N-Q - AEF

invesco.com/us

CHT-QTR-1 07/15

Invesco Advisers, Inc.

N-Q 1 d10680dnq.htm N-Q - AEF N-Q - AEF

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY


Investment Company Act file number		811-01424

AIM Equity Funds (Invesco Equity Funds)

(Exact name of registrant as specified in charter)

11 Greenway Plaza, Suite 1000 Houston, Texas 77046

(Address of principal executive offices) (Zip code)

Philip A. Taylor 11 Greenway Plaza, Suite 1000 Houston, Texas 77046

(Name and address of agent for service)

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

Date of fiscal year end: 10/31

Date of reporting period: 7/31/15

Item 1. Schedule of Investments.

Invesco Charter Fund

Quarterly Schedule of Portfolio Holdings

July 31, 2015

Schedule of Investments^(a)

July 31, 2015

(Unaudited)


	Shares		Value

Common Stocks & Other Equity Interests–94.83%

Advertising–1.30%

Publicis Groupe S.A. (France)		871,895	$	66,011,090

Aerospace & Defense–0.74%

Precision Castparts Corp.		192,336		37,490,133

Apparel, Accessories & Luxury Goods–2.49%

LVMH Moet Hennessy Louis Vuitton S.E. (France)		359,197		67,336,054
PVH Corp.		512,982		59,526,431
				126,862,485

Asset Management & Custody Banks–1.80%

Northern Trust Corp.		1,199,955		91,784,558

Auto Parts & Equipment–1.16%

Johnson Controls, Inc.		1,295,872		59,039,928

Biotechnology–2.20%

Celgene Corp. ^(b)		854,424		112,143,150

Brewers–0.76%

Molson Coors Brewing Co. -Class B		544,529		38,737,793

Cable & Satellite–1.53%

Comcast Corp. -Class A		1,250,008		78,012,999

Casinos & Gaming–1.04%

Las Vegas Sands Corp.		944,881		52,951,131

Communications Equipment–5.29%

Cisco Systems, Inc.		2,706,213		76,910,573
F5 Networks, Inc. ^(b)		593,842		79,657,966
QUALCOMM, Inc.		1,747,203		112,502,401
				269,070,940

Consumer Finance–2.86%

American Express Co.		1,912,875		145,493,272

Department Stores–1.28%

Macy’s, Inc.		945,563		65,300,581

Distillers & Vintners–1.10%

Diageo PLC (United Kingdom)		2,002,419		56,171,187

Diversified Banks–3.25%

Svenska Handelsbanken AB -Class A (Sweden)		4,468,230		68,243,172
U.S. Bancorp		2,145,476		96,996,970
				165,240,142

Electric Utilities–1.01%

Duke Energy Corp.		689,344		51,163,112


	Shares		Value

Electrical Components & Equipment–1.56%

Eaton Corp. PLC		1,309,092	$	79,304,793

Electronic Manufacturing Services–2.07%

TE Connectivity Ltd. (Switzerland)		1,724,659		105,066,226

Health Care Facilities–1.77%

HCA Holdings, Inc. ^(b)		968,457		90,076,186

Health Care Services–1.93%

Express Scripts Holding Co. ^(b)		1,087,916		97,988,594

Heavy Electrical Equipment–1.63%

ABB Ltd. (Switzerland)		4,092,888		83,171,213

Home Improvement Retail–1.06%

Lowe’s Cos., Inc.		778,085		53,967,976

Hypermarkets & Super Centers–0.77%

Wal-Mart Stores, Inc.		546,055		39,305,039

Industrial Conglomerates–1.77%

General Electric Co.		3,456,128		90,204,941

Industrial Machinery–4.28%

FANUC Corp. (Japan)		121,200		20,276,891
Illinois Tool Works Inc.		528,458		47,281,137
Sandvik AB (Sweden)		5,704,545		57,656,396
Stanley Black & Decker Inc.		875,884		92,397,003
				217,611,427

Insurance Brokers–2.16%

Marsh & McLennan Cos., Inc.		1,897,084		109,917,047

Internet Software & Services–0.98%

Google Inc. -Class C ^(b)		79,678		49,847,354

Investment Banking & Brokerage–1.75%

Charles Schwab Corp. (The)		2,545,828		88,798,481

IT Consulting & Other Services–1.96%

International Business Machines Corp.		615,275		99,668,397

Life Sciences Tools & Services–1.23%

Thermo Fisher Scientific, Inc.		446,911		62,357,492

Movies & Entertainment–1.40%

Twenty-First Century Fox, Inc. -Class A		2,072,066		71,465,556

Multi-Sector Holdings–2.23%

Berkshire Hathaway Inc. -Class A ^(b)		529		113,206,000

Oil & Gas Equipment & Services–1.10%

Halliburton Co.		1,343,444		56,142,525

See accompanying notes which are an integral part of this schedule.

Invesco Charter Fund


	Shares		Value

Oil & Gas Exploration & Production–4.32%

Anadarko Petroleum Corp.		410,604	$	30,528,407
Cabot Oil & Gas Corp.		2,127,963		55,667,512
Concho Resources Inc. ^(b)		582,687		62,091,127
EOG Resources, Inc.		928,025		71,634,250
				219,921,296

Packaged Foods & Meats–1.26%

Danone (France)		942,380		63,844,321

Pharmaceuticals–14.73%

AbbVie Inc.		1,885,721		132,019,327
Allergan PLC ^(b)		303,568		100,526,543
Eli Lilly and Co.		1,109,551		93,768,155
Merck & Co., Inc.		1,376,792		81,175,657
Mylan N.V. ^(b)		387,589		21,701,108
Roche Holding AG (Switzerland)		371,024		107,197,514
Shire PLC -ADR (Ireland)		363,353		96,946,214
Teva Pharmaceutical Industries Ltd. -ADR (Israel)		1,685,047		116,301,944
				749,636,462

Property & Casualty Insurance–4.90%

Allstate Corp. (The)		1,005,549		69,332,604
Progressive Corp. (The)		5,898,001		179,889,030
				249,221,634

Semiconductor Equipment–1.22%

Applied Materials, Inc.		3,563,013		61,853,906

Semiconductors–4.55%

Analog Devices, Inc.		2,237,690		130,524,458


	Shares		Value

Semiconductors–(continued)

Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)		23,007,019	$	100,721,106
				231,245,564

Systems Software–2.66%

Microsoft Corp.		1,604,663		74,937,762
Oracle Corp.		1,512,918		60,425,945
				135,363,707

Technology Hardware, Storage & Peripherals–2.21%

EMC Corp.		4,184,724		112,527,228

Wireless Telecommunication Services–1.52%

Vodafone Group PLC -ADR (United Kingdom)		2,046,454		77,315,032
Total Common Stocks & Other Equity Interests (Cost $3,580,622,840)				4,824,500,898

Money Market Funds–4.50%

Liquid Assets Portfolio –Institutional Class, 0.11% ^(c)		114,435,348		114,435,348
Premier Portfolio –Institutional Class, 0.07% ^(c)		114,435,348		114,435,348
Total Money Market Funds (Cost $228,870,696)				228,870,696
TOTAL INVESTMENTS–99.33% (Cost $3,809,493,536)				5,053,371,594
OTHER ASSETS LESS LIABILITIES–0.67%				34,185,723
NET ASSETS–100.00%			$	5,087,557,317

Investment Abbreviations:


ADR		— American Depositary Receipt

Notes to Schedule of Investments:

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

^(b)	Non-income producing security.

^(c)	The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of July 31, 2015.

See accompanying notes which are an integral part of this schedule.

Invesco Charter Fund

Notes to Quarterly Schedule of Portfolio Holdings

July 31, 2015

(Unaudited)

NOTE 1 — Significant Accounting Policies

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

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

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

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

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

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

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

Invesco Charter Fund

A.	Security Valuations – (continued)

changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

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

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

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

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

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

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.

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

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

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

The Fund may also enter into forward foreign currency contracts for the purchase or sale of a security denominated in a foreign currency in order to “lock in” the U.S. dollar price of that security, or the Fund may also enter into forward foreign currency contracts that do not provide for physical settlement of the two currencies, but instead are settled by a single cash payment calculated as the difference between the agreed upon exchange rate and the spot rate at settlement based upon an agreed

Invesco Charter Fund

E.	Forward Foreign Currency Contracts – (continued)

upon notional amount (non-deliverable forwards). The Fund will set aside liquid assets in an amount equal to daily mark-to-market obligation for forward foreign currency contracts.

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

NOTE 2 — Additional Valuation Information

Generally Accepted Accounting Principles (“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 July 31, 2015. 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 nine months ended July 31, 2015, there were transfers from Level 2 to Level 1 of $387,560,191, due to foreign fair value adjustments.


	Level 1		Level 2		Level 3		Total
Equity Securities	$	4,807,959,238	$	245,412,356	$	—	$	5,053,371,594

NOTE 3 — 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 nine months ended July 31, 2015 was $1,871,473,648 and $1,858,587,305, 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	$	1,318,172,314
Aggregate unrealized (depreciation) of investment securities		(80,094,706)
Net unrealized appreciation of investment securities	$	1,238,077,608
Cost of investments for tax purposes is $3,815,293,986.

Invesco Charter Fund

Invesco Diversified Dividend Fund

Quarterly Schedule of Portfolio Holdings

July 31, 2015

Schedule of Investments^(a)

July 31, 2015

(Unaudited)


	Shares		Value

Common Stocks & Other Equity Interests–90.68%

Aerospace & Defense–3.49%

General Dynamics Corp.		1,477,053	$	220,243,373
Raytheon Co.		1,637,862		178,674,365
				398,917,738

Air Freight & Logistics–0.77%

United Parcel Service, Inc. -Class B		854,248		87,440,825

Apparel Retail–0.91%

Guess?, Inc.		1,350,091		29,553,492
TJX Cos., Inc. (The)		1,059,081		73,945,035
				103,498,527

Apparel, Accessories & Luxury Goods–1.68%

Coach, Inc.		2,614,106		81,560,107
Columbia Sportswear Co.		1,543,060		110,390,513
				191,950,620

Asset Management & Custody Banks–2.11%

Federated Investors, Inc. -Class B		3,886,719		131,021,298
Legg Mason, Inc.		2,216,160		109,345,334
				240,366,632

Auto Parts & Equipment–0.78%

Johnson Controls, Inc.		1,954,417		89,043,239

Brewers–2.30%

Heineken N.V. (Netherlands)		3,329,714		262,331,078

Building Products–1.18%

Masco Corp.		5,124,864		135,245,161

Construction Machinery & Heavy Trucks–0.94%

Joy Global Inc.		4,053,723		107,058,824

Data Processing & Outsourced Services–0.90%

Automatic Data Processing, Inc.		1,288,355		102,772,078

Department Stores–1.04%

Marks & Spencer Group PLC (United Kingdom)		13,916,927		118,225,742

Drug Retail–2.34%

Walgreens Boots Alliance, Inc.		2,762,502		266,940,568

Electric Utilities–7.71%

American Electric Power Co., Inc.		2,283,990		129,205,314
Duke Energy Corp.		2,088,313		154,994,591
Entergy Corp.		1,014,147		72,024,720
Exelon Corp.		5,913,096		189,751,251
Pepco Holdings, Inc.		5,326,923		142,122,306
PPL Corp.		6,015,618		191,356,808
				879,454,990


	Shares		Value

Food Distributors–1.54%

Sysco Corp.		4,834,420	$	175,537,790

Gas Utilities–0.90%

AGL Resources Inc.		2,129,597		102,391,024

General Merchandise Stores–1.86%

Target Corp.		2,589,296		211,933,878

Health Care Equipment–1.27%

Stryker Corp.		1,414,917		144,703,562

Heavy Electrical Equipment–1.12%

ABB Ltd. (Switzerland)		6,278,407		127,582,950

Homebuilding–0.07%

TopBuild Corp. ^(b)		264,669		7,611,890

Hotels, Resorts & Cruise Lines–1.11%

Accor S.A. (France)		2,587,685		126,957,221

Household Products–2.91%

Kimberly-Clark Corp.		1,476,396		169,741,248
Procter & Gamble Co. (The)		2,113,524		162,107,291
				331,848,539

Housewares & Specialties–1.87%

Newell Rubbermaid Inc.		4,946,403		214,080,322

Industrial Machinery–0.67%

Pentair PLC (United Kingdom)		1,252,225		76,147,802

Integrated Oil & Gas–3.48%

Royal Dutch Shell PLC -Class B (United Kingdom)		4,515,379		131,187,871
Suncor Energy, Inc. (Canada)		3,164,894		89,126,047
TOTAL S.A. (France)		3,579,985		177,214,144
				397,528,062

Integrated Telecommunication Services–3.27%

AT&T Inc.		6,995,102		243,009,844

Deutsche Telekom AG (Germany)		7,193,355		129,950,763
				372,960,607

Investment Banking & Brokerage–1.28%

Charles Schwab Corp. (The)		4,193,110		146,255,677

Life & Health Insurance–2.37%

Lincoln National Corp.		1,380,006		77,721,938
StanCorp Financial Group, Inc.		1,689,665		192,655,603
				270,377,541

Motorcycle Manufacturers–0.28%

Harley-Davidson, Inc.		552,997		32,239,725

Movies & Entertainment–1.02%

Time Warner Inc.		1,321,304		116,327,604

See accompanying notes which are an integral part of this schedule.

Invesco Diversified Dividend Fund


	Shares		Value

Multi-Line Insurance–1.19%

Hartford Financial Services Group, Inc. (The)		2,852,039	$	135,614,454

Multi-Utilities–2.94%

Consolidated Edison, Inc.		2,616,360		166,374,333
Dominion Resources, Inc.		1,148,589		82,353,831
Sempra Energy		853,641		86,883,581
				335,611,745

Oil & Gas Drilling–0.88%

Nabors Industries Ltd.		8,677,097		100,741,096

Oil & Gas Equipment & Services–1.04%

Baker Hughes Inc.		2,043,058		118,803,823

Packaged Foods & Meats–10.10%

Campbell Soup Co.		6,145,889		303,053,787
General Mills, Inc.		6,741,173		392,403,680
Kraft Heinz Co. (The)		3,249,466		258,235,063
Mead Johnson Nutrition Co.		669,296		59,159,073
Mondelez International Inc. -Class A		3,091,600		139,523,908
				1,152,375,511

Paper Packaging–1.15%

Avery Dennison Corp.		1,152,098		70,105,163
Sonoco Products Co.		1,481,712		61,165,072
				131,270,235

Paper Products–0.47%

International Paper Co.		1,123,538		53,783,764

Personal Products–0.71%

L’Oreal S.A. (France)		434,590		81,302,389

Pharmaceuticals–4.51%

Bristol-Myers Squibb Co.		1,441,930		94,648,285
Eli Lilly and Co.		2,793,725		236,097,700
Johnson & Johnson		1,307,753		131,049,928
Novartis AG (Switzerland)		508,313		52,830,875
				514,626,788

Property & Casualty Insurance–0.79%

Travelers Cos., Inc. (The)		849,131		90,109,782

Regional Banks–6.39%

Cullen/Frost Bankers, Inc.		545,222		39,501,334
Fifth Third Bancorp		4,228,748		89,099,720
KeyCorp		13,290,624		197,232,860
M&T Bank Corp.		815,867		107,000,957
SunTrust Banks, Inc.		1,907,640		84,584,758
Zions Bancorp.		6,787,136		211,690,772
				729,110,401

Restaurants–1.77%

Darden Restaurants, Inc.		2,737,735		201,935,334

Semiconductors–1.04%

Linear Technology Corp.		2,200,517		90,221,197
Texas Instruments Inc.		566,461		28,311,721
				118,532,918


	Shares		Value

Soft Drinks–2.25%

Coca-Cola Co. (The)		6,252,155	$	256,838,527

Specialized REIT’s–0.49%

Weyerhaeuser Co.		1,829,808		56,156,808

Systems Software–0.36%

Microsoft Corp.		886,640		41,406,088

Thrifts & Mortgage Finance–1.32%

Hudson City Bancorp, Inc.		14,655,667		151,099,927

Tobacco–2.11%

Altria Group, Inc.		2,218,194		120,625,390
Philip Morris International Inc.		1,402,218		119,931,705
				240,557,095
Total Common Stocks & Other Equity Interests (Cost $7,239,267,527)				10,347,606,901

Money Market Funds–9.07%

Liquid Assets Portfolio –Institutional Class, 0.11% ^(c)		517,347,464		517,347,464
Premier Portfolio –Institutional Class, 0.07% ^(c)		517,347,463		517,347,463
Total Money Market Funds (Cost $1,034,694,927)				1,034,694,927
TOTAL INVESTMENTS–99.75% (Cost $8,273,962,454)				11,382,301,828
OTHER ASSETS LESS LIABILITIES–0.25%				28,412,258
NET ASSETS–100.00%			$	11,410,714,086

Investment Abbreviations:


REIT		—Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)	Non-income producing security.

^(c)	The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of July 31, 2015.

See accompanying notes which are an integral part of this schedule.

Invesco Diversified Dividend Fund

Notes to Quarterly Schedule of Portfolio Holdings

July 31, 2015

(Unaudited)

NOTE 1 — Significant Accounting Policies

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

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

Invesco Diversified Dividend Fund

A.	Security Valuations – (continued)

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

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

Invesco Diversified Dividend Fund

E.	Forward Foreign Currency Contracts – (continued)

NOTE 2 — Additional Valuation Information


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.

During the nine months ended July 31, 2015, there were transfers from Level 2 to Level 1 of $1,207,583,033, due to foreign fair value adjustments.


	Level 1		Level 2		Level 3		Total
Equity Securities	$	11,382,301,828	$	—	$	—	$	11,382,301,828
Forward Foreign Currency Contracts*		—		1,027,921		—		1,027,921
Total Investments	$	11,382,301,828	$	1,027,921	$	—	$	11,383,329,749

* Unrealized appreciation.

NOTE 3 — Derivative Investments

Open Forward Foreign Currency Contracts

Settlement Date

Contract to

Notional

Unrealized

Counterparty

Deliver

Receive

Value

Appreciation

09/18/15

Citigroup Global Markets Inc.

EUR

164,668,592

USD

181,477,962

180,969,082

508,880

09/18/15

Deutsche Bank Securities Inc.

EUR

172,994,558

USD

190,638,273

190,119,232

519,041

Total Forward Foreign Currency Contracts - Currency Risk

1,027,921

Currency Abbreviations:

EUR — Euro

USD — U.S. Dollar

Invesco Diversified Dividend Fund

NOTE 4 — 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 nine months ended July 31, 2015 was $1,053,109,152 and $911,039,826, 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	$	3,325,053,634
Aggregate unrealized (depreciation) of investment securities		(216,785,375	)
Net unrealized appreciation of investment securities	$	3,108,268,259
Cost of investments for tax purposes is $8,274,033,569.

Invesco Diversified Dividend Fund

Invesco Summit Fund

Quarterly Schedule of Portfolio Holdings

July 31, 2015

Schedule of Investments^(a)

July 31, 2015

(Unaudited)


	Shares		Value

Common Stocks & Other Equity Interests–99.52%

Advertising–0.93%

Interpublic Group of Cos., Inc. (The)		847,213	$	18,045,637

Aerospace & Defense–1.55%

B/E Aerospace, Inc.		184,612		8,992,450
Honeywell International Inc.		198,737		20,877,322
				29,869,772

Agricultural Products–0.74%

Archer-Daniels-Midland Co.		303,227		14,379,024

Airlines–0.69%

Delta Air Lines, Inc.		299,386		13,274,775

Application Software–3.04%

Autodesk, Inc. ^(b)		105,774		5,350,049
Monitise PLC (United Kingdom)^(b)(c)		29,724,950		2,335,993
salesforce.com, inc. ^(b)		695,420		50,974,286
				58,660,328

Automotive Retail–0.57%

Advance Auto Parts, Inc.		62,897		10,957,286

Biotechnology–11.99%

Alexion Pharmaceuticals, Inc. ^(b)		50,563		9,983,159
Alkermes PLC ^(b)		462,537		32,386,841
Amgen Inc.		112,609		19,885,623
Biogen Inc. ^(b)		108,401		34,556,071
Celgene Corp. ^(b)		432,461		56,760,506
Gilead Sciences, Inc.		487,708		57,481,265
Vertex Pharmaceuticals Inc. ^(b)		150,398		20,303,730
				231,357,195

Broadcasting–0.60%

CBS Corp. -Class B		216,854		11,595,183

Cable & Satellite–3.60%

Comcast Corp. -Class A		229,716		14,336,576
DISH Network Corp. -Class A ^(b)		468,662		30,280,252
Time Warner Cable Inc.		130,918		24,875,729
				69,492,557

Commodity Chemicals–0.18%

LyondellBasell Industries N.V. -Class A		37,486		3,517,311

Communications Equipment–1.51%

Cisco Systems, Inc.		651,958		18,528,646
Palo Alto Networks, Inc. ^(b)		56,740		10,543,994
				29,072,640

Computer & Electronics Retail–0.88%

GameStop Corp. -Class A ^(c)		368,693		16,904,574


	Shares		Value

Construction & Engineering–0.25%

Quanta Services, Inc. ^(b)		175,609	$	4,850,321

Construction Materials–0.32%

Vulcan Materials Co.		67,277		6,123,553

Consumer Electronics–1.94%

Harman International Industries, Inc.		131,717		14,180,652
Sony Corp. (Japan)		817,900		23,204,307
				37,384,959

Consumer Finance–0.51%

Capital One Financial Corp.		120,944		9,832,747

Data Processing & Outsourced Services–4.16%

MasterCard, Inc. -Class A		161,229		15,703,705
Visa Inc. -Class A		856,512		64,529,614
				80,233,319

Diversified Support Services–0.95%

Mobile Mini, Inc.		492,970		18,303,976

Drug Retail–1.25%

CVS Health Corp.		215,143		24,197,133

Electrical Components & Equipment–1.44%

AMETEK, Inc.		523,712		27,782,922

Environmental & Facilities Services–0.59%

Waste Connections, Inc.		226,882		11,373,595

Fertilizers & Agricultural Chemicals–1.05%

Monsanto Co.		198,787		20,254,407

Food Retail–1.99%

Kroger Co. (The)		980,788		38,486,121

General Merchandise Stores–0.15%

Dollar Tree, Inc. ^(b)		37,377		2,916,527

Health Care Equipment–1.24%

Boston Scientific Corp. ^(b)		814,327		14,120,430
Medtronic PLC		124,398		9,751,559
				23,871,989

Health Care Facilities–1.33%

HCA Holdings, Inc. ^(b)		276,233		25,692,431

Home Entertainment Software–0.61%

Electronic Arts Inc. ^(b)		164,078		11,739,781

Home Improvement Retail–2.13%

Lowe’s Cos., Inc.		591,573		41,031,503

Homebuilding–1.13%

Lennar Corp. -Class A		367,453		19,489,707

See accompanying notes which are an integral part of this schedule.

Invesco Summit Fund


	Shares		Value

Homebuilding–(continued)

Taylor Morrison Home Corp. -Class A ^(b)		118,894	$	2,288,710
				21,778,417

Hotels, Resorts & Cruise Lines–2.74%

Carnival Corp.		516,595		27,529,348
Norwegian Cruise Line Holdings Ltd. ^(b)		87,610		5,468,616
Royal Caribbean Cruises Ltd.		220,053		19,771,762
				52,769,726

Household Appliances–1.09%

Whirlpool Corp.		118,100		20,989,913

Industrial Conglomerates–0.59%

Danaher Corp.		123,672		11,323,408

Industrial Gases–0.41%

Praxair, Inc.		69,696		7,955,101

Integrated Telecommunication Services–1.05%

Koninklijke KPN N.V. (Netherlands)^(c)		5,112,154		20,211,003

Internet Retail–4.90%

Amazon.com, Inc. ^(b)		104,932		56,259,292
Netflix Inc. ^(b)		91,087		10,412,155
Priceline Group Inc. (The) ^(b)		22,356		27,801,251
				94,472,698

Internet Software & Services–9.72%

Alibaba Group Holding Ltd. -ADR (China)^(b)		199,647		15,640,346
Baidu, Inc. -ADR (China)^(b)		36,731		6,341,974
Facebook Inc. -Class A ^(b)		853,582		80,245,244
Google Inc. -Class A ^(b)		23,863		15,689,923
Google Inc. -Class C ^(b)		87,880		54,978,607
LinkedIn Corp. -Class A ^(b)		71,755		14,584,921
				187,481,015

Investment Banking & Brokerage–2.70%

Charles Schwab Corp. (The)		1,065,514		37,165,129
Lazard Ltd. -Class A		269,803		14,949,784
				52,114,913

Leisure Products–0.55%

Brunswick Corp.		199,411		10,586,730

Life Sciences Tools & Services–0.53%

Thermo Fisher Scientific, Inc.		73,618		10,271,920

Managed Health Care–0.66%

UnitedHealth Group Inc.		105,655		12,826,517

Oil & Gas Exploration & Production–2.26%

Cimarex Energy Co.		107,215		11,163,226
Devon Energy Corp.		353,428		17,466,412
Laredo Petroleum Inc. ^(b)(c)		133,165		1,141,224
Pioneer Natural Resources Co.		96,990		12,295,422
Whiting Petroleum Corp. ^(b)		78,450		1,607,441
				43,673,725


	Shares		Value

Packaged Foods & Meats–2.16%

Blue Buffalo Pet Products, Inc. ^(b)		172,762	$	4,826,970
Mead Johnson Nutrition Co.		69,005		6,099,352
Mondelez International Inc. -Class A		680,366		30,704,918
				41,631,240

Personal Products–0.57%

Estee Lauder Cos. Inc. (The) -Class A		124,490		11,093,304

Pharmaceuticals–4.10%

Allergan PLC ^(b)		186,112		61,630,989

Bristol-Myers Squibb Co.		264,713		17,375,761
				79,006,750

Regional Banks–0.79%

First Republic Bank		238,093		15,187,952

Restaurants–0.33%

Papa John’s International, Inc.		84,168		6,359,734

Semiconductors–4.52%

Avago Technologies Ltd. (Singapore)		160,827		20,125,891
NXP Semiconductors N.V. (Netherlands)^(b)		431,225		41,824,513
ON Semiconductor Corp. ^(b)		899,276		9,550,311
Skyworks Solutions, Inc.		165,082		15,793,395
				87,294,110

Soft Drinks–1.94%

Monster Beverage Corp. ^(b)		243,305		37,359,483

Specialized Finance–1.85%

Intercontinental Exchange, Inc.		56,963		12,989,843
McGraw Hill Financial, Inc.		222,296		22,618,618
				35,608,461

Systems Software–1.70%

ServiceNow, Inc. ^(b)		408,548		32,888,114

Technology Hardware, Storage & Peripherals–5.03%

Apple Inc.		799,863		97,023,382

Trucking–0.85%

Old Dominion Freight Line, Inc. ^(b)		223,000		16,312,450

Wireless Telecommunication Services–1.16%

SBA Communications Corp. -Class A ^(b)		91,962		11,101,653
Sprint Corp. ^(b)(c)		3,356,854		11,312,598
				22,414,251
Total Common Stocks & Other Equity Interests (Cost $1,293,840,629)				1,919,835,883

See accompanying notes which are an integral part of this schedule.

Invesco Summit Fund


	Shares		Value

Money Market Funds–1.23%

Liquid Assets Portfolio –Institutional Class, 0.11% ^(d)		11,824,575	$	11,824,575

Premier Portfolio –Institutional Class, 0.07% ^(d)		11,824,575		11,824,575
Total Money Market Funds (Cost $23,649,150)				23,649,150
TOTAL INVESTMENTS (excluding investments purchased with cash collateral from securities on loan)–100.75% (Cost $1,317,489,779)				1,943,485,033


	Shares		Value

Investments Purchased with Cash Collateral from Securities on Loan

Money Market Funds–1.90%

Liquid Assets Portfolio –Institutional Class, 0.11% (Cost $36,741,046)^(d)(e)		36,741,046	$	36,741,046
TOTAL INVESTMENTS–102.65% (Cost $1,354,230,825)				1,980,226,079
OTHER ASSETS LESS LIABILITIES–(2.65)%				(51,210,422	)
NET ASSETS–100.00%			$	1,929,015,657

Investment Abbreviations:


ADR		— American Depositary Receipt

Notes to Schedule of Investments:

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

^(b)	Non-income producing security.

^(c)	All or a portion of this security was out on loan at July 31, 2015.

^(d)	The money market fund and the Fund are affiliated by having the same investment adviser. The rate shown is the 7-day SEC standardized yield as of July 31, 2015.

^(e)

The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 1D. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of July 31, 2015.

Counterparty

Gross Amount

of Securities on
Loan at Value

Cash Collateral
Received for
Securities Loaned*

Net
Amount

Brown Brothers Harriman

$35,306,992

$(35,306,992)

$—

*Amount does not include excess collateral received.

See accompanying notes which are an integral part of this schedule.

Invesco Summit Fund

Notes to Quarterly Schedule of Portfolio Holdings

July 31, 2015

(Unaudited)

NOTE 1 — Significant Accounting Policies

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

Invesco Summit Fund

A.	Security Valuations – (continued)

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

Securities Lending – The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily by the securities lending provider. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any of its sponsored agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments or affiliated money market funds and is shown as such on the Schedule of Investments. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Dividends from affiliated money market funds on the Statement of Operations. The aggregate value of securities out on loan, if any, is shown as a footnote on the Statement of Assets and Liabilities.

Invesco Summit Fund

E.	Foreign Currency Translations – (continued)

exchange rates on investments and the fluctuations arising from changes in market prices of securities held. The combined results of changes in foreign exchange rates and the fluctuation of market prices on investments (net of estimated foreign tax withholding) are included with the net realized and unrealized gain or loss from investments in the Statement of Operations. Reported net realized foreign currency gains or losses arise from (1) sales of foreign currencies, (2) currency gains or losses realized between the trade and settlement dates on securities transactions, and (3) the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

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

NOTE 2 — Additional Valuation Information


Level 1	–	Prices are determined using quoted prices in an active market for identical assets.
Level 2	–	Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3	–	Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

Invesco Summit Fund


	Level 1		Level 2		Level 3		Total
Equity Securities	$	1,954,685,779	$	25,540,300	$	—	$	1,980,226,079

NOTE 3 — 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 nine months ended July 31, 2015 was $740,933,238 and $856,990,106, 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	$	690,916,662
Aggregate unrealized (depreciation) of investment securities		(66,165,894	)
Net unrealized appreciation of investment securities	$	624,750,768
Cost of investments for tax purposes is $1,355,475,311.

Invesco Summit Fund

Item 2.

Controls and Procedures.

(a)

As of August 13, 2015, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”), to assess the effectiveness of the Registrant’s disclosure controls and procedures, as that term is defined in Rule 30a-3(c) under the Investment Company Act of 1940 (“Act”), as amended. Based on that evaluation, the Registrant’s officers, including the PEO and PFO, concluded that, as of August 13, 2015, the Registrant’s disclosure controls and procedures were reasonably designed so as to ensure: (1) that information required to be disclosed by the Registrant on Form N-Q 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 Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 3.

Exhibits.

Certifications of PEO and PFO as required by Rule 30a-2(a) 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 Equity Funds (Invesco Equity Funds)


By:		/s/ Philip A. Taylor
		Philip A. Taylor
		Principal Executive Officer

Date:		September 29, 2015

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:		September 29, 2015

By:		/s/ Sheri Morris
		Sheri Morris
		Principal Financial Officer

Date:		September 29, 2015

EXHIBIT INDEX

Certifications of Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”) as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended.