development Authority (Southern California Presbyterian Homes);
Series 2009, Senior Living RB		5.25	%		11/15/14	$	1,065	$	1,096,077
Series 2009, Senior Living RB		6.25	%		11/15/19		600		625,320
Carlsbad (City of) (Community Facility 3 Improvement 2); Series 2008, Special Tax RB		5.70	%		09/01/22		1,000		918,090
Desert Hot Springs (City of) Redevelopment Agency (Merged Redevelopment); Series 2008 A-2, Tax Allocation RB		5.00	%		09/01/23		1,000		841,010
Fresno (City of); Series 2010 A-1, Water System RB		5.50	%		06/01/22		1,000		1,104,050
Morongo Band of Mission Indians (Enterprise Casino); Series 2008, RB(f)		5.50	%		03/01/18		165		155,536
Oakland (Port of);
Series 2002 L, RB(d)(e)		5.00	%		11/01/12		170		182,640
Series 2002 L, RB (INS–NATL/FGIC)(c)(d)		5.00	%		11/01/21		1,330		1,293,997
Palm Springs (City of) (Palm Springs International Airport); Series 2008, Ref. Sub RB(d)		5.30	%		07/01/13		320		318,934
Perris (City of) Public Financing Authority; Series 2006, Tax Allocation RB		4.75	%		10/01/13		565		577,198
Richmond (City of) Joint Powers Financing Authority (Point Potrero); Series 2009 A, Lease RB		6.25	%		07/01/24		1,500		1,595,250
Sacramento (County of) (PFC Grant); Series 2009 D, Sub. Airport System RB		5.38	%		07/01/26		2,000		2,046,100
San Francisco (City of) City & County Redevelopment Agency (Mission Bay South Redevelopment);
Series 2009 D, Tax Allocation RB		6.00	%		08/01/20		1,085		1,126,317
Series 2009 D, Tax Allocation RB		6.25	%		08/01/22		1,000		1,024,920
Southern California Public Power Authority (Milford Wind Corridor Project); Series 2010 1, RB		5.00	%		07/01/24		2,000		2,094,460
Twin Rivers Unified School District (School Facility Bridge Funding Program); Series 2007, COP (INS–AGM)(a)(b)(c)		3.50	%		05/31/13		1,500		1,500,000
Twin Rivers Unified School District; Series 2009, Unlimited Tax CAB GO BAN(j)		0.00	%		04/01/14		750		681,232
University of California;
Series 2009 O, RB(g)		5.75	%		05/15/23		795		906,642
Series 2009 O, RB(g)		5.75	%		05/15/25		1,185		1,326,074
Vernon (City of);
Series 2009 A, Electric System RB		5.50	%		08/01/15		1,000		1,086,380
Series 2009 A, Electric System RB		5.13	%		08/01/21		1,500		1,543,455
West Contra Costa Unified School District (Election 2005); Series 2008 B, Unlimited Tax GO Bonds		6.00	%		08/01/23		1,000		1,090,710
									34,272,132
Colorado–2.20%
Colorado (State of) Health Facilities Authority (Christian Living Community’s Project); Series 2006 A, RB		5.25	%		01/01/15		500		501,515
Colorado Springs (City of); Series 2003 A, Sub. Lien Utilities System Improvement RB		5.00	%		11/15/19		1,560		1,691,992
Denver (City & County of);
Series 2008, Unlimited Tax GO Bonds(g)		5.00	%		08/01/24		2,000		2,175,120
Series 2008, Unlimited Tax GO Bonds(g)		5.00	%		08/01/25		500		539,460
Regional Transportation District (Denver Transport Partners); Series 2010, Private Activity RB		5.00	%		01/15/22		750		706,072
University of Colorado; Series 2009 A, Enterprise System RB		5.50	%		06/01/25		1,000		1,089,200
									6,703,359
Connecticut–0.33%
Hamden (Town of) (Whitney Center); Series 2009 B, Entrance Fee Principal Redemption RB		6.13	%		01/01/14		1,000		1,003,530
Delaware–0.15%
New Castle (County of) (Newark Charter School, Inc.); Series 2006, RB		5.00	%		09/01/22		500		460,040
Florida–6.54%
Brevard (County of) School District; Series 2004 B, Ref. COP (INS–NATL/FGIC)(c)		5.00	%		07/01/20		1,000		1,037,220
Broward (County of); Series 1998 E, Ref. Airport Systems RB (INS–NATL)(c)(d)		5.38	%		10/01/13		1,000		1,002,790
Citizens Property Insurance Corp. (High Risk Account); Series 2010 A-1, Sr. Sec. RB		5.25	%		06/01/17		2,000		2,090,320

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

10        Invesco Van Kampen Intermediate Term Municipal Income Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Florida–(continued)
Florida (State of) Seminole Indian Tribe; Series 2007 A, Special Obligation RB(f)		5.75	%		10/01/22	$	750	$	708,600
Highlands (County of) Health Facilities Authority (Adventist Health Sunbelt); Series 2008 A, RB(a)(b)		6.50	%		11/17/15		3,000		3,545,160
Hillsborough (County of) Industrial Development Authority (Tampa Electric Co.); Series 2006, Ref. PCR (INS–AMBAC)(a)(b)(c)		5.00	%		03/15/12		1,650		1,706,265
Lakeland (City of);
Series 2009, Ref. Energy System RB(b)		1.01	%		10/01/12		3,000		2,999,730
Series 2009, Ref. Energy System RB(b)		1.36	%		10/01/14		2,000		1,998,300
Main Street Community Development District; Series 2008 B, Capital Improvement Special Assessment RB(f)		6.90	%		05/01/17		250		226,482
Orange (County of) Health Facilities Authority (Orlando Lutheran Towers, Inc.); Series 2005, Ref. Health Care Facilities RB		5.38	%		07/01/20		500		457,550
Orange (County of) School Board; Series 2002 A, COP (INS–AMBAC)(c)		5.25	%		08/01/14		1,500		1,569,915
Putnam (County of) Development Authority (Seminole Electric Cooperative); Series 2007 A, Ref. PCR (INS–AMBAC)(a)(b)(c)		5.35	%		05/01/18		1,000		1,044,020
Tampa (City of); Series 2010, Ref. RB (INS–AGM)(c)(d)		5.00	%		10/01/18		1,000		1,043,580
Tolomato Community Development District; Series 2007, Special Assessment RB		6.45	%		05/01/23		670		493,167
									19,923,099
Georgia–1.81%
Atlanta (City of) (Beltline); Series 2009 B, Tax Allocation RB		6.75	%		01/01/20		1,000		1,002,890
Atlanta (City of) (Eastside); Series 2005 B, Tax Allocation RB		5.40	%		01/01/20		1,200		1,212,384
Atlanta (City of); Series 2009 A, Water & Wastewater RB		5.25	%		11/01/17		1,500		1,668,660
Fulton (County of) Development Authority (Robert Woodruff); Series 2009 B, Ref. RB		5.25	%		03/15/24		1,000		1,027,500
Putnam (County of) Development Authority (Georgia Power Co.); Series 1996, PCR		5.10	%		06/01/23		600		606,810
									5,518,244
Guam–0.71%
Guam (Territory of) (Section 30);
Series 2009 A, Government Limited Obligation RB		5.25	%		12/01/17		1,000		1,070,630
Series 2009 A, Government Limited Obligation RB		5.50	%		12/01/18		1,000		1,089,810
									2,160,440
Hawaii–1.41%
Hawaii (State of) Department of Budget & Finance (Kahala NUI Project); Series 2003 A, Special Purpose RB		7.88	%		11/15/23		250		263,295
Hawaii (State of) Department of Budget & Finance; Series 2009 C-2, Special Purpose RB		6.40	%		11/15/14		2,000		2,004,040
Hawaii (State of); Series 2008 DK, Unlimited Tax GO Bonds(g)		5.00	%		05/01/23		1,875		2,019,319
									4,286,654
Idaho–0.48%
Idaho (State of) Health Facilities Authority (St. Luke’s Health System); Series 2008 A, RB		6.50	%		11/01/23		500		550,620
Idaho (State of) Housing & Finance Association; Series 2008 A, Single Family Mortgage RB(d)		5.00	%		07/01/17		880		906,884
									1,457,504
Illinois–6.13%
Bartlett (Village of) (Quarry Redevelopment); Series 2007, Ref. Sr. Lien Tax Allocation RB		5.60	%		01/01/23		1,000		817,720
Bourbonnais (Village of) (Olivet Nazarene University); Series 2010, RB		5.13	%		11/01/25		1,500		1,409,205
Chicago (City of) (Metramarket Chicago Project); Series 2010 A, Tax Increment Allocation COP		6.87	%		02/15/24		1,309		1,328,271
Chicago (City of) (Roosevelt Square/ABLA Redevelopment Project); Series 2009 A, Ref. Tax Increment Allocation COP		7.13	%		03/15/22		960		944,986
Hodgkins (Village of); Series 2005, Ref. Sr. Lien Tax Allocation RB		5.00	%		01/01/14		500		526,465
Huntley (City of) Special Service Area No. 7; Series 2007, Ref. Special Tax RB (INS–AGC)(c)		4.60	%		03/01/17		921		977,365

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

11        Invesco Van Kampen Intermediate Term Municipal Income Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Illinois–(continued)
Illinois (State of) Finance Authority (Advocate Healthcare Network); Series 2008 D, RB		6.13	%		11/01/23	$	1,000	$	1,130,010
Illinois (State of) Finance Authority (Amerencips); Series 2000 A, Ref. PCR(a)(b)		5.50	%		02/28/14		1,000		995,670
Illinois (State of) Finance Authority (Art Institute Chicago); Series 2009 A, RB		5.25	%		03/01/19		1,000		1,105,270
Illinois (State of) Finance Authority (Fairview Obligated Group); Series 2008 A, Ref. RB(h)		6.00	%		08/15/22		750		658,177
Illinois (State of) Finance Authority (Illinois Institute Technology); Series 2009, RB		6.25	%		02/01/19		1,635		1,588,272
Illinois (State of) Finance Authority (Landing at Plymouth); Series 2005 A, RB		5.25	%		05/15/14		500		487,435
Illinois (State of) Finance Authority (Park Place of Elmhurst); Series 2010 D-2, (TEMPS-65sm) RB		7.00	%		11/15/15		1,000		979,520
Illinois (State of) Finance Authority (Sherman Health System); Series 1997, Health Facilities RB (INS–AMBC)(c)		5.25	%		08/01/17		1,500		1,499,865
Illinois (State of) Finance Authority (Silver Cross Hospital and Medical Center); Series 2008, Ref. RB		6.00	%		08/15/23		1,000		1,006,540
Lincolnshire (Village of) Special Service Area No. 1 (Sedgebrook); Series 2004, Special Tax RB		5.00	%		03/01/11		100		99,986
Pingree Grove (Village of) (Cambridge Lakes Project); Series 2005, Special Tax RB		5.25	%		03/01/15		736		700,503
Railsplitter Tobacco Settlement Authority; Series 2010, RB		5.25	%		06/01/21		2,000		1,950,320
Round Lake Beach (Village of); Series 2003, Tax Allocation RB		4.65	%		12/15/13		460		460,409
									18,665,989
Indiana–3.00%
Allen (County of) Juvenile Justice Center Building Corp.; Series 2001, First Mortgage RB		5.50	%		01/01/12		1,000		1,052,460
Carmel (City of) Redevelopment Authority; Series 2006, RB (INS–NATL)(c)		5.00	%		07/01/22		1,000		1,049,580
Crown Point (City of) (Wittenberg Village); Series 2009 C-1, TEMPS Economic Development RB		7.25	%		11/15/14		1,000		987,110
Hobart Building Corp.; Series 2006, First Mortgage RB (INS–NATL/FGIC)(c)		5.50	%		07/15/13		830		908,916
Indiana (State of) Finance Authority (Indianapolis Power & Light Company); Series 2009 A, Ref. Environmental Facilities RB		4.90	%		01/01/16		2,000		2,143,420
Indiana (State of) Finance Authority (Community Foundation of Northwest Indiana); Series 2007, Hospital RB		5.50	%		03/01/22		500		503,730
Indiana (State of) Finance Authority (Sisters of St. Francis Health Services);
Series 2006 E, Ref. Health System RB (INS–AGM)(c)		5.25	%		11/01/24		365		379,969
Series 2006 E, Ref. Health System RB (INS–AGM)(c)		5.25	%		11/01/25		200		206,460
Series 2006 E, Ref. Health System RB (INS–AGM)(c)		5.25	%		11/01/26		175		179,134
Indiana (State of) Municipal Power Agency; Series 2009 B, Power Supply System RB		5.25	%		01/01/24		500		525,530
Indianapolis (City of) Airport Authority (Fed Ex Corp.); Series 2004, Ref. RB(d)		5.10	%		01/15/17		760		802,978
St Joseph (County of) (Holy Cross Village at Notre Dame); Series 2006 A, RB		5.75	%		05/15/13		400		399,508
									9,138,795
Iowa–1.29%
Altoona (City of) (Annual Appropriation); Series 2008, Tax Allocation RB		5.63	%		06/01/23		1,000		1,041,270
Coralville (City of); Series 2006 D, COP		5.25	%		06/01/22		500		518,985
Iowa (State of) Finance Authority (Iowa Health System); Series 2005 A, Health Facilities RB (INS–AGC)(c)		5.00	%		02/15/19		1,000		1,082,850
Iowa (State of) Finance Authority (Western Home Project); Series 2009, Health Care Facilities RB		6.85	%		11/01/19		1,310		1,286,224
									3,929,329
Kansas–0.88%
Kansas (State of) Development Finance Authority (Adventist Health); Series 2009, Hospital RB		5.50	%		11/15/23		1,000		1,097,810
Kansas (State of) Development Finance Authority (Hays Medical Center Inc.); Series 2005 L, Health Facilities RB		5.25	%		11/15/16		500		539,270
Shawnee (County of) Unified School District No. 501 (Topeka); Series 2002, Unlimited Tax GO Bonds(e)		5.00	%		02/01/12		1,000		1,042,410
									2,679,490

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

12        Invesco Van Kampen Intermediate Term Municipal Income Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Kentucky–1.49%
Kentucky (State of) Economic Development Finance Authority (Baptist Healthcare System);
Series 2009 A, Hospital Facilities RB		5.00	%		08/15/18	$	1,000	$	1,097,630
Series 2009 A, Hospital Facilities RB		5.38	%		08/15/24		1,000		1,047,190
Kentucky (State of) Housing Corp.; Series 2008 A, RB(d)		5.00	%		01/01/23		310		311,820
Louisville & Jefferson (County of) Regional Airport Authority; Series 2003 C, Airport Systems RB (INS–AGM)(c)(d)		5.50	%		07/01/17		1,000		1,047,660
Paducah (City of) Electric Plant Board; Series 2009 A, RB (INS–AGC)(c)		5.00	%		10/01/25		1,000		1,038,920
									4,543,220
Louisiana–1.74%
Lakeshore Villages Master Community Development District; Series 2007, Special Assessment RB(h)		5.25	%		07/01/17		593		312,031
Louisiana (State of) Citizens Property Insurance Corp.;
Series 2006 B, Assessment RB (INS–AMBAC)(c)		5.00	%		06/01/20		1,000		1,008,710
Series 2009 C-1, Assessment RB (INS–AGC)(c)		5.88	%		06/01/23		1,000		1,081,690
Louisiana (State of) Rapides Finance Authority (Cleco Power LLC); Series 2007, RB(a)(b)(d)		5.25	%		03/01/13		1,000		1,044,930
New Orleans (City of) Aviation Board;
Series 2009 A-1, Ref. & Restructuring RB (INS–AGC)(c)		5.00	%		01/01/18		1,235		1,318,498
Series 2009 A-1, Ref. & Restructuring RB (INS–AGC)(c)		5.00	%		01/01/19		500		529,720
									5,295,579
Maryland–3.18%
Maryland (State of) Economic Development Corp. (Transit Facilities Project); Series 2010 A, RB		5.13	%		06/01/20		2,250		2,103,142
Maryland (State of) Economic Development Corp. (University of Maryland College Park Projects);
Series 2003, Student Housing RB(i)		5.75	%		06/01/13		625		695,769
Series 2006, Ref. Student Housing RB (INS–CIFG)(c)		5.00	%		06/01/13		1,000		1,054,070
Maryland (State of) Health & Higher Educational Facilities Authority (Charlestown Community); Series 2010, RB		5.50	%		01/01/22		1,000		1,007,480
Maryland (State of) Health & Higher Educational Facilities Authority (The Johns Hopkins Health System Obligated Group); Series 2008 B, RB(a)(b)		5.00	%		05/15/15		500		554,350
Maryland (State of) Health & Higher Educational Facilities Authority (Washington County Hospital); Series 2008, RB		5.25	%		01/01/23		250		246,948
Maryland (State of) Transportation Authority; Series 2008, RB		5.25	%		03/01/20		3,000		3,516,960
Prince George’s (County of) (National Harbor Project); Series 2004, Special Obligation Bonds		4.70	%		07/01/15		500		499,970
									9,678,689
Massachusetts–1.44%
Massachusetts (State of) Development Finance Agency (Carleton Willard Village); Series 2010, RB		5.25	%		12/01/25		650		627,426
Massachusetts (State of) Development Finance Agency (Dominion Energy Brayton); Series 2009 1, Solid Waste Disposal RB(a)(b)		5.75	%		05/01/19		1,500		1,602,105
Massachusetts (State of) Development Finance Agency (Sabis International Charter School); Series 2009 A, RB		6.70	%		04/15/21		500		525,805
Massachusetts (State of) Development Finance Agency; Series 2009 B-2, Senior Living Facility RB		6.25	%		06/01/14		335		329,221
Massachusetts (State of) Health & Educational Facilities Authority (Northeastern University); Series 2009 T-2, RB(a)(b)		4.10	%		04/19/12		1,000		1,031,830
Massachusetts (State of) Health & Educational Facilities Authority (Quincy Medical Center); Series 2008 A, RB		5.85	%		01/15/18		300		278,373
									4,394,760
Michigan–1.07%
Kent Hospital Finance Authority (Spectrum Health System); Series 2008 A, RB(a)(b)		5.50	%		01/15/15		1,000		1,115,760
Michigan (State of) Strategic Fund (The Dow Chemical Co.); Series 2003 A-1, Ref. Limited Obligation RB(a)(b)(d)		6.75	%		06/02/14		2,000		2,144,860
									3,260,620

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

13        Invesco Van Kampen Intermediate Term Municipal Income Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Minnesota–0.90%
Minneapolis (City of) (Fairview Health Services); Series 2008 A, Healthcare System RB		6.38	%		11/15/23	$	500	$	552,260
Northern Municipal Power Agency; Series 2009 A, Ref. Electric Systems RB (INS–AGC)(c)		5.00	%		01/01/15		2,000		2,185,060
									2,737,320
Mississippi–0.32%
Mississippi (State of) Business Finance Corp. (System Energy Resources, Inc.); Series 1998, PCR		5.88	%		04/01/22		1,000		985,230
Missouri–3.65%
Cape Girardeau (County of) Industrial Development Authority (St. Francis Medical Center); Series 2009, Healthcare Facilities RB		5.00	%		06/01/21		525		537,805
Fenton (City of) (Gravois Bluffs Redevelopment Project); Series 2006, Ref. Tax Allocation RB		5.00	%		04/01/13		500		521,520
Ferguson (City of) (Crossing at Halls Ferry); Series 2005, Ref. Tax Allocation RB		5.50	%		04/01/14		610		613,404
Kansas City (City of) Industrial Development Authority (Plaza Library Project); Series 2004, RB		6.00	%		03/01/16		1,175		1,192,707
Kirkwood (City of) Industrial Development Authority (Aberdeen Heights); Series 2010 C-1, TEMPS Retirement Community IDR		7.50	%		11/15/16		1,000		1,006,030
Manchester (City of) (Highway 141/Manchester Road); Series 2010, Ref. Transportation Tax Increment Allocation RB		6.00	%		11/01/25		2,250		2,152,552
Maryland Heights (City of) (South Heights Redevelopment); Series 2007 A, Ref. Tax Increment Allocation RB		5.50	%		09/01/18		220		206,965
Missouri (State of) Environmental Improvement & Energy Resources Authority (Kansas City Power & Light Co. Project); Series 2008, Environmental Improvement RB(a)(b)(d)		4.90	%		07/01/13		1,500		1,565,415
Raytown (City of) (Live Redevelopment Project); Series 2007, RB		5.00	%		12/01/16		500		540,135
St. Charles (City of); Series 2003 B, COP		5.50	%		05/01/18		2,000		2,067,380
St. Louis (County of) Industrial Development Authority (Friendship Village West County); Series 2007 A, Senior Living Facilities RB		5.25	%		09/01/17		250		251,820
St. Louis (County of) Industrial Development Authority (Ranken-Jordan); Series 2007, Ref. Health Facilities RB		5.00	%		11/15/22		540		472,225
									11,127,958
Nebraska–1.07%
Gage (County of) Hospital Authority No. 1 (Beatrice Community Hospital & Health); Series 2010 B, Healthcare Facilities RB		6.00	%		06/01/25		1,000		963,740
Nebraska (State of) Municipal Energy Agency; Series 2009 A, Ref. Power Supply System RB (INS–BHAC)(c)		5.13	%		04/01/23		560		607,191
University of Nebraska Facilities Corp. (Deferred Maintenance); Series 2006, RB (INS–AMBAC)(c)		5.00	%		07/15/17		1,500		1,694,190
									3,265,121
Nevada–1.62%
Clark (County of); Series 2009 C, Sub. Lien Airport System RB (INS–AGM)(c)		5.00	%		07/01/26		2,000		1,975,620
Humboldt (County of) (Idaho Power Co.); Series 2003, Ref. PCR		5.15	%		12/01/24		1,800		1,835,892
Las Vegas (City of) Redevelopment Agency; Series 2009 A, Tax Allocation RB		7.00	%		06/15/20		1,000		1,121,390
									4,932,902
New Hampshire–1.03%
Manchester (City of); Series 2009 A, Ref. General Airport RB		5.00	%		01/01/17		1,000		1,073,390
New Hampshire (State of) Business Finance Authority (United Illuminating Co.); Series 2009, PCR(a)(b)(d)		7.13	%		02/01/12		2,000		2,077,000
									3,150,390
New Jersey–0.97%
New Jersey (State of) Economic Development Authority (MSU Student Housing Project); Series 2010, RB		5.38	%		06/01/25		1,000		943,320
New Jersey (State of) Economic Development Authority (Presbyterian Home at Montgomery); Series 2001 A, First Mortgage RB		6.25	%		11/01/20		500		469,725

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

14        Invesco Van Kampen Intermediate Term Municipal Income Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
New Jersey–(continued)
New Jersey (State of) Health Care Facilities Financing Authority (St. Clares Hospital Inc.) Series 2004 A, Ref. RB(i)		5.25	%		07/01/20	$	1,000	$	1,157,360
New Jersey (State of) Health Care Facilities Financing Authority (St. Joseph’s Healthcare System); Series 2008, RB		5.75	%		07/01/15		360		378,558
									2,948,963
New Mexico–2.05%
Farmington (City of) (Public Service Co. of New Mexico San Juan); Series 2010 A, Ref. PCR(a)(b)		5.20	%		06/01/20		1,700		1,638,749
Jicarilla Apache Nation; Series 2003 A, RB(f)		5.50	%		09/01/23		1,000		1,036,310
New Mexico (State of) Finance Authority (Sr. Lien Public Project Revolving Fund); Series 2006 B, RB (INS–NATL)(c)		5.00	%		06/01/17		1,310		1,482,461
New Mexico (State of) Hospital Equipment Loan Council (La Vida Llena Project); Series 2010 A, First Mortgage RB		5.00	%		07/01/19		1,000		989,860
New Mexico (State of) Hospital Equipment Loan Council (Presbyterian Healthcare Services); Series 2008 A, Hospital RB		6.00	%		08/01/23		1,000		1,086,520
									6,233,900
New York–4.55%
Albany (City of) Industrial Development Agency (St. Peters Hospital Project); Series 2008 A, Civic Facilities RB		5.75	%		11/15/22		500		515,745
Brooklyn (City of) Arena Local Development Corp. (Barclays Center Project);
Series 2009, RB		5.75	%		07/15/17		1,000		1,079,530
Series 2009, RB		5.75	%		07/15/19		1,000		1,063,440
Long Island Power Authority; Series 2003 C, Electric System RB(e)		5.50	%		09/01/13		1,000		1,120,770
Madison (County of) Industrial Development Agency (Oneida Health System Incorporated Project); Series 2007, RB		4.50	%		02/01/17		165		160,388
Metropolitan Transportation Authority; Series 2002 A, Ref. Service Contract RB		5.75	%		07/01/18		1,000		1,163,210
Nassau (County of) Industrial Development Agency (Amsterdam at Harborside); Series 2007 A, Continuing Care Retirement RB		5.88	%		01/01/18		1,125		1,096,031
New York (City of) Industrial Development Agency (7 World Trade Center); Series 2005 A, Liberty IDR		6.25	%		03/01/15		1,500		1,500,705
New York (City of) Industrial Development Agency (Pilot Queens Baseball Stadium);
Series 2009, RB (INS–AGC)(c)		5.00	%		01/01/18		200		213,152
Series 2009, RB (INS–AGC)(c)		5.00	%		01/01/19		200		211,338
New York (City of) Transitional Finance Authority; Series 2009 S-3, Building Aid RB		5.00	%		01/15/21		1,000		1,084,000
New York (State of) Environmental Facilities Corp. (Municipal Water Financing); Series 2005 C, Clean Water & Drinking Revolving RB		5.00	%		06/15/21		2,000		2,178,340
Niagara Falls (City of) (Public Improvement); Series 1994, Unlimited Tax GO Bonds(e)		6.90	%		03/01/20		5		5,009
Seneca (County of) Industrial Development Agency (Seneca Meadows, Inc.); Series 2005, Solid Waste Disposal RB(a)(b)(d)(f)		6.63	%		10/01/13		1,000		995,810
Suffolk (County of) Industrial Development Agency (New York Institute Technology Project); Series 2000, Civic Facilities RB		5.25	%		03/01/21		1,425		1,456,664
									13,844,132
North Carolina–1.42%
North Carolina (State of) Eastern Municipal Power Agency;
Series 2008 C, Power System RB		6.75	%		01/01/24		1,000		1,132,380
Series 2008 C, Power System RB (INS–AGC)(c)		6.00	%		01/01/19		1,250		1,381,600
North Carolina (State of) Medical Care Commission (Salemtowne); Series 2006, Ref. First Mortgage Healthcare Facilities RB		5.00	%		10/01/15		500		494,535
North Carolina (State of) Medical Care Commission (South Minster Project); Series 2007 A, First Mortgage Retirement Facilities RB		5.30	%		10/01/19		250		240,640
North Carolina (State of) Municipal Power Agency No. 1 (Catawba); Series 2003 A, Electric RB (INS–NATL)(c)		5.25	%		01/01/19		1,000		1,059,760
									4,308,915

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

15        Invesco Van Kampen Intermediate Term Municipal Income Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
North Dakota–0.62%
Grand Forks (City of) (4000 Valley Square Project); Ref. Senior Housing RB		5.00	%		12/01/16	$	500	$	478,255
North Dakota (State of) Public Finance Authority (St. Revolving Federal Program); Series 2008 A, RB		5.50	%		10/01/19		1,195		1,406,204
									1,884,459
Ohio–3.77%
Adams (County of) (Adams County Hospital); Series 2005, Hospital Facility Improvement RB		6.25	%		09/01/20		500		400,760
American Municipal Power-Ohio Inc. (Hydroelectric Projects); Series 2009 C, RB		5.25	%		02/15/19		1,175		1,291,877
Athens (County of) (Improvement O’Bleness Memorial); Series 2003 A, Ref. RB		6.25	%		11/15/13		320		319,923
Cleveland (City of) (Cleveland Stadium Project); Series 2004, Ref. RB (INS–AMBAC)(c)		5.13	%		12/01/20		1,370		1,439,897
Montgomery (County of) (Miami Valley Hospital); Series 2009, RB(a)(b)		5.25	%		11/15/14		1,000		1,077,380
Montgomery (County of) (St. Leonard); Series 2010, Ref. Healthcare & MFH RB		6.00	%		04/01/20		1,000		1,007,590
Ohio (State of) Air Quality Development Authority (FirstEnergy Generation Corp.); Series 2009 C, Ref. PCR		5.63	%		06/01/18		2,000		2,135,820
Ohio (State of) Air Quality Development Authority (Ohio Power Co. Galvin); Series 2010 A, Ref. RB(a)(b)(d)		2.88	%		08/01/14		2,000		1,993,700
Ohio (State of) Municipal Electric Generation Agency (Joint Venture 5); Series 2004, Ref. Beneficial Interest Certificates (INS–AMBAC)(c)		5.00	%		02/15/21		750		777,143
Ohio (State of) State Water Development Authority (Allied Waste North America, Inc.); Series 2007 A, Solid Waste RB(d)		5.15	%		07/15/15		1,000		1,023,670
									11,467,760
Oklahoma–1.38%
Chickasawa Nation (Health System); Series 2007, RB(f)		5.38	%		12/01/17		370		392,866
Citizen Potawatomi Nation; Series 2004 A, Obligation Tax RB		5.75	%		09/01/11		775		771,489
Tulsa (City of) Airports Improvement Trust; Series 2009 A, General Airport RB		5.38	%		06/01/24		1,750		1,764,595
Tulsa (County of) Industrial Authority (Montereau Incorporated Project); Series 2010 A, Senior Living Community RB		6.88	%		11/01/23		1,300		1,283,633
									4,212,583
Pennsylvania–3.81%
Allegheny (County of) Airport Authority (Pittsburgh International Airport); Series 2010 A, Airport RB (INS–AGM)(c)(d)		5.00	%		01/01/16		1,000		1,048,280
Allegheny (County of) Industrial Development Authority (Residential Resources, Inc.); Series 2006, Lease RB		5.00	%		09/01/21		500		464,385
Allegheny (County of) Redevelopment Authority (Pittsburgh Mills Project); Series 2004, Tax Allocation RB		5.10	%		07/01/14		160		162,413
Delaware (County of) Authority (Elwyn Project); Series 2010, RB		5.00	%		06/01/20		1,980		1,990,415
Monroe (County of) Hospital Authority (Pocono Medical Center); Series 2007, RB		5.00	%		01/01/17		500		520,765
Montgomery (County of) Industrial Development Authority (Whitemarsh Continuing Care); Series 2005, Mortgage RB		6.00	%		02/01/21		500		449,735
Pennsylvania (State of) Economic Development Financing Authority (Exelon Generation Co., LLC); Series 2009 A, Ref. Exempt Facilities RB(a)(b)		5.00	%		06/01/12		2,000		2,076,440
Pennsylvania (State of) Economic Development Financing Authority (Waste Management Project); Series 2009, Solid Waste Disposal RB(a)(b)		2.63	%		12/03/12		1,000		1,006,240
Philadelphia (City of); Series 2004, Gas Works RB (INS–AGC)(c)		5.25	%		08/01/18		750		793,590
Philadelphia (State of) Redevelopment Authority (Neighborhood Transformation); Series 2002 A, RB (INS–NATL/FGIC)(c)		5.50	%		04/15/16		2,000		2,078,460
Washington (County of) Industrial Development Authority (Jefferson College); Series 2010, RB		5.00	%		11/01/25		1,000		1,010,200
									11,600,923
Puerto Rico–0.64%
Puerto Rico (Commonwealth of) Electric Power Authority; Series 2010 CCC, Power RB		5.00	%		07/01/24		2,000		1,933,700
South Carolina–2.10%
Georgetown (County of) (International Paper Co.); Series 2000 A, Ref. Environmental Improvement RB		5.95	%		03/15/14		1,000		1,083,970

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

16        Invesco Van Kampen Intermediate Term Municipal Income Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
South Carolina–(continued)
Lexington (Town of); Series 2001 A, Ref. Water and Sewer RB (INS–NATL)(c)		5.00	%		04/01/14	$	1,065	$	1,068,877
Piedmont (City of) Municipal Power Agency;
Series 2008 A 2, Electric RB		5.00	%		01/01/24		1,000		1,018,490
Series 2009 A-4, Ref. Electric RB		5.00	%		01/01/21		2,000		2,124,640
South Carolina (State of) Jobs–Economic Development Authority (AnMed Health); Series 2009 B, Ref. & Improvement Hospital RB (INS–AGC)(c)		5.00	%		02/01/19		1,000		1,082,920
									6,378,897
South Dakota–0.17%
South Dakota (State of) Health & Educational Facilities Authority (Regional Health); Series 2010, RB		5.00	%		09/01/22		500		519,830
Tennessee–0.81%
Chattanooga (City of) Health Educational & Housing Facility Board (CDFI Phase I LLC Project); Series 2005 A, Ref. RB		5.00	%		10/01/15		270		275,532
Franklin Special School District; Series 1999, Limited Tax CAB GO Bonds (INS–AGM)(c)(j)		0.00	%		06/01/15		700		640,878
Shelby (County of) Health Educational & Housing Facilities Board (Trezevant Manor Project); Series 2006 A, RB		5.25	%		09/01/16		500		489,485
Shelby (County of) Health Educational & Housing Facilities Board; Series 2008 C, RB		5.25	%		06/01/18		1,000		1,068,910
									2,474,805
Texas–8.36%
Alliance Airport Authority, Inc. (Federal Express Corp.); Series 2006, Ref. Special Facilities RB(d)		4.85	%		04/01/21		1,000		996,330
Austin (City of); Series 2009, Water & Wastewater System RB		5.00	%		11/15/24		1,500		1,621,860
Capital Area Cultural Education Facilities Finance Corp. (Roman Catholic Diocese); Series 2005 A, RB		5.50	%		04/01/25		1,610		1,535,538
Dallas (City of) Civic Center Convention Complex; Series 2009, Ref. & Improvement RB (INS–AGC)(c)		5.00	%		08/15/18		1,500		1,622,085
Dallas (County of) Flood Control District No. 1; Series 2002, Ref. Unlimited Tax GO Bonds		6.75	%		04/01/16		205		216,744
Dallas-Fort Worth (Cities of) International Airport Facilities Improvement Corp.;
Series 2002 C, Joint Airport RB (INS–NATL)(c)(d)		5.75	%		11/01/18		500		501,765
Series 2002 C, Joint Airport RB (INS–NATL)(c)(d)		6.00	%		11/01/23		500		501,875
Greenville (City of); Series 2010, Ref. & Improvement RB		5.00	%		02/15/25		2,355		2,395,176
Harris (County of) Health Facilities Development Corp. (Memorial Hermann Healthcare System); Series 2008 B, Ref. RB		7.00	%		12/01/27		500		544,815
Harris (County of) Industrial Development Corp. (Deer Park Refining Limited Partnership); Series 2006, Solid Waste Disposal RB		5.00	%		02/01/23		1,500		1,508,340
HFDC of Central Texas, Inc. (Sears Tyler Methodist); Series 2009 B, RB		6.38	%		11/15/19		625		591,075
Hidalgo (County of) Health Services Corp. (Mission Hospital, Inc.);
Series 2005, Hospital RB		5.00	%		08/15/13		500		516,095
Series 2005, Hospital RB		5.00	%		08/15/19		350		347,137
Hopkins (County of) Hospital District; Series 2008, Hospital RB		5.50	%		02/15/23		500		460,410
Lufkin (City of) Health Facilities Development Corp. (Memorial Health System East Texas); Series 2007, RB		5.13	%		02/15/22		250		235,053
Mesquite (City of) Health Facility Development Corp. (Retirement Facility Christian Care); Series 2005, RB		5.00	%		02/15/15		840		864,755
Mission (City of) Economic Development Corp. (Allied Waste N.A. Incorporated Project); Series 2007 A, Solid Waste Disposal RB(d)		5.20	%		04/01/18		400		406,404
Mission (City of) Economic Development Corp. (Waste Management, Inc.); Series 2008, Solid Waste Disposal RB(a)(b)(d)		6.00	%		08/01/13		500		527,980
North Texas Tollway Authority;
Series 2008 A, Ref. First Tier System RB		6.00	%		01/01/23		1,000		1,067,400
Series 2008 L-2, Ref. First Tier System RB(a)(b)		6.00	%		01/01/13		1,000		1,076,380
Tarrant (County of) Cultural Education Facilities Finance Corp. (Buckner Retirement Services, Inc.); Series 2007, Retirement Facility RB		5.00	%		11/15/17		500		519,630

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

17        Invesco Van Kampen Intermediate Term Municipal Income Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Texas–(continued)
Tarrant (County of) Cultural Education Facilities Finance Corp. (C.C. Young Memorial Home); Series 2009 B-2, Retirement Facility RB		6.50	%		02/15/14	$	1,000	$	971,250
Tarrant (County of) Cultural Education Facilities Finance Corp. (Christus Health); Series 2008 A, Ref. RB (INS–AGC)(c)		5.75	%		07/01/18		2,000		2,134,740
Tarrant (County of) Cultural Education Facilities Finance Corp. (Mirador); Series 2010 B-1, Retirement Facility TEMPS-75 RB		7.25	%		11/15/16		1,000		1,006,720
Tarrant (County of) Cultural Educational Facilities Finance Corp. (Baylor Healthcare System Project); Series 2009, Ref. RB		5.75	%		11/15/24		1,000		1,071,210
Texas (State of) Transportation Commission; Series 2006 A, First Tier RB		5.00	%		04/01/20		2,000		2,205,000
									25,445,767
Virgin Islands–1.21%
Virgin Islands Public Finance Authority (Matching Fund Loan Note Diago Project); Series 2009 A, Sub. RB		6.00	%		10/01/14		500		523,415
Virgin Islands Public Finance Authority (Matching Fund Loan Note); Series 2010 A, Sr. Lien RB		5.00	%		10/01/17		1,000		1,077,520
Virgin Islands Public Finance Authority; Series 2009 B, Ref. Sr. Lien RB		5.00	%		10/01/19		2,000		2,077,320
									3,678,255
Virginia–1.38%
Fairfax (County of) Industrial Development Authority (Healthcare Inova Health System); Series 2009 A, RB		5.13	%		05/15/24		1,000		1,052,280
Virginia (State of) Small Business Financing Authority (Hampton Roads Proton); Series 2009, RB(f)		8.00	%		07/01/19		1,000		1,020,200
Washington (County of) Industrial Development Authority (Mountain States Health Alliance); Series 2009 C, Hospital Facility RB		7.25	%		07/01/19		1,000		1,115,080
White Oak Village Shops Community Development Authority; Series 2007, Special Assessment RB		5.30	%		03/01/17		1,023		1,025,598
									4,213,158
Washington–3.60%
Clark (County of) Public Utility District No. 1; Series 2009, Ref. Electric System RB		5.00	%		01/01/23		1,000		1,033,340
FYI Properties (Washington St. District Project); Series 2009, Lease RB		5.25	%		06/01/26		2,000		2,064,740
Kalispel Tribe of Indians; Series 2008, RB		6.20	%		01/01/16		150		138,562
Seattle (City of); Series 2008, Ref. & Improvement Municipal Light & Power RB		5.75	%		04/01/23		1,725		1,973,262
Tes Properties; Series 2009, RB		5.00	%		12/01/24		1,000		1,042,020
Washington (State of) Higher Education Facilities Authority (Whitworth University Project); Series 2009, RB		5.13	%		10/01/24		1,500		1,473,300
Washington (State of); Series 2004 A, Unlimited Tax GO Bonds (INS–AGM)(c)		5.00	%		07/01/20		3,000		3,231,120
									10,956,344
West Virginia–0.24%
Ohio (County of) (Fort Henry Centre Tax Increment Financing District); Series 2007 A, Tax Increment Allocation RB		5.63	%		06/01/22		250		241,193
West Virginia (State of) Hospital Finance Authority (Thomas Health System, Inc.); Series 2008, Hospital RB		6.00	%		10/01/20		500		486,840
									728,033
Wisconsin–3.25%
Milwaukee (County of);
Series 2010 B, Ref. Airport RB(d)		5.00	%		12/01/22		1,250		1,244,300
Series 2010 B, Ref. Airport RB(d)		5.00	%		12/01/23		1,000		981,260
Superior (City of) (Superior Water, Light & Power Company); Series 2007 A, Ref. Collateralized Utility RB(d)		5.38	%		11/01/21		1,370		1,382,494
Wisconsin (State of) Health & Educational Facilities Authority (Aurora Health Care, Inc.);
Series 2009 B, RB(a)(b)		4.75	%		08/15/14		1,000		1,057,830
Series 2009 B, RB(a)(b)		5.13	%		08/15/16		1,000		1,073,070
Wisconsin (State of) Health & Educational Facilities Authority (Beaver Dam Community Hospital, Inc.); Series 2004 A, RB		5.50	%		08/15/14		500		499,960

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

18        Invesco Van Kampen Intermediate Term Municipal Income Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Wisconsin–(continued)
Wisconsin (State of) Health & Educational Facilities Authority (St. Johns Community, Inc.); Series 2009 C2, TEMPS RB		5.40	%		09/15/14	$	1,750	$	1,725,588
Wisconsin (State of) Housing & Economic Development Authority; Series 2008 A, Home Ownership RB(d)		5.30	%		09/01/23		1,875		1,920,544
									9,885,046
Wyoming–0.34%
Wyoming (State of) Municipal Power Agency; Series 2008 A, Power Supply System RB		5.38	%		01/01/25		1,000		1,050,070
TOTAL INVESTMENTS(k)–99.63% (Cost $294,760,931)									303,349,195
FLOATING RATE NOTE OBLIGATIONS–(1.40)%
Notes with interest rates ranging from 0.34% to 0.41% at 02/28/11 and contractual maturities of collateral ranging from 05/01/23 to 08/01/25 (See Note 1J)(l)									(4,275,000	)
OTHER ASSETS LESS LIABILITIES–1.77%									5,413,016
NET ASSETS–100.00%								$	304,487,211

Investment Abbreviations:

AGC	– Assured Guaranty Corp.
AGM	– Assured Guaranty Municipal Corp.
AMBAC	– American Municipal Bond Assurance Corp. (AMBAC filed for bankruptcy on November 8, 2010)
BAN	– Bond Anticipation Note
BHAC	– Berkshire Hathaway Assurance Corp.
CAB	– Capital Appreciation Bond
CIFG	– CIFG Assurance North America, Inc.
COP	– Certificates of Participation
FGIC	– Financial Guaranty Insurance Co.
FHA	– Federal Housing Administration
GO	– General Obligation
IDR	– Industrial Development Revenue Bonds
INS	– Insurer
MFH	– Multi-Family Housing
NATL	– National Public Finance Guarantee Corp.
PCR	– Pollution Control Revenue Bonds
RB	– Revenue Bonds
Ref	– Refunding
Sr.	– Senior
Sub.	– Subordinated
TEMPS	– Tax-Exempt Mandatory Paydown Securities

Notes to Schedule of Investments:

(a)	Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put.
(b)	Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 28, 2011.
(c)	Principal and/or interest payments are secured by the bond insurance company listed.
(d)	Security subject to the alternative minimum tax.
(e)	Advance refunded.
(f)	Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. 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 February 28, 2011 was $5,399,324, which represented 1.77% of the Fund’s Net Assets.
(g)	Underlying security related to Dealer Trusts entered into by the Fund. See Note 1J.
(h)	Defaulted security. Currently, the issuer is partially or fully in default with respect to interest payments. The aggregate value of these securities at February 28, 2011 was $970,208, which represented 0.32% of the Fund’s Net Assets
(i)	Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral.
(j)	Zero coupon bond issued at a discount.
(k)	This table provides a listing of those entities that have either issued, guaranteed, backed or otherwise enhanced the credit quality of more than 5% of the securities held in the portfolio. In instances where the entity has guaranteed, backed or otherwise enhanced the credit quality of a security, it is not primarily responsible for the issuer’s obligations but may be called upon to satisfy the issuer’s obligations.

Entities	Percentage
Assured Guaranty Corp.		5.90	%

^(l) Floating rate note obligations related to securities held. The interest rates shown reflect the rates in effect at February 28, 2011. At February 28, 2011, the Fund’s investments with a value of $6,966,615 are held by the Dealer Trusts and serve as collateral for the $4,275,000 in the floating rate note obligations outstanding at that date.

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

19        Invesco Van Kampen Intermediate Term Municipal Income Fund

Statement of Assets and Liabilities

February 28, 2011

Assets:
Investments, at value (Cost $294,760,931)	$	303,349,195
Cash		1,204,357
Receivable for:
Investments sold		644,266
Fund shares sold		1,106,961
Interest		4,026,618
Investment for trustee deferred compensation and retirement plans		1,525
Other assets		10,579
Total assets		310,343,501
Liabilities:
Floating rate note obligations		4,275,000
Payable for:
Fund shares reacquired		995,751
Dividends		346,472
Accrued fees to affiliates		121,389
Accrued other operating expenses		114,645
Trustee deferred compensation and retirement plans		3,033
Total liabilities		5,856,290
Net assets applicable to shares outstanding	$	304,487,211
Net assets consist of:
Shares of beneficial interest	$	295,956,235
Undistributed net investment income		832,926
Undistributed net realized gain (loss)		(890,214	)
Unrealized appreciation		8,588,264
	$	304,487,211
Net Assets:
Class A	$	222,213,935
Class B	$	13,089,322
Class C	$	55,088,316
Class Y	$	14,095,638
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Class A		21,021,181
Class B		1,219,105
Class C		5,217,929
Class Y		1,334,259
Class A:
Net asset value per share	$	10.57
Maximum offering price per share (Net asset value of $10.57 divided by 95.25%)	$	11.10
Class B:
Net asset value and offering price per share	$	10.74
Class C:
Net asset value and offering price per share	$	10.56
Class Y:
Net asset value and offering price per share	$	10.56

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

20        Invesco Van Kampen Intermediate Term Municipal Income Fund

Statement of Operations

For the period October 1, 2010 to February 28, 2011 and for the year ended September 30, 2010

	Five months ended			Year ended
	February 28,			September 30,
	2011			2010
Investment income:
Interest	$	6,749,832		$	15,639,392
Expenses:
Advisory fees		674,042			1,602,495
Administrative services fees		43,417			124,134
Custodian fees		6,002			27,225
Distribution fees:
Class A		248,493			617,096
Class B		60,784			148,694
Class C		242,114			509,955
Interest, facilities and maintenance fees expense		12,656			46,011
Transfer agent fees		100,017			144,546
Trustees’ and officers’ fees and benefits		9,230			30,452
Other		51,189			194,007
Total expenses		1,447,944			3,444,615
Less: Fees waived, expenses reimbursed and/or expense offset arrangement(s)		(135,082	)		(320,499	)
Net expenses		1,312,862			3,124,116
Net investment income		5,436,970			12,515,276
Net realized gain (loss) from investment securities		(442,664	)		469,341
Change in net unrealized appreciation (depreciation) of investment securities		(14,496,218	)		7,050,146
Net realized and unrealized gain (loss)		(14,938,882	)		7,519,487
Net increase (decrease) in net assets resulting from operations	$	(9,501,912	)	$	20,034,763

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

21        Invesco Van Kampen Intermediate Term Municipal Income Fund

Statement of Changes in Net Assets

For the period October 1, 2010 to February 28, 2011 and the years ended September 30, 2010 and 2009

	Five months ended			Year ended			Year ended
	February 28,			September 30,			September 30,
	2011			2010			2009
Operations:
Net investment income	$	5,436,970		$	12,515,276		$	8,202,008
Net realized gain (loss)		(442,664	)		469,341			(925,217	)
Change in net unrealized appreciation (depreciation)		(14,496,218	)		7,050,146			21,058,765
Net increase (decrease) in net assets resulting from operations		(9,501,912	)		20,034,763			28,335,556
Distributions to shareholders from net investment income:
Class A		(3,980,039	)		(9,748,647	)		(6,980,949	)
Class B		(196,695	)		(471,679	)		(410,066	)
Class C		(783,642	)		(1,630,279	)		(953,632	)
Class Y		(217,686	)		(326,758	)		(71,426	)
Total distributions from net investment income		(5,178,062	)		(12,177,363	)		(8,416,073	)
Share transactions–net:
Class A		(37,670,086	)		39,837,314			105,302,606
Class B		(2,612,170	)		2,341,908			2,158,866
Class C		(3,958,915	)		21,238,149			17,909,890
Class Y		5,274,913			2,557,394			5,525,948
Net increase (decrease) in net assets resulting from share transactions		(38,966,258	)		65,974,765			130,897,310
Net increase (decrease) in net assets		(53,646,232	)		73,832,165			150,816,793
Net assets:
Beginning of period		358,133,443			284,301,278			133,484,485
End of period (includes undistributed net investment income of $832,926, $579,262 and $249,582, respectively)	$	304,487,211		$	358,133,443		$	284,301,278

Notes to Financial Statements

February 28, 2011

NOTE 1—Significant Accounting Policies

Invesco Van Kampen Intermediate Term Municipal Income Fund (the “Fund”), is a series portfolio of AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds), (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of eleven separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class.

  Prior to June 1, 2010, the Fund operated as Van Kampen Intermediate Term Municipal Income Fund (the “Acquired Fund”), an investment portfolio of Van Kampen Tax Free Trust. The Acquired Fund was reorganized on June 1, 2010, (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

  Upon closing of the Reorganization, holders of the Acquired Fund’s Class A, Class B, Class C and Class I shares received Class A, Class B, Class C and Class Y shares, respectively of the Fund.

  Information for the Acquired Fund’s Class I shares prior to the Reorganization is included with Class Y shares of the Fund throughout this report.

  On February 28, 2011, the Fund’s fiscal year-end changed from September 30 to February 28.

  The Fund’s investment objective is to provide investors with a high level of current income exempt from federal income tax, consistent with preservation of capital.

  The Fund currently consists of four different classes of shares: Class A, Class B, Class C and Class Y. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class Y shares are sold at net asset value. Effective November 30, 2010, new or additional investments in Class B shares are no longer permitted. Existing shareholders of Class B shares may continue to reinvest dividends and capital gains distributions in Class B shares until they convert.

22        Invesco Van Kampen Intermediate Term Municipal Income Fund

Also, shareholders in Class B shares will be able to exchange those shares for Class B shares of other Invesco Funds offering such shares until they convert. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase. Redemption of Class B shares prior to conversion date will be subject to a CDSC.

  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.
	Securities are fair valued using an evaluated quote provided by an independent pricing service approved by the Board of Trustees. 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, yield, quality, coupon rate, maturity, type of issue, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Securities with a demand feature exercisable within one to seven days are valued at par. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and principal payments.
	Securities for which market quotations either are not readily available or are 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. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on transferability or disposition; trading in similar securities by the same issuer or comparable companies; relevant political, economic or issuer specific news; and other relevant factors under the circumstances.
	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 is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and 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 income are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable and tax-exempt 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.
	In addition, the Fund intends to invest in such municipal securities to allow it to qualify to pay shareholders “exempt-interest dividends”, as defined in the Internal Revenue Code.
	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. Prior to the Reorganization, incremental transfer agency fees which are unique to each class of shares of the Acquired Fund were charged to the operations of such class.
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

23        Invesco Van Kampen Intermediate Term Municipal Income Fund

	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 performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Securities Purchased on a When-Issued and Delayed Delivery Basis — The Fund may purchase and sell interests in portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date.
J.	Floating Rate Note Obligations — The Fund invests in inverse floating rate securities, such as Residual Interest Bonds (“RIBs”) or Tender Option Bonds (“TOBs”) for investment purposes and to enhance the yield of the Fund. Inverse floating rate investments tend to underperform the market for fixed rate bonds in a rising interest rate environment, but tend to outperform the market for fixed rate bonds when interest rates decline or remain relatively stable. Such transactions may be purchased in the secondary market without first owning the underlying bond or by the sale of fixed rate bonds by the Fund to special purpose trusts established by a broker dealer (“Dealer Trusts”) in exchange for cash and residual interests in the Dealer Trusts’ assets and cash flows, which are in the form of inverse floating rate securities. The Dealer Trusts finance the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Fund to retain residual interest in the bonds. The floating rate notes issued by the Dealer Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the Dealer Trusts for redemption at par at each reset date. The residual interests held by the Fund (inverse floating rate investments) include the right of the Fund (1) to cause the holders of the floating rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the municipal bond from the Dealer Trusts to the Fund, thereby collapsing the Dealer Trusts.
	TOBs are presently classified as private placement securities. Private placement securities are subject to restrictions on resale because they have not been registered under the Securities Act of 1933, as amended or are otherwise not readily marketable. As a result of the absence of a public trading market for these securities, they may be less liquid than publicly traded securities. Although these securities may be resold in privately negotiated transactions, the prices realized from these sales could be less than those originally paid by the Fund or less than what may be considered the fair value of such securities.
	The Fund accounts for the transfer of bonds to the Dealer Trusts as secured borrowings, with the securities transferred remaining in the Fund’s investment assets, and the related floating rate notes reflected as Fund liabilities under the caption Floating rate note obligations on the Statement of Assets and Liabilities. The Fund records the interest income from the fixed rate bonds under the caption Interest and records the expenses related to floating rate securities and any administrative expenses of the Dealer Trusts as a component of Interest, facilities and maintenance fees on the Statement of Operations.
	The Fund generally invests in inverse floating rate securities that include embedded leverage, thus exposing the Fund to greater risks and increased costs. The primary risks associated with inverse floating rate securities are varying degrees of liquidity and the changes in the value of such securities in response to changes in market rates of interest to a greater extent than the value of an equal principal amount of a fixed rate security having similar credit quality, redemption provisions and maturity which may cause the Fund’s net asset value to be more volatile than if it had not invested in inverse floating rate securities. In certain instances, the short-term floating rate interests created by the special purpose trust may not be able to be sold to third parties or, in the case of holders tendering (or putting) such interests for repayment of principal, may not be able to be remarketed to third parties. In such cases, the special purpose trust holding the long-term fixed rate bonds may be collapsed. In the case of RIBs or TOBs created by the contribution of long-term fixed income bonds by the Fund, the Fund will then be required to repay the principal amount of the tendered securities. During times of market volatility, illiquidity or uncertainty, the Fund could be required to sell other portfolio holdings at a disadvantageous time to raise cash to meet that obligation.
K.	Other Risks — The value of, payment of interest on, repayment of principal for and the ability to sell a municipal security may be affected by constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives and the economics of the regions in which the issuers are located.
	Since many municipal securities are issued to finance similar projects, especially those relating to education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal securities market and a Fund’s investments in municipal securities.
	There is some risk that a portion or all of the interest received from certain tax-free municipal securities could become taxable as a result of determinations by the Internal Revenue Service.
L.	Interest, Facilities and Maintenance Fees — Interest, Facilities and Maintenance Fees include interest and related borrowing costs such as commitment fees and other expenses associated with lines of credit and interest and administrative expenses related to establishing and maintaining floating rate note obligations, if any.

24        Invesco Van Kampen Intermediate Term Municipal Income Fund

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $500 million		0	.50%
Over $500 million		0	.45%

  Prior to the Reorganization, the Acquired Fund paid an advisory fee of $1,032,602 to Van Kampen Asset Management (“Van Kampen”) based on the annual rates above of the Acquired Fund’s average daily net assets for the period October 1, 2009 to May 31, 2010.

  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 Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provides discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  Effective on the Reorganization date, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class B, Class C and Class Y shares to 0.90%, 1.65%, 1.65% and 0.65% of average daily net assets, respectively. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the net annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest, facilities and maintenance fees; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, 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.

  Prior to the Reorganization, Van Kampen voluntarily waived $206,520 of fees and/or reimbursed expenses of the Acquired Fund during the year ended September 30, 2010.

  For the period October 1, 2010 to February 28, 2011 and the year ended September 30, 2010, the Adviser waived advisory fees of $134,808 and $113,979, respectively.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. Prior to the Reorganization, under separate accounting services and chief compliance officer (“CCO”) employment agreements, Van Kampen Investments Inc. (“VKII”) provided accounting services and the CCO provided compliance services to the Acquired Fund. Pursuant to such agreements, the Acquired Fund paid $25,848 during the year ended September 30, 2010 to VKII. For the period October 1, 2010 to February 28, 2011 and the year ended September 30, 2010, expenses incurred under these agreements are shown in the Statement of Operations as administrative services fees.

  Prior to the Reorganization, under a legal services agreement, VKII provided legal services to the Acquired Fund. Pursuant to such agreement, the Acquired Fund paid $17,640 to VKII during the year ended September 30, 2010.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. Pursuant to such agreement, for the period ended February 28, 2011 and the year ended September 30, 2010, IIS was paid $100,017 and $51,796, respectively, for providing such services. Prior to the Reorganization, the Acquired Fund paid $33,495 during the year ended September 30, 2010 to Van Kampen Investor Services Inc., which served as the Acquired Fund’s transfer agent. For the period October 1, 2010 to February 28, 2011 and the year ended September 30, 2010, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

  Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”). The Fund has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act, and a service plan (collectively, the “Plans”) for Class A shares, Class B shares and Class C shares to compensate IDI for the sale, distribution, shareholder servicing and maintenance of shareholder accounts for these shares. Under the Plans, the Fund will incur annual fees of up to 0.25% of Class A average daily net assets and up to 1.00% each of Class B and Class C average daily net assets.

  With respect to Class B and Class C shares, the Fund is authorized to reimburse in future years any distribution related expenses that exceed the maximum annual reimbursement rate for such class, so long as such reimbursement does not cause the Fund to exceed the Class B and Class C maximum annual reimbursement rate, respectively. With respect to Class A shares, distribution related expenses that exceed the maximum annual reimbursement rate for such class are not carried forward to future years and the Fund will not reimburse IDI for any such expenses.

  Prior to the Reorganization, the Acquired Fund had entered into master distribution agreements with Van Kampen Funds Inc. (“VKFI”) to serve as the distributor for the Class A, Class B and Class C shares. Pursuant to such agreements, the Acquired Fund paid $813,093 to VKFI during the year ended September 30, 2010.

  For the period October 1, 2010 to February 28, 2011 and the year ended September 30, 2010, expenses incurred under these agreements are shown in the Statement of Operations as distribution fees.

  Front-end sales commissions and CDSC (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to

25        Invesco Van Kampen Intermediate Term Municipal Income Fund

the shareholder. For the period October 1, 2010 to February 28, 2011, IDI advised the Fund that IDI retained $25,707 in front-end sales commissions from the sale of Class A shares and $24,102, $10,167 and $11,030 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders. For the period June 1, 2010 to September 30, 2010, IDI advised the Fund that IDI retained $26,495 in front-end sales commissions from the sale of Class A shares and $996, $3,657 and $2,824 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders. Prior to the Reorganization, VKFI retained $147,236 in front-end sales commissions from the sale of Class A shares and $21,852, for CDSC imposed on redemptions by shareholders.

  Certain officers and trustees of the Trust are officers and directors of Invesco, 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 February 28, 2011. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the period ended February 28, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Municipal Obligations	$	—	$	303,349,195	$	—	$	303,349,195

NOTE 4—Expense Offset Arrangement(s)

The expense offset arrangements are comprised of (1) transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions and (2) custodian credits which result from periodic overnight cash balances at the custodian. For the period October 1, 2010 to February 28, 2011, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $274.

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 are eligible to participate in a retirement plan that provides 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.

  For the period October 1, 2010 to February 28, 2011 and the period June 1, 2010 to September 30, 2010, the Fund paid legal fees of $812 and $245, respectively, for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust. Prior to the Reorganization, the Acquired Fund recognized expense of $5,291 during the year ended September 30, 2010, representing legal services provided by Skadden, Arps, Slate, Meagher & Flom LLP, of which a director of the Acquired Fund was a partner of such firm and he and his law firm provided legal services as legal counsel to the Acquired Fund.

NOTE 6—Cash Balances and Borrowings

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. 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.

  Inverse floating rate note obligations resulting from the transfer of bonds to Dealer Trusts are accounted for as secured borrowings. The average floating rate notes outstanding and average annual interest and fees related to inverse floating rate note obligations during the period October 1, 2010 to February 28, 2011 were $4,275,000 and 0.72%, respectively.

26        Invesco Van Kampen Intermediate Term Municipal Income Fund

NOTE 7—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Period October 1, 2010 to February 28, 2011 and the Years Ended September 30, 2010 and 2009:

	February 28,
	2011		September 30, 2010		September 30, 2009
Ordinary income	$	9	$	7,295	$	2,366
Ordinary income — tax exempt		5,178,053		12,170,068		8,333,691
Total distributions	$	5,178,062	$	12,177,363	$	8,336,057

Tax Components of Net Assets at Period-End:

	February 28,
	2011
Undistributed ordinary income	$	557,877
Net unrealized appreciation — investments		8,860,407
Temporary book/tax differences		(2,850	)
Post-October deferrals		(520,113	)
Capital loss carryforward		(364,345	)
Shares of beneficial interest		295,956,235
Total net assets	$	304,487,211

  The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable primarily to book and tax accretion and amortization differences and inverse floater adjustments.

  The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

  The Fund utilized $82,691 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Fund has a capital loss carryforward as of February 28, 2011 which expires as follows:

	Capital Loss
Expiration	Carryforward*
February 28, 2017	$	240,371
February 28, 2018		123,974
Total capital loss carryforward	$	364,345

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the period October 1, 2010 to February 28, 2011 was $5,330,685 and $42,260,449, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	12,123,007
Aggregate unrealized (depreciation) of investment securities		(3,262,600	)
Net unrealized appreciation of investment securities	$	8,860,407
Cost of investments for tax purposes is $294,488,788.

NOTE 9—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of bond accretion, on February 28, 2011, undistributed net investment income (loss) was decreased by $5,244 and undistributed net realized gain (loss) was increased by $5,244. This reclassification had no effect on the net assets of the Fund.

27        Invesco Van Kampen Intermediate Term Municipal Income Fund

NOTE 10—Share Information

	Summary of Share Activity
	Five months ended						Year ended						Year ended
	February 28, 2011(a)						September 30, 2010						September 30, 2009
	Shares			Amount			Shares			Amount			Shares			Amount
Sold:
Class A		2,613,423	(b)	$	27,966,667	(b)		10,404,703	(c)	$	111,830,282	(c)		16,604,175		$	166,439,181
Class B		67,652			739,203			592,419			6,463,394			712,094			7,257,125
Class C		628,986			6,717,693			2,963,393			31,775,657			2,517,951			25,323,551
Class Y		835,597			8,980,902			458,457			4,925,585			590,535			6,196,076
Issued as reinvestment of dividends:
Class A		306,167			3,269,283			771,076			8,299,496			530,836			5,393,306
Class B		14,353			155,537			34,155			373,544			29,205			299,557
Class C		56,407			601,070			118,971			1,280,132			68,636			697,263
Class Y		11,905			126,471			14,257			153,824			5,307			54,046
Reacquired:
Class A		(6,441,832	)		(68,906,036	)		(7,478,946	)		(80,292,464	)		(6,605,144	)		(66,529,881	)
Class B		(323,271	)(b)		(3,506,910	)(b)		(411,113	)(c)		(4,495,030	)(c)		(529,019	)		(5,397,816	)
Class C		(1,063,047	)		(11,277,678	)		(1,100,898	)		(11,817,640	)		(808,587	)		(8,110,924	)
Class Y		(362,274	)		(3,832,460	)		(235,118	)		(2,522,015	)		(72,367	)		(724,174	)
Net increase (decrease) in share activity		(3,655,934	)	$	(38,966,258	)		6,131,356		$	65,974,765			13,043,622		$	130,897,310

(a)	There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 56% of the outstanding shares of the Fund. 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 Trust has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.
(b)	Includes automatic conversion of 107,137 Class B shares into 108,821 Class A shares at a value of $1,159,680.
(c)	Includes automatic conversion of 125,572 Class B shares into 127,482 Class A shares at a value of $1,384,033.

28        Invesco Van Kampen Intermediate Term Municipal Income Fund

NOTE 11—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

																																				Supplemental Ratios
																																				Ratio of			Ratio of
																											Ratio of			Ratio of						expenses			expenses
																											expenses			expenses						to average net			to average net
																											to average			to average						assets with fee			assets without
																											net assets			net assets						waivers			fee waivers
					Net gains																						with fee			without			Ratio of net			(excluding			(excluding
	Net asset				(losses) on						Dividends			Distributions													waivers			fee waivers			investment			interest,			interest,
	value,		Net		securities (both			Total from			from net			from net						Net asset					Net assets,		and/or			and/or			income			facilities and			facilities and
	beginning		investment		realized and			investment			investment			realized			Total			value, end		Total			end of period		expenses			expenses			to average			maintenance			maintenance			Portfolio
	of period		income(a)		unrealized)			operations			income			gains			Distributions			of period		return			(000s omitted)		absorbed			absorbed			net assets			fees)			fees)			turnover(b)
Class A
Period ended 02/28/11	$	11.03	$	0.19	$	(0.47	)	$	(0.28	)	$	(0.18	)	$	—		$	(0.18	)	$	10.57		(2.57	)%(c)	$	222,214		0.81	%(d)		0.91	%(d)		4.19	%(d)		0.80	%(d)		0.90	%(d)		4	%
Year ended 09/30/10		10.80		0.44		0.21			0.65			(0.42	)		—			(0.42	)		11.03		6.24	(c)		270,764		0.83			0.93			4.05			0.82			0.92			12
Year ended 09/30/09		10.05		0.42		0.76			1.18			(0.43	)		—			(0.43	)		10.80		12.16	(e)		225,086		0.93			1.03			4.16			0.90			1.00			23
Year ended 09/30/08		10.59		0.41		(0.55	)		(0.14	)		(0.40	)		—			(0.40	)		10.05		(1.42	)(e)		103,657		1.00			1.10			3.95			0.95			1.06			61
Year ended 09/30/07		10.68		0.38		(0.10	)		0.28			(0.37	)		—			(0.37	)		10.59		2.63	(e)		81,398		0.98			1.08			3.54			0.98			1.08			11
Year ended 09/30/06		10.69		0.37		0.04			0.41			(0.37	)		(0.05	)		(0.42	)		10.68		3.91	(e)		79,420		0.99			1.09			3.46			0.99			1.09			21
Class B
Period ended 02/28/11		11.20		0.16		(0.47	)		(0.31	)		(0.15	)		—			(0.15	)		10.74		(2.81	)(c)		13,089		1.56	(d)		1.66	(d)		3.44	(d)		1.55	(d)		1.65	(d)		4
Year ended 09/30/10		10.96		0.36		0.22			0.58			(0.34	)		—			(0.34	)		11.20		5.46	(c)		16,362		1.58			1.68			3.30			1.57			1.67			12
Year ended 09/30/09		10.19		0.36		0.77			1.13			(0.36	)		—			(0.36	)		10.96		11.42	(f)(g)		13,648		1.57	(g)		1.67	(g)		3.53	(g)		1.55	(g)		1.65	(g)		23
Year ended 09/30/08		10.73		0.41		(0.56	)		(0.15	)		(0.39	)		—			(0.39	)		10.19		(1.45	)(f)(g)		10,519		1.05	(g)		1.15	(g)		3.87	(g)		1.00	(g)		1.11	(g)		61
Year ended 09/30/07		10.82		0.38		(0.10	)		0.28			(0.37	)		—			(0.37	)		10.73		2.59	((f)(g)		11,105		0.98	(g)		1.08	(g)		3.55	(g)		0.98	(g)		1.08	(g)		11
Year ended 09/30/06		10.82		0.39		0.04			0.43			(0.38	)		(0.05	)		(0.43	)		10.82		4.13	(f)(g)		14,631		0.78	(g)		0.88	(g)		3.67	(g)		0.78	(g)		0.88	(g)		21
Class C
Period ended 02/28/11		11.02		0.15		(0.47	)		(0.32	)		(0.14	)		—			(0.14	)		10.56		(2.88	)(c)		55,088		1.56	(d)		1.66	(d)		3.44	(d)		1.55	(d)		1.65	(d)		4
Year ended 09/30/10		10.78		0.35		0.23			0.58			(0.34	)		—			(0.34	)		11.02		5.53	(c)		61,646		1.58			1.68			3.30			1.57			1.67			12
Year ended 09/30/09		10.03		0.34		0.77			1.11			(0.36	)		—			(0.36	)		10.78		11.35	(h)		38,649		1.68			1.78			3.41			1.66			1.76			23
Year ended 09/30/08		10.57		0.33		(0.55	)		(0.22	)		(0.32	)		—			(0.32	)		10.03		(2.17	)(h)		18,425		1.75			1.85			3.20			1.70			1.81			61
Year ended 09/30/07		10.66		0.30		(0.10	)		0.20			(0.29	)		—			(0.29	)		10.57		1.88	(h)(g)		13,010		1.72	(g)		1.82	(g)		2.81	(g)		1.72	(g)		1.82	(g)		11
Year ended 09/30/06		10.68		0.29		0.03			0.32			(0.29	)		(0.05	)		(0.34	)		10.66		3.04	(h)		14,714		1.74			1.84			2.71			1.74			1.84			21
Class Y(i)
Period ended 02/28/11		11.03		0.20		(0.48	)		(0.28	)		(0.19	)		—			(0.19	)		10.56		(2.56	)(c)		14,096		0.56	(d)		0.66	(d)		4.44	(d)		0.55	(d)		0.65	(d)		4
Year ended 09/30/10		10.79		0.46		0.23			0.69			(0.45	)		—			(0.45	)		11.03		6.56	(c)		9,361		0.58			0.68			4.30			0.57			0.67			12
Year ended 09/30/09		10.04		0.45		0.76			1.21			(0.46	)		—			(0.46	)		10.79		12.45	(j)		6,598		0.67			0.77			4.49			0.65			0.75			23
Year ended 09/30/08		10.59		0.45		(0.58	)		(0.13	)		(0.42	)		—			(0.42	)		10.04		(1.27	)(j)		883		0.73			0.83			4.33			0.69			0.79			61
Year ended 09/30/07		10.67		0.40		(0.09	)		0.31			(0.39	)		—			(0.39	)		10.59		2.98	(j)		231		0.72			0.82			3.79			0.72			0.82			11
Year ended 09/30/06		10.69		0.39		0.03			0.42			(0.39	)		(0.05	)		(0.44	)		10.67		4.08	(j)		901		0.72			0.82			3.73			0.72			0.82			21

(a)	Calculated using average shares outstanding.
(b)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(c)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $240,265, $14,693, $58,524 and $12,380 for Class A, Class B, Class C, and Class Y, respectively.
(e)	Assumes reinvestment of all distributions for the period and does not include payment of the maximum sales charge of 4.75% or contingent deferred sales charge (CDSC). On purchases of $1 million or more, a CDSC of 1% may be imposed on certain redemptions made within eighteen months of purchase. If the sales charges were included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 0.25% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
(f)	Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 4%, charged on certain redemptions made within the first and second year of purchase and declining to 0% after the fifth year. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
(g)	The total return, ratio of expense to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of less than 1%.
(h)	Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 1%, charged on certain redemptions made within one year of purchase. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
(i)	On June 1, 2010, Class I Shares of the predecessor fund were reorganized into Class Y Shares of the Fund.
(j)	Assumes reinvestment of all distributions for the period. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption on Fund shares.

NOTE 12—Subsequent Event

The Board of Trustees unanimously approved an Agreement and Plan of Reorganization (the “Agreement”) pursuant to which the Fund would acquire all of the assets and liabilities of Invesco Municipal Fund (the “Target Fund”) in exchange for shares of the Fund.

  The Target Fund’s shareholders approved the Agreement on April 14, 2011 and the reorganization is expected to be consummated shortly thereafter. Upon closing of the reorganization, shareholders of the Target Fund will receive a corresponding class of shares of the Fund in exchange for their shares of the Target Fund and the Target Fund will liquidate and cease operations.

29        Invesco Van Kampen Intermediate Term Municipal Income Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds)

and Shareholders of Invesco Van Kampen Intermediate Term Municipal Income Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Van Kampen Intermediate Term Municipal Income Fund; (one of the funds constituting AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds), hereafter referred to as the “Fund”) at February 28, 2011, the results of its operations, the changes in its net assets and the financial highlights for the period ended February 28, 2011 and the year ended September 30, 2010, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at February 28, 2011 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The statement of changes in net assets and the financial highlights of the Fund for the periods ended September 30, 2009 and prior were audited by other independent auditors whose report dated November 20, 2009 expressed an unqualified opinion on those financial statements.

PRICEWATERHOUSECOOPERS LLP

April 21, 2011

Houston, Texas

30        Invesco Van Kampen Intermediate Term Municipal Income Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

  Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions, and redemption fees, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(09/01/10)		(02/28/11)1		Period2		(02/28/11)		Period2		Ratio
A	$	1,000.00	$	970.20	$	3.96	$	1,020.78	$	4.06		0.81	%
B		1,000.00		970.10		7.62		1,017.06		7.80		1.56
C		1,000.00		969.30		7.62		1,017.06		7.80		1.56
Y		1,000.00		973.30		2.74		1,022.02		2.81		0.56

1	The actual ending account value is based on the actual total return of the Fund for the period September 1, 2010 through February 28, 2011, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

31        Invesco Van Kampen Intermediate Term Municipal Income Fund

Tax Information

Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.

  The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.

  The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal period ended February 28, 2011:

Federal and State Income Tax
Tax-Exempt Interest Dividends*	100.00%

*  The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal period.

32        Invesco Van Kampen Intermediate Term Municipal Income Fund

Trustees and Officers

The address of each trustee and officer is AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds) (the “Trust”), 11 Greenway Plaza, Suite 2500, Houston, Texas 77046-1173. The trustees serve for the life of the Trust, subject to their earlier death, incapacitation, resignation, retirement or removal as more specifically provided in the Trust’s organizational documents. Each officer serves for a one year term or until their successors are elected and qualified. Column two below includes length of time served with predecessor entities, if any.

	Trustee	Principal Occupation(s)	Number of		Other
Name, Year of Birth and	and/or	During Past 5 Years	Funds in		Directorship(s)
Position(s) Held with the	Officer		Fund Complex		Held by
Trust	Since		Overseen by		Trustee
			Trustee
Interested Persons
Martin L. Flanagan1 — 1960 Trustee	2007	Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Trustee, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business Formerly: Chairman, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, IVZ Inc. (holding company), INVESCO Group Services, Inc. (service provider) and Invesco North American Holdings, Inc. (holding company); Director, Chief Executive Officer and President, Invesco Holding Company Limited (parent of Invesco and a global investment management firm); Director, Invesco Ltd.; Chairman, Investment Company Institute and President, Co-Chief Executive Officer, Co-President, Chief Operating Officer and Chief Financial Officer, Franklin Resources, Inc. (global investment management organization)		208	None
Philip A. Taylor2 — 1954 Trustee, President and Principal Executive Officer	2006	Head of North American Retail and Senior Managing Director, Invesco Ltd.; Director, Co-Chairman, Co-President and Co-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly Invesco Aim Management Group, Inc.) (financial services holding company); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent) and AIM GP Canada Inc. (general partner for limited partnerships); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) (registered transfer agent) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company) and Invesco Canada Holdings Inc. (holding company); Chief Executive Officer, Invesco Trimark Corporate Class Inc. (corporate mutual fund company) and Invesco Trimark Canada Fund Inc. (corporate mutual fund company); Director and Chief Executive Officer, Invesco Trimark Ltd./Invesco Trimark Ltèe (registered investment adviser and registered transfer agent) and Invesco Trimark Dealer Inc. (registered broker dealer); Trustee, President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); Trustee and Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only); and Director, Van Kampen Asset Management; Director, Chief Executive Officer and President, Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Director and Chairman, Van Kampen Investor Services Inc. and Director and President, Van Kampen Advisors, Inc. Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.) (registered broker dealer); Manager, Invesco PowerShares Capital Management LLC; Director, Chief Executive Officer and President, Invesco Advisers, Inc.; Director, Chairman, Chief Executive Officer and President, Invesco Aim Capital Management, Inc.; President, Invesco Trimark Dealer Inc. and Invesco Trimark Ltd./Invesco Trimark Ltèe; Director and President, AIM Trimark Corporate Class Inc. and AIM Trimark Canada Fund Inc.; Senior Managing Director, Invesco Holding Company Limited; Trustee and Executive Vice President, Tax-Free Investments Trust; Director and Chairman, Fund Management Company (former registered broker dealer); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc.		208	None
Wayne M. Whalen3 — 1939 Trustee	2010	Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex		226	Director of the Abraham Lincoln Presidential Library Foundation
Independent Trustees
Bruce L. Crockett — 1944 Trustee and Chair	1993	Chairman, Crockett Technology Associates (technology consulting company) Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer COMSAT Corporation; and Chairman, Board of Governors of INTELSAT (international communications company)		208	ACE Limited (insurance company); and Investment Company Institute
David C. Arch — 1945 Trustee	2010	Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.		226	Member of the Heartland Alliance Advisory Board, a nonprofit organization serving human needs based in Chicago. Board member of the Illinois Manufacturers’ Association. Member of the Board of Visitors, Institute for the Humanities, University of Michigan

1	Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.
2	Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.
3	Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers - (continued)

	Trustee	Principal Occupation(s)	Number of		Other
Name, Year of Birth and	and/or	During Past 5 Years	Funds in		Directorship(s)
Position(s) Held with the	Officer		Fund Complex		Held by
Trust	Since		Overseen by		Trustee
			Trustee
Independent Trustees
Bob R. Baker — 1936 Trustee	2003	Retired Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation		208	None
Frank S. Bayley — 1939 Trustee	2001	Retired		208	None
		Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie
James T. Bunch — 1942 Trustee	2003	Founder, Green, Manning & Bunch Ltd. (investment banking firm) Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation		208	Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society
Rodney Dammeyer — 1940 Trustee	2010	President of CAC, LLC, a private company offering capital investment and management advisory services. Formerly: Prior to January 2004, Director of TeleTech Holdings Inc.; Prior to 2002, Director of Arris Group, Inc.; Prior to 2001, Managing Partner at Equity Group Corporate Investments. Prior to 1995, Vice Chairman of Anixter International. Prior to 1985, experience includes Senior Vice President and Chief Financial Officer of Household International, Inc, Executive Vice President and Chief Financial Officer of Northwest Industries, Inc. and Partner of Arthur Andersen & Co.		226	Director of Quidel Corporation and Stericycle, Inc. Prior to May 2008, Trustee of The Scripps Research Institute. Prior to February 2008, Director of Ventana Medical Systems, Inc. Prior to April 2007, Director of GATX Corporation. Prior to April 2004, Director of TheraSense, Inc.
Albert R. Dowden — 1941 Trustee	2000	Director of a number of public and private business corporations, including the Boss Group, Ltd. (private investment and management); Reich & Tang Funds (5 portfolios) (registered investment company); and Homeowners of America Holding Corporation/ Homeowners of America Insurance Company (property casualty company) Formerly: Director, Continental Energy Services, LLC (oil and gas pipeline service); Director, CompuDyne Corporation (provider of product and services to the public security market) and Director, Annuity and Life Re (Holdings), Ltd. (reinsurance company); Director, President and Chief Executive Officer, Volvo Group North America, Inc.; Senior Vice President, AB Volvo; Director of various public and private corporations; Chairman, DHJ Media, Inc.; Director Magellan Insurance Company; and Director, The Hertz Corporation, Genmar Corporation (boat manufacturer), National Media Corporation; Advisory Board of Rotary Power International (designer, manufacturer, and seller of rotary power engines); and Chairman, Cortland Trust, Inc. (registered investment company)		208	Board of Nature’s Sunshine Products, Inc.
Jack M. Fields — 1952 Trustee	1997	Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Owner and Chief Executive Officer, Dos Angelos Ranch, L.P. (cattle, hunting, corporate entertainment), Discovery Global Education Fund (non-profit) and Cross Timbers Quail Research Ranch (non-profit) Formerly: Chief Executive Officer, Texana Timber LP (sustainable forestry company) and member of the U.S. House of Representatives		208	Administaff
Carl Frischling — 1937 Trustee	1993	Partner, law firm of Kramer Levin Naftalis and Frankel LLP		208	Director, Reich & Tang Funds (16 portfolios)
Prema Mathai-Davis — 1950 Trustee	1998	Retired Formerly: Chief Executive Officer, YWCA of the U.S.A.		208	None
Larry Soll — 1942 Trustee	2003	Retired Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)		208	None
Hugo F. Sonnenschein — 1940 Trustee	2010	President Emeritus and Honorary Trustee of the University of Chicago and the Adam Smith Distinguished Service Professor in the Department of Economics at the University of Chicago. Prior to July 2000, President of the University of Chicago.		226	Trustee of the University of Rochester and a member of its investment committee. Member of the National Academy of Sciences, the American Philosophical Society and a fellow of the American Academy of Arts and Sciences
Raymond Stickel, Jr. — 1944 Trustee	2005	Retired Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche		208	None

T-2

Trustees and Officers - (continued)

	Trustee	Principal Occupation(s)	Number of		Other
Name, Year of Birth and	and/or	During Past 5 Years	Funds in		Directorship(s)
Position(s) Held with the	Officer		Fund Complex		Held by
Trust	Since		Overseen by		Trustee
			Trustee
Other Officers
Russell C. Burk — 1958 Senior Vice President and Senior Officer	2005	Senior Vice President and Senior Officer of Invesco Funds		N/A	N/A
John M. Zerr — 1962 Senior Vice President, Chief Legal Officer and Secretary	2006	Director, Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp., Senior Vice President, Invesco Advisers, Inc. formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Secretary, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Manager, Invesco PowerShares Capital Management LLC; Director, Secretary and General Counsel, Van Kampen Asset Management; Director and Secretary, Van Kampen Advisors Inc.; Secretary and General Counsel, Van Kampen Funds Inc.; and Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; and Chief Legal Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco Advisers, Inc.; Director, Vice President and Secretary, Fund Management Company; Director, Senior Vice President, Secretary, General Counsel and Vice President, Invesco Aim Capital Management, Inc.; Chief Operating Officer and General Counsel, Liberty Ridge Capital, Inc. (an investment adviser); Vice President and Secretary, PBHG Funds (an investment company) and PBHG Insurance Series Fund (an investment company); Chief Operating Officer, General Counsel and Secretary, Old Mutual Investment Partners (a broker-dealer); General Counsel and Secretary, Old Mutual Fund Services (an administrator) and Old Mutual Shareholder Services (a shareholder servicing center); Executive Vice President, General Counsel and Secretary, Old Mutual Capital, Inc. (an investment adviser); and Vice President and Secretary, Old Mutual Advisors Funds (an investment company)		N/A	N/A
Lisa O. Brinkley — 1959 Vice President	2004	Global Compliance Director, Invesco Ltd.; Chief Compliance Officer, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc.(formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc.; and Vice President, The Invesco Funds Formerly: Senior Vice President, Invesco Management Group, Inc.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and The Invesco Funds; Vice President and Chief Compliance Officer, Invesco Aim Capital Management, Inc. and Invesco Distributors, Inc.; Vice President, Invesco Investment Services, Inc. and Fund Management Company		N/A	N/A
Sheri Morris — 1964 Vice President, Treasurer and Principal Financial Officer	1999	Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; and Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) Formerly: Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.		N/A	N/A
Karen Dunn Kelley — 1960 Vice President	1993	Head of Invesco’s World Wide Fixed Income and Cash Management Group; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) and Van Kampen Investments Inc.; Executive Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.); and Director, Invesco Mortgage Capital Inc.; Vice President, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only). Formerly: Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Director of Cash Management and Senior Vice President, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; President and Principal Executive Officer, Tax-Free Investments Trust; Director and President, Fund Management Company; Chief Cash Management Officer, Director of Cash Management, Senior Vice President, and Managing Director, Invesco Aim Capital Management, Inc.; Director of Cash Management, Senior Vice President, and Vice President, Invesco Advisers, Inc. and The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only)		N/A	N/A
Lance A. Rejsek — 1967 Anti-Money Laundering Compliance Officer	2005	Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.), The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange- Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, Van Kampen Asset Management, Van Kampen Investor Services Inc., and Van Kampen Funds Inc. Formerly: Anti-Money Laundering Compliance Officer, Fund Management Company, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.		N/A	N/A

T-3

Trustees and Officers - (continued)

	Trustee	Principal Occupation(s)	Number of		Other
Name, Year of Birth and	and/or	During Past 5 Years	Funds in		Directorship(s)
Position(s) Held with the	Officer		Fund Complex		Held by
Trust	Since		Overseen by		Trustee
			Trustee
Other Officers
Todd L. Spillane — 1958 Chief Compliance Officer	2006	Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser) (formerly known as Invesco Institutional (N.A.), Inc.); Chief Compliance Officer, The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange- Traded Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, INVESCO Private Capital Investments, Inc. (holding company), and Invesco Private Capital, Inc. (registered investment adviser); Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc. Formerly: Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. and Invesco Senior Secured Management, Inc. (registered investment adviser); Vice President, Invesco Aim Capital Management, Inc. and Fund Management Company		N/A	N/A

The Statement of Additional Information of the Trust includes additional information about the Fund’s Trustees and is available upon request, without charge, by calling 1.800.959.4246. Please refer to the Fund’s prospectus for information on the Fund’s sub-advisers.

Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza, Suite 2500	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Houston, TX 77046-1173	1555 Peachtree Street, N.E.	11 Greenway Plaza, Suite 2500	1201 Louisiana Street, Suite 2900
	Atlanta, GA 30309	Houston, TX 77046-1173	Houston, TX 77002-5678
Counsel to the Fund	Counsel to the Independent Trustees	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Kramer, Levin, Naftalis & Frankel LLP	Invesco Investment Services, Inc.	State Street Bank and Trust Company
2600 One Commerce Square	1177 Avenue of the Americas	11 Greenway Plaza, Suite 2500	225 Franklin
Philadelphia, PA 19103	New York, NY 10036-2714	Houston, TX 77046-1173	Boston, MA 02110-2801

T-4

Go Paperless with eDelivery Visit invesco.com/edelivery to receive quarterly statements, tax forms, fund reports and prospectuses with a service that’s all about eeees: – environmentally friendly. Go green by reducing the – efficient. Stop waiting for regular mail. Your documents number of trees used to produce paper. will be sent via email as soon as they’re available. – economical. Help reduce your fund’s printing and delivery – easy. Download, save and print files using your home expenses and put more capital back in your fund’s returns. computer with a few clicks of your mouse. This service is provided by Invesco Investment Services, Inc.

Invesco mailing information

Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.

Invesco privacy policy

You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.

     Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.

     Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.

Important notice regarding delivery of security holder documents

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.

Fund holdings and proxy voting information

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Forms N-Q on the SEC website at sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07890 and 033-66242.

     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 period between June 1, 2010, and June 30, 2010, is available at invesco.com/proxysearch. In addition, this information is available on the SEC website, sec.gov. Proxy voting information for the predecessor fund prior to its reorganization with the Fund on June 1, 2010, is not available on the Invesco website but is or will be available on the SEC website under the predecessor fund.

     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 U.S. 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.

VK-ITMI-AR-1 Invesco Distributors, Inc.

Annual Report to Shareholders February 28, 2011

Invesco Van Kampen Municipal Income Fund

Nasdaq:
A: VKMMX • B: VMIBX • C: VMICX • Y: VMIIX

2	Letters to Shareholders
4	Performance Summary
4	Management Discussion
6	Long-Term Fund Performance
8	Supplemental Information
9	Schedule of Investments
22	Financial Statements
24	Notes to Financial Statements
31	Financial Highlights
32	Auditor’s Report
33	Fund Expenses
34	Tax Information
T-1	Trustees and Officers

Letters to Shareholders

Philip Taylor

Dear Shareholders:

Enclosed is important information about your Fund and its performance.

     I’ve always believed that companies have an obligation to communicate regularly with their clients, and I believe that obligation is especially critical in the investment industry.

     Our website – invesco.com/us – offers timely market updates and commentary from many of our portfolio managers and other investment professionals, as well as quarterly messages from me. At invesco.com/us, you also can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer.

Invesco’s commitment to investment excellence

Invesco’s acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, broadened our range of investment products available to you. As a strong organization with a single focus – investment management – Invesco today offers investment capabilities and products to meet the needs of virtually any investor. In addition to traditional mutual funds, we manage a broad range of other solutions, including single-country, regional and global investments spanning major equity, fixed income and alternative asset classes.

     Investment excellence is our goal across our product line. Let me explain what that means. All of our funds are managed by specialized teams of investment professionals. Each team has a discrete investment perspective and philosophy, and all follow disciplined, repeatable processes governed by strong risk oversight. Our investment-centric culture provides an environment that seeks to reduce distractions, allowing our fund managers to concentrate on what they do best – manage your money.

     The importance of a broad product line and investment management expertise is obvious given the markets we’ve experienced over the last two to three years. We’ve seen that investment strategies can outperform or underperform their benchmark indexes for a variety of reasons, including where we are in the market cycle, and whether prevailing economic conditions are favorable or unfavorable for that strategy. That’s why no investment strategy can guarantee top-tier performance at all times. What investors can expect, and what Invesco offers, are funds that are managed according to their stated investment objectives and strategies, with robust risk oversight using consistent, repeatable investment processes that don’t change as short-term external conditions change – investments managed for the long term. This disciplined approach can’t guarantee a profit; no investment can do that, since all involve some measure of risk. But it can ensure that your money is managed the way we said it would be.

     This adherence to stated investment objectives and strategies allows your financial advisor to build a diversified portfolio that meets your individual risk tolerance and financial goals. It also means that when your goals change, your financial advisor will be able to find an appropriate investment option to meet your needs.

Invesco’s commitment to you

Invesco’s commitment to you remains stronger than ever. It’s one of the reasons we’ve grown to become one of the world’s largest asset managers.

     If you have questions about your account, please contact one of our client service representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, I invite you to email me directly at phil@invesco.com.

     I want to thank you for placing your trust in us. All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.

Sincerely,

Philip Taylor
Senior Managing Director, Invesco Ltd.

2 Invesco Van Kampen Municipal Income Fund

Bruce Crockett

Dear Fellow Shareholders:

With 2010 behind us, now is a good time to review our portfolios and ensure that we are adhering to a long-term, diversified investment strategy, which I’ve mentioned in previous letters. The year was notable for a number of reasons, but I’m sure most of us are grateful for a return to more stable markets and growing signs that the worst of the economic crisis is behind us.

     Your Board continued to oversee the Invesco Funds with a strong sense of responsibility for your savings and a deep appreciation for your continued trust. As always, we worked throughout 2010 to manage costs and ensure Invesco continued to place investor interests first.

     I’m pleased to report that the latest report from Morningstar affirmed the work we’ve done and included a number of positive comments regarding your Board’s oversight of the Invesco Funds.

     As background, Morningstar is a leading independent provider of investment research in North America, Europe, Australia and Asia. Morningstar stated, “A fund board’s duty is to represent the interests of fund shareholders, ensuring that the funds that it oversees charge reasonable fees and are run by capable advisors with a sound investment process.”

     Morningstar maintained your Fund Board’s “A” grade for Board Quality, praising the Board for taking “meaningful steps in recent years to act in fund shareholders’ interests.”¹ These steps included becoming much more proactive and vocal in overseeing how Invesco votes the funds’ shareholders’ proxies and requiring each fund trustee to invest more than one year’s board compensation in Invesco funds, further aligning our interests with those of our shareholders. Morningstar also cited the work I’ve done to make myself more available to fund shareholders via email.

     I am also pleased that Morningstar recognized the effort and the Fund Board’s efforts over the past several years to work together with management at Invesco to enhance performance and sharpen the focus on investors.

     Let me close by wishing you a happy and prosperous new year. As always, you’re welcome to contact me at bruce@brucecrockett.com with any questions or concerns you have. We look forward to representing you and serving you in the new year.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

1 Among the criteria Morningstar considers when evaluating a fund board are the degree to which the board is independent of the fund company; board members’ financial interests are aligned with those of fund shareholders; the board acts in fund shareholders’ interests; and the board works constructively with company management and investment personnel. Morningstar first awarded an “A” rating to the Invesco Funds board on September 13, 2007; that rating has been maintained in subsequent reports, the most recent of which was released December 17, 2010. Ratings are subject to change, usually every 12 to 24 months. Morningstar ratings range from “A” to “F.”

3 Invesco Van Kampen Municipal Income Fund

Management’s Discussion of Fund Performance

Performance summary

Please note that the fiscal year-end for Invesco Van Kampen Municipal Income Fund has changed to February 28. Therefore, the period covered by this report is from September 30, 2010, the date of the last annual report, through February 28, 2011, the Fund’s new fiscal year-end.

     All share classes of Invesco Van Kampen Municipal Income Fund at net asset value (NAV) posted negative returns during the five-month reporting period ended February 28, 2011. The Fund underperformed its broad market/style-specific benchmark, the Barclays Capital Municipal Bond Index. The Fund’s overweight health care allocation was the main detractor from relative performance versus the Barclays Capital Municipal Bond Index.

     Your Fund’s long-term performance appears later in this report.

Fund vs. Indexes

Cumulative total returns, 9/30/10 to 2/28/11, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

Class A Shares	-5.25	%
Class B Shares	-5.57
Class C Shares	-5.51
Class Y Shares	-5.16
Barclays Capital Municipal Bond Index▼ (Broad Market/Style-Specific Index)	-3.36

Source: ^▼Lipper Inc.

How we invest

The Fund’s investment objective is to provide investors with a high level of current income exempt from federal income tax, consistent with preservation of capital.

     Under normal market conditions, we seek to achieve the Fund’s investment objective by investing at least 80% of the Fund’s total assets in investment grade municipal securities. Investment grade securities are: securities rated BBB or higher by S&P, Baa or higher by Moody’s or securities with an equivalent rating by another agency, comparably rated short term securities or unrated municipal securities which we have determined to be of comparable quality at the time of purchase.

     Under normal market conditions, the Fund may invest up to 20% of its total assets in municipal securities rated below

investment grade. Lower grade securities are commonly referred to as junk bonds and involve greater risks than investments in higher grade securities. The Fund does not purchase securities that are in default or rated in categories lower than B- by S&P or B3 by Moody’s or unrated securities of comparable quality.

     The Fund may invest all or a substantial portion of its total assets in municipal securities that are subject to the federal alternative minimum tax. Accordingly, the Fund may not be a suitable investment for investors who are already subject to the federal alternative minimum tax or could become subject to the federal alternative minimum tax as a result of an investment in the Fund. From time to time, the Fund temporarily may invest up to 10% of its total assets in tax-exempt money market funds, and such instruments will be treated as

Portfolio Composition

By credit sector, based on total investments

Revenue Bonds	92.0	%
General Obligation Bonds	6.8
Pre-Refunded Bonds	1.2

Total Net Assets	$582.4 million
Total Number of Holdings		347

The Fund’s holdings are subject to change, and there is no assurance that the Fund will continue to hold any particular security.

Top 10 Fixed Income Issuers

1.	Illinois (State of) Metropolitan Pier &
	Exposition Authority	1.6	%
2.	Washington (State of)	1.6
3.	Wisconsin (State of) Housing &
	Economic Development Authority	1.4
4.	Foothill-Eastern Transportation
	Corridor Agency	1.4
5.	Denver (City & County of)	1.1
6.	Port Authority of New York
	& New Jersey	1.0
7.	Hawaii (State of)	1.0
8.	Matanuska-Susitna (Borough of)	0.9
9.	Long Island Power Authority	0.9
10.	Illinois (State of) Finance Authority	0.9

investments in municipal securities. Investments in other mutual funds may involve duplication of management fees and certain other expenses. We may sell securities based on factors such as degradation in credit quality, a decision to shorten or lengthen the Fund’s duration, or reducing exposure to a particular sector or issuer.

Market conditions and your Fund

In the U.S. and most of the developed world, a gradual and somewhat lackluster recovery continued, with central banks keeping interest rates at low levels and with few of them withdrawing their quantitative easing measures. This helped private sector companies improve their balance sheets and earnings following the global financial crisis that began to dissipate in early 2009. However, investor skepticism of global governments’ abilities to retire huge amounts of debt without affecting economic growth rates caused sovereign debt distress (especially for eurozone countries) and became a focal point of investor concern.

     In the U.S., economic recovery was present, although the pace of recovery remained modest as stubbornly high unemployment and export weakness continued to weigh on the economy. Real gross domestic product (GDP), the broadest measure of overall U.S. economic activity, increased at an annual rate of 3.1% in the fourth quarter of 2010, a marked improvement from the 2.6% decrease in 2009.¹ The U.S. Federal Reserve (the Fed) maintained a very accommodative monetary policy throughout the period, with the federal funds target rate unchanged in its range of zero to 0.25%.² The Fed recently described its view of the U.S. economy by stating: “The Committee will maintain the target range for the federal funds rate at 0 to ¹/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period.”²

     During the five-month period covered by this report, municipal bond mutual funds experienced extensive net outflows. Market volatility was heightened across the municipal asset class as U.S. Treasury yields increased and the market was flooded with new issuance during the last two months of 2010 in anticipation

4 Invesco Van Kampen Municipal Income Fund

of the Build America Bond (BAB) program ending. These factors contributed to rising investor concerns regarding the health of municipal finances, leading to redemptions and lower municipal bond prices.

     In terms of the yield curve positioning, the Fund’s overweight exposure to the middle part of the curve (12–15 years) detracted from relative returns as yields increased during most of the reporting period. Some of our yield curve and duration positioning was obtained through the use of inverse floating rate securities. Inverse floating rate securities are instruments which have an inverse relationship to a referenced interest rate. Inverse floating rate securities can be a more efficient means to manage duration, yield curve exposure and credit exposure and potentially can enhance yield.

     Sector performance was driven by quality spreads widening for most of the reporting period before tightening in February, largely a result of increased volatility and higher tax-exempt issuance. As a result, BBB-rated and lower credit quality sectors underperformed and detracted from the Fund’s relative performance as we held an overweight position in these market segments. The Fund’s overweight allocation in unrated bonds also detracted from relative performance.

     At a sector level, our underweight exposure to tax-supported bonds, specifically state general obligation (GO) and local GO bonds, enhanced Fund returns for the period. Our overweight exposure to health care bonds detracted from performance.

     Thank you for investing in Invesco Van Kampen Municipal Income Fund and for sharing our long-term investment horizon.

1 Bureau of Economic Analysis
2 U.S. Federal Reserve

The views and opinions expressed in management’s discussion of Fund performance are those of Invesco Advisers, Inc. These views and opinions are subject to change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or recommendations, or as an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but Invesco Advisers, Inc. makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

See important Fund and, if applicable, index disclosures later in this report.

Thomas Byron
Portfolio manager, is manager of Invesco Van Kampen Municipal Income Fund. Mr. Byron joined Invesco in 2010. He earned a B.S. in finance from Marquette University and an M.B.A. in finance from DePaul University.

Robert Stryker
Chartered Financial Analyst, portfolio manager, is manager of Invesco Van Kampen Municipal Income Fund. Mr. Stryker joined Invesco in 2010. He earned a B.S. in finance from the University of Illinois, Chicago.

Robert Wimmel
Portfolio manager, is manager of Invesco Van Kampen Municipal Income Fund. Mr. Wimmel joined Invesco in 2010. He earned a B.A. in anthropology from the University of Cincinnati and an M.A. in economics from the University of Illinois, Chicago.

5 Invesco Van Kampen Municipal Income Fund

Your Fund’s Long-Term Performance

Results of a $10,000 Investment – Oldest Share Class since Inception

Index data from 7/31/90, Fund data from 8/1/90

Past performance cannot guarantee comparable future results
     The data shown in the chart include reinvested distributions, applicable sales charges and Fund expenses including management fees. Index results include reinvested dividends, but they do not reflect sales charges. Performance of the peer group, if applicable, reflects fund expenses and management fees; performance of a market index does not.

Performance shown in the chart above and before tax table(s) does not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.

     This chart, which is a logarithmic chart, presents the fluctuations in the value of the Fund and its indexes. We believe that a logarithmic chart is more effective than other types of charts in illustrating changes in value during the early years

shown in the chart. The vertical axis, the one that indicates the dollar value of an investment, is constructed with each segment representing a percent change in the value of the investment. In this chart, each segment represents a doubling, or 100% change, in the value of the investment. In other words, the space between $5,000 and $10,000 is the same size as the space between $10,000 and $20,000, and so on.

6 Invesco Van Kampen Municipal Income Fund

Average Annual Total Returns

As of 2/28/11, including maximum applicable sales charges

									After Taxes
						After Taxes			on Distributions
			Before			on			and Sale of
			Taxes			Distributions			Fund Shares
Class A Shares
Inception (8/1/90)				4.72	%		4.70	%		4.82	%
	10	Years		3.00			2.99			3.25
	5	Years		0.90			0.90			1.48
	1	Year		-4.13			-4.13			-0.98
Class B Shares
Inception (8/24/92)				3.91	%		3.89	%		4.04	%
	10	Years		2.88			2.87			3.08
	5	Years		0.82			0.82			1.33
	1	Year		-4.91			-4.91			-1.68
Class C Shares
Inception (8/13/93)				3.09	%		3.08	%		3.26	%
	10	Years		2.73			2.73			2.93
	5	Years		1.12			1.12			1.58
	1	Year		-1.09			-1.09			0.81
Class Y Shares
Inception (8/12/05)				2.39	%		2.39	%		2.80	%
	5	Years		2.12			2.12			2.58
	1	Year		0.88			0.88			2.45

Average Annual Total Returns

As of 12/31/10, the most recent calendar quarter-end, including maximum applicable sales charges

									After Taxes
						After Taxes			on Distributions
			Before			on			and Sale of
			Taxes			Distributions			Fund Shares
Class A Shares
Inception (8/1/90)				4.75	%		4.73	%		4.84	%
	10	Years		3.09			3.08			3.33
	5	Years		1.08			1.08			1.64
	1	Year		-2.49			-2.49			0.10
Class B Shares
Inception (8/24/92)				3.94	%		3.91	%		4.06	%
	10	Years		2.98			2.98			3.17
	5	Years		1.00			1.00			1.49
	1	Year		-3.23			-3.23			-0.57
Class C Shares
Inception (8/13/93)				3.12	%		3.11	%		3.28	%
	10	Years		2.82			2.82			3.01
	5	Years		1.32			1.32			1.75
	1	Year		0.67			0.67			1.96
Class Y Shares
Inception (8/12/05)				2.43	%		2.43	%		2.83	%
	5	Years		2.33			2.32			2.75
	1	Year		2.66			2.66			3.63

Effective June 1, 2010, Class A, Class B, Class C and Class I shares of the predecessor fund advised by Van Kampen Asset Management were reorganized into Class A, Class B, Class C and Class Y shares, respectively, of Invesco Van Kampen Municipal Income Fund. Returns shown above for Class A, Class B, Class C and Class Y shares are blended returns of the predecessor fund and Invesco Van Kampen Municipal 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 visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated.

Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

     The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C and Class Y shares was 0.95%, 1.70%, 1.70% and 0.70%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

     Class A share performance reflects the maximum 4.75% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. For shares purchased prior to June 1, 2010, the CDSC on Class B shares declines from 4% at the time of purchase to 0% at the beginning of the seventh year. For shares purchased on or after June 1, 2010,

the CDSC on Class B shares declines from 5% at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class Y shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

     The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.

     After-tax returns are calculated using the historical highest individual federal marginal income tax rate. They do not reflect the effect of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their shares in tax-deferred accounts such as 401(k)s or IRAs. The Fund’s past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future.

7 Invesco Van Kampen Municipal Income Fund

Invesco Van Kampen Municipal Income Fund’s investment objective is to provide investors with a high level of current income exempt from federal income tax, consistent with preservation of capital.

n	Unless otherwise stated, information presented in this report is as of February 28, 2011, and is based on total net assets.
n	Unless otherwise noted, all data provided by Invesco.
n	To access your Fund’s reports/prospectus, visit invesco.com/fundreports.

About share classes

n	Class B or Class B5 shares may not be purchased or acquired by exchange from share classes other than Class B or Class B5 shares. Please see the prospectus for more information.
n	Class Y shares are available to only certain investors. Please see the prospectus for more information.

Principal risks of investing in the Fund

n Market risk. Market risk is the possibility that the market values of securities owned by the Fund will decline. Investments in debt securities generally are affected by changes in interest rates and the creditworthiness of the issuer. The prices of debt securities tend to fall as interest rates rise, and such declines tend to be greater among debt securities with longer maturities. As interest rates change, zero coupon bonds often fluctuate more in price than traditional debt securities and may subject the Fund to greater market risk than a fund that does not own these types of securities.

n Credit risk. Credit risk refers to an issuer’s ability to make timely payments of interest and principal. Medium-grade obligations possess speculative characteristics so that changes in economic conditions or other circumstances are more likely to lead to a weakened capacity of the issuer to make principal and interest payments than in the case of higher-rated securities. The credit quality of noninvestment grade securities is considered speculative by recognized rating agencies with respect to the issuer’s continuing ability to pay interest and principal. Lower-grade securities (also sometimes known as junk bonds) may have less liquidity and a higher incidence of default than higher-grade securities. The Fund may incur higher expenses to protect the Fund’s interest in such securities. The credit risks and market prices of

lower-grade securities generally are more sensitive to negative issuer developments or adverse economic conditions than are higher-grade securities.

n Income risk. The income you receive from the Fund is based primarily on prevailing interest rates, which can vary widely over the short and long term. If interest rates drop, your income from the Fund may drop as well.

n Call risk. If interest rates fall, it is possible that issuers of securities with high interest rates will prepay or call their securities before their maturity dates. In this event, the proceeds from the called securities would likely be reinvested by the Fund in securities bearing the new, lower interest rates, resulting in a possible decline in the Fund’s income and distributions to shareholders.

n Municipal securities risk. The yields of municipal securities may move differently and adversely compared to the yields of the overall debt securities markets. Although the interest received from municipal securities generally is exempt from federal income tax, the Fund may invest all or a substantial portion of its total assets in municipal securities subject to the federal alternative minimum tax. In addition, there could be changes in applicable tax laws or tax treatments that reduce or eliminate the current federal income tax exemption on municipal securities or otherwise adversely affect the current federal or state tax status of municipal securities.

n Risks of using derivative instruments. Risks of derivatives include possible imperfect correlation between the value of the instruments and the underlying assets; risks of default by the other party to certain transactions; risks that the transactions may result in losses that partially or completely offset gains in portfolio positions; and risks that the transactions may not be liquid.

n Alternative minimum tax. The Fund may invest up to 20% of its total assets in securities subject to the federal alternative minimum tax.

About indexes used in this report

n	The Barclays Capital Municipal Bond Index is an unmanaged index considered representative of the tax-exempt bond market.
n	The Fund is not managed to track the performance of any particular index, including the index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
n	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.

Other information

n

The Chartered Financial Analyst® (CFA®) designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis.

n

The returns shown in management’s discussion of Fund performance are based on net asset values calculated for shareholder transactions. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes, and as such, the net asset values for shareholder transactions and the returns based on those net asset values may differ from the net asset values and returns reported in the Financial Highlights.

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

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Nasdaq Symbols

Class A Shares	VKMMX
Class B Shares	VMIBX
Class C Shares	VMICX
Class Y Shares	VMIIX

8 Invesco Van Kampen Municipal Income Fund

Schedule of Investments

February 28, 2011

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Municipal Obligations–106.70%
Alabama–1.73%
Courtland (City of) Industrial Development Board (International Paper Co.); Series 2005 A, Ref. Solid Waste Disposal RB(a)		5.20	%		06/01/25	$	2,500	$	2,319,875
Health Care Authority for Baptist Health (The); Series 2009 A, RB(b)(c)		6.13	%		05/12/12		2,000		2,077,840
Huntsville-Redstone Village (City of) Special Care Facilities Financing Authority; Series 2007, Retirement Facilities RB		5.50	%		01/01/43		900		640,224
Mobile Industrial Development Board (Mobile Energy Services Co.); Series 1995, Ref. Solid Waste Disposal RB(d)		6.95	%		01/01/20		3		0
Selma (City of) Industrial Development Board (Gulf Opportunity Zone); Series 2009 A, RB		6.25	%		11/01/33		1,800		1,850,724
University of Alabama at Birmingham (The); Series 2008 A, Hospital RB(b)(c)		5.75	%		09/01/18		3,000		3,200,670
									10,089,333
Alaska–1.59%
Alaska (State of) Industrial Development & Export Authority (Lake Dorothy Hydroelectric); Series 2006, RB (INS–AMBAC)(a)(e)		5.00	%		12/01/35		3,015		2,378,051
Alaska (State of) Municipal Bond Bank Authority; Series 2009 1, RB		5.75	%		09/01/33		200		205,514
Matanuska-Susitna (Borough of) (Goose Creek Correctional Center); Series 2009, Lease RB (INS–AGL)(e)		6.00	%		09/01/28		5,000		5,497,500
Northern Tobacco Securitization Corp.; Series 2006 A, Tobacco Settlement Asset-Backed RB		5.00	%		06/01/46		2,000		1,183,060
									9,264,125
Arizona–3.17%
Flagstaff (City of) Industrial Development Authority (Senior Living Community Northern Arizona); Series 2007, Ref. RB		5.70	%		07/01/42		1,000		790,710
Glendale (City of) Industrial Development Authority (Midwestern University);
Series 2010, RB		5.00	%		05/15/35		500		445,290
Series 2010, RB		5.13	%		05/15/40		1,000		914,600
Glendale (City of) Industrial Development Authority; Series 2005, Ref. RB		5.00	%		12/01/35		1,655		1,381,428
Maricopa (County of) Pollution Control Corp. (Arizona Public Service Co. Palo Verde); Series 2009 A, Ref. PCR(b)(c)		6.00	%		05/01/14		1,000		1,051,460
Navajo (County of) Pollution Control Corp.;
Series 2009 C, PCR(b)(c)		5.50	%		06/01/14		1,000		1,074,040
Series 2009 E, PCR(b)(c)		5.75	%		06/01/16		1,000		1,091,740
Phoenix (City of) Civic Improvement Corp.;
Series 2002 B, Sr. Lien Airport RB (INS–NATL/FGIC)(a)(e)		5.25	%		07/01/32		5,000		4,750,450
Series 2008 B, Sr. Lien Airport RB(a)		5.25	%		07/01/19		1,000		1,071,560
Phoenix (City of) Industrial Development Authority (Career Success Schools);
Series 2009, Education RB		7.00	%		01/01/39		600		572,454
Series 2009, Education RB		7.13	%		01/01/45		570		548,027
Pima (County of) Industrial Development Authority (Global Water Resources LLC);
Series 2007, Water & Wastewater RB(a)		6.55	%		12/01/37		1,600		1,384,400
Series 2008, Water & Wastewater RB(a)		6.38	%		12/01/18		815		781,503
Pinal (County of) Electric District No. 4;
Series 2008, Electrical System RB		6.00	%		12/01/23		550		556,738
Series 2008, Electrical System RB		6.00	%		12/01/28		740		724,120
University Medical Center Corp. Arizona; Series 2009, Hospital RB		6.00	%		07/01/24		1,250		1,296,337
									18,434,857
California–9.94%
Adelanto (City of) Public Utility Authority (Utility System); Series 2009 A, Ref. RB		6.75	%		07/01/39		2,000		1,921,860

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

9        Invesco Van Kampen Municipal Income Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
California–(continued)
Bay Area Toll Authority (San Francisco Bay Area);
Series 2008 F-1, Toll Bridge RB(f)		5.00	%		04/01/39	$	3,620	$	3,434,222
Series 2009 F-1, Toll Bridge RB(f)		5.13	%		04/01/39		5,000		4,833,650
California (State of) County Tobacco Securitization Agency (Los Angeles County Securitization); Series 2006, Asset-Backed RB		5.25	%		06/01/21		2,000		1,768,620
California (State of) Health Facilities Financing Authority (Catholic Healthcare West); Series 2009 A, RB		6.00	%		07/01/39		2,000		2,011,540
California (State of) Statewide Communities Development Authority (California Baptist University); Series 2007 A, RB		5.50	%		11/01/38		1,250		1,025,825
California (State of) Statewide Communities Development Authority (Methodist Hospital); Series 2009, RB (INS–FHA)(e)		6.25	%		08/01/24		2,000		2,259,540
California (State of) Statewide Communities Development Authority (Southern California Presbyterian Homes);
Series 2009, Senior Living RB		6.25	%		11/15/19		500		521,100
Series 2009, Senior Living RB		6.63	%		11/15/24		2,000		2,085,000
Desert Hot Springs (City of) Redevelopment Agency (Merged Redevelopment); Series 2008 A-2, Tax Allocation RB		5.00	%		09/01/23		1,610		1,354,026
Foothill-Eastern Transportation Corridor Agency;
Series 1999, Ref. Toll Road CAB RB(g)		0.00	%		01/15/24		21,000		7,832,790
Series 1999, Ref. Toll Road CAB RB (INS–NATL)(e)(g)		0.00	%		01/15/17		3,000		1,989,840
Hesperia (City of) Public Financing Authority (Redevelopment & Housing); Series 2007 A, Tax Allocation RB (INS–SGI)(e)		5.00	%		09/01/37		1,400		895,216
Lancaster (City of) Redevelopment Agency (Combined Redevelopment Project Areas Housing Programs); Series 2009, Tax Allocation RB		6.50	%		08/01/29		2,000		2,052,640
Los Angeles (City of) Department of Water & Power; Series 2008 A-1, Sub. Power System RB(f)		5.25	%		07/01/38		2,000		1,986,920
Los Angeles (City of) Unified School District; Series 2009 I, Unlimited Tax GO Bonds		5.00	%		07/01/29		3,000		2,959,050
Richmond (City of) Joint Powers Financing Authority (Point Potrero); Series 2009 A, Lease RB		6.25	%		07/01/24		2,500		2,658,750
Sacramento (County of); Series 2010, Sr. Airport System RB		5.00	%		07/01/40		2,100		1,886,031
San Francisco (City of) City & County Redevelopment Agency (Mission Bay South Redevelopment); Series 2009 D, Tax Allocation RB		6.00	%		08/01/24		1,000		984,930
Southern California Tobacco Securitization Authority; Series 2006 A-1, Sr. Tobacco Settlement Asset-Backed RB		5.00	%		06/01/37		1,000		652,320
Turlock (City of) (Emanuel Medical Center, Inc.); Series 2004, Health Facilities COP		5.38	%		10/15/34		1,600		1,317,424
University of California;
Series 2009 O, RB(f)		5.75	%		05/15/23		2,295		2,617,287
Series 2009 O, RB(f)		5.75	%		05/15/25		3,390		3,793,580
West Contra Costa (County of) Unified School District (Election of 2002); Series 2003 B, Unlimited Tax GO Bonds (INS–AGM)(e)		5.00	%		08/01/26		5,000		5,027,100
									57,869,261
Colorado–2.73%
Colorado (State of) Health Facilities Authority (American Baptist Homes); Series 2007 A, RB		5.90	%		08/01/37		3,000		2,323,710
Colorado (State of) Health Facilities Authority (Evangelical Lutheran); Series 2004 A, RB		5.25	%		06/01/34		1,000		922,980
Colorado (State of) Regional Transportation District (Denver Transit Partners); Series 2010, Private Activity RB		6.00	%		01/15/41		1,250		1,154,100
Denver (City & County of) (Justice System);
Series 2008, Unlimited Tax GO Bonds(f)		5.00	%		08/01/24		1,500		1,631,340
Series 2008, Unlimited Tax GO Bonds(f)		5.00	%		08/01/25		6,000		6,473,520
Lincoln Park Metropolitan District; Series 2008, Ref. Improvement Unlimited Tax GO Bonds		6.20	%		12/01/37		2,000		1,829,880
Montezuma (County of) Hospital District (Health Facilities Enterprise); Series 2007, Ref. Hospital RB		5.90	%		10/01/37		500		391,600
Regional Transportation District (Denver Transit Partners Eagle P3); Series 2010, Private Activity RB		6.50	%		01/15/30		1,150		1,161,144
									15,888,274
Connecticut–0.68%
Connecticut (State of) Housing Finance Authority; Series 2010 D 2, Sub. Housing Mortgage Finance Program RB(a)		5.00	%		05/15/31		2,000		1,923,560

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

10        Invesco Van Kampen Municipal Income Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Connecticut–(continued)
Hamden (Town of) (Whitney Center);
Series 2009 B, Facility Entrance Fee Principal Redemption RB		6.13	%		01/01/14	$	1,000	$	1,003,530
Series 2009 C, RB(b)(c)		7.25	%		01/01/16		1,000		1,016,530
									3,943,620
Delaware–0.10%
New Castle (County of) (Newark Charter School, Inc.); Series 2006, RB		5.00	%		09/01/22		630		579,650
District of Columbia–3.61%
District of Columbia;
Series 2009 A, Income Tax RB(f)		5.00	%		12/01/23		4,285		4,651,153
Series 2009 B, Ref. Secured Income Tax RB(f)		5.00	%		12/01/24		1,715		1,848,050
District of Columbia (Gallery Place); Series 2002, Tax Increment Tax Allocation RB (INS–AGM)(e)		5.25	%		07/01/27		5,150		5,183,732
District of Columbia (Sibley Memorial Hospital); Series 2009, Hospital RB		6.38	%		10/01/34		2,200		2,284,502
District of Columbia Water & Sewer Authority; Series 2007 A, Public Utility RB (INS–AGM/NATL/FGIC)(e)		5.50	%		10/01/41		4,000		4,127,920
Metropolitan Washington Airports Authority; Series 2002 A, Airport System RB (INS–NATL/FGIC)(a)(e)		5.25	%		10/01/32		3,000		2,922,360
									21,017,717
Florida–5.23%
Alachua (County of) (North Florida Retirement Village);
Series 2007, RB		5.25	%		11/15/17		1,000		936,370
Series 2007, RB		5.88	%		11/15/36		1,000		752,220
Broward (County of); Series 2001 J 1, Airport System RB (INS–AMBAC)(a)(e)		5.25	%		10/01/26		5,000		4,796,750
Capital Trust Agency (Fort Lauderdale); Series 2003, Sr. RB(a)		5.75	%		01/01/32		1,000		827,150
Escambia (County of) Health Facilities Authority (Florida Health Care Facility Loan Veterans Health Administration Program); Series 2000, RB (INS–AMBAC)(e)		5.95	%		07/01/20		430		438,415
Florida (State of) Board of Education (Capital Outlay 2007); Series 2007 A, Ref. Education Unlimited Tax GO Bonds		5.00	%		06/01/19		3,715		4,117,817
Florida (State of) Department of Transportation (Turnpike Authority);
Series 2008 A, Ref. Turnpike RB(f)		5.00	%		07/01/26		1,305		1,335,093
Series 2008 A, Ref. Turnpike RB(f)		5.00	%		07/01/27		1,325		1,346,478
Series 2008 A, Ref. Turnpike RB(f)		5.00	%		07/01/28		1,440		1,456,214
Series 2008 A, Ref. Turnpike RB(f)		5.00	%		07/01/32		2,500		2,506,700
Main Street Community Development District; Series 2008 B, Capital Improvement Special Assessment RB(h)		6.90	%		05/01/17		1,000		905,930
Miami-Dade (County of) (Miami International Airport); Series 2010 A, Aviation RB		5.38	%		10/01/35		2,000		1,915,760
Orange (County of) Health Facilities Authority (Orlando Lutheran Towers); Series 2007, First Mortgage RB		5.50	%		07/01/38		1,750		1,384,215
Palm Beach (County of) Health Facilities Authority (The Waterford); Series 2007, RB		5.88	%		11/15/37		800		711,104
Putnam (County of) Development Authority (Seminole); Series 2007 A, Ref. PCR (INS–AMBAC)(b)(c)(e)		5.35	%		05/01/18		2,200		2,296,844
Reunion East Community Development District; Series 2005, Special Assessment RB(d)		5.80	%		05/01/36		490		239,267
Seminole Indian Tribe of Florida; Series 2007 A, Special Obligation RB(h)		5.25	%		10/01/27		3,000		2,506,080
Seven Oaks Community Development District II; Series 2003 A, Special Assessment RB		6.40	%		05/01/34		1,390		1,262,468
Tolomato Community Development District;
Series 2007, Special Assessment RB		6.55	%		05/01/27		400		279,144
Series 2007, Special Assessment RB		6.65	%		05/01/40		665		447,445
									30,461,464
Georgia–1.66%
Atlanta (City of) (Beltline); Series 2009 B, Tax Allocation RB		7.38	%		01/01/31		2,500		2,467,625
Atlanta (City of) (Eastside); Series 2005 B, Tax Allocation RB		5.60	%		01/01/30		2,500		2,318,700

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

11        Invesco Van Kampen Municipal Income Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Georgia–(continued)
Atlanta (City of);
Series 2009 A, Water & Wastewater RB		6.00	%		11/01/27	$	1,000	$	1,066,350
Series 2009 A, Water & Wastewater RB		6.00	%		11/01/28		1,000		1,059,860
Gainesville & Hall (County of) Development Authority (Acts Retirement-Life Community); Series 2009 A-2, Retirement Community RB		6.38	%		11/15/29		700		710,423
Putnam (County of) Development Authority (Georgia Power Co.); Series 1996, PCR		5.10	%		06/01/23		2,000		2,022,700
									9,645,658
Hawaii–1.80%
Hawaii (State of) Department of Budget & Finance (Hawaiian Electric Company); Series 2009, Special Purpose RB		6.50	%		07/01/39		2,000		1,973,520
Hawaii (State of) Department of Budget & Finance;
Series 2009 C-1, Special Purpose RB		7.50	%		11/15/15		2,000		2,021,300
Series 2009 C-2, Special Purpose RB		6.40	%		11/15/14		1,000		1,002,020
Hawaii (State of); Series 2008 DK, Unlimited Tax GO Bonds(f)		5.00	%		05/01/23		5,125		5,519,471
									10,516,311
Idaho–0.82%
Idaho (State of) Health Facilities Authority (St. Luke’s Health System); Series 2008 A, RB		6.50	%		11/01/23		1,000		1,101,240
Idaho (State of) Health Facilities Authority; Series 2007, Ref. Valley Vista Care Corp. RB		6.13	%		11/15/27		615		503,857
Idaho (State of) Housing & Finance Association;
Series 2008 A-CL-I, Single Family Mortgage RB(a)		5.75	%		07/01/39		1,840		1,854,352
Series 2008 A-CL-II, Single Family Mortgage RB(a)		5.85	%		07/01/36		1,320		1,342,704
									4,802,153
Illinois–12.58%
Bartlett (Village of) (Quarry Redevelopment); Series 2007, Ref. Sr. Lien Tax Allocation RB		5.60	%		01/01/23		2,250		1,839,870
Bolingbrook (Village of); Series 2005, Sales Tax RB		6.25	%		01/01/24		1,500		982,890
Chicago (City of) (Diversey/Narragansett); Series 2006, Ref. Tax Increment Allocation COP		7.46	%		02/15/26		480		460,186
Chicago (City of) (Lakefront Millennium Parking Facility); Series 1999, Limited Tax GO Bonds(i)		5.65	%		01/01/12		3,000		3,191,070
Chicago (City of) (O’Hare International Airport); Series 2008 A, Airport RB (INS–AGM)(e)(f)		5.00	%		01/01/33		3,000		2,858,040
Chicago (City of) (Roosevelt Square/ABLA Redevelopment Project); Series 2009 A, Ref. Tax Increment Allocation COP		7.13	%		03/15/22		1,920		1,889,971
Chicago (City of) (San Drain & Ship Canal); Series 1997 A, Tax Allocation RB		7.75	%		01/01/14		505		505,985
Chicago (City of); Series 2000 C, Unlimited Tax GO Bonds (INS–NATL/FGIC)(e)		5.75	%		01/01/16		1,200		1,216,476
Gilberts (Village of) (The Conservancy Project); Series 2006 1, Special Tax RB(d)		5.38	%		03/01/16		1,000		519,300
Illinois (State of) Finance Authority (Advocate Health Care Network); Series 2008 D, RB		6.50	%		11/01/38		1,000		1,057,340
Illinois (State of) Finance Authority (Amerencips); Series 2000, Ref. PCR(b)(c)		5.50	%		02/28/14		5,050		5,028,134
Illinois (State of) Finance Authority (Art Institute of Chicago); Series 2009 A, RB		6.00	%		03/01/38		2,500		2,581,700
Illinois (State of) Finance Authority (Fairview Obligated Group);
Series 2008 A, Ref. RB(d)		5.50	%		08/15/18		1,000		896,190
Series 2008 A, Ref. RB(d)		6.00	%		08/15/22		250		219,393
Series 2008 A, Ref. RB(d)		6.13	%		08/15/28		1,500		1,224,630
Illinois (State of) Finance Authority (Kewanee Hospital); Series 2006, RB		5.10	%		08/15/31		920		710,507
Illinois (State of) Finance Authority (Northwestern Memorial Hospital);
Series 2009 A, RB(f)		5.38	%		08/15/24		1,000		1,057,400
Series 2009 A, RB(f)		5.75	%		08/15/30		2,000		2,052,460
Illinois (State of) Finance Authority (Park Place of Elmhurst); Series 2010 D-2, TEMPS RB		7.00	%		11/15/15		1,500		1,469,280

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

12        Invesco Van Kampen Municipal Income Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Illinois–(continued)
Illinois (State of) Finance Authority (Resurrection Health Care);
Series 1999 B, RB (INS–AGM)(e)		5.00	%		05/15/15	$	4,700	$	4,997,040
Series 1999 B, RB (INS–AGM)(e)		5.00	%		05/15/17		5,100		5,342,403
Series 1999 B, RB (INS–AGM)(e)		5.00	%		05/15/18		5,050		5,266,948
Illinois (State of) Finance Authority (Riverside Health System); Series 2009, RB		6.25	%		11/15/35		2,000		2,030,620
Illinois (State of) Finance Authority (Rush University Medical Center Obligated Group); Series 2009 A, RB		7.25	%		11/01/38		2,500		2,661,225
Illinois (State of) Finance Authority (Sherman Health Systems); Series 2007 A, RB		5.50	%		08/01/37		2,000		1,689,280
Illinois (State of) Finance Authority (Silver Cross Hospital and Medical Center); Series 2008, Ref. RB		6.00	%		08/15/23		1,745		1,756,412
Illinois (State of) Metropolitan Pier & Exposition Authority (McCormick Place Expansion);
Series 2002 B, Illinois Dedicated State Tax RB (INS–NATL)(e)(j)		5.40	%		06/15/19		9,250		9,306,885
Series 2010 A, RB		5.50	%		06/15/50		2,100		1,931,622
Illinois (State of) Will-Kankakee Regional Development Authority (Senior Estates Supportive Living); Series 2007, MFH RB(a)		7.00	%		12/01/42		425		367,574
McHenry (County of) (Wonder Lake Dredging); Series 2010, Special Tax RB		6.50	%		03/01/30		1,820		1,829,828
Pingree Grove (Village of) (Cambridge Lakes Project); Series 2005 05-1, Special Tax RB		5.25	%		03/01/15		1,439		1,369,597
Plano Special Service Area Number 10 (Lakewood Springs Club); Series 2007, Special Tax RB		5.80	%		03/01/37		1,500		734,835
Railsplitter Tobacco Settlement Authority; Series 2010, RB		6.00	%		06/01/28		3,375		3,310,706
United (City of) & Yorkville (City of) (Raintree Village); Series 2005, Special Tax RB		6.25	%		03/01/35		982		523,818
Volo (Village of) Special Service Area Number 3 (Symphony Meadows); Series 2006 1, Special Tax RB		6.00	%		03/01/36		548		417,401
									73,297,016
Indiana–1.56%
Indiana (State of) Finance Authority (Community Foundation of Northwest Indiana); Series 2007, Hospital RB		5.50	%		03/01/22		500		503,730
Indiana (State of) Finance Authority (Hoosier Care); Series 1999 A, RB		7.13	%		06/01/34		1,755		1,531,273
Indiana (State of) Municipal Power Agency; Series 2009 B, Power Supply System RB		6.00	%		01/01/39		3,000		3,113,580
Indianapolis (City of) Airport Authority (Fed Ex Corp.); Series 2004, Ref. RB(a)		5.10	%		01/15/17		1,500		1,584,825
Indianapolis (City of) Local Public Improvement Bond Bank; Series 1992 D, RB(k)		6.75	%		02/01/14		365		392,568
St Joseph (County of) Redevelopment District;
Series 1997 B, Tax Allocation CAB RB(g)		0.00	%		06/30/11		140		136,835
Series 1997 B, Tax Allocation CAB RB(g)		0.00	%		06/30/12		140		126,739
Series 1997 B, Tax Allocation CAB RB(g)		0.00	%		06/30/13		135		113,173
Series 1997 B, Tax Allocation CAB RB(g)		0.00	%		06/30/14		130		100,924
Series 1997 B, Tax Allocation CAB RB(g)		0.00	%		06/30/15		130		93,457
Series 1997 B, Tax Allocation CAB RB(g)		0.00	%		06/30/16		135		89,878
Series 1997 B, Tax Allocation CAB RB(g)		0.00	%		06/30/17		225		138,719
Vigo (County of) Hospital Authority (Union Hospital, Inc.); Series 2007, RB(h)		5.50	%		09/01/27		1,500		1,194,540
									9,120,241
Iowa–1.63%
Altoona (City of); Series 2008, Tax Allocation RB		6.00	%		06/01/34		1,860		1,860,874
Coralville (City of); Series 2006 D, COP		5.25	%		06/01/26		1,125		1,141,414
Iowa (State of) (I-Jobs Program); Series 2009 A, Special Obligation RB(f)(n)		5.00	%		06/01/27		4,650		4,869,015
Iowa (State of) Finance Authority (Madrid Home); Series 2007, Health Care Facilities RB		5.75	%		11/15/24		1,100		904,332
Iowa (State of) Tobacco Settlement Authority; Series 2005 C, Asset-Backed RB		5.38	%		06/01/38		1,000		711,260
									9,486,895

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

13        Invesco Van Kampen Municipal Income Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Kansas–0.26%
Kansas (State of) Development Finance Authority (Adventist Health System/Sunbelt Obligated Group); Series 2009 C, Hospital RB		5.50	%		11/15/29	$	1,500	$	1,526,880
Kentucky–2.02%
Kentucky (State of) Economic Development Finance Authority (Baptist Healthcare System);
Series 2009 A, Hospital Facilities RB		5.38	%		08/15/24		3,000		3,141,570
Series 2009 A, Hospital Facilities RB		5.63	%		08/15/27		1,000		1,037,880
Kentucky (State of) Economic Development Finance Authority (Louisville Arena Authority, Inc.); Sub. Series 2008 A-1, RB (INS–AGL)(e)		6.00	%		12/01/33		4,000		4,136,080
Kentucky (State of) Economic Development Finance Authority (Owensboro Medical Health System, Inc.); Series 2010 A, Hospital Facilities RB		6.50	%		03/01/45		1,500		1,432,995
Paducah Electric Plant Board; Series 2009 A, RB (INS–AGL)(e)		5.25	%		10/01/35		2,000		2,003,160
									11,751,685
Louisiana–1.44%
Lakeshore Villages Master Community Development District; Series 2007, Special Assessment RB(d)		5.25	%		07/01/17		1,364		717,723
Louisiana (State of) Public Facilities Authority (Entergy Louisiana LLC); Series 2010, RB		5.00	%		06/01/30		1,050		1,033,337
Louisiana (State of) Rapides Finance Authority (Cleco Power LLC);
Series 2007, RB(a)(b)(c)		5.25	%		03/01/13		1,550		1,619,641
Series 2008, RB(a)(b)(c)		6.00	%		10/01/11		2,000		2,042,360
New Orleans (City of) Aviation Board; Series 2009 A-1, Ref. & Restructuring RB (INS–AGL)(e)		6.00	%		01/01/23		1,000		1,106,820
St. John the Baptist (Parish of) (Marathon Oil Corp.); Series 2007 A, RB		5.13	%		06/01/37		2,000		1,849,300
									8,369,181
Maryland–1.68%
Baltimore (City of) (East Baltimore Research Park); Series 2008 A, Tax Allocation RB		7.00	%		09/01/38		1,000		964,610
Maryland (State of) Community Development Administration; Series 2007, RB(a)		5.05	%		09/01/32		2,105		1,958,787
Maryland (State of) Economic Development Corp. (Terminal); Series 2010 B, RB		5.75	%		06/01/35		1,460		1,318,526
Maryland (State of) Economic Development Corp. (Transportation Facilities); Series 2010 A, Economic Development RB		5.38	%		06/01/25		1,030		947,023
Maryland (State of) Health & Higher Educational Facilities Authority (Charlestown Community); Series 2010, RB		6.13	%		01/01/30		2,000		1,996,480
Maryland (State of) Transportation Authority; Series 2008, RB		5.25	%		03/01/20		2,000		2,344,640
Prince George’s (County of) (National Harbor); Series 2004, Special Obligation RB		5.20	%		07/01/34		300		253,455
									9,783,521
Massachusetts–0.85%
Massachusetts (State of) College Building Authority; Series 2009 A, RB		5.50	%		05/01/39		1,000		1,027,400
Massachusetts (State of) Development Finance Agency (Dominion Energy Brayton); Series 2009 1, Solid Waste Disposal RB(b)(c)		5.75	%		05/01/19		2,000		2,136,140
Massachusetts (State of) Development Finance Agency (Linden Ponds Inc.); Series 2007 A, RB		5.75	%		11/15/35		2,400		1,367,760
Massachusetts (State of) Health & Educational Facilities Authority; Series 1994, RB (INS–NATL)(e)		5.00	%		07/01/13		400		400,732
									4,932,032
Michigan–1.25%
Michigan (State of) Kent Hospital Finance Authority (Spectrum Health System);
Series 2008 A, RB(b)(c)		5.25	%		01/15/14		650		707,857
Series 2008 A, RB(b)(c)		5.50	%		01/15/15		375		418,410
Michigan (State of) Strategic Fund (Detroit Edison Co.); Series 2002 C, Ref. Limited Obligation RB (INS–SGI)(a)(e)		5.45	%		12/15/32		5,000		4,729,650
Michigan (State of) Strategic Fund (Genesee Power Station); Series 1994, Ref. Solid Waste Disposal RB(a)		7.50	%		01/01/21		1,545		1,413,613
									7,269,530

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

14        Invesco Van Kampen Municipal Income Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Minnesota–1.17%
Chisago (City of) (CDL Homes LLC); Series 2007, Health Care Facilities RB		6.00	%		08/01/42	$	450	$	395,649
Columbia Heights (City of) (Crest View Corp.); Series 2007 A, Ref. MFH & Health Care Facilities RB		5.70	%		07/01/42		1,000		701,030
Minneapolis (City of) (Fairview Health Services); Series 2008 A, Health Care System RB		6.75	%		11/15/32		3,000		3,232,830
Minneapolis (City of) (Providence); Series 2007 A, Ref. Health Care Facilities RB		5.63	%		10/01/27		2,000		1,789,620
St. Paul (City of) Housing & Redevelopment Authority (Health Partners Obligated Group); Series 2006, Health Care Facilities RB		5.25	%		05/15/36		800		691,784
									6,810,913
Mississippi–0.34%
Mississippi (State of) Business Finance Corp. (System Energy Resources, Inc.); Series 1998, PCR		5.88	%		04/01/22		2,000		1,970,460
Missouri–3.55%
Cape Girardeau (County of) Industrial Development Authority (St. Francis Medical Center); Series 2009, Health Care Facilities RB		5.75	%		06/01/39		2,150		2,143,829
Carthage (City of);
Series 2005, Hospital RB		5.75	%		04/01/22		1,000		842,670
Series 2005, Hospital RB		5.88	%		04/01/30		1,000		805,330
Kansas City (City of) Industrial Development Authority (Plaza Library Project); Series 2004, RB		6.00	%		03/01/16		2,615		2,654,408
Kansas City (City of) Tax Increment Financing Commission (Maincor); Series 2007 A, Tax Allocation RB		5.25	%		03/01/18		500		474,415
Kirkwood (City of) Industrial Development Authority (Aberdeen Heights); Series 2010 C-1, TEMPS Retirement Community RB		7.50	%		11/15/16		1,600		1,609,648
Maryland Heights (City of) (South Heights Redevelopment); Series 2007 A, Ref. Tax Allocation RB		5.50	%		09/01/18		605		569,154
Missouri (State of) Environmental Improvement & Energy Resources Authority (Kansas City Power & Light Co. Project); Series 2008 K, Environmental Improvement RB(a)(b)(c)		4.90	%		07/01/13		2,700		2,817,747
Missouri (State of) Health & Educational Facilities Authority (Lutheran Senior Living Facilities); Series 2005 B, Ref. RB		5.13	%		02/01/27		1,200		1,105,920
Missouri (State of) Health & Educational Facilities Authority (Senior Living Facilities-Lutheran); Series 2010, RB		5.50	%		02/01/42		950		820,639
Raytown (City of) (Live Redevelopment Plan); Series 2007 1, Appropriation-Supported Tax RB		5.13	%		12/01/31		3,325		3,055,841
St. Louis (City of) Industrial Development Authority (Loughborough Redevelopment); Series 2007, Ref. Tax Allocation RB		5.75	%		11/01/27		450		397,526
St. Louis (County of) Industrial Development Authority (Friendship Village West Community); Series 2007 A, Senior Living Facilities RB		5.38	%		09/01/21		1,000		973,020
St. Louis (County of) Industrial Development Authority (Ranken Jordan Project); Series 2007, Ref. Health Facilities RB		5.00	%		11/15/35		1,300		970,593
St. Louis (County of) Industrial Development Authority (St. Andrew’s Resources for Seniors);
Series 2007 A, Senior Living Facilities RB		6.38	%		12/01/30		500		424,595
Series 2007 A, Senior Living Facilities RB		6.38	%		12/01/41		1,250		1,017,087
									20,682,422
Montana–0.43%
Forsyth (City of) (Portland General Electric Co.); Series 1998, Ref. PCR		5.00	%		05/01/33		2,600		2,535,182
Nebraska–0.35%
Municipal Energy Agency of Nebraska; Series 2009 A, Power Supply System RB (INS–BHAC)(e)		5.38	%		04/01/39		1,000		1,018,990
University of Nebraska (Student Fees & Facilities); Series 2009 A, University RB		5.25	%		07/01/39		1,000		1,015,660
									2,034,650
Nevada–0.17%
Mesquite (City of) (Anthem at Mesquite);
Series 2007, Special Assessment RB		5.85	%		08/01/18		610		567,873
Series 2007, Special Assessment RB		6.00	%		08/01/27		525		417,732
									985,605

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

15        Invesco Van Kampen Municipal Income Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
New Hampshire–0.81%
New Hampshire (State of) Business Finance Authority (Huggins Hospital); Series 2009, First Mortgage RB		6.88	%		10/01/39	$	1,000	$	983,340
New Hampshire (State of) Business Finance Authority (Plymouth Cogeneration LP); Series 1993, Electric Facilities RB (Acquired 6/29/93, Cost $376,827)		7.75	%		06/01/14		385		376,480
New Hampshire (State of) Business Finance Authority (United Illuminating Co.); Series 1997, PCR(a)(b)(c)		7.13	%		02/02/12		3,250		3,375,125
									4,734,945
New Jersey–3.64%
Landis Sewage Authority (Registered Cars); Series 1993, Sewer RB (INS–NATL/FGIC)(c)(e)		9.32	%		09/19/19		2,350		2,698,129
New Jersey (State of) Economic Development Authority (Montclair State University Student Housing); Series 2010, RB		5.75	%		06/01/31		1,450		1,365,595
New Jersey (State of) Economic Development Authority (School Facilities Construction); Series 2009, RB		5.00	%		09/01/34		1,750		1,659,630
New Jersey (State of) Economic Development Authority (Seabrook Village, Inc. Facility); Series 2006, Ref. Retirement Community RB		5.25	%		11/15/26		750		635,528
New Jersey (State of) Health Care Facilities Financing Authority (St. Joseph’s Healthcare System); Series 2008, RB		5.75	%		07/01/15		2,045		2,150,420
New Jersey (State of) Higher Education Assistance Authority; Series 2009 A, Student Loan RB		5.63	%		06/01/30		1,000		1,019,740
New Jersey (State of) Housing & Mortgage Finance Agency (Single Family Housing); Series 2008 X, RB(a)		5.10	%		10/01/23		4,025		4,021,096
New Jersey (State of) Housing & Mortgage Finance Agency; Series 2008, RB		6.38	%		10/01/28		2,825		3,002,466
New Jersey (State of) Turnpike Authority;
Series 1991 C, RB(k)		6.50	%		01/01/16		2,725		3,072,056
Series 1991 C, RB (INS–NATL/IBC/BNY)(e)		6.50	%		01/01/16		565		658,734
Tobacco Settlement Financing Corp.; Series 2007 1A, RB		5.00	%		06/01/41		1,495		898,973
									21,182,367
New Mexico–0.66%
Farmington (City of) (Public Service Co. of New Mexico San Juan);
Series 2010 A, Ref. PCR(b)(c)		5.20	%		06/01/20		1,000		963,970
Series 2010 C, Ref. PCR		5.90	%		06/01/40		1,950		1,854,860
New Mexico (State of) Hospital Equipment Loan Council (Presbyterian Healthcare Services); Series 2008 A, Hospital RB(f)		6.38	%		08/01/32		1,000		1,055,810
									3,874,640
New York–5.52%
Brooklyn (City of) Arena Local Development Corp. (Barclays Center);
Series 2009, RB		6.25	%		07/15/40		1,280		1,252,941
Series 2009, RB		6.38	%		07/15/43		530		526,290
Series 2009, CAB RB(g)		0.00	%		07/15/35		5,000		954,250
Long Island Power Authority; Series 2008 A, Electric System RB		6.00	%		05/01/33		5,000		5,362,950
New York (State of) Energy Research & Development Authority (Brooklyn Union Gas Co.); Series 1991 B, Registered Residual Interest Gas Facility RB(a)(c)		11.92	%		07/01/26		3,000		3,007,440
New York (State of) Energy Research & Development Authority; Series 1993, RB(c)		11.98	%		04/01/20		2,500		2,588,700
New York (State of) Environmental Facilities Corp. (Municipal Water Financing); Series 2005 C, Clean Water & Drinking Revolving RB		5.00	%		06/15/21		1,545		1,682,768
New York (State of) Thruway Authority; Series 2009 A, Transportation Personal Income Tax RB(f)		5.00	%		03/15/28		2,000		2,083,980
New York City (City of) Industrial Development Agency (Liberty 7 World Trade Center); Series 2005 A, Liberty RB		6.25	%		03/01/15		3,000		3,001,410
New York City (City of) Industrial Development Agency (Polytechnic University); Series 2007, Civic Facility RB (INS–ACA)(e)		5.25	%		11/01/37		2,500		2,276,525
New York City (City of) Transitional Finance Authority; Series 2009 S-3, Building Aid RB		5.25	%		01/15/39		2,000		2,017,220
New York Liberty Development Corp. (National Sports Museum); Series 2006 A, Liberty RB (Acquired 8/7/06, Cost $750,000)(d)		6.13	%		02/15/19		750		7

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

16        Invesco Van Kampen Municipal Income Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
New York–(continued)
Port Authority of New York & New Jersey (Consolidated One Hundred Forty-Fourth); Series 2006, RB(f)		5.00	%		10/01/35	$	6,000	$	5,945,220
Port Authority of New York & New Jersey (JFK International Air Terminal, LLC); Series 2010, Special Obligation RB		6.00	%		12/01/42		1,500		1,462,050
									32,161,751
North Carolina–0.34%
North Carolina (State of) Medical Care Commission (Southminster); Series 2007 A, Retirement Facilities RB		5.63	%		10/01/27		1,000		892,320
North Carolina (State of) Medical Care Commission (WakeMed Health & Hospitals); Series 2009 A, Health Care Facilities RB (INS–AGL)(e)		5.63	%		10/01/38		1,100		1,108,811
									2,001,131
North Dakota–0.46%
Grand Forks (City of) (4000 Valley Square); Series 2006, Ref. Sr. Housing RB		5.20	%		12/01/26		1,000		811,600
McLean (County of) (Great River Energy); Series 2010 B, Solid Waste Facilities RB		5.15	%		07/01/40		1,000		931,380
Ward (County of) (Trinity Obligated Group); Series 2006, Health Care Facility RB		5.13	%		07/01/29		1,000		911,690
									2,654,670
Ohio–5.02%
Adams (County of) (Adams County Hospital); Series 2005, Hospital Facility Improvement RB		6.25	%		09/01/20		3,340		2,677,077
Cuyahoga (County of) (Eliza Jennings Senior Care Network); Series 2007 A, Health Care & Independent Living Facilities RB		5.75	%		05/15/27		500		432,730
Hamilton (County of) (Life Enriching Communities); Series 2006 A, Ref. Health Care RB		5.00	%		01/01/37		4,750		3,843,130
Lorain (County of) Series 2006, Catholic Hospital Facilities RB (INS–AGL)(e)		5.00	%		02/01/24		4,810		4,880,274
Ohio (State of) Air Quality Development Authority (Columbus Southern Power Co.); Series 2009 B, Ref. RB(b)(c)		5.80	%		12/01/19		3,000		3,027,150
Ohio (State of) Air Quality Development Authority (FirstEnergy Generation Corp.); Series 2009 C, Ref. PCR		5.63	%		06/01/18		2,850		3,043,543
Ohio (State of) Higher Educational Facility Commission (University Hospitals Health System, Inc.); Series 2009 A, RB		6.75	%		01/15/39		4,000		4,113,280
Ohio (State of) Housing Finance Agency (Mortgage-Backed Securities Program);
Series 2008 D, Residential Mortgage RB (INS–GNMA/FNMA/FHLMC)(a)(e)(f)		5.30	%		09/01/28		1,977		1,980,420
Series 2008 D, Residential Mortgage RB (INS–GNMA/FNMA/FHLMC)(a)(e)(f)		5.40	%		03/01/33		1,823		1,804,478
Ohio (State of) State Water Development Authority (Allied Waste North America, Inc.); Series 2007 A, Solid Waste RB(a)		5.15	%		07/15/15		1,750		1,791,423
Ohio (State of) Water Development Authority (FirstEnergy Nuclear Generation Corp.); Series 2009 A, Ref. PCR(b)(c)		5.88	%		06/01/16		1,000		1,077,150
Tuscarawas (County of) (Twin City Hospital); Series 2007, Hospital Facilities RB(d)		6.10	%		11/01/22		1,000		549,600
									29,220,255
Oklahoma–1.13%
Chickasaw (City of) Nation; Series 2007, Health System RB		6.25	%		12/01/32		1,050		1,088,356
Grand River Dam Authority;
Series 2008 A, RB (INS–BHAC)(e)		5.00	%		06/01/21		1,340		1,483,903
Series 2008 A, RB (INS–BHAC)(e)		5.00	%		06/01/22		1,340		1,460,613
Series 2008 A, RB (INS–BHAC)(e)		5.00	%		06/01/23		2,275		2,451,108
Oklahoma (State of) Housing Finance Agency; Series 1991 B, Mortgage Single Family RB (INS–GNMA)(a)(e)		8.00	%		08/01/18		85		86,255
									6,570,235
Oregon–0.26%
Warm Springs Reservation Confederated Tribes of Oregon (Pelton Round Butte); Series 2009 B, Hydroelectric Tribal Economic Development RB(h)		6.38	%		11/01/33		1,500		1,490,940
Pennsylvania–1.06%
Pennsylvania (State of) Economic Development Financing Authority (Exelon Generation Co., LLC); Series 2009 A, Ref. Exempt Facilities RB(b)(c)		5.00	%		06/01/12		1,750		1,816,885

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

17        Invesco Van Kampen Municipal Income Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Pennsylvania–(continued)
Pennsylvania (State of) Turnpike Commission;
Series 2009 A, Sub. Turnpike RB (INS–AGL)(e)		5.00	%		06/01/39	$	1,850	$	1,727,993
Series 2010 B2, Sub. RB(j)		5.75	%		12/01/28		2,150		1,654,124
Series 2010 B2, Sub. RB(j)		6.00	%		12/01/34		1,300		990,418
									6,189,420
Puerto Rico–1.78%
Puerto Rico (Commonwealth of) Electric Power Authority;
Series 2008 WW, Power RB		5.25	%		07/01/33		2,000		1,809,740
Series 2010 CCC, Power RB		5.25	%		07/01/27		2,000		1,929,680
Puerto Rico (Commonwealth of) Sales Tax Financing Corp.;
Series 2010 A, First Sub. Sales Tax RB		5.38	%		08/01/39		2,200		2,035,924
Series 2010 A, First Sub. Sales Tax RB		5.50	%		08/01/42		2,000		1,877,980
Series 2010 C, First Sub. Sales Tax RB		5.25	%		08/01/41		3,000		2,713,980
									10,367,304
Rhode Island–0.30%
Rhode Island (State of) Economic Development Corp.; Series 2008 A, Airport RB (INS–AGL)(a)(e)		5.25	%		07/01/28		1,810		1,774,560
South Carolina–1.86%
Horry (County of); Series 2010 A, Airport RB		5.00	%		07/01/40		2,000		1,746,400
Piedmont (City of) Municipal Power Agency; Series 2008 A 2, Electric RB		5.00	%		01/01/24		2,000		2,036,980
South Carolina (State of) Jobs-Economic Development Authority (AnMed Health);
Series 2009 B, Ref. & Improvement Hospital RB (INS–AGL)(e)		5.00	%		02/01/19		1,000		1,082,920
Series 2009 B, Ref. & Improvement Hospital RB (INS–AGL)(e)		5.38	%		02/01/29		2,000		2,024,360
South Carolina (State of) Jobs-Economic Development Authority (Palmetto Health); Series 2009, Ref. & Improvement Hospital RB		5.75	%		08/01/39		1,000		905,670
South Carolina (State of) Jobs-Economic Development Authority (Wesley Commons); Series 2006, Ref. First Mortgage Health Facilities RB		5.13	%		10/01/26		500		396,030
South Carolina (State of) Jobs-Economic Development Authority (Woodlands at Furman); Series 2007 A, RB		6.00	%		11/15/27		1,000		572,020
South Carolina (State of) State Public Service Authority (Santee Cooper); Series 2008 A, RB		5.50	%		01/01/38		2,000		2,076,560
									10,840,940
South Dakota–0.26%
Rapid City (City of); Series 2011 A, Ref. Airport RB		6.75	%		12/01/31		1,500		1,537,110
Tennessee–1.06%
Chattanooga (City of) Health Educational & Housing Facilities Board (Community Development Financial Institution Phase I LLC); Series 2005 A, Ref. Sr. RB		5.00	%		10/01/25		1,000		891,100
Elizabethton (City of) Health & Educational Facilities Board; Series 2000 B, Ref. & Improvement Hospital RB(i)		7.75	%		07/01/12		4,000		4,415,960
Johnson City (City of) Health & Educational Facilities Board (Mountain States Health); Series 2006 A, First Mortgage MTN Hospital RB		5.50	%		07/01/36		1,000		866,490
									6,173,550
Texas–10.15%
Alliance Airport Authority, Inc. (Federal Express Corp.); Series 2006, Ref. Special Facilities RB(a)		4.85	%		04/01/21		3,615		3,601,733
Angelina & Neches River Authority (Aspen Power LLC); Series 2007 A, Industrial Development Corp. Environmental RB(a)		6.50	%		11/01/29		440		265,905
Bexar (County of) Health Facilities Development Corp. (St. Luke’s Lutheran Hospital); Series 1991, Hospital RB(k)		7.00	%		05/01/21		500		658,710
Brazoria (County of) Brazos River Harbor Navigation (The Dow Chemical Co.); Series 2002 A 4, Environmental Facilities RB(a)(b)(c)		5.95	%		05/15/33		1,100		1,084,556

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

18        Invesco Van Kampen Municipal Income Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Texas–(continued)
Capital Area Cultural Education Facilities Finance Corp. (The Roman Catholic Diocese of Austin); Series 2005 B, RB		6.13	%		04/01/45	$	2,000	$	1,905,380
Dallas-Fort Worth (Cities of) International Airport Facilities Improvement Corp.;
Series 2001 A, Ref. & Improvement Airport RB (INS–BHAC/FGIC)(a)(e)		5.50	%		11/01/31		5,000		4,941,800
Series 2002 C, Joint Airport RB (INS–NATL)(a)(e)		5.75	%		11/01/18		500		501,765
Series 2002 C, Joint Airport RB (INS–NATL)(a)(e)		6.00	%		11/01/23		1,000		1,003,750
Harris (County of) Health Facilities Development Corp. (Memorial Hermann Healthcare System); Series 2008 B, Ref. Hospital RB		7.25	%		12/01/35		1,000		1,086,190
Harris (County of); Series 2009 A, Sr. Lien Toll Road RB		5.00	%		08/15/38		1,000		981,660
HFDC of Central Texas, Inc. (Sears Tyler Methodist); Series 2009 B, RB		6.38	%		11/15/19		1,000		945,720
Hopkins (County of) Hospital District; Series 2008, Hospital RB		5.50	%		02/15/23		1,805		1,662,080
Lufkin (City of) Health Facilities Development Corp. (Memorial Health System of East Texas); Series 2007, Health System RB		5.50	%		02/15/37		1,250		1,037,313
McLennan (County of) Public Facility Corp.; Series 2009, Project RB		6.63	%		06/01/35		3,000		3,163,050
Mission (City of) Economic Development Corp. (Waste Management, Inc.); Series 2008, Solid Waste Disposal RB(a)(b)(c)		6.00	%		08/01/13		2,000		2,111,920
North Texas Tollway Authority;
Series 2008 A, Ref. First Tier System RB		6.00	%		01/01/23		2,000		2,134,800
Series 2008 A, Ref. First Tier System RB		5.63	%		01/01/33		1,000		983,260
Series 2008 F, Ref. Toll Second Tier System RB		6.13	%		01/01/31		4,000		4,058,880
Series 2008 L-2, Ref. First Tier System RB(b)(c)		6.00	%		01/01/13		2,000		2,152,760
Tarrant (County of) Cultural Education Facilities Finance Corp. (Air Force Village Obligation); Series 2009, Retirement Facility RB		6.13	%		11/15/29		2,000		1,944,500
Tarrant (County of) Cultural Education Facilities Finance Corp. (Buckingham Senior Living Community, Inc.); Series 2007, Retirement Facility RB		5.75	%		11/15/37		1,750		1,454,022
Tarrant (County of) Cultural Education Facilities Finance Corp. (Buckner Retirement Services, Inc.);
Series 2007, Retirement Facility RB		5.00	%		11/15/17		500		519,630
Series 2007, Retirement Facility RB		5.25	%		11/15/37		4,000		3,554,200
Tarrant (County of) Cultural Education Facilities Finance Corp. (C.C. Young Memorial Home);
Series 2007, Retirement Facility RB		5.75	%		02/15/25		2,200		1,800,898
Series 2007, Retirement Facility RB		5.75	%		02/15/29		1,500		1,172,820
Series 2009 B-2, Retirement Facility RB		6.50	%		02/15/14		2,000		1,942,500
Tarrant (County of) Cultural Education Facilities Finance Corp. (Christus Health); Series 2008 A, Ref. RB (INS–AGL)(e)		5.75	%		07/01/18		3,250		3,468,952
Texas (State of) (Transportation Commission-Mobility Fund); Series 2008, Unlimited Tax GO Bonds(f)		5.00	%		04/01/28		4,000		4,183,120
Texas (State of) Department of Housing & Community Affairs; Series 1992 C 2, Regular Residual Interest Home Mortgage RB (INS–GNMA/FNMA/FHLMC)(a)(c)(e)		12.89	%		07/02/24		525		584,294
Texas (State of) Private Activity Surface Transportation Corp. (North Transit Express Mobility); Series 2009, Sr. Lien RB		6.88	%		12/31/39		2,000		2,024,940
Texas (State of) Transportation Commission; Series 2006 A, First Tier RB		5.00	%		04/01/20		2,000		2,205,000
									59,136,108
Utah–0.55%
Salt Lake City (City of) (Intermountain Healthcare Hospitals, Inc.); Series 1992, Indexed Inverse Floating Rate Hospital RB		6.15	%		02/15/12		1,300		1,357,759
Utah (State of) Charter School Finance Authority (Summit Academy); Series 2007 A, Charter School RB		5.80	%		06/15/38		600		480,984
Utah (State of) Housing Corp.; Series 2008 C1, Class III, Single Family Mortgage RB(a)		5.70	%		07/01/28		1,330		1,348,859
									3,187,602

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

19        Invesco Van Kampen Municipal Income Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Vermont–0.13%
Vermont (State of) Economic Development Authority (Wake Robin Corp.); Series 2006 A, Mortgage RB		5.38	%		05/01/36	$	1,000	$	774,840
Virgin Islands–0.29%
Virgin Islands Public Finance Authority (Matching Fund Loan Note); Series 2010 A, Sr. Lien Working Capital RB		5.00	%		10/01/25		1,700		1,677,747
Virginia–0.95%
Peninsula Town Center Community Development Authority; Series 2007, Special Obligation RB		6.45	%		09/01/37		993		887,236
Virginia (State of) Small Business Financing Authority (Hampton Roads Proton); Series 2009, RB(h)		8.00	%		07/01/19		1,000		1,020,200
Washington (County of) Industrial Development Authority (Mountain States Health Alliance); Series 2009 C, Hospital Facility RB		7.50	%		07/01/29		2,000		2,208,920
White Oak Village Shops Community Development Authority; Series 2007, Special Assessment RB		5.30	%		03/01/17		1,432		1,435,637
									5,551,993
Washington–2.97%
FYI Properties (Washington State District); Series 2009, Lease RB		5.50	%		06/01/39		1,000		992,810
Kalispel Tribe Indians; Series 2008, Priority District Washington RB		6.63	%		01/01/28		950		821,902
Seattle (City of); Series 2008, Ref. & Improvement Municipal Light & Power RB		5.75	%		04/01/23		2,000		2,287,840
Washington (State of) (Motor Vehicle Fuel); Series 2010 B, Unlimited Tax GO Bonds(f)		5.00	%		08/01/30		9,000		9,302,760
Washington (State of) Health Care Facilities Authority (Multicare Health System); Series 2004 A, RB (INS–AGM)(e)		5.25	%		08/15/28		1,000		1,004,570
Washington (State of) Higher Education Facilities Authority (Whitworth University);
Series 2009, Ref. RB		5.38	%		10/01/29		500		471,110
Series 2009, Ref. RB		5.63	%		10/01/40		1,500		1,398,960
Washington (State of) Housing Finance Commission (Custodial Receipts Wesley Homes); Series 2008, Non-Profit RB(h)		6.00	%		01/01/27		1,100		998,503
									17,278,455
West Virginia–0.32%
Harrison (County of) (Allegheny Energy); Series 2007 D, Ref. Solid Waste Disposal RB(a)		5.50	%		10/15/37		1,000		886,720
Ohio (County of) (Fort Henry Centre Financing District); Series 2007 A, Tax Increment Tax Allocation RB		5.85	%		06/01/34		250		214,138
Pleasants (County of) (County Commission Allegheny); Series 2007 F, Ref. PCR		5.25	%		10/15/37		855		760,873
									1,861,731
Wisconsin–3.55%
Superior (City of) (Superior Water, Light & Power Company); Series 2007 A, Ref. Collateralized Utility RB(a)		5.38	%		11/01/21		2,000		2,018,240
Wisconsin (State of) Health & Educational Facilities Authority (Catholic Residential Services); Series 2007, Ref. RB		5.25	%		05/01/28		1,250		1,023,513
Wisconsin (State of) Health & Educational Facilities Authority (Prohealth Care, Inc. Obligated Group);
Series 2009, RB		6.38	%		02/15/29		500		525,920
Series 2009, RB		6.63	%		02/15/39		1,000		1,048,750
Wisconsin (State of) Health & Educational Facilities Authority (St. John’s Community, Inc.); Series 2009 A, RB		7.25	%		09/15/29		1,000		989,410
Wisconsin (State of) Housing & Economic Development Authority;
Series 2007 C, Home Ownership RB(a)(f)		5.13	%		09/01/28		4,395		4,205,004
Series 2008 A, Home Ownership RB(a)		5.30	%		09/01/23		8,125		8,322,356
Wisconsin (State of); Series 2009 A, General Appropriation RB		5.38	%		05/01/25		2,355		2,524,772
									20,657,965
Wyoming–1.29%
Campbell (County of) (Basin Electric Power Cooperative); Series 2009 A, Solid Waste Facility RB		5.75	%		07/15/39		4,000		4,153,160

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

20        Invesco Van Kampen Municipal Income Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Wyoming–(continued)
Wyoming (State of) Municipal Power Agency;
Series 2008 A, Power Supply RB		5.50	%		01/01/33	$	2,360	$	2,398,798
Series 2009 A, Power Supply RB		5.00	%		01/01/36		1,000		949,500
									7,501,458
TOTAL INVESTMENTS(l)–106.70% (Cost $634,466,441)									621,470,353
FLOATING RATE NOTE OBLIGATIONS(m)–(8.98)%
Notes with interest rates ranging from 0.26% to 0.40% at 02/28/11 and contractual maturities of collateral ranging from 05/01/23 to 04/01/39 (See Note 1J)									(52,310,000	)
OTHER ASSETS LESS LIABILITIES–2.28%									13,272,451
NET ASSETS–100.00%								$	582,432,804

Investment Abbreviations:

ACA	– ACA Financial Guaranty Corp.
AGL	– Assured Guaranty Ltd.
AGM	– Assured Guaranty Municipal Corp.
AMBAC	– American Municipal Bond Assurance Corp.*
BHAC	– Berkshire Hathaway Assurance Corp.
BNY	– Bank of New York
CAB	– Capital Appreciation Bond
COP	– Certificates of Participation
FGIC	– Financial Guaranty Insurance Co.
FHA	– Federal Housing Administration
FHLMC	– Federal Home Loan Mortgage Corp.
FNMA	– Federal National Mortgage Association
GNMA	– Government National Mortgage Association
GO	– General Obligation
IBC	– International Bancshares Corp.
INS	– Insurer
MFH	– Multi-Family Housing
MTN	– Medium-Term Notes
NATL	– National Public Finance Guarantee Corp.
PCR	– Pollution Control Revenue Bonds
RB	– Revenue Bonds
Ref	– Refunding
SGI	– Syncora Guarantee, Inc.
Sr.	– Senior
Sub.	– Subordinated
TEMPS	– Tax-Exempt Mandatory Paydown Securities

Notes to Schedule of Investments:

(a)	Security subject to the alternative minimum tax.
(b)	Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put.
(c)	Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 28, 2011.
(d)	Defaulted security. Currently, the issuer is partially or fully in default with respect to interest payments. The aggregate value of these securities at February 28, 2011 was $4,366,110, which represented 0.75% of the Fund’s net assets.
(e)	Principal and/or interest payments are secured by the bond insurance company listed.
(f)	Underlying security related to Dealer Trusts entered into by the Fund. See Note 1J.
(g)	Zero coupon bond issued at a discount.
(h)	Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. 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 February 28, 2011 was $8,116,193, which represented 1.39% of the Fund’s Net Assets.
(i)	Advance refunded.
(j)	Step coupon bond. The interest rate represents the coupon rate at which the bond will accrue at a specified future date.
(k)	Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral.
(l)	This table provides a listing of those entities that have either issued, guaranteed, backed or otherwise enhanced the credit quality of more than 5% of the securities held in the portfolio. In instances where the entity has guaranteed, backed or otherwise enhanced the credit quality of a security, it is not primarily responsible for the issuer’s obligations but may be called upon to satisfy the issuer’s obligations.

Entities	Percentage
Assured Guaranty Municipal Corp.		5.44	%
National Public Finance Guarantee Corp.		6.22

(m)	Floating rate note obligations related to securities held. The interest rates shown reflect the rates in effect at February 28, 2011. At February 28, 2011, the Fund’s investments with a value of $84,831,385 are held by the Dealer Trusts and serve as collateral for the $52,310,000 in floating rate note obligations outstanding at that date.
(n)	Security is subject to a shortfall agreement which may require the Fund to pay amounts to a counterparty in the event of a significant decline in the market value of the security underlying the inverse floater. In case of a shortfall, the maximum potential amount of payments the Fund could ultimately be required to make under the agreement is $3,100,000. However, such shortfall payment would be reduced by the proceeds from the sale of the security underlying the inverse floater.
*	AMBAC filed for bankruptcy on November 8, 2010.

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

21        Invesco Van Kampen Municipal Income Fund

Statement of Assets and Liabilities

February 28, 2011

Assets:
Investments, at value (Cost $634,466,441)	$	621,470,353
Cash		6,216,382
Receivable for:
Investments sold		2,238,000
Fund shares sold		234,814
Interest		9,261,422
Investment for trustee deferred compensation and retirement plans		1,968
Other assets		10,201
Total assets		639,433,140
Liabilities:
Floating rate note obligations		52,310,000
Payable for:
Investments purchased		1,500,000
Fund shares reacquired		1,774,520
Dividends		1,058,296
Accrued fees to affiliates		236,241
Accrued other operating expenses		116,227
Trustee deferred compensation and retirement plans		5,052
Total liabilities		57,000,336
Net assets applicable to shares outstanding	$	582,432,804
Net assets consist of:
Shares of beneficial interest	$	653,533,767
Undistributed net investment income		2,884,012
Undistributed net realized gain (loss)		(60,988,887	)
Unrealized appreciation (depreciation)		(12,996,088	)
	$	582,432,804
Net Assets:
Class A	$	518,598,422
Class B	$	17,912,964
Class C	$	39,552,620
Class Y	$	6,368,798
Shares outstanding, $0.001 par value per share, unlimited number of shares authorized:
Class A		41,362,279
Class B		1,430,788
Class C		3,165,125
Class Y		508,382
Class A:
Net asset value per share	$	12.54
Maximum offering price per share (Net asset value of $12.54 divided by 95.25%)	$	13.17
Class B:
Net asset value and offering price per share	$	12.52
Class C:
Net asset value and offering price per share	$	12.50
Class Y:
Net asset value and offering price per share	$	12.53

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

22        Invesco Van Kampen Municipal Income Fund

Statement of Operations

For the five months ended February 28, 2011 and year ended September 30, 2010

	February 28,			September 30,
	2011			2010
Investment income:
Interest	$	15,785,515		$	41,851,824
Expenses:
Advisory fees		1,286,079			3,346,737
Administrative services fees		72,858			186,612
Custodian fees		9,184			40,862
Distribution fees:
Class A		582,065			1,526,020
Class B		85,435			236,112
Class C		186,893			479,807
Interest, facilities and maintenance fees		186,185			567,348
Transfer agent fees		191,149			348,690
Trustees’ and officers’ fees and benefits		11,770			42,748
Other		28,533			262,155
Total expenses		2,640,151			7,037,091
Less: Expense offset arrangement(s)		(348	)		—
Net expenses		2,639,803			7,037,091
Net investment income		13,145,712			34,814,733
Net realized gain (loss) from investment securities		(12,627,066	)		(12,985,380	)
Change in net unrealized appreciation (depreciation) of investment securities		(37,333,612	)		21,283,630
Net realized and unrealized gain (loss)		(49,960,678	)		8,298,250
Net increase (decrease) in net assets resulting from operations	$	(36,814,966	)	$	43,112,983

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

23        Invesco Van Kampen Municipal Income Fund

Statement of Changes in Net Assets

For the five months ended February 28, 2011 and the years ended September 30, 2010 and 2009

	February 28,			September 30,			September 30,
	2011			2010			2009
Operations:
Net investment income	$	13,145,712		$	34,814,733		$	32,756,391
Net realized gain (loss)		(12,627,066	)		(12,985,380	)		(12,212,740	)
Change in net unrealized appreciation (depreciation)		(37,333,612	)		21,283,630			69,616,861
Net increase (decrease) in net assets resulting from operations		(36,814,966	)		43,112,983			90,160,512
Distributions to shareholders from net investment income:
Class A		(11,943,783	)		(30,699,296	)		(33,458,420	)
Class B		(372,740	)		(1,006,199	)		(891,332	)
Class C		(813,479	)		(2,048,414	)		(1,513,303	)
Class Y		(148,405	)		(195,465	)		(46,845	)
Total distributions from net investment income		(13,278,407	)		(33,949,374	)		(35,909,900	)
Share transactions–net:
Class A		(56,460,731	)		(28,863,531	)		65,027,438
Class B		(3,546,068	)		612,789			4,820,596
Class C		(8,436,002	)		6,676,270			21,804,244
Class Y		3,378,829			(1,443,087	)		4,603,591
Net increase (decrease) in net assets resulting from share transactions		(65,063,972	)		(23,017,559	)		96,255,869
Net increase (decrease) in net assets		(115,157,345	)		(13,853,950	)		150,506,481
Net assets:
Beginning of year		697,590,149			711,444,099			560,937,618
End of year (includes undistributed net investment income of $2,884,012, $2,915,917 and $128,440, respectively)	$	582,432,804		$	697,590,149		$	711,444,099

Notes to Financial Statements

February 28, 2011

NOTE 1—Significant Accounting Policies

Invesco Van Kampen Municipal Income Fund (the “Fund”) is a series portfolio of AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds) (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of eleven separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class.

  Prior to June 1, 2010, the Fund operated as Van Kampen Municipal Income Fund (the “Acquired Fund”), an investment portfolio of Van Kampen Tax Free Trust. The Acquired Fund was reorganized on June 1, 2010, (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

  Upon closing of the Reorganization, holders of the Acquired Fund’s Class A, Class B, Class C and Class I shares received Class A, Class B, Class C and Class Y shares, respectively of the Fund.

  Information for the Acquired Fund’s Class I shares prior to the Reorganization is included with Class Y shares of the Fund throughout this report.

  On February 28, 2011, the Fund’s fiscal year-end changed from September 30 to February 28.

  The Fund’s investment objective is to provide investors with a high level of current income exempt from federal income tax, consistent with preservation of capital.

  The Fund currently consists of four different classes of shares: Class A, Class B, Class C and Class Y. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class Y shares are sold at net asset value. Effective November 30, 2010, new or additional investments in Class B shares are no longer permitted. Existing shareholders of Class B shares may continue to reinvest dividends and capital gains distributions in Class B shares until they convert.

24        Invesco Van Kampen Municipal Income Fund

Also, shareholders in Class B shares will be able to exchange those shares for Class B shares of other Invesco Funds offering such shares until they convert. Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase. Redemption of Class B shares prior to conversion date will be subject to a CDSC.

  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.
	Securities are fair valued using an evaluated quote provided by an independent pricing service approved by the Board of Trustees. 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, yield, quality, coupon rate, maturity, type of issue, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Securities with a demand feature exercisable within one to seven days are valued at par. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and principal payments.
	Securities for which market quotations either are not readily available or are 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. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on transferability or disposition; trading in similar securities by the same issuer or comparable companies; relevant political, economic or issuer specific news; and other relevant factors under the circumstances.
	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 is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Fund’s net asset value and, accordingly, they reduce the Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and 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 income are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable and tax-exempt 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.
	In addition, the Fund intends to invest in such municipal securities to allow it to qualify to pay shareholders “exempt-interest dividends”, as defined in the Internal Revenue Code.
	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. Prior to the Reorganization, incremental transfer agency fees which are unique to each class of shares of the Acquired Fund were charged to the operations of such class.
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

25        Invesco Van Kampen Municipal Income Fund

	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 performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Securities Purchased on a When-Issued and Delayed Delivery Basis — The Fund may purchase and sell interests in portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date.
J.	Floating Rate Note Obligations — The Fund invests in inverse floating rate securities, such as Residual Interest Bonds (“RIBs”) or Tender Option Bonds (“TOBs”) for investment purposes and to enhance the yield of the Fund. Inverse floating rate investments tend to underperform the market for fixed rate bonds in a rising interest rate environment, but tend to outperform the market for fixed rate bonds when interest rates decline or remain relatively stable. Such transactions may be purchased in the secondary market without first owning the underlying bond or by the sale of fixed rate bonds by the Fund to special purpose trusts established by a broker dealer (“Dealer Trusts”) in exchange for cash and residual interests in the Dealer Trusts’ assets and cash flows, which are in the form of inverse floating rate securities. The Dealer Trusts finance the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Fund to retain residual interest in the bonds. The floating rate notes issued by the Dealer Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the Dealer Trusts for redemption at par at each reset date. The residual interests held by the Fund (inverse floating rate investments) include the right of the Fund (1) to cause the holders of the floating rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the municipal bond from the Dealer Trusts to the Fund, thereby collapsing the Dealer Trusts.
	TOBs are presently classified as private placement securities. Private placement securities are subject to restrictions on resale because they have not been registered under the Securities Act of 1933, as amended or are otherwise not readily marketable. As a result of the absence of a public trading market for these securities, they may be less liquid than publicly traded securities. Although these securities may be resold in privately negotiated transactions, the prices realized from these sales could be less than those originally paid by the Fund or less than what may be considered the fair value of such securities.
	The Fund accounts for the transfer of bonds to the Dealer Trusts as secured borrowings, with the securities transferred remaining in the Fund’s investment assets, and the related floating rate notes reflected as Fund liabilities under the caption Floating rate note obligations on the Statement of Assets and Liabilities. The Fund records the interest income from the fixed rate bonds under the caption Interest and records the expenses related to floating rate obligations and any administrative expenses of the Dealer Trusts as a component of Interest, facilities and maintenance fees on the Statement of Operations.
	The Fund generally invests in inverse floating rate securities that include embedded leverage, thus exposing the Fund to greater risks and increased costs. The primary risks associated with inverse floating rate securities are varying degrees of liquidity and the changes in the value of such securities in response to changes in market rates of interest to a greater extent than the value of an equal principal amount of a fixed rate security having similar credit quality, redemption provisions and maturity which may cause the Fund’s net asset value to be more volatile than if it had not invested in inverse floating rate securities. In certain instances, the short-term floating rate interests created by the special purpose trust may not be able to be sold to third parties or, in the case of holders tendering (or putting) such interests for repayment of principal, may not be able to be remarketed to third parties. In such cases, the special purpose trust holding the long-term fixed rate bonds may be collapsed. In the case of RIBs or TOBs created by the contribution of long-term fixed income bonds by the Fund, the Fund will then be required to repay the principal amount of the tendered securities. During times of market volatility, illiquidity or uncertainty, the Fund could be required to sell other portfolio holdings at a disadvantageous time to raise cash to meet that obligation.
K.	Other Risks — The value of, payment of interest on, repayment of principal for and the ability to sell a municipal security may be affected by constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives and the economics of the regions in which the issuers are located.
	Since, many municipal securities are issued to finance similar projects, especially those relating to education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal securities market and a Fund’s investments in municipal securities.
	There is some risk that a portion or all of the interest received from certain tax-free municipal securities could become taxable as a result of determinations by the Internal Revenue Service.
L.	Interests, Facilities and Maintenance Fees — Interest, Facilities and Maintenance Fees include interest and related borrowing costs such as commitment fees and other expenses associated with lines of credit and interest and administrative expenses related to establishing and maintaining floating rate note obligations, if any.

26        Invesco Van Kampen Municipal Income Fund

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $500 million		0	.50%
Over $500 million		0	.45%

  Prior to the Reorganization, the Acquired Fund paid an advisory fee of $2,227,737 to Van Kampen Asset Management (“Van Kampen”) based on the annual rates above of the Acquired Fund’s average daily net assets for the period October 1, 2009 to May 31, 2010.

  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 Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  Effective on the Reorganization date, the Adviser has contractually agreed, through June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual operating expenses (excluding certain items discussed below) of Class A, Class B, Class C and Class Y shares to 0.90%, 1.65%, 1.65% and 0.65% of average daily net assets, respectively. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the net annual operating expenses to exceed the numbers reflected above: (1) interest, facilities and maintenance fees; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012. The Adviser did not waive fees and/or reimburse expenses during the period under this limitation.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, 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 period ended February 28, 2011, the Adviser did not waive advisory fees under this agreement.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. Prior to the Reorganization, under separate accounting and legal services and chief compliance officer (“CCO”) employment agreements, Van Kampen Investments Inc. (“VKII”) provided accounting and legal services and the CCO provided compliance services to the Acquired Fund. Pursuant to such agreements, the Acquired Fund paid $39,384 to VKII. For the period ended February 28, 2011, expenses incurred under these agreements are shown in the Statement of Operations as administrative services fees. Also, Invesco has entered into service agreements whereby State Street Bank and Trust Company (“SSB”) serves as the custodian and fund accountant and provides certain administrative services to the Fund.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. Pursuant to such agreement, for the period ended February 28, 2011, IIS was paid $191,149 for providing such services. Prior to the Reorganization, the Acquired Fund paid $110,967 to Van Kampen Investor Services Inc., which served as the Acquired Fund’s transfer agent. For the period ended February 28, 2011, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

  Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”). The Fund has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act, and a service plan (collectively, the “Plans”) for Class A shares, Class B shares and Class C shares to compensate IDI for the sale, distribution, shareholder servicing and maintenance of shareholder accounts for these shares. Under the Plans, the Fund will incur annual fees of up to 0.25% of Class A average daily net assets and up to 1.00% each of Class B and Class C average daily net assets.

  With respect to Class B and Class C shares, the Fund is authorized to reimburse in future years any distribution related expenses that exceed the maximum annual reimbursement rate for such class, so long as such reimbursement does not cause the Fund to exceed the Class B and Class C maximum annual reimbursement rate, respectively. With respect to Class A shares, distribution related expenses that exceed the maximum annual reimbursement rate for such class are not carried forward to future years and the Fund will not reimburse IDI for any such expenses.

  Prior to the Reorganization, the Acquired Fund had entered into master distribution agreements with Van Kampen Funds Inc. (“VKFI”) to serve as the distributor for the Class A, Class B and Class C shares. Pursuant to such agreements, the Acquired Fund paid $1,485,522 to VKFI.

  For period ended February 28, 2011, expenses incurred under these agreements are shown in the Statement of Operations as distribution fees.

  Front-end sales commissions and CDSC (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. For the period October 1, 2010 to February 28, 2011, IDI advised the Fund that IDI retained $23,055 in front-end sales commissions from the sale of Class A shares and $3,500, $39,592 and $6,288 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders. Prior to the Reorganization, VKFI retained $126,764 in front-end sales commissions from the sale of Class A shares and $43,211, for CDSC imposed on redemptions by shareholders.

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

27        Invesco Van Kampen Municipal 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 February 28, 2011. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the five months ended February 28, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Municipal Obligations	$	—	$	621,470,353	$	—	$	621,470,353

NOTE 4—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of custodian credits which result from periodic overnight cash balances at the custodian. For period ended February 28, 2011 and the year ended September 30, 2010, the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $348 and $0, respectively.

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 are eligible to participate in a retirement plan that provides 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.

  For the period ended February 28, 2011, the Fund paid legal fees of $1,044 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust. Prior to the Reorganization, the Acquired Fund recognized expense of $12,064 representing legal services provided by Skadden, Arps, Slate, Meagher & Flom LLP, of which a director of the Acquired Fund was a partner of such firm and he and his law firm provided legal services as legal counsel to the Acquired Fund.

NOTE 6—Cash Balances and Borrowings

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. 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.

  Inverse floating rate note obligations resulting from the transfer of bonds to Dealer Trusts are accounted for as secured borrowings. The average floating rate notes outstanding and average annual interest and fees related to inverse floating rate note obligations during the period ending February 28, 2011 were $57,251,333 and 0.79%, respectively.

28        Invesco Van Kampen Municipal Income Fund

NOTE 7—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Five Months Ended February 28, 2011 and Years Ended September 30, 2010 and 2009:

	February 28, 2011		September 30, 2010		September 30, 2009
Ordinary income	$	46,069	$	58,755	$	30,819
Ordinary income — tax exempt	$	13,232,336		33,890,619		35,870,538
Total distributions	$	13,278,405	$	33,949,374	$	35,901,357

Tax Components of Net Assets at Period-End:

	February 28, 2011
Undistributed ordinary income	$	2,500,189
Net unrealized appreciation (depreciation) — investments		(12,833,994	)
Temporary book/tax differences		(4,816	)
Post-October deferrals		(10,939,865	)
Capital loss carryforward		(49,822,477	)
Shares of beneficial interest		653,533,767
Total net assets	$	582,432,804

  The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) difference is attributable to bond premium amortization and inverse floaters.

  The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses.

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

  The Fund utilized $0 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Fund has a capital loss carryforward as of February 28, 2011 which expires as follows:

	Capital Loss
Expiration	Carryforward*
February 28, 2015	$	10,905,393
February 28, 2016		4,317,804
February 28, 2017		13,244,161
February 28, 2018		5,150,877
February 28, 2019		16,204,242
Total capital loss carryforward	$	49,822,477

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the period ended February 28, 2011 was $21,645,756 and $84,453,288, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	19,503,827
Aggregate unrealized (depreciation) of investment securities		(32,337,821	)
Net unrealized appreciation (depreciation) of investment securities	$	(12,833,994	)
Cost of investments for tax purposes is $634,304,347.

NOTE 9—Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of defaulted funds and the sale of bonds with accretion, on February 28, 2011, undistributed net investment income (loss) was increased by $100,790 and undistributed net realized gain (loss) was decreased by $100,790. This reclassification had no effect on the net assets of the Fund.

29        Invesco Van Kampen Municipal Income Fund

NOTE 10—Share Information

	Summary of Share Activity
	Five months ended						Year ended						Year ended
	February 28, 2011(a)						September 30, 2010						September 30, 2009
	Shares			Amount			Shares			Amount			Shares			Amount
Sold:
Class A		1,230,452	(b)	$	15,844,053	(b)		5,764,084	(c)	$	75,670,079	(c)		14,323,247		$	167,520,464
Class B		29,318			389,134			497,955			6,491,487			854,259			10,177,675
Class C		206,809			2,659,483			1,139,787			14,915,406			2,392,360			28,258,639
Class Y		590,768			7,862,622			125,740			1,653,505			390,745			4,979,852
Issued as reinvestment of dividends:
Class A		537,459			6,880,937			1,976,582			25,977,065			2,319,047			27,668,379
Class B		16,460			210,446			59,436			779,430			60,367			720,029
Class C		41,003			523,695			131,538			1,723,734			102,921			1,233,866
Class Y		7,454			94,971			4,459			58,746			3,204			38,735
Reacquired:
Class A		(6,198,924	)		(79,185,721	)		(9,930,943	)		(130,510,675	)		(10,958,238	)		(130,161,405	)
Class B		(327,435	)(b)		(4,145,648	)(b)		(507,303	)(c)		(6,658,128	)(c)		(513,985	)		(6,077,108	)
Class C		(913,424	)		(11,619,180	)		(759,623	)		(9,962,870	)		(649,926	)		(7,688,261	)
Class Y		(358,185	)		(4,578,764	)		(241,609	)		(3,155,338	)		(35,409	)		(414,996	)
Net increase (decrease) in share activity		(5,138,245	)	$	(65,063,972	)		(1,739,897	)	$	(23,017,559	)		8,288,592		$	96,255,869

(a)	There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 43% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially.
(b)	Includes automatic conversion of 75,830 Class B shares into 75,712 Class A shares at a value of $977,656.
(c)	Includes automatic conversion of $119,166 Class B shares into 118,987 Class A shares at a value of $1,583,578.

NOTE 11—Subsequent Event

The Board of Trustees unanimously approved an Agreement and Plan of Reorganization (the “Agreement”) pursuant to which the Fund would acquire all of the assets and liabilities of Invesco Van Kampen Insured Tax Free Income Fund and Invesco Tax Exempt Securities Fund (the “Target Funds”) in exchange for shares of the Fund.

  The Target Fund’s shareholders approved the Agreement on April 14, 2011 and the reorganization is expected to be consummated shortly thereafter. Upon closing of the reorganization, shareholders of the Target Fund will receive a corresponding class of shares of the Fund in exchange for their shares of the Target Fund and the Target Fund will liquidate and cease operations.

30        Invesco Van Kampen Municipal Income Fund

NOTE 12—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

																						Ratio of			Ratio of						Supplemental ratio:
																						expenses			expenses						Ratio of expenses
						Net gains																to average			to average net			Ratio of net			to average net
	Net asset					(losses) on						Dividends										net assets			assets without			investment			assets (excluding
	value,		Net			securities (both			Total from			from net			Net asset					Net assets,		with fee waivers			fee waivers			income			interest
	beginning		investment			realized and			investment			investment			value, end		Total			end of period		and/or expenses			and/or expenses			to average			facilities and			Portfolio
	of period		income(a)			unrealized)			operations			income			of period		return			(000s omitted)		absorbed			absorbed			net assets			maintenance fees)(j)			turnover(b)
Class A
Period ended 02/28/11	$	13.52	$	0.27		$	(0.98	)	$	(0.71	)	$	(0.27	)	$	12.54		(5.25	%)(c)	$	518,732		0.93	%(d)		0.93	%(d)		5.08	%(d)		0.86	%(d)		3	%
Year ended 09/30/10		13.34		0.68			0.16			0.84			(0.66	)		13.52		6.54	(c)		619,236		0.95			0.95			5.14			0.87			10
Year ended 09/30/09		12.45		0.66			0.96			1.62			(0.73	)		13.34		13.88	(e)		640,103		1.01			1.01			5.57			0.90			29
Year ended 09/30/08		14.29		0.69			(1.84	)		(1.15	)		(0.69	)		12.45		(8.31	)(e)		526,693		1.41			1.41			5.03			0.88			62
Year ended 09/30/07		14.84		0.62			(0.52	)		0.10			(0.65	)		14.29		0.66	(e)		625,934		1.28			1.28			4.21			0.87			28
Year ended 09/30/06		14.71		0.64			0.14			0.78			(0.65	)		14.84		5.46	(e)		613,616		1.11			1.11			4.40			0.89			16
Class B
Period ended 02/28/11		13.50		0.23			(0.98	)		(0.75	)		(0.23	)		12.52		(5.57	)(c)		17,918		1.68	(d)		1.68	(d)		4.33	(d)		1.61	(d)		3
Year ended 09/30/10		13.32		0.57			0.17			0.74			(0.56	)		13.50		5.76	(c)		23,116		1.70			1.70			4.38			1.62			10
Year ended 09/30/09		12.43		0.57	��		0.96			1.53			(0.64	)		13.32		13.05	(f)		22,144		1.76			1.76			4.81			1.65			29
Year ended 09/30/08		14.27		0.59			(1.84	)		(1.25	)		(0.59	)		12.43		(9.02	)(f)		15,688		2.17			2.17			4.26			1.63			62
Year ended 09/30/07		14.82		0.51			(0.52	)		(0.01	)		(0.54	)		14.27		(0.09	)(f)		20,942		2.03			2.03			3.45			1.62			28
Year ended 09/30/06		14.69		0.53			0.14			0.67			(0.54	)		14.82		4.69	(f)		29,564		1.86			1.86			3.64			1.64			16
Class C
Period ended 02/28/11		13.47		0.23			(0.97	)		(0.74	)		(0.23	)		12.50		(5.51	)(c)		39,563		1.68	(d)		1.68	(d)		4.33	(d)		1.61	(d)		3
Year ended 09/30/10		13.30		0.57			0.16			0.73			(0.56	)		13.47		5.69	(c)		51,613		1.70			1.70			4.38			1.62			10
Year ended 09/30/09		12.41		0.57			0.96			1.53			(0.64	)		13.30		13.08	(g)		44,133		1.76			1.76			4.79			1.65			29
Year ended 09/30/08		14.24		0.59			(1.83	)		(1.24	)		(0.59	)		12.41		(8.97	)(g)		18,293		2.17			2.17			4.31			1.63			62
Year ended 09/30/07		14.79		0.50			(0.51	)		(0.01	)		(0.54	)		14.24		(0.10	)(g)		17,390		2.04			2.04			3.46			1.62			28
Year ended 09/30/06		14.67		0.53			0.13			0.66			(0.54	)		14.79		4.62	(g)		14,271		1.86			1.86			3.65			1.64			16
Class Y(h)
Period ended 02/28/11		13.51		0.28			(0.97	)		(0.69	)		(0.29	)		12.53		(5.16	)(c)		6,370		0.68	(d)		0.68	(d)		5.33	(d)		0.61	(d)		3
Year ended 09/30/10		13.33		0.71			0.16			0.87			(0.69	)		13.51		6.81	(c)		3,625		0.70			0.70			5.37			0.62			10
Year ended 09/30/09		12.45		0.70			0.94			1.64			(0.76	)		13.33		14.08	(i)		5,064		0.77			0.77			5.89			0.66			29
Year ended 09/30/08		14.29		0.72			(1.83	)		(1.11	)		(0.73	)		12.45		(8.07	)(i)		264		1.16			1.16			5.25			0.63			62
Year ended 09/30/07		14.83		0.65			(0.50	)		0.15			(0.69	)		14.29		0.98	(i)		392		1.03			1.03			4.42			0.62			28
Year ended 09/30/06		14.71		0.68			0.13			0.81			(0.69	)		14.83		5.65	(i)		1,387		0.86			0.86			4.67			0.64			16

(a)	Calculated using average shares outstanding.
(b)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(c)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $562,792, $20,652, $45,176 and $6,655 for Class A, Class B, Class C, and Class Y, respectively.
(e)	Assumes reinvestment of all distributions for the period and does not include payment of the maximum sales charge of 4.75% or contingent deferred sales charge (CDSC). On purchases of $1 million or more, a CDSC of 1% may be imposed on certain redemptions made within eighteen months of purchase. If the sales charges were included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 0.25% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
(f)	Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 4%, charged on certain redemptions made within one year of purchase and declining to 0% after the sixth year. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
(g)	Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 1%, charged on certain redemptions made within one year of purchase. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
(h)	On June 1, 2010, Class I shares of the predecessor fund were reorganized into Class Y shares of the Fund.
(i)	Assumes reinvestment of all distributions for the period. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption on Fund shares.
(j)	For the years ended September 30, 2010 and prior, ratio does not exclude facilities and maintenance fees.

31        Invesco Van Kampen Municipal Income Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds)

and Shareholders of Invesco Van Kampen Municipal Income Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Van Kampen Municipal Income Fund; (one of the funds constituting AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds), hereafter referred to as the “Fund”) at February 28, 2011, the results of its operations, the changes in its net assets and the financial highlights for the period ended February 28, 2011 and the year ended September 30, 2010, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at February 28, 2011 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The statement of changes in net assets and the financial highlights of the Fund for the periods ended September 30, 2009 and prior were audited by other independent auditors whose report dated November 20, 2009 expressed an unqualified opinion on those financial statements.

PRICEWATERHOUSECOOPERS LLP

April 21, 2011

Houston, Texas

32        Invesco Van Kampen Municipal Income Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2010, through February 28, 2011.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

  Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions, and redemption fees, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(09/01/10)		(02/28/11)1		Period2		(02/28/11)		Period2		Ratio
A	$	1,000.00	$	948.50	$	4.49	$	1,020.18	$	4.66		0.93	%
B		1,000.00		944.80		8.10		1,016.46		8.40		1.68
C		1,000.00		945.30		8.10		1,016.46		8.40		1.68
Y		1,000.00		949.60		3.29		1,021.42		3.41		0.68

1	The actual ending account value is based on the actual total return of the Fund for the period September 1, 2010 through February 28, 2011, 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.

33        Invesco Van Kampen Municipal Income Fund

Tax Information

Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.

  The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.

  The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended February 28, 2011:

Federal and State Income Tax
Tax-exempt interest dividends*	99.54	%

*  The above percentage is based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.

34        Invesco Van Kampen Municipal Income Fund

Trustees and Officers

The address of each trustee and officer is AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds) (the “Trust”), 11 Greenway Plaza, Suite 2500, Houston, Texas 77046-1173. The trustees serve for the life of the Trust, subject to their earlier death, incapacitation, resignation, retirement or removal as more specifically provided in the Trust’s organizational documents. Each officer serves for a one year term or until their successors are elected and qualified. Column two below includes length of time served with predecessor entities, if any.

	Trustee	Principal Occupation(s)	Number of		Other
Name, Year of Birth and	and/or	During Past 5 Years	Funds in		Directorship(s)
Position(s) Held with the	Officer		Fund Complex		Held by
Trust	Since		Overseen by		Trustee
			Trustee
Interested Persons
Martin L. Flanagan1 — 1960 Trustee	2007	Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Trustee, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business Formerly: Chairman, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, IVZ Inc. (holding company), INVESCO Group Services, Inc. (service provider) and Invesco North American Holdings, Inc. (holding company); Director, Chief Executive Officer and President, Invesco Holding Company Limited (parent of Invesco and a global investment management firm); Director, Invesco Ltd.; Chairman, Investment Company Institute and President, Co-Chief Executive Officer, Co-President, Chief Operating Officer and Chief Financial Officer, Franklin Resources, Inc. (global investment management organization)		208	None
Philip A. Taylor2 — 1954 Trustee, President and Principal Executive Officer	2006	Head of North American Retail and Senior Managing Director, Invesco Ltd.; Director, Co-Chairman, Co-President and Co-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly Invesco Aim Management Group, Inc.) (financial services holding company); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent) and AIM GP Canada Inc. (general partner for limited partnerships); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) (registered transfer agent) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company) and Invesco Canada Holdings Inc. (holding company); Chief Executive Officer, Invesco Trimark Corporate Class Inc. (corporate mutual fund company) and Invesco Trimark Canada Fund Inc. (corporate mutual fund company); Director and Chief Executive Officer, Invesco Trimark Ltd./Invesco Trimark Ltèe (registered investment adviser and registered transfer agent) and Invesco Trimark Dealer Inc. (registered broker dealer); Trustee, President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); Trustee and Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only); and Director, Van Kampen Asset Management; Director, Chief Executive Officer and President, Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Director and Chairman, Van Kampen Investor Services Inc. and Director and President, Van Kampen Advisors, Inc. Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.) (registered broker dealer); Manager, Invesco PowerShares Capital Management LLC; Director, Chief Executive Officer and President, Invesco Advisers, Inc.; Director, Chairman, Chief Executive Officer and President, Invesco Aim Capital Management, Inc.; President, Invesco Trimark Dealer Inc. and Invesco Trimark Ltd./Invesco Trimark Ltèe; Director and President, AIM Trimark Corporate Class Inc. and AIM Trimark Canada Fund Inc.; Senior Managing Director, Invesco Holding Company Limited; Trustee and Executive Vice President, Tax-Free Investments Trust; Director and Chairman, Fund Management Company (former registered broker dealer); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc.		208	None
Wayne M. Whalen3 — 1939 Trustee	2010	Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex		226	Director of the Abraham Lincoln Presidential Library Foundation
Independent Trustees
Bruce L. Crockett — 1944 Trustee and Chair	1993	Chairman, Crockett Technology Associates (technology consulting company) Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer COMSAT Corporation; and Chairman, Board of Governors of INTELSAT (international communications company)		208	ACE Limited (insurance company); and Investment Company Institute
David C. Arch — 1945 Trustee	2010	Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.		226	Member of the Heartland Alliance Advisory Board, a nonprofit organization serving human needs based in Chicago. Board member of the Illinois Manufacturers’ Association. Member of the Board of Visitors, Institute for the Humanities, University of Michigan

1	Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.
2	Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.
3	Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers - (continued)

	Trustee	Principal Occupation(s)	Number of		Other
Name, Year of Birth and	and/or	During Past 5 Years	Funds in		Directorship(s)
Position(s) Held with the	Officer		Fund Complex		Held by
Trust	Since		Overseen by		Trustee
			Trustee
Independent Trustees
Bob R. Baker — 1936 Trustee	2003	Retired Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation		208	None
Frank S. Bayley — 1939 Trustee	2001	Retired		208	None
		Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie
James T. Bunch — 1942 Trustee	2003	Founder, Green, Manning & Bunch Ltd. (investment banking firm) Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation		208	Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society
Rodney Dammeyer — 1940 Trustee	2010	President of CAC, LLC, a private company offering capital investment and management advisory services. Formerly: Prior to January 2004, Director of TeleTech Holdings Inc.; Prior to 2002, Director of Arris Group, Inc.; Prior to 2001, Managing Partner at Equity Group Corporate Investments. Prior to 1995, Vice Chairman of Anixter International. Prior to 1985, experience includes Senior Vice President and Chief Financial Officer of Household International, Inc, Executive Vice President and Chief Financial Officer of Northwest Industries, Inc. and Partner of Arthur Andersen & Co.		226	Director of Quidel Corporation and Stericycle, Inc. Prior to May 2008, Trustee of The Scripps Research Institute. Prior to February 2008, Director of Ventana Medical Systems, Inc. Prior to April 2007, Director of GATX Corporation. Prior to April 2004, Director of TheraSense, Inc.
Albert R. Dowden — 1941 Trustee	2000	Director of a number of public and private business corporations, including the Boss Group, Ltd. (private investment and management); Reich & Tang Funds (5 portfolios) (registered investment company); and Homeowners of America Holding Corporation/ Homeowners of America Insurance Company (property casualty company) Formerly: Director, Continental Energy Services, LLC (oil and gas pipeline service); Director, CompuDyne Corporation (provider of product and services to the public security market) and Director, Annuity and Life Re (Holdings), Ltd. (reinsurance company); Director, President and Chief Executive Officer, Volvo Group North America, Inc.; Senior Vice President, AB Volvo; Director of various public and private corporations; Chairman, DHJ Media, Inc.; Director Magellan Insurance Company; and Director, The Hertz Corporation, Genmar Corporation (boat manufacturer), National Media Corporation; Advisory Board of Rotary Power International (designer, manufacturer, and seller of rotary power engines); and Chairman, Cortland Trust, Inc. (registered investment company)		208	Board of Nature’s Sunshine Products, Inc.
Jack M. Fields — 1952 Trustee	1997	Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Owner and Chief Executive Officer, Dos Angelos Ranch, L.P. (cattle, hunting, corporate entertainment), Discovery Global Education Fund (non-profit) and Cross Timbers Quail Research Ranch (non-profit) Formerly: Chief Executive Officer, Texana Timber LP (sustainable forestry company) and member of the U.S. House of Representatives		208	Administaff
Carl Frischling — 1937 Trustee	1993	Partner, law firm of Kramer Levin Naftalis and Frankel LLP		208	Director, Reich & Tang Funds (16 portfolios)
Prema Mathai-Davis — 1950 Trustee	1998	Retired Formerly: Chief Executive Officer, YWCA of the U.S.A.		208	None
Larry Soll — 1942 Trustee	2003	Retired Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)		208	None
Hugo F. Sonnenschein — 1940 Trustee	2010	President Emeritus and Honorary Trustee of the University of Chicago and the Adam Smith Distinguished Service Professor in the Department of Economics at the University of Chicago. Prior to July 2000, President of the University of Chicago.		226	Trustee of the University of Rochester and a member of its investment committee. Member of the National Academy of Sciences, the American Philosophical Society and a fellow of the American Academy of Arts and Sciences
Raymond Stickel, Jr. — 1944 Trustee	2005	Retired Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche		208	None

T-2

Trustees and Officers - (continued)

	Trustee	Principal Occupation(s)	Number of		Other
Name, Year of Birth and	and/or	During Past 5 Years	Funds in		Directorship(s)
Position(s) Held with the	Officer		Fund Complex		Held by
Trust	Since		Overseen by		Trustee
			Trustee
Other Officers
Russell C. Burk — 1958 Senior Vice President and Senior Officer	2005	Senior Vice President and Senior Officer of Invesco Funds		N/A	N/A
John M. Zerr — 1962 Senior Vice President, Chief Legal Officer and Secretary	2006	Director, Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp., Senior Vice President, Invesco Advisers, Inc. formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Secretary, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Manager, Invesco PowerShares Capital Management LLC; Director, Secretary and General Counsel, Van Kampen Asset Management; Director and Secretary, Van Kampen Advisors Inc.; Secretary and General Counsel, Van Kampen Funds Inc.; and Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; and Chief Legal Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco Advisers, Inc.; Director, Vice President and Secretary, Fund Management Company; Director, Senior Vice President, Secretary, General Counsel and Vice President, Invesco Aim Capital Management, Inc.; Chief Operating Officer and General Counsel, Liberty Ridge Capital, Inc. (an investment adviser); Vice President and Secretary, PBHG Funds (an investment company) and PBHG Insurance Series Fund (an investment company); Chief Operating Officer, General Counsel and Secretary, Old Mutual Investment Partners (a broker-dealer); General Counsel and Secretary, Old Mutual Fund Services (an administrator) and Old Mutual Shareholder Services (a shareholder servicing center); Executive Vice President, General Counsel and Secretary, Old Mutual Capital, Inc. (an investment adviser); and Vice President and Secretary, Old Mutual Advisors Funds (an investment company)		N/A	N/A
Lisa O. Brinkley — 1959 Vice President	2004	Global Compliance Director, Invesco Ltd.; Chief Compliance Officer, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc.(formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc.; and Vice President, The Invesco Funds Formerly: Senior Vice President, Invesco Management Group, Inc.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and The Invesco Funds; Vice President and Chief Compliance Officer, Invesco Aim Capital Management, Inc. and Invesco Distributors, Inc.; Vice President, Invesco Investment Services, Inc. and Fund Management Company		N/A	N/A
Sheri Morris — 1964 Vice President, Treasurer and Principal Financial Officer	1999	Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; and Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) Formerly: Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.		N/A	N/A
Karen Dunn Kelley — 1960 Vice President	1993	Head of Invesco’s World Wide Fixed Income and Cash Management Group; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) and Van Kampen Investments Inc.; Executive Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.); and Director, Invesco Mortgage Capital Inc.; Vice President, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only). Formerly: Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Director of Cash Management and Senior Vice President, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; President and Principal Executive Officer, Tax-Free Investments Trust; Director and President, Fund Management Company; Chief Cash Management Officer, Director of Cash Management, Senior Vice President, and Managing Director, Invesco Aim Capital Management, Inc.; Director of Cash Management, Senior Vice President, and Vice President, Invesco Advisers, Inc. and The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only)		N/A	N/A
Lance A. Rejsek — 1967 Anti-Money Laundering Compliance Officer	2005	Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.), The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange- Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, Van Kampen Asset Management, Van Kampen Investor Services Inc., and Van Kampen Funds Inc. Formerly: Anti-Money Laundering Compliance Officer, Fund Management Company, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.		N/A	N/A

T-3

Trustees and Officers - (continued)

	Trustee	Principal Occupation(s)	Number of		Other
Name, Year of Birth and	and/or	During Past 5 Years	Funds in		Directorship(s)
Position(s) Held with the	Officer		Fund Complex		Held by
Trust	Since		Overseen by		Trustee
			Trustee
Other Officers
Todd L. Spillane — 1958 Chief Compliance Officer	2006	Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser) (formerly known as Invesco Institutional (N.A.), Inc.); Chief Compliance Officer, The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange- Traded Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, INVESCO Private Capital Investments, Inc. (holding company), and Invesco Private Capital, Inc. (registered investment adviser); Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc. Formerly: Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. and Invesco Senior Secured Management, Inc. (registered investment adviser); Vice President, Invesco Aim Capital Management, Inc. and Fund Management Company		N/A	N/A

The Statement of Additional Information of the Trust includes additional information about the Fund’s Trustees and is available upon request, without charge, by calling 1.800.959.4246. Please refer to the Fund’s prospectus for information on the Fund’s sub-advisers.

Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza, Suite 2500	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Houston, TX 77046-1173	1555 Peachtree Street, N.E.	11 Greenway Plaza, Suite 2500	1201 Louisiana Street, Suite 2900
	Atlanta, GA 30309	Houston, TX 77046-1173	Houston, TX 77002-5678
Counsel to the Fund	Counsel to the Independent Trustees	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Kramer, Levin, Naftalis & Frankel LLP	Invesco Investment Services, Inc.	State Street Bank and Trust Company
2600 One Commerce Square	1177 Avenue of the Americas	11 Greenway Plaza, Suite 2500	225 Franklin
Philadelphia, PA 19103	New York, NY 10036-2714	Houston, TX 77046-1173	Boston, MA 02110-2801

T-4

Invesco mailing information

Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.

Invesco privacy policy

You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.

     Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.

     Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.

Important notice regarding delivery of security holder documents

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.

Fund holdings and proxy voting information

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Forms N-Q on the SEC website at sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07890 and 033-66242.

     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 period between June 1, 2010, and June 30, 2010, is available at invesco.com/proxysearch. In addition, this information is available on the SEC website, sec.gov. Proxy voting information for

the predecessor fund prior to its reorganization with the Fund on June 1, 2010, is not available on the Invesco website but is or will be available on the SEC website under the predecessor fund.
     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 U.S. 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.

VK-MINC-AR-1 Invesco Distributors, Inc.

Annual Report to Shareholders February 28, 2011

Invesco Van Kampen New York Tax Free Income Fund
Nasdaq:
A: VNYAX § B: VBNYX § C: VNYCX § Y: VNYYX

2	Letters to Shareholders
4	Performance Summary
4	Management Discussion
6	Long-Term Fund Performance
8	Supplemental Information
9	Schedule of Investments
14	Financial Statements
16	Notes to Financial Statements
23	Financial Highlights
24	Auditor's Report
25	Fund Expenses
26	Tax Information
T-1	Trustees and Officers

Letters to Shareholders

Philip Taylor

Dear Shareholders:

Enclosed is important information about your Fund and its performance.

     I’ve always believed that companies have an obligation to communicate regularly with their clients, and I believe that obligation is especially critical in the investment industry.

     Our website – invesco.com/us – offers timely market updates and commentary from many of our portfolio managers and other investment professionals, as well as quarterly messages from me. At invesco.com/us, you also can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer.

Invesco’s commitment to investment excellence

Invesco’s acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, broadened our range of investment products available to you. As a strong organization with a single focus – investment management – Invesco today offers investment capabilities and products to meet the needs of virtually any investor. In addition to traditional mutual funds, we manage a broad range of other solutions, including single-country, regional and global investments spanning major equity, fixed income and alternative asset classes.

     Investment excellence is our goal across our product line. Let me explain what that means. All of our funds are managed by specialized teams of investment professionals. Each team has a discrete investment perspective and philosophy, and all follow disciplined, repeatable processes governed by strong risk oversight. Our investment-centric culture provides an environment that seeks to reduce distractions, allowing our fund managers to concentrate on what they do best – manage your money.

     The importance of a broad product line and investment management expertise is obvious given the markets we’ve experienced over the last two to three years. We’ve seen that investment strategies can outperform or underperform their benchmark indexes for a variety of reasons, including where we are in the market cycle, and whether prevailing economic conditions are favorable or unfavorable for that strategy. That’s why no investment strategy can guarantee top-tier performance at all times. What investors can expect, and what Invesco offers, are funds that are managed according to their stated investment objectives and strategies, with robust risk oversight using consistent, repeatable investment processes that don’t change as short-term external conditions change – investments managed for the long term. This disciplined approach can’t guarantee a profit; no investment can do that, since all involve some measure of risk. But it can ensure that your money is managed the way we said it would be.

     This adherence to stated investment objectives and strategies allows your financial advisor to build a diversified portfolio that meets your individual risk tolerance and financial goals. It also means that when your goals change, your financial advisor will be able to find an appropriate investment option to meet your needs.

Invesco’s commitment to you

Invesco’s commitment to you remains stronger than ever. It’s one of the reasons we’ve grown to become one of the world’s largest asset managers.

     If you have questions about your account, please contact one of our client service representatives at 800 959 4246. If you have a general Invesco-related question or comment for me, I invite you to email me directly at phil@invesco.com.

     I want to thank you for placing your trust in us. All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.

Sincerely,

Philip Taylor
Senior Managing Director, Invesco Ltd.

2 Invesco Van Kampen New York Tax Free Income Fund

Bruce Crockett

Dear Fellow Shareholders:

With 2010 behind us, now is a good time to review our portfolios and ensure that we are adhering to a long-term, diversified investment strategy, which I’ve mentioned in previous letters. The year was notable for a number of reasons, but I’m sure most of us are grateful for a return to more stable markets and growing signs that the worst of the economic crisis is behind us.

     Your Board continued to oversee the Invesco Funds with a strong sense of responsibility for your savings and a deep appreciation for your continued trust. As always, we worked throughout 2010 to manage costs and ensure Invesco continued to place investor interests first.

     I’m pleased to report that the latest report from Morningstar affirmed the work we’ve done and included a number of positive comments regarding your Board’s oversight of the Invesco Funds.

As background, Morningstar is a leading independent provider of investment research in North America, Europe, Australia and Asia. Morningstar stated, “A fund board’s duty is to represent the interests of fund shareholders, ensuring that the funds that it oversees charge reasonable fees and are run by capable advisors with a sound investment process.”

     Morningstar maintained your Fund Board’s “A” grade for Board Quality, praising the Board for taking “meaningful steps in recent years to act in fund shareholders’ interests.”¹ These steps included becoming much more proactive and vocal in overseeing how Invesco votes the funds’ shareholders’ proxies and requiring each fund trustee to invest more than one year’s board compensation in Invesco funds, further aligning our interests with those of our shareholders. Morningstar also cited the work I’ve done to make myself more available to fund shareholders via email.

     I am also pleased that Morningstar recognized the effort and the Fund Board’s efforts over the past several years to work together with management at Invesco to enhance performance and sharpen the focus on investors.

     Let me close by wishing you a happy and prosperous new year. As always, you’re welcome to contact me at bruce@brucecrockett.com with any questions or concerns you have. We look forward to representing you and serving you in the new year.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

1 Among the criteria Morningstar considers when evaluating a fund board are the degree to which the board is independent of the fund company; board members’ financial interests are aligned with those of fund shareholders; the board acts in fund shareholders’ interests; and the board works constructively with company management and investment personnel. Morningstar first awarded an “A” rating to the Invesco Funds board on September 13, 2007; that rating has been maintained in subsequent reports, the most recent of which was released December 17, 2010. Ratings are subject to change, usually every 12 to 24 months. Morningstar ratings range from “A” to “F.”

3 Invesco Van Kampen New York Tax Free Income Fund

Management’s Discussion of Fund Performance

Performance summary

Please note that the fiscal year-end for Invesco Van Kampen New York Tax Free Income Fund has changed to February 28. Therefore, the period covered by this report is from September 30, 2010, the date of the last annual report, through February 28, 2011, the Fund’s new fiscal year-end.

     All share classes of Invesco Van Kampen New York Tax Free Income Fund, at net asset value (NAV), posted negative returns during the five-month reporting period ended February 28, 2011. The Fund’s Class A shares at NAV underperformed both the Fund’s broad market benchmark, the Barclays Capital Municipal Bond Index, and the Fund’s style-specific index, the Barclays Capital New York Exempt Index. The Fund’s underweight allocation to local general obligation and dedicated tax bonds contributed to relative performance versus the Barclays Capital New York Exempt Index. Our health care holdings detracted from relative performance.

     Your Fund’s long-term performance appears later in this report.

Fund vs. Indexes

Cumulative total returns, 9/30/10 to 2/28/11, at net asset value (NAV). Performance shown does not include applicable contingent deferred sales charges (CDSC) or front-end sales charges, which would have reduced performance.

Class A Shares	--5.31	%
Class B Shares	--5.56
Class C Shares	--5.56
Class Y Shares	--5.21
Barclays Capital Municipal Bond Index▼ (Broad Market Index)	--3.36
Barclays Capital New York Exempt Indexn (Style-Specific Index)	--3.12

^▼ Lipper Inc.; ⁿInvesco, IDC via FactSet Research

How we invest

The Fund’s investment objective is to provide investors with a high level of current income exempt from federal, New York State and New York City income taxes, consistent with preservation of capital. Under normal market conditions, we seek to achieve the Fund’s investment objective by investing primarily in a portfolio of New York municipal securities that are investment grade at the time of purchase. The Fund is designed for investors who are residents of New York for New York tax purposes. Under normal market conditions, the Fund invests at least 80% of its total assets in investment grade securities at the time of purchase. Investment grade securities are rated BBB or higher by S&P, Baa or higher

by Moody’s or an equivalent rating by another agency or unrated securities which we have determined to be of comparable quality.

     However, the Fund may not invest more than 20% of its total assets in unrated investment grade securities. Under normal market conditions, the Fund may invest up to 20% of its total assets in securities with below-investment grade credit quality at the time of purchase. Lower grade securities are commonly referred to as junk bonds and involve greater risks than investments in higher grade securities. The Fund does not purchase municipal securities that are in default or rated in categories lower than B– by S&P, B3 by Moody’s or unrated securities of comparable quality. Under normal market conditions, the

Portfolio Composition

By credit sector, based on total investments

Revenue Bonds	98.3	%
General Obligation Bonds	1.1
Pre-Refunded Bonds	0.6

Total Net Assets	$90.6 million
Total Number of Holdings*		110

The Fund’s holdings are subject to change, and there is no assurance that the Fund will continue to hold any particular security.

* Excluding money market fund holdings.

Top Five Fixed Income Holdings

1.	New York (City of) Municipal Water Finance Authority	4.4	%
2.	New York (State of) Dormitory Authority (School District Building Financing Program)	2.5
3.	New York (City of) Industrial Development Agency	2.3
4.	New York (State of) Dormitory Authority (Mental Health Services Facilities Improvement)	2.2
5.	Port Authority of New York & New Jersey	2.2

Fund may invest up to 20% of its total assets in municipal securities that are subject to the federal alternative minimum tax. From time to time, the Fund temporarily may invest up to 10% of its total assets in tax-exempt money market funds, and such instruments will be treated as investments in municipal securities. Investments in other mutual funds may involve duplication of management fees and certain other expenses.

     The Fund may purchase and sell options, futures contracts, options on futures contracts and interest rate swaps or other interest rate-related transactions, which are derivative instruments for various portfolio management purposes, including to earn income, to facilitate portfolio management and to mitigate risks.

     We may sell securities based on factors such as degradation in credit quality, a decision to shorten or lengthen the Fund’s duration or reducing exposure to a particular sector or issuer.

Market conditions and your Fund

In the U.S. and most of the developed world, a gradual and somewhat lackluster recovery continued, with central banks keeping interest rates at low levels and with few of them withdrawing their quantitative easing measures. This helped private sector companies improve their balance sheets and earnings following the global financial crisis that began to dissipate in early 2009. However, investor skepticism of global governments’ abilities to retire huge amounts of debt without affecting economic growth rates caused sovereign debt distress (especially for eurozone countries) and became a focal point of investor concern.

     In the U.S., economic recovery was present, although the pace of recovery remained modest as stubbornly high unemployment and export weakness

4 Invesco Van Kampen New York Tax Free Income Fund

continued to weigh on the economy. Real gross domestic product (GDP), the broadest measure of overall U.S. economic activity, increased at an annual rate of 3.1% in the fourth quarter of 2010, a marked improvement from the 2.6% decrease in 2009.¹ The U.S. Federal Reserve (the Fed) maintained a very accommodative monetary policy throughout the period, with the federal funds target rate unchanged in its range of zero to 0.25%.² The Fed recently described its view of the U.S. economy by stating: “The Committee will maintain the target range for the federal funds rate at 0 to ¹/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period.”²

     Historically, the state of New York has benefited from its broad-based and wealthy economy. However, the economic slowdown and concerns on Wall Street, as well as the volatility in the financial markets, posed challenges for the state and its financial position. Like many states, New York currently is looking for solutions to compensate for declines in revenues, particularly falling personal income taxes.

     During the five-month period covered by this report, municipal bond mutual funds experienced extensive net outflows. Market volatility was heightened across the municipal asset class as U.S Treasury yields increased and the market was flooded with new issuance during the last two months of 2010 in anticipation of the Build America Bond (BAB) program ending. These factors contributed to rising investor concerns regarding the health of municipal finances, leading to redemptions and lower municipal bond prices.

     In terms of the yield curve positioning, the Fund’s overweight exposure to the long end of the curve (20 years and more) detracted from relative returns as yields increased during most of the reporting period. Some of our yield curve and duration positioning was obtained through the use of inverse floating rate securities. Inverse floating rate securities are instruments which have an inverse relationship to a referenced interest rate. Inverse floating rate securities can be a more efficient means to manage duration, yield curve exposure

and credit exposure and can potentially enhance yield.

     Sector performance was driven by quality spreads widening for most of the reporting period before tightening in February, largely a result of increased volatility and higher tax-exempt bond issuance. As a result, BBB-rated and lower credit quality sectors underperformed and detracted from the Fund’s relative performance as we held an overweight exposure to these market segments. The Fund’s overweight allocation in unrated bonds also detracted from relative performance.

     At a sector level, our underweight exposure to tax-supported bonds, particularly local general obligation and dedicated tax bonds, enhanced relative returns for the period. Our overweight exposure to higher education bonds and health care bonds detracted from relative returns.

     Thank you for investing in Invesco Van Kampen New York Tax Free Income Fund and for sharing our long-term investment horizon.

1 Bureau of Economic Analysis
2 U.S. Federal Reserve

The views and opinions expressed in management’s discussion of Fund performance are those of Invesco Advisers, Inc. These views and opinions are subject to change at any time based on factors such as market and economic conditions. These views and opinions may not be relied upon as investment advice or recommendations, or as an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but Invesco Advisers, Inc. makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

See important Fund and, if applicable, index disclosures later in this report.

Mark Paris
Portfolio manager, is manager of Invesco Van Kampen New York Tax Free Income Fund. Mr. Paris joined Invesco in 2010. He earned a B.B.A. in finance from the City University of New York.

Robert Stryker
Chartered Financial Analyst, portfolio manager, is manager of Invesco Van Kampen New York Tax Free Income Fund. Mr. Stryker joined Invesco in 2010. He earned a B.S. in finance from the University of Illinois, Chicago.

Julius Williams
Portfolio manager, is manager of Invesco Van Kampen New York Tax Free Income Fund. Mr. Williams joined Invesco in 2010. Mr. Williams earned a B.A. in economics and sociology and an M.E. in educational psychology from the University of Virginia.

5 Invesco Van Kampen New York Tax Free Income Fund

Your Fund’s Long-Term Performance

Past performance cannot guarantee comparable future results.

     The data shown in the chart include reinvested distributions, applicable sales charges and Fund expenses including management fees. Results for Class B shares are calculated as if a hypothetical shareholder had liquidated his entire investment in the Fund at the close of the reporting period and paid the applicable contingent deferred sales charges. Index results include reinvested dividends, but they do not reflect sales charges.

Performance of the peer group, if applicable, reflects fund expenses and management fees; performance of a market index does not. Performance shown in the chart above and before tax table(s) does not reflect deduction of taxes a shareholder would pay on Fund distributions or sale of Fund shares.

     This chart, which is a logarithmic chart, presents the fluctuations in the value of the Fund and its indexes. We believe that a logarithmic chart is more effective than other types of charts in illustrating

changes in value during the early years shown in the chart. The vertical axis, the one that indicates the dollar value of an investment, is constructed with each segment representing a percent change in the value of the investment. In this chart, each segment represents a doubling, or 100% change, in the value of the investment. In other words, the space between $5,000 and $10,000 is the same size as the space between $10,000 and $20,000, and so on.

6 Invesco Van Kampen New York Tax Free Income Fund

Average Annual Total Returns

As of 2/28/11, including maximum applicable sales charges

									After Taxes
						After Taxes			on Distributions
			Before			on			and Sale of
			Taxes			Distributions			Fund Shares
Class A Shares
Inception (7/29/94)				4.86	%		4.81	%		4.85	%
	10	Years		3.61			3.57			3.72
	5	Years		1.36			1.35			1.80
	1	Year		-4.21			-4.21			-1.15
Class B Shares
Inception (7/29/94)				4.79	%		4.74	%		4.76	%
	10	Years		3.65			3.61			3.71
	5	Years		1.70			1.68			2.07
	1	Year		-4.60			-4.60			-1.47
Class C Shares
Inception (7/29/94)				4.40	%		4.35	%		4.36	%
	10	Years		3.35			3.31			3.40
	5	Years		1.61			1.60			1.93
	1	Year		-1.10			-1.10			0.67
Class Y Shares
	10	Years		4.13	%		4.09	%		4.19	%
	5	Years		2.39			2.38			2.70
	1	Year		0.76			0.75			2.22

Average Annual Total Returns

As of 12/31/10, the most recent calendar quarter-end, including maximum applicable sales charges

									After Taxes
						After Taxes			on Distributions
			Before			on			and Sale of
			Taxes			Distributions			Fund Shares
Class A Shares
Inception (7/29/94)				4.91	%		4.86	%		4.90	%
	10	Years		3.72			3.68			3.81
	5	Years		1.67			1.66			2.07
	1	Year		-2.41			-2.41			0.03
Class B Shares
Inception (7/29/94)				4.84	%		4.80	%		4.81	%
	10	Years		3.74			3.70			3.78
	5	Years		1.98			1.97			2.31
	1	Year		-2.86			-2.86			-0.32
Class C Shares
Inception (7/29/94)				4.45	%		4.40	%		4.41	%
	10	Years		3.46			3.42			3.50
	5	Years		1.90			1.89			2.18
	1	Year		0.67			0.67			1.83
Class Y Shares
	10	Years		4.24	%		4.20	%		4.28	%
	5	Years		2.69			2.68			2.96
	1	Year		2.58			2.58			3.41

Effective June 1, 2010, Class A, Class B and Class C shares of the predecessor fund advised by Van Kampen Asset Management were reorganized into Class A, Class B and Class C shares, respectively, of Invesco Van Kampen New York Tax Free Income Fund. Returns shown above for Class A, Class B and Class C shares are blended returns of the predecessor fund and Invesco Van Kampen New York Tax Free Income Fund. Share class returns will differ from the predecessor fund because of different expenses.

     Class Y shares incepted on June 1, 2010. Performance shown prior to that date is that of the predecessor fund’s Class A shares and includes the 12b-1 fees applicable to Class A shares. Class A shares performance reflects any applicable fee waivers or expense reimbursements.

     The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect reinvested distributions, changes in net asset value and the effect of the maximum sales charge unless otherwise stated.

Investment return and principal value will fluctuate so that you may have a gain or loss when you sell shares.

     The net annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C and Class Y shares was 0.74%, 1.24%, 1.49% and 0.49%, respectively.¹ The total annual Fund operating expense ratio set forth in the most recent Fund prospectus as of the date of this report for Class A, Class B, Class C and Class Y shares was 0.99%, 1.49%, 1.74% and 0.74%, respectively. The expense ratios presented above may vary from the expense ratios presented in other sections of this report that are based on expenses incurred during the period covered by this report.

     Class A share performance reflects the maximum 4.75% sales charge, and Class B and Class C share performance reflects the applicable contingent deferred sales charge (CDSC) for the period involved. For shares purchased prior to June 1, 2010, the CDSC on Class B shares declines from 4% at the time of purchase to 0% at the beginning of the seventh year. For shares purchased on or after June 1, 2010, the CDSC on Class B shares declines

from 5% at the time of purchase to 0% at the beginning of the seventh year. The CDSC on Class C shares is 1% for the first year after purchase. Class Y shares do not have a front-end sales charge or a CDSC; therefore, performance is at net asset value.

     The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses.

     After-tax returns are calculated using the historical highest individual federal marginal income tax rate. They do not reflect the effect of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their shares in tax-deferred accounts such as 401(k)s or IRAs. The fund’s past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future.

     Had the adviser not waived fees and/or reimbursed expenses in the past, performance would have been lower.

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, 2012. See current prospectus for more information.

7 Invesco Van Kampen New York Tax Free Income Fund

Invesco Van Kampen New York Tax Free Income Fund’s investment objective is to provide investors with a high level of current income exempt from federal, New York State and New York City income taxes, consistent with preservation of capital.

n	Unless otherwise stated, information presented in this report is as of February 28, 2011, and is based on total net assets.
n	Unless otherwise noted, all data provided by Invesco.
n	To access your Fund’s reports/prospectus, visit invesco.com/fundreports.

About share classes

n	Class B or Class B5 shares may not be purchased or acquired by exchange from share classes other than Class B or Class B5 shares. Please see the prospectus for more information.
n	Class Y shares are available to only certain investors. Please see the prospectus for more information.

Principal risks of investing in the Fund

n

Market risk. Market risk is the possibility that the market values of securities owned by the Fund will decline. Investments in debt securities generally are affected by changes in interest rates and the creditworthiness of the issuer. The prices of debt securities tend to fall as interest rates rise, and such declines tend to be greater among debt securities with longer maturities.

n

Credit risk. Credit risk refers to an issuer’s ability to make timely payments of interest and principal. Securities rated BBB by S&P or Baa by Moody’s are in the lowest of the four investment grades and are considered by the rating agencies to be medium-grade obligations which possess speculative characteristics so that changes in economic conditions or other circumstances are more likely to lead to a weakened capacity of the issuer to make principal and interest payments than in the case of higher-rated securities. The credit quality of noninvestment grade securities is considered speculative by recognized rating agencies with respect to the issuer’s continuing ability to pay interest and principal. Lower-grade securities (also sometimes known as junk bonds) may have less liquidity and a higher incidence of default than higher-grade securities. The Fund may incur higher expenditures to protect the Fund’s interests in such securities. The credit risks and market prices of lower-grade securities generally are more sensitive to negative issuer developments or

	adverse economic conditions than are higher-grade securities.
n	Income risk. The income you receive from the Fund is based primarily on prevailing interest rates, which can vary widely over the short-and long-term. If interest rates drop, your income from the Fund may drop as well.
n	Call risk. If interest rates fall, it is possible that issuers of securities with high interest rates will prepay or call their securities before their maturity dates. In this event, the proceeds from the called securities would likely be reinvested by the Fund in securities bearing the new, lower interest rates, resulting in a possible decline in the Fund’s income and distributions to shareholders.
n	Municipal securities risk. The yields of municipal securities may move differently and adversely compared to the yields of the overall debt securities markets. Although the interest received from municipal securities generally is exempt from federal income tax, the Fund may invest up to 20% of its total assets in municipal securities subject to the federal alternative minimum tax. There could be changes in applicable tax laws or tax treatments that reduce or eliminate the current federal income tax exemption on municipal securities or otherwise adversely affect the current federal or state tax status of municipal securities.
n	State-specific risks. The Fund is more susceptible to political, economic, regulatory or other factors affecting issuers of New York municipal securities than a fund that does not limit its investments to such issuers.
n	Risks of using derivative instruments. Risks of derivatives include imperfect correlation between the value of the instruments and the underlying assets; risks of default by the other party to certain transactions; risks that the transactions may result in losses that partially or completely offset gains in portfolio positions; and risks that the transactions may not be liquid.

n Alternative minimum tax. The Fund may invest up to 20% of its total assets in securities subject to the federal alternative minimum tax.

About indexes used in this report

n	The Barclays Capital Municipal Bond Index is an unmanaged index considered representative of the tax-exempt bond market.
n	The Barclays Capital New York Exempt Index an unmanaged index that tracks the performance of New York issued municipal bonds rated at least Baa or BBB by Moody’s Investors Service, Inc. or Standard & Poor’s Corporation, respectively and with maturities of two years or greater.
n	The Fund is not managed to track the performance of any particular index, including the index(es) defined here, and consequently, the performance of the Fund may deviate significantly from the performance of the index(es).
n	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.

Other information

n

The Chartered Financial Analyst® (CFA®) designation is globally recognized and attests to a charterholder’s success in a rigorous and comprehensive study program in the field of investment management and research analysis.

n

The returns shown in management’s discussion of Fund performance are based on net asset values calculated for shareholder transactions. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes, and as such, the net asset values for shareholder transactions and the returns based on those net asset values may differ from the net asset values and returns reported in the Financial Highlights.

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

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Fund Nasdaq Symbols

Class A Shares	VNYAX
Class B Shares	VBNYX
Class C Shares	VNYCX
Class Y Shares	VNYYX

8 Invesco Van Kampen New York Tax Free Income Fund

Schedule of Investments

February 28, 2011

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Municipal Obligations–102.22%
New York–94.48%
Albany (City of) Capital Resource Corp. (St. Peters Hospital); Series 2011, RB		6.25	%		11/15/38	$	500	$	499,940
Albany (City of) Industrial Development Agency (Albany College Pharmacy); Series 2004 A, Civic Facility IDR		5.63	%		12/01/34		1,290		1,165,708
Albany (City of) Industrial Development Agency (Albany Law School University); Series 2007 A, Civic Facility IDR		5.00	%		07/01/31		1,000		918,520
Albany (City of) Industrial Development Agency (St. Peter’s Hospital); Series 2008 D, Civic Facility IDR		5.75	%		11/15/27		400		394,056
Brooklyn (City of) Arena Local Development Corp. (Barclays Center);
Series 2009 CAB, RB(a)		0.00	%		07/15/34		2,175		454,445
Series 2009, RB		6.25	%		07/15/40		275		269,187
Series 2009, RB		6.38	%		07/15/43		275		273,075
Chautauqua (County of) Industrial Development Agency (NRG–Dunkirk Power); Series 2009, Exempt Facility IDR		5.88	%		04/01/42		890		856,794
Dutchess (County of) Industrial Development Agency (Elant Fishkill, Inc.); Series 2007 A, Civic Facility IDR		5.25	%		01/01/37		365		252,445
East Rochester (City of) Housing Authority (Senior Living Woodland Village); Series 2006, Ref. RB		5.50	%		08/01/33		1,000		786,230
Essex (County of) Industrial Development Agency (International Paper); Series 2005 A, Solid Waste Disposal Ref. IDR(b)		5.20	%		12/01/23		600		573,690
Hempstead (Town of) Industrial Development Agency (Adelphi University); Series 2002, Civic Facility IDR		5.75	%		06/01/22		1,250		1,275,400
Hempstead (Town of) Local Development Corp. (Molloy College); Series 2009, Corporate RB		5.75	%		07/01/39		795		801,742
Islip Resource Recovery Agency (1985 Facility); Series 2004 E, Resource Recovery RB (INS–AGM)(b)(c)		5.75	%		07/01/22		1,290		1,344,631
Livingston (County of) Industrial Development Agency (Nicholas H. Noyes Memorial Hospital); Series 2005, Civic Facility IDR		6.00	%		07/01/30		1,000		868,160
Long Island Power Authority;
Series 2008 A, Electric System RB (INS–BHAC)(c)		5.50	%		05/01/33		355		367,489
Series 2009 A, Electric System RB		5.00	%		04/01/23		700		734,867
Madison (County of) Industrial Development Agency (Colgate University); Series 2005 A, Civic Facility IDR (INS–AMBAC)(c)		5.00	%		07/01/35		750		742,140
Metropolitan Transportation Authority (Build America Bonds); Series 2009 B, Dedicated Tax Federal RB		5.00	%		11/15/34		1,000		982,200
Montgomery (County of) Industrial Development Agency (Hamilton Fulton Montgomery Board of Cooperative Educational Services); Series 2005 A, Lease IDR (INS–SYNCORA)(c)		5.00	%		07/01/34		1,320		1,097,501
Nassau (County of) Industrial Development Agency (Amsterdam at Harborside); Series 2007 A, Continuing Care Retirement Community IDR		6.70	%		01/01/43		1,250		1,114,212
New York (City of) Health & Hospital Corp. (Health System); Series 2002 A, RB(d)		5.50	%		02/15/12		500		524,455
New York (City of) Housing Development Corp.;
Series 2005 K, Multifamily Housing RB(b)		5.00	%		11/01/37		1,000		921,220
Series 2007 B1, Multifamily Housing RB(b)		5.15	%		11/01/37		2,000		1,902,500
New York (City of) Industrial Development Agency (7 World Trade Center); Series 2005 A, Liberty IDR		6.25	%		03/01/15		500		500,235
New York (City of) Industrial Development Agency (IAC/Interactive Corp.); Series 2005, Liberty IDR		5.00	%		09/01/35		890		759,286
New York (City of) Industrial Development Agency (Polytechnic University); Series 2007, Civic Facility RB (INS–ACA)(c)		5.25	%		11/01/37		1,000		910,610
New York (City of) Industrial Development Agency (Queens Baseball Stadium); Series 2009, PILOT IDR (INS–AGL)(c)		6.50	%		01/01/46		1,000		1,041,910
New York (City of) Industrial Development Agency (Royal Charter Presbyerian) Series 2001, Facility IDR (INS–AGM)(c)		5.38	%		12/15/16		1,405		1,480,069
New York (City of) Industrial Development Agency (Staten Island University Hospital); Series 2001 B, Civic Facility IDR		6.38	%		07/01/31		715		694,093
New York (City of) Industrial Development Agency (Terminal One Group Association, L.P.); Series 2005, Special Facility IDR(b)(f)		5.50	%		01/01/20		2,000		2,064,060
New York (City of) Liberty Development Corp. (Bank of America Tower at One Bryant Park); Series 2010, Ref. Second Priority Liberty RB		6.38	%		07/15/49		715		715,658

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

9        Invesco Van Kampen New York Tax Free Income Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
New York–(continued)
New York (City of) Liberty Development Corp. (National Sports Museum); Series 2006 A, Liberty RB (Acquired 08/07/06, Cost $750,000)(g)		6.13	%		02/15/19	$	750	$	8
New York (City of) Municipal Water Finance Authority (Water & Sewer); Series 2005 D, Water & Sewer System RB(h)		5.00	%		06/15/37		4,000		3,967,880
New York (City of) Municipal Water Finance Authority; Series 2009 FF-2, Water & Sewer System RB		5.50	%		06/15/40		1,000		1,031,140
New York (City of) Transitional Finance Authority;
Series 2008 S-2, Building Aid RB		6.00	%		07/15/33		500		539,950
Series 2009 S-1, Building Aid RB		5.50	%		07/15/38		500		513,535
Series 2009 S-3, Building Aid RB		5.25	%		01/15/27		1,560		1,622,650
Series 2009 S-3, Building Aid RB		5.25	%		01/15/39		500		504,305
New York (City of) Trust for Cultural Resources (American Museum of Natural History); Series 2004 A, Cultural Resources Ref. RB (INS–NATL)(c)(h)		5.00	%		07/01/44		960		934,867
New York (City of) Trust for Cultural Resources (Carnegie Hall); Series 2009 A, RB		5.00	%		12/01/39		500		475,820
New York (City of); Series 2008 F-1, Unlimited Tax GO Bonds		5.50	%		11/15/28		1,000		1,059,480
New York (State of) Dormitory Authority (Brooklyn Law School); Series 2003 B, RB (INS–SYNCORA)(c)		5.38	%		07/01/23		1,000		1,027,350
New York (State of) Dormitory Authority (Catholic Health Services of Long Island–St. Francis Hospital); Series 2004, Obligated Group RB		5.00	%		07/01/27		1,000		963,170
New York (State of) Dormitory Authority (City of New York Issue); Series 2005 A, Court Facilities Lease Non State Supported Debt RB (INS–AMBAC)(c)		5.50	%		05/15/30		1,500		1,555,995
New York (State of) Dormitory Authority (City University Systems Consolidation); Series 1996 B, RB		6.00	%		07/01/14		690		739,238
New York (State of) Dormitory Authority (City University); Series 1993 D, Ref. Special Obligation Bond (INS–AGM)(c)		5.75	%		07/01/12		585		601,468
New York (State of) Dormitory Authority (Columbia University); Series 2011, Non State Supported Debt RB		5.00	%		10/01/41		710		727,793
New York (State of) Dormitory Authority (Education); Series 2008 B, State Personal Income Tax RB		5.75	%		03/15/36		1,000		1,065,860
New York (State of) Dormitory Authority (FIT Student Housing Corp.); Series 2007, Non State Supported Debt RB (INS–NATL/FGIC)(c)		5.25	%		07/01/28		545		533,130
New York (State of) Dormitory Authority (Manhattan College); Series 2007 A, Non State Supported Debt RB (INS–RADIAN)(c)		5.00	%		07/01/41		750		625,770
New York (State of) Dormitory Authority (Manhattan Marymount); Series 2009, Non State Supported Debt RB		5.25	%		07/01/29		500		484,795
New York (State of) Dormitory Authority (Memorial Sloan Kettering Cancer Center); Series 1998 C, RB (INS–NATL)(c)		5.50	%		07/01/23		1,250		1,382,050
New York (State of) Dormitory Authority (Mental Health Services Facilities Improvement);
Series 2007 A, State Supported Debt RB (INS–AGM)(c)		5.00	%		02/15/27		500		509,535
Series 2008 C, RB (INS–AGM)(b)(c)		5.25	%		02/15/28		2,000		1,952,800
New York (State of) Dormitory Authority (Miriam Osborn Memorial Home); Series 2000 B, RB (INS–ACA)(c)		6.38	%		07/01/29		750		735,240
New York (State of) Dormitory Authority (Mount Sinai School of Medicine); Series 2009, Non State Supported Debt RB		5.13	%		07/01/39		1,250		1,151,912
New York (State of) Dormitory Authority (New York University Hospital Center); Series 2011 A, Non State Supported Debt RB		6.00	%		07/01/40		1,000		1,000,610
New York (State of) Dormitory Authority (New York University);
Series 2001 1, RB (INS–BHAC/AMBAC)(c)		5.50	%		07/01/31		390		411,255
Series 2008 C, Non State Supported Debt RB		5.00	%		07/01/38		1,000		980,210
New York (State of) Dormitory Authority (North Shore–Long Island Jewish Obligated Group);
Series 2006 A, Non State Supported Debt RB		5.00	%		11/01/26		1,000		983,080
Series 2009 A, Non State Supported Debt RB		5.50	%		05/01/37		750		731,655
New York (State of) Dormitory Authority (Orange Regional Medical Center); Series 2008, Non State Supported Debt RB		6.50	%		12/01/21		1,000		1,007,730
New York (State of) Dormitory Authority (Providence Rest); Series 2005, Non State Supported Debt RB (INS–ACA)(c)		5.25	%		07/01/25		2,000		1,476,040
New York (State of) Dormitory Authority (Rehab Association); Series 2001 A, RB (INS–AMBAC)(c)		5.50	%		07/01/15		1,040		1,075,370
New York (State of) Dormitory Authority (Rochester Institute of Technology); Series 2010, Non State Supported Debt RB		5.00	%		07/01/40		750		725,310
New York (State of) Dormitory Authority (School District Building Financing Program); Series 2008 C, Non State Supported Debt RB		7.50	%		04/01/39		2,000		2,273,280

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

10        Invesco Van Kampen New York Tax Free Income Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
New York–(continued)
New York (State of) Dormitory Authority (School District Financial Program); Series 2009 C, Non State Supported Debt RB (INS–AGL)(c)		5.00	%		10/01/24	$	1,000	$	1,045,410
New York (State of) Dormitory Authority (St. Francis College); Series 2010, Non State Supported Debt RB		5.00	%		10/01/40		500		462,275
New York (State of) Dormitory Authority (State University Dormitory Facilities); Series 2008 A, State Supported Debt Lease RB		5.00	%		07/01/25		1,000		1,033,430
New York (State of) Dormitory Authority (The New School); Series 2010, Non State Supported Debt RB		5.50	%		07/01/40		720		705,060
New York (State of) Dormitory Authority (Vassar College); Series 2007, Non State Supported Debt RB		5.00	%		07/01/46		535		519,843
New York (State of) Energy Research & Development Authority (Brooklyn Union Gas Co.); Series 1991 B, Registered Residual Interest Gas Facility RB(b)(f)		11.92	%		07/01/26		500		501,240
New York (State of) Environmental Facilities Corp. (State Clean Water and Drinking Water); Series 2010 C, RB		5.00	%		10/15/39		750		752,407
New York (State of) Thruway Authority; Series 2008 B, Second General Highway and Bridge Trust Fund RB		5.00	%		04/01/25		1,000		1,042,590
New York (State of) Urban Development Corp. (Correctional Facility); Series 1994 A, Ref. RB		5.50	%		01/01/14		355		378,437
Oneida (County of) Industrial Development Agency (St. Elizabeth Medical Center); Series 1999 A, IDR		5.88	%		12/01/29		570		504,279
Onondaga Civic Development Corp. (Le Moyne College); Series 2010, RB		5.38	%		07/01/40		625		603,063
Port Authority of New York & New Jersey (JFK International Air Terminal LLC); Series 2010, Special Obligation RB		6.00	%		12/01/42		500		487,350
Port Authority of New York & New Jersey (JFK International Air Terminal, LLC); Series 1997, Special Obligation RB (INS–NATL)(b)(c)		5.75	%		12/01/22		2,000		1,952,280
Rensselaer (County of) Industrial Development Agency (Franciscan Heights); Series 2004 A, IDR (INS–SONYMA)(LOC–JP Morgan Chase Bank)(b)(c)(i)		5.38	%		12/01/36		1,000		915,400
Rockland (County of) Solid Waste Management Authority; Series 2003 B, RB (INS–AMBAC)(b)(c)		5.00	%		12/15/23		1,000		989,590
Seneca (County of) Industrial Development Agency (Seneca Meadows, Inc.); Series 2005, Solid Waste Disposal RB(b)(e)(f)(j)		6.63	%		10/01/13		500		497,905
Suffolk (County of) Economic Development Corp. (Peconic Landing at Southold, Inc.); Series 2010, Ref. RB		6.00	%		12/01/40		270		253,978
Suffolk (County of) Industrial Development Agency (Eastern Long Island Hospital Association); Series 2007, Civic Facility IDR(j)		5.38	%		01/01/27		1,325		1,011,651
Suffolk (County of) Industrial Development Agency (Family Service League); Series 2004, Civic Facility IDR (LOC–Fleet National Bank)(i)		5.00	%		11/01/34		825		752,895
Syracuse (City of) Industrial Development Agency (Jewish Home of Central New York, Inc.); Series 2001 A, First Mortgage RB		7.38	%		03/01/21		250		241,035
Tompkins (County of) Industrial Development Agency (Cornell University); Series 2008 A, Civic Facility IDR		5.00	%		07/01/37		250		251,560
Troy (City of) Capital Resource Corp. (Rensselaer Polytechnic); Series 2010 A, RB		5.00	%		09/01/30		750		723,728
TSASC, Inc.; Series 2006 1, Tobacco Settlement RB		5.13	%		06/01/42		1,500		1,005,945
Ulster (County of) Resource Recovery Agency Series 2002, Ref. Solid Waste System RB (INS–AMBAC)(c)		5.25	%		03/01/18		1,000		1,060,020
United Nations Development Corp. Series 2009 A, Ref. RB		5.00	%		07/01/25		1,000		1,029,840
Upper Mohawk Valley Regional Water Finance Authority Series 2000, Unrefunded Balance RB (INS–AMBAC)(c)		5.75	%		04/01/20		160		160,605
Utica (City of) Industrial Development Agency (Utica College); Series 1998 A, IDR		5.75	%		08/01/28		290		251,189
Warren & Washington (County of) Industrial Development Agency (Glens Falls Hospital); Series 2003 A, Civic Facility IDR (INS–AGM)(c)		5.00	%		12/01/35		1,000		938,510
Westchester (County of) Industrial Development Agency (Guiding Eyes For The Blind); Series 2004, Civic Facility IDR		5.38	%		08/01/24		1,000		983,910
Westchester (County of) Tobacco Asset Securitization Corp.; Series 2005, RB		5.13	%		06/01/45		1,500		1,041,210
Yonkers (City of) Economic Development Corp. (Charter School of Educational Excellence) Series 2010 A, Educational RB		6.25	%		10/15/40		1,000		885,280
									85,638,724

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

11        Invesco Van Kampen New York Tax Free Income Fund

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Guam–1.94%
Guam (Territory of) (Section 30); Series 2009 A, Limited Obligation RB		5.75	%		12/01/34	$	1,250	$	1,221,387
Guam (Territory of) Government Waterworks Authority; Series 2010, Water & Wastewater System RB		5.63	%		07/01/40		330		291,954
Guam (Territory of) Power Authority; Series 2010 A, RB		5.50	%		10/01/40		265		244,341
									1,757,682
Puerto Rico–3.60%
Puerto Rico (Commonwealth of) Aqueduct & Sewer Authority; Series 2008 A, Sr. Lien RB		6.00	%		07/01/38		650		609,414
Puerto Rico (Commonwealth of) Electric Power Authority;
Series 2008 WW, Power RB		5.50	%		07/01/21		1,000		1,049,440
Series 2008 WW, Power RB		5.25	%		07/01/33		500		452,435
Series 2010 XX, Power RB		5.75	%		07/01/36		500		476,905
Puerto Rico (Commonwealth of) Infrastructure Financing Authority; Series 2005 C, Ref. Special Tax RB (INS–AMBAC)(c)		5.50	%		07/01/27		400		384,956
Puerto Rico (Commonwealth of) Sales Tax Financing Corp.; First Sub. Series 2010 A, Sales Tax RB		5.38	%		08/01/39		315		291,507
									3,264,657
Virgin Islands–2.20%
Virgin Islands (Government of) Public Finance Authority (Gross Receipts Taxes Loan Note); Series 1999 A, RB		6.38	%		10/01/19		1,000		1,011,690
Virgin Islands (Government of) Public Finance Authority (Virgin Islands Matching Fund Loan Note–Diageo); Series 2009 A, Sub. RB		6.63	%		10/01/29		500		514,085
Virgin Islands (Government of) Public Finance Authority (Virgin Islands Matching Fund Loan Note); Series 2010 A, Sr. Lien RB		5.00	%		10/01/29		500		471,095
									1,996,870
TOTAL INVESTMENTS(k)–102.22% (Cost $96,509,385)									92,657,933
FLOATING RATE NOTE OBLIGATIONS–(3.61)%
Notes with interest rates ranging from 0.26% to 0.29% at 02/28/11 and contractual maturites of collateral ranging from 06/15/37 to 07/01/44 (See Note 1J)(l)									(3,270,000	)
OTHER ASSETS LESS LIABILITIES–1.39%									1,261,075
NET ASSETS–100.00%								$	90,649,008

Investment Abbreviations:

ACA	– ACA Financial Guaranty Corp.
AGL	– Assured Guaranty Ltd.
AGM	– Assured Guaranty Municipal Corp.
AMBAC	– American Municipal Bond Assurance Corp. (AMBAC filed for bankruptcy on November 8, 2010)
BHAC	– Berkshire Hathaway Assurance Corp.
CAB	– Capital Appreciation Bond
FGIC	– Financial Guaranty Insurance Co.
GO	– General Obligation
IDR	– Industrial Development Revenue Bonds
INS	– Insurer
LOC	– Letter of Credit
NATL	– National Public Finance Guarantee Corp.
PILOT	– Payment-in-Lieu-of-Tax
RADIAN	– Radian Asset Assurance
SONYMA	– State of New York Mortgage Agency
RB	– Revenue Bonds
Ref	– Refunding
SYNCORA	– Syncora Guaranteed Limited
Sr.	– Senior
Sub.	– Subordinated

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

12        Invesco Van Kampen New York Tax Free Income Fund

Notes to Schedule of Investments:

(a)	Zero coupon bond issued at a discount.
(b)	Security subject to the alternative minimum tax.
(c)	Principal and/or interest payments are secured by the bond insurance company listed.
(d)	Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral.
(e)	Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put.
(f)	Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on February 28, 2011.
(g)	Defaulted security. Currently, the issuer is partially or fully in default with respect to interest payments. The value of this security at February 28, 2011 represented 0.00% of the Fund’s Net Assets.
(h)	Underlying security related to Dealer Trusts entered into by the Fund. See Note 1J.
(i)	Principal and interest payments are fully enhanced by a letter of credit from the bank listed or a predecessor bank, branch or subsidiary.
(j)	Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. 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 February 28, 2011 was $1,509,556, which represented 1.67% of the Fund’s Net Assets.
(k)	This table provides a listing of those entities that have either issued, guaranteed, backed or otherwise enhanced the credit quality of more than 5% of the securities held in the portfolio. In instances where the entity has guaranteed, backed or otherwise enhanced the credit quality of a security, it is not primarily responsible for the issuer’s obligations but may be called upon to satisfy the issuer’s obligations.

Entities	Percentage
Assured Guaranty Municipal Corp.		7.37	%
American Municipal Bond Assurance Corp.		6.44	%
National Public Finance Guarantee Corp.		5.18	%

^(l) Floating rate note obligations related to securities held. The interest rates shown reflect the rates in effect at February 28, 2011. At February 28, 2011, the Fund’s investments with a value of $4,902,747 are held by the Dealer Trusts and serve as collateral for the $3,270,00 in the floating rate note obligations outstanding at that date.

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

13        Invesco Van Kampen New York Tax Free Income Fund

Statement of Assets and Liabilities

February 28, 2011

Assets:
Investments, at value (Cost $96,509,385)	$	92,657,933
Receivable for:
Investments sold		675,694
Fund shares sold		22,151
Interest		1,189,599
Fund expenses absorbed		22,934
Investment for trustee deferred compensation and retirement plans		1,208
Other assets		1,751
Total assets		94,571,270
Liabilities:
Floating rate note obligations		3,270,000
Payable for:
Fund shares reacquired		40,183
Amount due custodian		377,275
Dividends		141,663
Accrued fees to affiliates		35,336
Accrued other operating expenses		56,146
Trustee deferred compensation and retirement plans		1,659
Total liabilities		3,922,262
Net assets applicable to shares outstanding	$	90,649,008
Net assets consist of:
Shares of beneficial interest	$	99,926,153
Undistributed net investment income		202,476
Undistributed net realized gain (loss)		(5,628,169	)
Unrealized appreciation (depreciation)		(3,851,452	)
	$	90,649,008
Net Assets:
Class A	$	66,813,091
Class B	$	7,142,551
Class C	$	16,683,687
Class Y	$	9,679
Shares outstanding, $0.01 par value per share, with an unlimited number of shares authorized:
Class A		4,558,932
Class B		488,415
Class C		1,139,753
Class Y		661
Class A:
Net asset value per share	$	14.66
Maximum offering price per share
(Net asset value of $14.66 divided by 95.25%)	$	15.39
Class B:
Net asset value and offering price per share	$	14.62
Class C:
Net asset value and offering price per share	$	14.64
Class Y:
Net asset value and offering price per share	$	14.64

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

14        Invesco Van Kampen New York Tax Free Income Fund

Statement of Operations

For the five months ended February 28, 2011 and the year ended September 30, 2010

	Five months ended			Year ended
	February 28,			September 30,
	2011			2010
Investment income:
Interest	$	2,190,881		$	5,377,518
Expenses:
Advisory fees		185,855			472,741
Administrative services fees		20,685			59,386
Custodian fees		1,616			10,691
Distribution fees:
Class A		72,294			178,565
Class B		11,059			75,967
Class C		73,009			189,788
Interest, facilities and maintenance fees		9,602			38,257
Transfer agent fees		19,487			49,445
Trustees’ and officers’ fees and benefits		7,370			25,254
Other		25,793			107,682
Total expenses		426,770			1,207,776
Less: Fees waived		(98,859	)		(251,458	)
Net expenses		327,911			956,318
Net investment income		1,862,970			4,421,200
Net realized gain (loss) from investment securities		(334,685	)		(14,391	)
Change in net unrealized appreciation (depreciation) of investment securities		(6,985,129	)		2,445,562
Net realized and unrealized gain (loss)		(7,319,814	)		2,431,171
Net increase (decrease) in net assets resulting from operations	$	(5,456,844	)	$	6,852,371

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

15        Invesco Van Kampen New York Tax Free Income Fund

Statement of Changes in Net Assets

For the five months ended February 28, 2011 and the years ended September 30, 2010 and 2009

	Five months ended			Year ended			Year ended
	February 28,			September 30			September 30,
	2011			2010			2009
Operations:
Net investment income	$	1,862,970		$	4,421,200		$	4,695,247
Net realized gain (loss)		(334,685	)		(14,391	)		(3,649,773	)
Change in net unrealized appreciation (depreciation)		(6,985,129	)		2,445,562			10,302,109
Net increase (decrease) in net assets resulting from operations		(5,456,844	)		6,852,371			11,347,583
Distributions to shareholders from net investment income:
Class A		(1,378,184	)		(3,301,571	)		(3,381,881	)
Class B		(135,603	)		(439,089	)		(604,492	)
Class C		(291,493	)		(739,006	)		(756,316	)
Class Y		(206	)		(161	)		0
Total distributions from net investment income		(1,805,486	)		(4,479,827	)		(4,742,689	)
Share transactions–net:
Class A		(2,597,582	)		250,395			(6,326,804	)
Class B		(1,150,024	)		(2,951,957	)		(3,948,872	)
Class C		(1,017,728	)		(840,554	)		(528,987	)
Class Y		41			10,161			0
Net increase (decrease) in net assets resulting from share transactions		(4,765,293	)		(3,531,955	)		(10,804,663	)
Net increase (decrease) in net assets		(12,027,623	)		(1,159,411	)		(4,199,769	)
Net assets:
Beginning of the period		102,676,631			103,836,042			108,035,811
End of the period (includes undistributed net investment income of $202,476, $144,992 and $189,142, respectively)	$	90,649,008		$	102,676,631		$	103,836,042

Notes to Financial Statements

February 28, 2011

NOTE 1—Significant Accounting Policies

Invesco Van Kampen New York Tax Free Income Fund (the “Fund”), is a series portfolio of AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds (the “Trust”). The Trust is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end series management investment company consisting of twenty separate portfolios, each authorized to issue an unlimited number of shares of beneficial interest. The assets, liabilities and operations of each portfolio are accounted for separately. Information presented in these financial statements pertains only to the Fund. Matters affecting each portfolio or class will be voted on exclusively by the shareholders of such portfolio or class.

  Prior to June 1, 2010, the Fund operated as Van Kampen New York Tax-Free Income Fund (the “Acquired Fund”), an investment portfolio of Van Kampen Tax Free Trust. The Acquired Fund was reorganized on June 1, 2010, (the “Reorganization Date”) through the transfer of all of its assets and liabilities to the Fund (the “Reorganization”).

  Upon closing of the Reorganization, holders of the Acquired Fund’s Class A, Class B and Class C shares received Class A, Class B and Class C shares, respectively of the Fund.

  The Fund’s investment objective is to provide a investors with a high level of current income exempt from federal, New York State and New York City income tax, consistent with the preservation of capital.

  On February 28, 2011, the Fund’s fiscal year-end changed from September 30 to February 28.

  The Fund currently consists of four different classes of shares: Class A, Class B, Class C and Class Y. Class A shares are sold with a front-end sales charge unless certain waiver criteria are met and under certain circumstances load waived shares may be subject to contingent deferred sales charges (“CDSC”). Class C shares are sold with a CDSC. Class Y shares are sold at net asset value. Effective November 30, 2010, new or additional investments in Class B shares are no longer permitted. Existing shareholders of Class B shares may continue to reinvest dividends and capital gains distributions in Class B shares until they convert. Also, shareholders in Class B shares will be able to exchange those shares for Class B shares of other Invesco Funds offering such shares until they convert.

16        Invesco Van Kampen New York Tax Free Income Fund

Generally, Class B shares will automatically convert to Class A shares on or about the month-end which is at least eight years after the date of purchase. Redemption of Class B shares prior to conversion date will be subject to a CDSC.

  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.
	Securities are fair valued using an evaluated quote provided by an independent pricing service approved by the Board of Trustees. 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, yield, quality, coupon rate, maturity, type of issue, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Securities with a demand feature exercisable within one to seven days are valued at par. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and principal payments.
	Securities for which market quotations either are not readily available or are 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. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on transferability or disposition; trading in similar securities by the same issuer or comparable companies; relevant political, economic or issuer specific news; and other relevant factors under the circumstances.
	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 is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Fund may periodically participate in litigation related to Fund investments. As such, the Fund may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized 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 Statement of Changes in Net Assets, or the net investment income per share and 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 income are declared daily and paid monthly. Distributions from net realized capital gain, if any, are generally paid annually and recorded on ex-dividend date. The Fund may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.	Federal Income Taxes — The Fund intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Fund’s taxable and tax-exempt 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.
	In addition, the Fund intends to invest in such municipal securities to allow it to qualify to pay shareholders “exempt-interest dividends”, as defined in the Internal Revenue Code.
	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. Prior to the Reorganization, incremental transfer agency fees which are unique to each class of shares of the Acquired Fund were charged to the operations of such class.
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

17        Invesco Van Kampen New York Tax Free Income Fund

	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 performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts, including the Fund’s servicing agreements that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Securities Purchased on a When-Issued and Delayed Delivery Basis — The Fund may purchase and sell interests in portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date.
J.	Floating Rate Note Obligations — The Fund invests in inverse floating rate securities, such as Residual Interest Bonds (“RIBs”) or Tender Option Bonds (“TOBs”) for investment purposes and to enhance the yield of the Fund. Inverse floating rate investments tend to underperform the market for fixed rate bonds in a rising interest rate environment, but tend to outperform the market for fixed rate bonds when interest rates decline or remain relatively stable. Such transactions may be purchased in the secondary market without first owning the underlying bond or by the sale of fixed rate bonds by the Fund to special purpose trusts established by a broker dealer (“Dealer Trusts”) in exchange for cash and residual interests in the Dealer Trusts’ assets and cash flows, which are in the form of inverse floating rate securities. The Dealer Trusts finance the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Fund to retain residual interest in the bonds. The floating rate notes issued by the Dealer Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the Dealer Trusts for redemption at par at each reset date. The residual interests held by the Fund (inverse floating rate investments) include the right of the Fund (1) to cause the holders of the floating rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the municipal bond from the Dealer Trusts to the Fund, thereby collapsing the Dealer Trusts.
	TOBs are presently classified as private placement securities. Private placement securities are subject to restrictions on resale because they have not been registered under the Securities Act of 1933, as amended or are otherwise not readily marketable. As a result of the absence of a public trading market for these securities, they may be less liquid than publicly traded securities. Although these securities may be resold in privately negotiated transactions, the prices realized from these sales could be less than those originally paid by the Fund or less than what may be considered the fair value of such securities.
	The Fund accounts for the transfer of bonds to the Dealer Trusts as secured borrowings, with the securities transferred remaining in the Fund’s investment assets, and the related floating rate notes reflected as Fund liabilities under the caption Floating rate note obligations on the Statement of Assets and Liabilities. The Fund records the interest income from the fixed rate bonds under the caption Interest and records the expenses related to floating rate obligations and any administrative expenses of the Dealer Trusts as a component of Interest, facilities and maintenance fees on the Statement of Operations.
	The Fund generally invests in inverse floating rate securities that include embedded leverage, thus exposing the Fund to greater risks and increased costs. The primary risks associated with inverse floating rate securities are varying degrees of liquidity and the changes in the value of such securities in response to changes in market rates of interest to a greater extent than the value of an equal principal amount of a fixed rate security having similar credit quality, redemption provisions and maturity which may cause the Fund’s net asset value to be more volatile than if it had not invested in inverse floating rate securities. In certain instances, the short-term floating rate interests created by the special purpose trust may not be able to be sold to third parties or, in the case of holders tendering (or putting) such interests for repayment of principal, may not be able to be remarketed to third parties. In such cases, the special purpose trust holding the long-term fixed rate bonds may be collapsed. In the case of RIBs or TOBs created by the contribution of long-term fixed income bonds by the Fund, the Fund will then be required to repay the principal amount of the tendered securities. During times of market volatility, illiquidity or uncertainty, the Fund could be required to sell other portfolio holdings at a disadvantageous time to raise cash to meet that obligation.
K.	Other Risks — The value of, payment of interest on, repayment of principal for and the ability to sell a municipal security may be affected by constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives and the economics of the regions in which the issuers are located.
	Since many municipal securities are issued to finance similar projects, especially those relating to education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal securities market and a Fund’s investments in municipal securities.
	There is some risk that a portion or all of the interest received from certain tax-free municipal securities could become taxable as a result of determinations by the Internal Revenue Service.
L.	Interest, Facilities and Maintenance Fees — Interest, Facilities and Maintenance Fees include interest and related borrowing costs such as commitment fees and other expenses associated with lines of credit and interest and administrative expenses related to establishing and maintaining floating rate note obligations, if any.

18        Invesco Van Kampen New York Tax Free Income Fund

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

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

Average Net Assets	Rate
First $500 million		0	.470%
Over $500 million		0	.445%

  Prior to the Reorganization, the Acquired Fund paid an advisory fee of $314,479 to Van Kampen Asset Management (“Van Kampen”) based on the annual rates above of the Acquired Fund’s average daily net assets for the period October 1, 2009 to May 31, 2010.

  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 Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Trimark Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Fund, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provides discretionary investment management services to the Fund based on the percentage of assets allocated to such Sub-Adviser(s).

  Effective on the Reorganization date, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses of all shares to the extent necessary to limit total annual fund operating expenses after fee waiver and/or expense reimbursement (excluding certain items discussed below) of Class A, Class B, Class C and Class Y shares to 0.78%, 1.53%, 1.53% and 0.53% of average daily net assets, respectively. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the net annual fund operating expenses after fee waiver and/or expense reimbursement to exceed the numbers reflected above: (1) interest, facilities and maintenance fees; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Fund has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the fee waiver agreement, it will terminate on June 30, 2012. The Adviser waived $0 and $84,182 of fees and/or reimburse expenses during the five months ended February 28, 2011 and the year ended September 30, 2010 under this limitation.

  Prior to the Reorganization, Van Kampen voluntarily waived $167,276 of fees and/or reimbursed expenses of the Acquired Fund.

  Further, the Adviser has contractually agreed, through at least June 30, 2011, 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 period ended February 28, 2011, the Adviser waived advisory fees of $98,859.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Fund has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Fund. Prior to the Reorganization, under separate accounting services and chief compliance officer (“CCO”) employment agreements, Van Kampen Investments Inc. (“VKII”) provided accounting services and the CCO provided compliance services to the Acquired Fund. Pursuant to such agreements, the Acquired Fund paid $14,009 to VKII. For the period ended February 28, 2011 expenses incurred under these agreements are shown in the Statement of Operations as administrative services fees.

  Prior to the Reorganization, under a legal services agreement, VKII provided legal services to the Acquired Fund. Pursuant to such agreement, the Acquired Fund paid $15,088 to VKII.

  The Trust has entered into a transfer agency and service agreement with Invesco Investment Services, Inc. (“IIS”) pursuant to which the Fund has agreed to pay IIS a fee for providing transfer agency and shareholder services to the Fund and reimburse IIS for certain expenses incurred by IIS in the course of providing such services. IIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. All fees payable by IIS to intermediaries that provide omnibus account services or sub-accounting are charged back to the Fund, subject to certain limitations approved by the Trust’s Board of Trustees. Pursuant to such agreement, for the period ended February 28, 2011 IIS was paid $19,487 for providing such services. Prior to the Reorganization, the Acquired Fund paid $17,730 to Van Kampen Investor Services Inc., which served as the Acquired Fund’s transfer agent. For the period ended February 28, 2011, expenses incurred under these agreements are shown in the Statement of Operations as transfer agent fees.

  Shares of the Fund are distributed by Invesco Distributors, Inc. (“IDI”). The Fund has adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act, and a service plan (collectively, the “Plans”) for Class A shares, Class B shares and Class C shares to compensate IDI for the sale, distribution, shareholder servicing and maintenance of shareholder accounts for these shares. Under the Plans, the Fund will incur annual fees of up to 0.25% of Class A average daily net assets and up to 1.00% each of Class B and Class C average daily net assets.

  With respect to Class B and Class C shares, the Fund is authorized to reimburse in future years any distribution related expenses that exceed the maximum annual reimbursement rate for such class, so long as such reimbursement does not cause the Fund to exceed the Class B and Class C maximum annual reimbursement rate, respectively. With respect to Class A shares, distribution related expenses that exceed the maximum annual reimbursement rate for such class are not carried forward to future years and the Fund will not reimburse IDI for any such expenses. For the period ended February 28, 2011, expenses incurred under these agreements are shown in the Statement of Operations as distribution fees.

  Front-end sales commissions and CDSC (collectively the “sales charges”) are not recorded as expenses of the Fund. Front-end sales commissions are deducted from proceeds from the sales of Fund shares prior to investment in Class A shares of the Fund. CDSC are deducted from redemption proceeds prior to remittance to the shareholder. For the period October 1, 2010 to February 28, 2011, IDI advised the Fund that IDI retained $3,510 in front-end sales commissions from the sale of Class A shares and $203, $4,268 and $2,141 from Class A, Class B and Class C shares, respectively, for CDSC imposed on redemptions by shareholders.

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

19        Invesco Van Kampen New York Tax Free 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 February 28, 2011. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the five months ended February 28, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Municipal Obligations	$	—	$	92,657,933	$	—	$	92,657,933

NOTE 4—Expense Offset Arrangement(s)

The expense offset arrangement is comprised of transfer agency credits which result from balances in Demand Deposit Accounts (DDA) used by the transfer agent for clearing shareholder transactions. For the period October 1, 2010 to February 28, 2011, and the year ended September 30, 2011. the Fund received credits from this arrangement, which resulted in the reduction of the Fund’s total expenses of $0.

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 are eligible to participate in a retirement plan that provides 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.

  For the period ended February 28, 2011, the Fund paid legal fees of $642 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A member of that firm is a Trustee of the Trust. Prior to the Reorganization, the Acquired Fund recognized expenses of $6,229 representing legal services provided by Skkaden, Arps, Slate, Meagher & Flom LLP, of which a director of the Acquired Fund was a partner of such firm and he and his law firm provided legal services as legal counsel to the Acquired Fund.

NOTE 6—Cash Balances and Borrowings

The Fund is permitted to temporarily carry a negative or overdrawn balance in its account with The State Street Bank and Trust Company, the custodian bank. 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.

  Inverse floating rate note obligations resulting from the transfer of bonds to Dealer Trusts are accounted for as secured borrowings. The average floating rate notes outstanding and average annual interest and fees related to inverse floating rate note obligations during the period October 1, 2010 to February 28, 2011 were $3,325,000 and 0.70%, respectively.

20        Invesco Van Kampen New York Tax Free Income Fund

NOTE 7—Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Period October 1, 2010 to February 28, 2011 and the Years Ended September 30, 2010 and 2009:

	Five months		Year ended		Year ended
	ended February 28,		September 30,		September 30,
	2011		2010		2009
Ordinary income	$	0	$	26,418	$	1,046
Ordinary income -tax exempt		1,805,486		4,453,409		4,752,989
Total distributions	$	1,805,486	$	4,479,827	$	4,754,035

Tax Components of Net Assets at Period-End:

	2011
Undistributed tax exempt income	$	136,204
Net unrealized appreciation (depreciation) — investments		(3,700,988	)
Temporary book/tax differences		(1,515	)
Post-October deferrals		(101,337	)
Capital loss carryforward		(5,609,509	)
Shares of beneficial interest		99,926,153
Total net assets	$	90,649,008

  The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Fund’s net unrealized appreciation (depreciation) is attributable to market discount and inverse floater adjustments.

  The temporary book/tax differences are a result of timing differences between book and tax recognition of income and/or expenses. The Fund’s temporary book/tax differences are the result of the trustee deferral of compensation and retirement plan benefits.

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

  The Fund utilized $0 of capital loss carryforward in the current period to offset net realized capital gain for federal income tax purposes. The Fund has a capital loss carryforward as of February 28, 2011 which expires as follows:

	Capital Loss
Expiration	Carryforward*
February 28, 2017	$	1,814,155
February 28, 2018		3,515,499
February 28, 2019		279,855
Total capital loss carryforward	$	5,609,509

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

NOTE 8—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Fund during the period October 1, 2010 to February 28, 2011 was $9,512,381 and $13,751,167, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	1,124,095
Aggregate unrealized (depreciation) of investment securities		(4,825,083	)
Net unrealized appreciation (depreciation) of investment securities	$	(3,700,988	)
Cost of investments for tax purposes is $96,358,921

21        Invesco Van Kampen New York Tax Free Income Fund

NOTE 9—Share Information

	Summary of Share Activity
	Five months ended						Year ended						Year ended
	February 28, 2011(a)						September 30, 2010						September 30, 2009
	Shares			Amount			Shares			Amount			Shares			Amount
Sold:
Class A		187,683(b	)	$	2,827,687(b	)		733,021(c	)	$	11,258,712(c	)		785,019		$	10,966,063
Class B		9,548			148,390			65,009			989,456			116,624			1,628,367
Class C		24,890			365,262			122,330			1,870,602			191,911			2,661,095
Class Y		0			0			648			10,000			0			0
Issued as reinvestment of dividends:
Class A		54,265			811,310			161,342			2,473,042			182,042			2,532,334
Class B		5,836			86,939			23,431			356,965			33,902			469,100
Class C		12,032			179,746			35,975			550,733			37,672			524,646
Class Y		3			41			10			161			0			0
Reacquired:
Class A		(418,300	)		(6,236,579	)		(881,321	)		(13,481,359	)		(1,442,541	)		(19,825,201	)
Class B		(93,594	)(b)		(1,385,353	)(b)		(281,866	)(c)		(4,298,378	)(c)		(443,008	)		(6,046,339	)
Class C		(105,375	)		(1,562,736	)		(213,484	)		(3,261,889	)		(271,042	)		(3,714,728
Class Y		0			0			0			0			0			0
Net increase (decrease) in share activity		(323,012	)	$	(4,765,293	)		(234,905	)	$	(3,531,955	)		(809,421	)	$	(10,804,663	)

(a)	There are entities that are record owners of more than 5% of the outstanding shares of the Fund and in the aggregate own 54% of the outstanding shares of the Fund. IDI has an agreement with these entities to sell Fund shares. The Fund, Invesco and/or Invesco affiliates may make payments to these entities, which are considered to be related to the Fund, for providing services to the Fund, Invesco and/or Invesco affiliates including but not limited to services such as, securities brokerage, third party record keeping and account servicing. The Fund has no knowledge as to whether all or any portion of the shares owned of record by these entities are also owned beneficially. In addition, less than 1% of the outstanding shares of the Fund are owned by affiliated mutual funds. Affiliated mutual funds are mutual funds that are advised by Invesco.
(b)	Includes automatic conversion of 62,546 Class B shares into 62,203 Class A shares at a value of $928,542.
(c)	Includes automatic conversion of 109,306 Class B shares into 108,782 Class A shares at a value of $1,673,533.

NOTE 10—Subsequent Event

The Board of Trustees unanimously approved an Agreement and Plan of Reorganization (the “Agreement”) pursuant to which the Fund would acquire all of the assets and liabilities of Invesco New York Tax-Free Income (the “Target Fund”) in exchange for shares of the Fund.

  The Target Fund’s shareholders approved the Agreement on April 14, 2011 and the reorganization is expected to be consummated shortly thereafter. Upon closing of the reorganization, shareholders of the Target Fund will receive a corresponding class of shares of the Fund in exchange for their shares of the Target Fund and the Target Fund will liquidate and cease operations.

22        Invesco Van Kampen New York Tax Free Income Fund

NOTE 11—Financial Highlights

The following schedule presents financial highlights for a share of the Fund outstanding throughout the periods indicated.

																																				Supplemental
																																				Ratios
																																							Ratio of
																																				Ratio of			expenses
																																				expenses			to average
																																				to average			net assets
																											Ratio of			Ratio of						net assets			without
					Net gains																						expenses			expenses						with fee waiver			fee waivers
					(losses)																						to average			to average net			Ratio of net			(excluding			(excluding
	Net asset				on securities						Dividends			Distributions													net assets			assets without			investment			interest,			interest,
	value,		Net		(both			Total from			from net			from net						Net asset					Net assets,		with fee waivers			fee waivers			income			facilities and			facilities and
	beginning		investment		realized and			investment			investment			realized			Total			value, end		Total			end of period		and/or expenses			and/or expenses			to average			maintenance			maintenance			Portfolio
	of period		income(a)		unrealized)			operations			income			gains			Distributions			of period		return			(000s omitted)		absorbed			absorbed			net assets			fees)			fees)(j)			turnover(b)
Class A
Period ended 02/28/11	$	15.78	$	0.30	$	(1.12	)	($	0.82	)	$	(0.30	)	$	0		$	(0.30	)	$	14.66		(5.25	)%(c)	$	66,813		0.68	%(d)		0.93	%(d)		4.86	%(d)		0.66	(d)		0.91	%(d)		10	%
Year ended 09/30/10		15.40		0.70		0.39			1.09			(0.71	)		0			(0.71	)		15.78		7.32	(c)		74,722		0.76			1.01			4.59			0.73			0.98			18
Year ended 09/30/09		14.31		0.70		1.10			1.80			(0.71	)		0			(0.71	)		15.40		13.24	(e)		72,726		0.84			1.09			5.06			0.78			1.03			32
Year ended 09/30/08		16.01		0.69		(1.66	)		(0.97	)		(0.71	)		(0.02	)		(0.73	)		14.31		(6.32	)(e)		74,376		0.89			1.14			4.44			0.73			0.98			34
Year ended 09/30/07		16.47		0.67		(0.43	)		0.24			(0.68	)		(0.02	)		(0.70	)		16.01		1.34	(e)		82,261		0.81			1.06			4.12			0.72			0.97			13
Year ended 09/30/06		16.67		0.66		0.11			0.77			(0.65	)		(0.32	)		(0.97	)		16.47		4.96	(e)		73,839		0.73			0.98			4.05			0.73			0.98			30
Class B
Period ended 02/28/11		15.70		0.30		(1.13	)		(0.83	)		(0.25	)		0			(0.25	)		14.62		(5.30	)(c)		7,143		0.77	(d)(f)		1.02	(d)(f)		4.77	(d)(f)		0.75	(d)(f)		1.00	(d)		10
Year ended 09/30/10		15.35		0.62		0.39			1.01			(0.66	)		0			(0.66	)		15.70		6.76	(c)(f)		8,895		1.26	(f)		1.51	(f)		4.09	(f)		1.23	(f)		1.48	(f)		18
Year ended 09/30/09		14.27		0.69		1.09			1.78			(0.70	)		0			(0.70	)		15.35		13.13	(g)(h)		11,666		0.92	(h)		1.17	(h)		4.99	(h)		0.86	(h)		1.11	(h)		32
Year ended 09/30/08		15.97		0.70		(1.65	)		(0.95	)		(0.73	)		(0.02	)		(0.75	)		14.27		(6.22	)(g)(h)		15,016		0.81	(h)		1.06	(h)		4.52	(h)		0.65	(h)		0.90	(h)		34
Year ended 09/30/07		16.43		0.60		(0.43	)		0.17			(0.61	)		(0.02	)		(0.63	)		15.97		0.95	(g)(h)		20,512		1.23	(h)		1.48	(h)		3.69	(h)		1.14	(h)		1.39	(h)		13
Year ended 09/30/06		16.63		0.54		0.11			0.65			(0.53	)		(0.32	)		(0.85	)		16.43		4.18	(g)		28,613		1.48			1.73			3.30			1.48			1.73			30
Class C
Period ended 02/28/11		15.77		0.25		(1.13	)		(0.88	)		(0.25	)		0			(0.25	)		14.64		(5.62	)(c)		16,684		1.43	(d)		1.68	(d)		4.11	(d)		1.41	(d)		1.66	(d)		10
Year ended 09/30/10		15.39		0.59		0.38			0.97			(0.59	)		0			(0.59	)		15.77		6.50	(c)		19,049		1.51			1.76			3.84			1.48			1.73			18
Year ended 09/30/09		14.29		0.61		1.10			1.71			(0.61	)		0			(0.61	)		15.39		12.51	(h)(i)		19,444		1.50	(h)		1.75	(h)		4.40	(h)		1.44	(h)		1.69	(h)		32
Year ended 09/30/08		15.99		0.58		(1.67	)		(1.09	)		(0.59	)		(0.02	)		(0.61	)		14.29		(7.04	)(i)		18,644		1.64			1.89			3.70			1.48			1.73			34
Year ended 09/30/07		16.45		0.55		(0.43	)		0.12			(0.56	)		(0.02	)		(0.58	)		15.99		0.66	(h)(i)		18,912		1.55	(h)		1.80	(h)		3.37	(h)		1.46	(h)		1.71	(h)		13
Year ended 09/30/06		16.65		0.54		0.11			0.65			(0.53	)		(0.32	)		(0.85	)		16.45		4.14	(h)(i)		17,389		1.46	(h)		1.71	(h)		3.32	(h)		1.46	(h)		1.71	(h)		30
Class Y
Period ended 02/28/11		15.78		0.32		(1.15	)		(0.83	)		(0.31	)		0			(0.31	)		14.64		(5.27	)(c)		10		0.43	(d)		0.68	(d)		5.11	(d)		0.41	(d)		0.66	(d)		10
Year ended 09/30/10		15.44		0.25		0.34			0.59			(0.25	)		0			(0.25	)		15.78		3.83	(c)		10		0.51			0.76			4.77			0.73			0.73			18

(a)	Calculated using average shares outstanding.
(b)	Portfolio turnover is calculated at the fund level and is not annualized for periods less than one year, if applicable.
(c)	Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Does not include sales charges and is not annualized for periods less than one year, if applicable.
(d)	Ratios are annualized and based on average daily net assets (000’s omitted) of $69,900,$8,027, $17,649 and $10 for Class A, Class B, Class C, Class Y, shares, respectively.
(e)	Assumes reinvestment of all distributions for the period and does not include payment of the maximum sales charge of 4.75% or contingent deferred sales charge (CDSC). On purchases of $1 million or more, a CDSC of 1% may be imposed on certain redemptions made within eighteen months of purchase. If the sales charges were included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 0.25% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
(f)	The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of 0.33% and 0.75% for the period ended February 28, 2011 and the year ended September 30, 2010.
(g)	Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 4%, charged on certain redemptions made within one year of purchase and declining to 0% after the fifth year. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
(h)	The total return, ratio of expenses to average net assets and ratio of net investment income to average net assets reflect actual 12b-1 fees of less than 1%.
(i)	Assumes reinvestment of all distributions for the period and does not include payment of the maximum CDSC of 1%, charged on certain redemptions made within one year of purchase. If the sales charge was included, total returns would be lower. These returns include combined Rule 12b-1 fees and service fees of up to 1% and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares
(j)	For the years ended September 30, 2010 and prior, ratio does not exclude facilities and maintenance fees.

23        Invesco Van Kampen New York Tax Free Income Fund

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds) and Shareholders of Invesco Van Kampen New York Tax Free Income Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Invesco Van Kampen New York Tax Free Income Fund; (one of the funds constituting AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds), hereafter referred to as the “Fund”) at February 28, 2011, the results of its operations, the changes in its net assets and the financial highlights for the period ended February 28, 2011 and the year ended September 30, 2010, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at February 28, 2011 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The statement of changes in net assets and the financial highlights of the Fund for the periods ended September 30, 2009 and prior were audited by other independent auditors whose report dated November 20, 2009 expressed an unqualified opinion on those financial statements.

PRICEWATERHOUSECOOPERS LLP

April 21, 2011

Houston, Texas

24        Invesco Van Kampen New York Tax Free Income Fund

Calculating your ongoing Fund expenses

Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or contingent deferred sales charges on redemptions, and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 1, 2010 through February 28, 2011.

Actual expenses

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

Hypothetical example for comparison purposes

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

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

  Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions, and redemption fees, if any. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

							HYPOTHETICAL
							(5% annual return before
			ACTUAL				expenses)
	Beginning		Ending		Expenses		Ending		Expenses		Annualized
	Account Value		Account Value		Paid During		Account Value		Paid During		Expense
Class	(09/01/10)		(02/28/11)1		Period2		(02/28/11)		Period2		Ratio
A	$	1,000.00		950.40	$	3.39	$	1,021.32	$	3.51		0.70	%
B		1,000.00		947.10		4.34		1,020.33		4.51		0.90
C		1,000.00		947.40		7.00		1,017.60		7.25		1.45
Y		1,000.00		951.70		2.18		1,022.56		2.26		0.45

1	The actual ending account value is based on the actual total return of the Fund for the period September 1, 2010 through February 28, 2011, after actual expenses and will differ from the hypothetical ending account value which is based on the Fund’s expense ratio and a hypothetical annual return of 5% before expenses.
2	Expenses are equal to the Fund’s annualized expense ratio as indicated above multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half year.

25        Invesco Van Kampen New York Tax Free Income Fund

Tax Information

Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.

  The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state’s requirement.

  The Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended February 28, 2011:

  Federal and State Income Tax

  Tax-Exempt Interest Dividends* 100.00%

  * The above percentage is based on ordinary income dividends paid to shareholders during the Fund’s fiscal year.

26        Invesco Van Kampen New York Tax Free Income Fund

Trustees and Officers

The address of each trustee and officer is AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds) (the “Trust”), 11 Greenway Plaza, Suite 2500, Houston, Texas 77046-1173. The trustees serve for the life of the Trust, subject to their earlier death, incapacitation, resignation, retirement or removal as more specifically provided in the Trust’s organizational documents. Each officer serves for a one year term or until their successors are elected and qualified. Column two below includes length of time served with predecessor entities, if any.

	Trustee	Principal Occupation(s)	Number of		Other
Name, Year of Birth and	and/or	During Past 5 Years	Funds in		Directorship(s)
Position(s) Held with the	Officer		Fund Complex		Held by
Trust	Since		Overseen by		Trustee
			Trustee
Interested Persons
Martin L. Flanagan1 — 1960 Trustee	2007	Executive Director, Chief Executive Officer and President, Invesco Ltd. (ultimate parent of Invesco and a global investment management firm); Advisor to the Board, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Trustee, The Invesco Funds; Vice Chair, Investment Company Institute; and Member of Executive Board, SMU Cox School of Business Formerly: Chairman, Invesco Advisers, Inc. (registered investment adviser); Director, Chairman, Chief Executive Officer and President, IVZ Inc. (holding company), INVESCO Group Services, Inc. (service provider) and Invesco North American Holdings, Inc. (holding company); Director, Chief Executive Officer and President, Invesco Holding Company Limited (parent of Invesco and a global investment management firm); Director, Invesco Ltd.; Chairman, Investment Company Institute and President, Co-Chief Executive Officer, Co-President, Chief Operating Officer and Chief Financial Officer, Franklin Resources, Inc. (global investment management organization)		208	None
Philip A. Taylor2 — 1954 Trustee, President and Principal Executive Officer	2006	Head of North American Retail and Senior Managing Director, Invesco Ltd.; Director, Co-Chairman, Co-President and Co-Chief Executive Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Director, Chief Executive Officer and President, 1371 Preferred Inc. (holding company); Director, Chairman, Chief Executive Officer and President, Invesco Management Group, Inc. (formerly Invesco Aim Management Group, Inc.) (financial services holding company); Director and President, INVESCO Funds Group, Inc. (registered investment adviser and registered transfer agent) and AIM GP Canada Inc. (general partner for limited partnerships); Director and Chairman, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) (registered transfer agent) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.) (registered broker dealer); Director, President and Chairman, Invesco Inc. (holding company) and Invesco Canada Holdings Inc. (holding company); Chief Executive Officer, Invesco Trimark Corporate Class Inc. (corporate mutual fund company) and Invesco Trimark Canada Fund Inc. (corporate mutual fund company); Director and Chief Executive Officer, Invesco Trimark Ltd./Invesco Trimark Ltèe (registered investment adviser and registered transfer agent) and Invesco Trimark Dealer Inc. (registered broker dealer); Trustee, President and Principal Executive Officer, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); Trustee and Executive Vice President, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only); and Director, Van Kampen Asset Management; Director, Chief Executive Officer and President, Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Director and Chairman, Van Kampen Investor Services Inc. and Director and President, Van Kampen Advisors, Inc. Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.) (registered broker dealer); Manager, Invesco PowerShares Capital Management LLC; Director, Chief Executive Officer and President, Invesco Advisers, Inc.; Director, Chairman, Chief Executive Officer and President, Invesco Aim Capital Management, Inc.; President, Invesco Trimark Dealer Inc. and Invesco Trimark Ltd./Invesco Trimark Ltèe; Director and President, AIM Trimark Corporate Class Inc. and AIM Trimark Canada Fund Inc.; Senior Managing Director, Invesco Holding Company Limited; Trustee and Executive Vice President, Tax-Free Investments Trust; Director and Chairman, Fund Management Company (former registered broker dealer); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only); President, AIM Trimark Global Fund Inc. and AIM Trimark Canada Fund Inc.		208	None
Wayne M. Whalen3 — 1939 Trustee	2010	Of Counsel, and prior to 2010, partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP, legal counsel to funds in the Fund Complex		226	Director of the Abraham Lincoln Presidential Library Foundation
Independent Trustees
Bruce L. Crockett — 1944 Trustee and Chair	1993	Chairman, Crockett Technology Associates (technology consulting company) Formerly: Director, Captaris (unified messaging provider); Director, President and Chief Executive Officer COMSAT Corporation; and Chairman, Board of Governors of INTELSAT (international communications company)		208	ACE Limited (insurance company); and Investment Company Institute
David C. Arch — 1945 Trustee	2010	Chairman and Chief Executive Officer of Blistex Inc., a consumer health care products manufacturer.		226	Member of the Heartland Alliance Advisory Board, a nonprofit organization serving human needs based in Chicago. Board member of the Illinois Manufacturers’ Association. Member of the Board of Visitors, Institute for the Humanities, University of Michigan

1	Mr. Flanagan is considered an interested person of the Trust because he is an officer of the adviser to the Trust, and an officer and a director of Invesco Ltd., ultimate parent of the adviser to the Trust.
2	Mr. Taylor is considered an interested person of the Trust because he is an officer and a director of the adviser to, and a director of the principal underwriter of, the Trust.
3	Mr. Whalen is considered an “interested person” (within the meaning of Section 2(a)(19) of the 1940 Act) of certain Funds in the Fund Complex by reason of he and his firm currently providing legal services as legal counsel to such Funds in the Fund Complex.

T-1

Trustees and Officers - (continued)

	Trustee	Principal Occupation(s)	Number of		Other
Name, Year of Birth and	and/or	During Past 5 Years	Funds in		Directorship(s)
Position(s) Held with the	Officer		Fund Complex		Held by
Trust	Since		Overseen by		Trustee
			Trustee
Independent Trustees
Bob R. Baker — 1936 Trustee	2003	Retired Formerly: President and Chief Executive Officer, AMC Cancer Research Center; and Chairman and Chief Executive Officer, First Columbia Financial Corporation		208	None
Frank S. Bayley — 1939 Trustee	2001	Retired		208	None
		Formerly: Director, Badgley Funds, Inc. (registered investment company) (2 portfolios) and Partner, law firm of Baker & McKenzie
James T. Bunch — 1942 Trustee	2003	Founder, Green, Manning & Bunch Ltd. (investment banking firm) Formerly: Executive Committee, United States Golf Association; and Director, Policy Studies, Inc. and Van Gilder Insurance Corporation		208	Vice Chairman, Board of Governors, Western Golf Association/Evans Scholars Foundation and Director, Denver Film Society
Rodney Dammeyer — 1940 Trustee	2010	President of CAC, LLC, a private company offering capital investment and management advisory services. Formerly: Prior to January 2004, Director of TeleTech Holdings Inc.; Prior to 2002, Director of Arris Group, Inc.; Prior to 2001, Managing Partner at Equity Group Corporate Investments. Prior to 1995, Vice Chairman of Anixter International. Prior to 1985, experience includes Senior Vice President and Chief Financial Officer of Household International, Inc, Executive Vice President and Chief Financial Officer of Northwest Industries, Inc. and Partner of Arthur Andersen & Co.		226	Director of Quidel Corporation and Stericycle, Inc. Prior to May 2008, Trustee of The Scripps Research Institute. Prior to February 2008, Director of Ventana Medical Systems, Inc. Prior to April 2007, Director of GATX Corporation. Prior to April 2004, Director of TheraSense, Inc.
Albert R. Dowden — 1941 Trustee	2000	Director of a number of public and private business corporations, including the Boss Group, Ltd. (private investment and management); Reich & Tang Funds (5 portfolios) (registered investment company); and Homeowners of America Holding Corporation/ Homeowners of America Insurance Company (property casualty company) Formerly: Director, Continental Energy Services, LLC (oil and gas pipeline service); Director, CompuDyne Corporation (provider of product and services to the public security market) and Director, Annuity and Life Re (Holdings), Ltd. (reinsurance company); Director, President and Chief Executive Officer, Volvo Group North America, Inc.; Senior Vice President, AB Volvo; Director of various public and private corporations; Chairman, DHJ Media, Inc.; Director Magellan Insurance Company; and Director, The Hertz Corporation, Genmar Corporation (boat manufacturer), National Media Corporation; Advisory Board of Rotary Power International (designer, manufacturer, and seller of rotary power engines); and Chairman, Cortland Trust, Inc. (registered investment company)		208	Board of Nature’s Sunshine Products, Inc.
Jack M. Fields — 1952 Trustee	1997	Chief Executive Officer, Twenty First Century Group, Inc. (government affairs company); and Owner and Chief Executive Officer, Dos Angelos Ranch, L.P. (cattle, hunting, corporate entertainment), Discovery Global Education Fund (non-profit) and Cross Timbers Quail Research Ranch (non-profit) Formerly: Chief Executive Officer, Texana Timber LP (sustainable forestry company) and member of the U.S. House of Representatives		208	Administaff
Carl Frischling — 1937 Trustee	1993	Partner, law firm of Kramer Levin Naftalis and Frankel LLP		208	Director, Reich & Tang Funds (16 portfolios)
Prema Mathai-Davis — 1950 Trustee	1998	Retired Formerly: Chief Executive Officer, YWCA of the U.S.A.		208	None
Larry Soll — 1942 Trustee	2003	Retired Formerly, Chairman, Chief Executive Officer and President, Synergen Corp. (a biotechnology company)		208	None
Hugo F. Sonnenschein — 1940 Trustee	2010	President Emeritus and Honorary Trustee of the University of Chicago and the Adam Smith Distinguished Service Professor in the Department of Economics at the University of Chicago. Prior to July 2000, President of the University of Chicago.		226	Trustee of the University of Rochester and a member of its investment committee. Member of the National Academy of Sciences, the American Philosophical Society and a fellow of the American Academy of Arts and Sciences
Raymond Stickel, Jr. — 1944 Trustee	2005	Retired Formerly: Director, Mainstay VP Series Funds, Inc. (25 portfolios) and Partner, Deloitte & Touche		208	None

T-2

Trustees and Officers - (continued)

	Trustee	Principal Occupation(s)	Number of		Other
Name, Year of Birth and	and/or	During Past 5 Years	Funds in		Directorship(s)
Position(s) Held with the	Officer		Fund Complex		Held by
Trust	Since		Overseen by		Trustee
			Trustee
Other Officers
Russell C. Burk — 1958 Senior Vice President and Senior Officer	2005	Senior Vice President and Senior Officer of Invesco Funds		N/A	N/A
John M. Zerr — 1962 Senior Vice President, Chief Legal Officer and Secretary	2006	Director, Senior Vice President, Secretary and General Counsel, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp., Senior Vice President, Invesco Advisers, Inc. formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Secretary, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Vice President and Secretary, Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and IVZ Distributors, Inc. (formerly known as INVESCO Distributors, Inc.); Director and Vice President, INVESCO Funds Group, Inc.; Senior Vice President, Chief Legal Officer and Secretary, The Invesco Funds; Manager, Invesco PowerShares Capital Management LLC; Director, Secretary and General Counsel, Van Kampen Asset Management; Director and Secretary, Van Kampen Advisors Inc.; Secretary and General Counsel, Van Kampen Funds Inc.; and Director, Vice President, Secretary and General Counsel, Van Kampen Investor Services Inc.; and Chief Legal Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust Formerly: Director, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Director, Senior Vice President, General Counsel and Secretary, Invesco Advisers, Inc.; Director, Vice President and Secretary, Fund Management Company; Director, Senior Vice President, Secretary, General Counsel and Vice President, Invesco Aim Capital Management, Inc.; Chief Operating Officer and General Counsel, Liberty Ridge Capital, Inc. (an investment adviser); Vice President and Secretary, PBHG Funds (an investment company) and PBHG Insurance Series Fund (an investment company); Chief Operating Officer, General Counsel and Secretary, Old Mutual Investment Partners (a broker-dealer); General Counsel and Secretary, Old Mutual Fund Services (an administrator) and Old Mutual Shareholder Services (a shareholder servicing center); Executive Vice President, General Counsel and Secretary, Old Mutual Capital, Inc. (an investment adviser); and Vice President and Secretary, Old Mutual Advisors Funds (an investment company)		N/A	N/A
Lisa O. Brinkley — 1959 Vice President	2004	Global Compliance Director, Invesco Ltd.; Chief Compliance Officer, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc.(formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc.; and Vice President, The Invesco Funds Formerly: Senior Vice President, Invesco Management Group, Inc.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and The Invesco Funds; Vice President and Chief Compliance Officer, Invesco Aim Capital Management, Inc. and Invesco Distributors, Inc.; Vice President, Invesco Investment Services, Inc. and Fund Management Company		N/A	N/A
Sheri Morris — 1964 Vice President, Treasurer and Principal Financial Officer	1999	Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; and Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) Formerly: Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.		N/A	N/A
Karen Dunn Kelley — 1960 Vice President	1993	Head of Invesco’s World Wide Fixed Income and Cash Management Group; Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) and Van Kampen Investments Inc.; Executive Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.); Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.); and Director, Invesco Mortgage Capital Inc.; Vice President, The Invesco Funds (other than AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust); President and Principal Executive Officer, The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust) and Short-Term Investments Trust only). Formerly: Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.); Director of Cash Management and Senior Vice President, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; President and Principal Executive Officer, Tax-Free Investments Trust; Director and President, Fund Management Company; Chief Cash Management Officer, Director of Cash Management, Senior Vice President, and Managing Director, Invesco Aim Capital Management, Inc.; Director of Cash Management, Senior Vice President, and Vice President, Invesco Advisers, Inc. and The Invesco Funds (AIM Treasurer’s Series Trust (Invesco Treasurer’s Series Trust), Short-Term Investments Trust and Tax-Free Investments Trust only)		N/A	N/A
Lance A. Rejsek — 1967 Anti-Money Laundering Compliance Officer	2005	Anti-Money Laundering Compliance Officer, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser); Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.), The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Trust II, PowerShares India Exchange- Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, Van Kampen Asset Management, Van Kampen Investor Services Inc., and Van Kampen Funds Inc. Formerly: Anti-Money Laundering Compliance Officer, Fund Management Company, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.		N/A	N/A

T-3

Trustees and Officers - (continued)

	Trustee	Principal Occupation(s)	Number of		Other
Name, Year of Birth and	and/or	During Past 5 Years	Funds in		Directorship(s)
Position(s) Held with the	Officer		Fund Complex		Held by
Trust	Since		Overseen by		Trustee
			Trustee
Other Officers
Todd L. Spillane — 1958 Chief Compliance Officer	2006	Senior Vice President, Invesco Management Group, Inc. (formerly known as Invesco Aim Management Group, Inc.), Van Kampen Investments Inc. and Van Kampen Exchange Corp.; Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. (registered investment adviser) (formerly known as Invesco Institutional (N.A.), Inc.); Chief Compliance Officer, The Invesco Funds, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange- Traded Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust, INVESCO Private Capital Investments, Inc. (holding company), and Invesco Private Capital, Inc. (registered investment adviser); Vice President, Invesco Distributors, Inc. (formerly known as Invesco Aim Distributors, Inc.), Invesco Investment Services, Inc. (formerly known as Invesco Aim Investment Services, Inc.) and Van Kampen Investor Services Inc. Formerly: Senior Vice President and Chief Compliance Officer, Invesco Advisers, Inc. and Invesco Aim Capital Management, Inc.; Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. and Invesco Senior Secured Management, Inc. (registered investment adviser); Vice President, Invesco Aim Capital Management, Inc. and Fund Management Company		N/A	N/A

The Statement of Additional Information of the Trust includes additional information about the Fund’s Trustees and is available upon request, without charge, by calling 1.800.959.4246. Please refer to the Fund’s prospectus for information on the Fund’s sub-advisers.

Office of the Fund	Investment Adviser	Distributor	Auditors
11 Greenway Plaza, Suite 2500	Invesco Advisers, Inc.	Invesco Distributors, Inc.	PricewaterhouseCoopers LLP
Houston, TX 77046-1173	1555 Peachtree Street, N.E.	11 Greenway Plaza, Suite 2500	1201 Louisiana Street, Suite 2900
	Atlanta, GA 30309	Houston, TX 77046-1173	Houston, TX 77002-5678
Counsel to the Fund	Counsel to the Independent Trustees	Transfer Agent	Custodian
Stradley Ronon Stevens & Young, LLP	Kramer, Levin, Naftalis & Frankel LLP	Invesco Investment Services, Inc.	State Street Bank and Trust Company
2600 One Commerce Square	1177 Avenue of the Americas	11 Greenway Plaza, Suite 2500	225 Franklin
Philadelphia, PA 19103	New York, NY 10036-2714	Houston, TX 77046-1173	Boston, MA 02110-2801

T-4

Invesco mailing information

Send general correspondence to Invesco Investment Services, Inc., P.O. Box 219078, Kansas City, MO 64121-9078.

Invesco privacy policy

You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.

     Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.

     Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.

Important notice regarding delivery of security holder documents

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact Invesco Investment Services, Inc. at 800 959 4246 or contact your financial institution. We will begin sending you individual copies for each account within 30 days after receiving your request.

Fund holdings and proxy voting information

The Fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Fund’s semiannual and annual reports to shareholders. For the first and third quarters, the Fund files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. The most recent list of portfolio holdings is available at invesco.com/completeqtrholdings. Shareholders can also look up the Fund’s Forms N-Q on the SEC website at sec.gov. Copies of the Fund’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file numbers for the Fund are 811-07890 and 033-66242.

      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 period between June 1, 2010, and June 30, 2010, is available at invesco.com/proxysearch. In addition, this information is available on the SEC website, sec.gov. Proxy voting information for the predecessor fund prior to its reorganization with the Fund on June 1, 2010, is not available on the Invesco website but is or will be available on the SEC website under the predecessor fund.
     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 U.S. 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.

VK-NYTFI-AR-1 Invesco Distributors, Inc.

ITEM 2. CODE OF ETHICS.

As of the end of the period covered by this report, the Registrant had adopted a code of ethics (the “Code”) that applies to the Registrant’s principal executive officer (“PEO”) and principal financial officer (“PFO”). There were no amendments to the Code during the period covered by the report. The Registrant did not grant any waivers, including implicit waivers, from any provisions of the Code to the PEO or PFO during the period covered by this report.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The Board of Trustees has determined that the Registrant has at least one audit committee financial expert serving on its Audit Committee. The Audit Committee financial expert is Raymond Stickel, Jr. Mr. Stickel is “independent” within the meaning of that term as used in Form N-CSR.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

          Fees Billed by PWC Related to the Registrant

          PWC billed the Registrant aggregate fees for services rendered to the Registrant for the last two fiscal years as follows:

			Percentage of Fees
			Billed Applicable					Percentage of Fees
			to Non-Audit					Billed Applicable to
			Services Provided					Non-Audit Services
	Fees Billed for		for fiscal year end					Provided for fiscal
	Services Rendered		2011 Pursuant to			Fees Billed for		year end 2010
	to the Registrant		Waiver of Pre-			Services Rendered		Pursuant to Waiver
	for fiscal year end		Approval			to the Registrant for		of Pre-Approval
	2011		Requirement(1)			fiscal year end 2010		Requirement(1)
Audit Fees	$	148,035		N/A		$	92,772		N/A
Audit-Related Fees	$	0		0	%	$	0		0	%
Tax Fees(2)	$	21,500		0	%	$	14,909		0	%
All Other Fees	$	0		0	%	$	0		0	%
Total Fees	$	169,535		0	%	$	107,681		0	%

PWC billed the Registrant aggregate non-audit fees of $21,500 for the fiscal year ended 2011, and $14,909 for the fiscal year ended 2010, for non-audit services rendered to the Registrant.

(1)

With respect to the provision of non-audit services, the pre-approval requirement is waived pursuant to a de minimis exception if (i) such services were not recognized as non-audit services by the Registrant at the time of engagement, (ii) the aggregate amount of all such services provided is no more than 5% of the aggregate audit and non-audit fees paid by the Registrant to PWC during a fiscal year; and (iii) such services are promptly brought to the attention of the Registrant’s Audit Committee and approved by the Registrant’s Audit Committee prior to the completion of the audit.

(2)

Tax fees for the fiscal year end 2011 includes fees billed for reviewing tax returns. Tax fees for the fiscal year end 2010 includes fees billed for reviewing tax returns and consultation services.

Fees Billed by PWC Related to Invesco and Invesco Affiliates

          PWC billed Invesco Advisers, Inc. (“Invesco”), the Registrant’s adviser, and any entity controlling, controlled by or under common control with Invesco that provides ongoing services to the Registrant (“Invesco Affiliates”) aggregate fees for pre-approved non-audit services rendered to Invesco and Invesco Affiliates for the last two fiscal years as follows:

	Fees Billed for Non-					Fees Billed for Non-
	Audit Services					Audit Services
	Rendered to Invesco		Percentage of Fees			Rendered to Invesco		Percentage of Fees
	and Invesco		Billed Applicable to			and Invesco		Billed Applicable to
	Affiliates for fiscal		Non-Audit Services			Affiliates for fiscal		Non-Audit Services
	year end 2011 That		Provided for fiscal			year end 2010 That		Provided for fiscal
	Were Required		year end 2011			Were Required		year end 2010
	to be Pre-Approved		Pursuant to Waiver			to be Pre-Approved		Pursuant to Waiver
	by the Registrant’s		of Pre-Approval			by the Registrant’s		of Pre-Approval
	Audit Committee		Requirement(1)			Audit Committee		Requirement(1)
Audit-Related Fees	$	0		0	%	$	0		0	%
Tax Fees	$	0		0	%	$	0		0	%
All Other Fees	$	0		0	%	$	0		0	%
Total Fees(2)	$	0		0	%	$	0		0	%

(1)	With respect to the provision of non-audit services, the pre-approval requirement is waived pursuant to a de minimis exception if (i) such services were not recognized as non-audit services by the Registrant at the time of engagement, (ii) the aggregate amount of all such services provided is no more than 5% of the aggregate audit and non-audit fees paid by the Registrant, Invesco and Invesco Affiliates to PWC during a fiscal year; and (iii) such services are promptly brought to the attention of the Registrant’s Audit Committee and approved by the Registrant’s Audit Committee prior to the completion of the audit.
(2)	Including the fees for services not required to be pre-approved by the registrant’s audit committee, PWC billed Invesco and Invesco Affiliates aggregate non-audit fees of $0 for the fiscal year ended 2011, and $0 for the fiscal year ended 2010, for non-audit services rendered to Invesco and Invesco Affiliates.
	The Audit Committee also has considered whether the provision of non-audit services that were rendered to Invesco and Invesco Affiliates that were not required to be pre-approved pursuant to SEC regulations, if any, is compatible with maintaining PWC’s independence. To the extent that such services were provided, the Audit Committee determined that the provision of such services is compatible with PWC maintaining independence with respect to the Registrant.

PRE-APPROVAL OF AUDIT AND NON-AUDIT SERVICES
POLICIES AND PROCEDURES
As adopted by the Audit Committees of
the Invesco Funds (the “Funds”)
Last Amended May 4, 2010

Statement of Principles

Under the Sarbanes-Oxley Act of 2002 and rules adopted by the Securities and Exchange Commission (“SEC”) (“Rules”), the Audit Committees of the Funds’ (the “Audit Committees”) Board of Trustees (the “Board”) are responsible for the appointment, compensation and oversight of the work of independent accountants (an “Auditor”). As part of this responsibility and to assure that the Auditor’s independence is not impaired, the Audit Committees pre-approve the audit and non-audit services provided to the Funds by each Auditor, as well as all non-audit services provided by the Auditor to the Funds’ investment adviser and to affiliates of the adviser that provide ongoing services to the Funds (“Service Affiliates”) if the services directly impact the Funds’ operations or financial reporting. The SEC Rules also specify the types of services that an Auditor may not provide to its audit client. The following policies and procedures comply with the requirements for pre-approval and provide a mechanism by which management of the Funds may request and secure pre-approval of audit and non-audit services in an orderly manner with minimal disruption to normal business operations.

Proposed services either may be pre-approved without consideration of specific case-by-case services by the Audit Committees (“general pre-approval”) or require the specific pre-approval of the Audit Committees (“specific pre-approval”). As set forth in these policies and procedures, unless a type of service has received general pre-approval, it will require specific pre-approval by the Audit Committees. Additionally, any fees exceeding 110% of estimated pre-approved fee levels provided at the time the service was pre-approved will also require specific approval by the Audit Committees before payment is made. The Audit Committees will also consider the impact of additional fees on the Auditor’s independence when determining whether to approve any additional fees for previously pre-approved services.

The Audit Committees will annually review and generally pre-approve the services that may be provided by each Auditor without obtaining specific pre-approval from the Audit Committee generally on an annual basis. The term of any general pre-approval runs from the date of such pre-approval through September 30^th of the following year, unless the Audit Committees consider a different period and state otherwise. The Audit Committees will add to or subtract from the list of general pre-approved services from time to time, based on subsequent determinations.

The purpose of these policies and procedures is to set forth the guidelines to assist the Audit Committees in fulfilling their responsibilities.

Delegation

The Audit Committees may from time to time delegate pre-approval authority to one or more of its members who are Independent Trustees. All decisions to pre-approve a service by a delegated member shall be reported to the Audit Committees at the next quarterly meeting.

Audit Services

The annual audit services engagement terms will be subject to specific pre-approval of the Audit Committees. Audit services include the annual financial statement audit and other procedures such as tax provision work that is required to be performed by the independent auditor to be able to form an opinion on the Funds’ financial statements. The Audit Committees will obtain, review and consider sufficient information concerning the proposed Auditor to make a reasonable evaluation of the Auditor’s qualifications and independence.

In addition to the annual Audit services engagement, the Audit Committees may grant either general or specific pre-approval of other audit services, which are those services that only the independent auditor reasonably can provide. Other Audit services may include services such as issuing consents for the

inclusion of audited financial statements with SEC registration statements, periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings.

Non-Audit Services

The Audit Committees may provide either general or specific pre-approval of any non-audit services to the Funds and its Service Affiliates if the Audit Committees believe that the provision of the service will not impair the independence of the Auditor, is consistent with the SEC’s Rules on auditor independence, and otherwise conforms to the Audit Committees’ general principles and policies as set forth herein.

Audit-Related Services

“Audit-related services” are assurance and related services that are reasonably related to the performance of the audit or review of the Fund’s financial statements or that are traditionally performed by the independent auditor. Audit-related services include, among others, accounting consultations related to accounting, financial reporting or disclosure matters not classified as “Audit services”; assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities; and agreed-upon procedures related to mergers, compliance with ratings agency requirements and interfund lending activities.

Tax Services

“Tax services” include, but are not limited to, the review and signing of the Funds’ federal tax returns, the review of required distributions by the Funds and consultations regarding tax matters such as the tax treatment of new investments or the impact of new regulations. The Audit Committees will scrutinize carefully the retention of the Auditor in connection with a transaction initially recommended by the Auditor, the major business purpose of which may be tax avoidance or the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committees will consult with the Funds’ Treasurer (or his or her designee) and may consult with outside counsel or advisors as necessary to ensure the consistency of Tax services rendered by the Auditor with the foregoing policy.

No Auditor shall represent any Fund or any Service Affiliate before a tax court, district court or federal court of claims.

Under rules adopted by the Public Company Accounting Oversight Board and approved by the SEC, in connection with seeking Audit Committees’ pre-approval of permissible Tax services, the Auditor shall:

1. Describe in writing to the Audit Committees, which writing may be in the form of the proposed engagement letter:

a.	The scope of the service, the fee structure for the engagement, and any side letter or amendment to the engagement letter, or any other agreement between the Auditor and the Fund, relating to the service; and
b.	Any compensation arrangement or other agreement, such as a referral agreement, a referral fee or fee-sharing arrangement, between the Auditor and any person (other than the Fund) with respect to the promoting, marketing, or recommending of a transaction covered by the service;

2.	Discuss with the Audit Committees the potential effects of the services on the independence of the Auditor; and
3.	Document the substance of its discussion with the Audit Committees.

All Other Auditor Services

The Audit Committees may pre-approve non-audit services classified as “All other services” that are not categorically prohibited by the SEC, as listed in Exhibit 1 to this policy.

Pre-Approval Fee Levels or Established Amounts

Pre-approval of estimated fees or established amounts for services to be provided by the Auditor under general or specific pre-approval policies will be set periodically by the Audit Committees. Any proposed fees exceeding 110% of the maximum estimated pre-approved fees or established amounts for pre-approved audit and non-audit services will be reported to the Audit Committees at the quarterly Audit Committees meeting and will require specific approval by the Audit Committees before payment is made. The Audit Committees will always factor in the overall relationship of fees for audit and non-audit services in determining whether to pre-approve any such services and in determining whether to approve any additional fees exceeding 110% of the maximum pre-approved fees or established amounts for previously pre-approved services.

Procedures

Generally on an annual basis, Invesco Advisers, Inc. (“Invesco”) will submit to the Audit Committees for general pre-approval, a list of non-audit services that the Funds or Service Affiliates of the Funds may request from the Auditor. The list will describe the non-audit services in reasonable detail and will include an estimated range of fees and such other information as the Audit Committee may request.

Each request for services to be provided by the Auditor under the general pre-approval of the Audit Committees will be submitted to the Funds’ Treasurer (or his or her designee) and must include a detailed description of the services to be rendered. The Treasurer or his or her designee will ensure that such services are included within the list of services that have received the general pre-approval of the Audit Committees. The Audit Committees will be informed at the next quarterly scheduled Audit Committees meeting of any such services for which the Auditor rendered an invoice and whether such services and fees had been pre-approved and if so, by what means.

Each request to provide services that require specific approval by the Audit Committees shall be submitted to the Audit Committees jointly by the Fund’s Treasurer or his or her designee and the Auditor, and must include a joint statement that, in their view, such request is consistent with the policies and procedures and the SEC Rules.

Each request to provide tax services under either the general or specific pre-approval of the Audit Committees will describe in writing: (i) the scope of the service, the fee structure for the engagement, and any side letter or amendment to the engagement letter, or any other agreement between the Auditor and the audit client, relating to the service; and (ii) any compensation arrangement or other agreement between the Auditor and any person (other than the audit client) with respect to the promoting, marketing, or recommending of a transaction covered by the service. The Auditor will discuss with the Audit Committees the potential effects of the services on the Auditor’s independence and will document the substance of the discussion.

Non-audit services pursuant to the de minimis exception provided by the SEC Rules will be promptly brought to the attention of the Audit Committees for approval, including documentation that each of the conditions for this exception, as set forth in the SEC Rules, has been satisfied.

On at least an annual basis, the Auditor will prepare a summary of all the services provided to any entity in the investment company complex as defined in section 2-01(f)(14) of Regulation S-X in sufficient detail as to the nature of the engagement and the fees associated with those services.

The Audit Committees have designated the Funds’ Treasurer to monitor the performance of all services provided by the Auditor and to ensure such services are in compliance with these policies and procedures. The Funds’ Treasurer will report to the Audit Committees on a periodic basis as to the results of such monitoring. Both the Funds’ Treasurer and management of Invesco will immediately report to the chairman of the Audit Committees any breach of these policies and procedures that comes to the attention of the Funds’ Treasurer or senior management of Invesco.

Exhibit 1 to Pre-Approval of Audit and Non-Audit Services Policies and Procedures

Conditionally Prohibited Non-Audit Services (not prohibited if the Fund can reasonably conclude that the results of the service would not be subject to audit procedures in connection with the audit of the Fund’s financial statements)

• Bookkeeping or other services related to the accounting records or financial statements of the audit client

• Financial information systems design and implementation

• Appraisal or valuation services, fairness opinions, or contribution-in-kind reports

• Actuarial services

• Internal audit outsourcing services

Categorically Prohibited Non-Audit Services

• Management functions

• Human resources

• Broker-dealer, investment adviser, or investment banking services

• Legal services

• Expert services unrelated to the audit

• Any service or product provided for a contingent fee or a commission

• Services related to marketing, planning, or opining in favor of the tax treatment of confidential transactions or aggressive tax position transactions, a significant purpose of which is tax avoidance

• Tax services for persons in financial reporting oversight roles at the Fund

• Any other service that the Public Company Oversight Board determines by regulation is impermissible.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. SCHEDULE OF INVESTMENTS.

Investments in securities of unaffiliated issuers is included as part of the reports to stockholders filed under Item 1 of this Form.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT COMPANIES.

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None

ITEM 11. CONTROLS AND PROCEDURES.

(a) As of March 21, 2011, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the PEO and PFO, to assess the effectiveness of the Registrant’s disclosure controls and procedures, as that term is

defined in Rule 30a-3(c) under the 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 March 21, 2011, 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 this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS.

12(a) (1)	Code of Ethics.
12(a) (2)	Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.
12(a) (3)	Not applicable.
12(b)	Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant: AIM Tax-Exempt Funds (Invesco Tax-Exempt Funds)

By:	/s/ PHILIP A. TAYLOR
	Philip A. Taylor
	Principal Executive Officer
Date:	May 9, 2011

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/ PHILIP A. TAYLOR
	Philip A. Taylor
	Principal Executive Officer
Date:	May 9, 2011
By:	/s/ Sheri Morris
	Sheri Morris
	Principal Financial Officer
Date:	May 9, 2011

EXHIBIT INDEX

12(a) (1)	Code of Ethics.
12(a) (2)	Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.
12(a) (3)	Not applicable.
12(b)	Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940.